Art Collectors' Field Guide - Fall 2022
The Art Partners in collaboration with Fuelarts (the first dedicated accelerator that uncovers the potential of startups in the field of Art Tech) have released a guide with recommendations on building contemporary art collections in an economically turbulent and politically challenging climate. This Guide has focused on the most significant challenges that art collectors are and will be facing in H2 2022. It aims to equip collectors with all the necessary data and insights, providing a clear picture of the state of today’s art market.
You can download your copy of the guide by clicking on the link below
More about the guide:
Along with analytical data, the guide includes interviews with key industry leaders, including Abraham Post - a collector, investor, and founder of Visual Capital, Auronda Scalera and Alfredo Cramerotti - the founders of XXNFT, an art curating, collection management & publishing enterprise.
With the help of deep historical analysis and interpretation, this guide explores crises, epidemics and international conflicts from an art market perspective. It answers the question of how to build a digital art collection during a bear market (when a market is experiencing a prolonged drop in investment prices). The authors of this guide offer do’s and don’ts in art collecting today for both physical and digital art, trying to unite and build communication between these two groups of collectors. Furthermore, the guide’s forecast on the future of art collecting will also be helpful for art market professionals.
The Guide was developed by:
Key findings from the guide:
Art is a vessel that will carry your capital through times of crisis. However, it is vital to fill it in at the right time and in the right way.
There was an outflow of capital from the Art market during previous recessions that affected sales amounts - on average, they decreased by 20% from their pre-crisis peaks (data based on economic crises from 1875 to 2020)
The art market also showed negative price dynamics: the average cost of the works of all artists on sale during the recession decreased by an average of 0.7%.
After a period of recession, the recovery of the overall world economy was followed by an equally impressive increase of the art market indicators — in 90% of cases better than pre-crisis sales.
In other words, the Art market does not collapse during a period of economic crisis — the purchasing power of the majority of players decreases.
Lots sold in the price range between $100,000-$1,000,000 become leaders in terms of stability in the market during the time of economic downturns.
Auction houses operate as art market regulators. They significantly reduce the number of lots offered for sale during the second year of the economic downturn with an average estimate exceeding $10,000,000. Therefore, the amount of sales decreases, but the percentage of lots sold stays around the same in comparison to pre-crisis values.
Collectors of physical art should constantly gather information during an economic downturn. Prices for some artworks might significantly fall during the recession. This is especially true for the market of contemporary art. Art dealers and galleries constantly monitor this market.
Collectors, who buy digital art (including NFTs), invest not only in the artists, but also curators, and art historians. Overall, this contributes to further development of this field. In such cases, the terms Strategic Investment, or Investment in the future of the market are very applicable.
When we face the bear market, it is vitally important to not only unite the digital and offline art worlds but to recognise that the world of art and the art market are united. Together we can overcome the consequences of the current recession and move towards further innovation.
You can watch the presentation of the guide hosted by Maria Korolevskaya and Denis Belkevich and moderated by Anna Shvets below: