Should You Invest In Art Trends?
Should You Invest In Art Trends? In recent years, the world of investment has seen …
Should You Invest In Art Trends?
In recent years, the world of investment has seen the rise in global popularity of a certain asset… You guessed it – art.
When did artworks became universally accepted as a viable and valuable asset in the financial world? It is difficult to trace this precise moment. Yet the first hints of its popularity can be found perhaps from the mid-2010s. This is also the era where technology and the digital began to infiltrate the Art World and its Market. Seeing a higher use of digital mediums to create individual artworks, in auctions, sales, and exhibitions.
It would seem that the potential for artworks to be transacted as a financial asset will only increase. As the advancement of technology and their further incorporation into artistic production increases.
This being said, should you invest in art trends? Do its benefits differ for an artist and a collector?
Does Following Trends Accelerate An Artist’s Career?
In a previous article, we have talked about how art trends came to be popular and dominant in the Art World and its Market, discussing the various factors that play into the proliferation of particular trends.
Naturally, not all trends cater to every single artist inhabiting the Art World. To some, a trend can be as appealing as a dirty sock. To others, the same trend can be the missing piece they have been searching for to complete their artistic vision.
So, when you, as an artist, encounter a trend in the Art World and its Market. Should you invest in this trend by creating art in a similar way?
Here is a list of pros and cons that can help you decide whether you should invest in art trends.
1. Quick Sales
You can invest in art trends by producing a similar type of artwork. Do this while the trend is still dominant in the Art World and its Market will very likely be profitable. It will allow you to earn a significant amount from sales. As demand for artworks of a particular trend rises, your contribution to its supply to collectors, buyers, and dealers alike will likely increase the value of all artworks related to the trend, including your own.
Being connected to a gallery will help push this process forward, as their curatorial team may be interested in putting together an exhibition of artworks related to a particular trend that you can participate in, and in the end, benefit from the sales of your work.
Of course, as galleries and institutions are no longer the absolute requirements for artists to advance their careers, you can also use social media platforms to push for the sales of your artwork whilst it is still trending.
2. Raising Visibility
One of the quickest ways for your profile as an artist to be recognised and established internationally is by contributing to an art trend.
Various collectors, dealers, and buyers are likely to keep an eye on artists that are known for a specific trend when it is popular and relevant in the Art World and its Market. Building yourself up as one of the key producers of an art trend creates an opportunity for you to be exposed to the most prestigious people in the Art World and its Market.
3. This Could Be Your Big Break
Investing in art trends as an artist can be your big break from the art scene.
Whether you are an emerging artist, or someone struggling to find the correct audience for your work, investing in art trends once in a while can be beneficial to your career in the long run.
By making yourself known to the Art World and its Market as one of the top artists for a specific art trend might just be the push your career needed to take off to unimaginable heights.
4. Develop Your Practice
By creating artworks according to a theme and perhaps restrictions of a medium, depending on the art trend, you can also pose a challenge to yourself. You may find a change in creative perspective by investing in art trends that will be able to reinvigorate your artistic practice in the future.
1. You Might Not Like The Trend
This is an obvious downside to investing in art trends. Despite the benefits and productive effects following an art trend might offer you as an artist, it all depends on whether the trend speaks to your artistic vision or not.
Every artist out there will know that there is no point in creating what you hate, intentionally. And we agree with them. Your career as an artist should be equally oriented to provide you with the joys of creating art as much as it is oriented to making a profit. However, if you are completely certain that investment in art trends will be a potential stepping-stone for your career, or if you are in urgent need to make some quick profit, investing in art trends will likely be your best bet.
2. Audience Disapproval
Art is subjective. It is hard to judge whether an artwork will appear the same in others’ eyes as it does in your own. Whilst this applies universally to all artworks, it is particularly detrimental when it comes to investing in art trends as an artist.
If the artwork you produced according to the art trend does not appeal to the lovers and followers of the trend, then you may be in big trouble. Potential good press and advertisement for your artistic profile would become judgements placed on your abilities as an artist, judgements that can stain a career for years to come. As ironic as these comments may be, you will find yourself being criticised for easily following trends, for a lack of originality and artistic integrity. This is one serious risk of investing in art trends that not every artist can afford to take.
3. The Oddball
The artwork you ended up producing may not fit in with your artistic oeuvre.
As mentioned before, art trends can’t cater to every single artist in the Art World. You may find the final product of investing in an art trend to be an oddball when placed alongside the rest of your work.
Of course, this can seem like a minor issue and may have little to no impact on your career going forward. Indeed, more and more collectors and buyers are interested in artists with a more diverse and varied oeuvre than ever before, meaning the oddball you have created for a trend might do more good than harm.
However, subjectivity once again plays a huge part in this outcome, and it is up to the rest of the Art World to judge whether or not this oddball will be the downfall of your career or not.
Trends are consumer-driven, unlikely set with the artist in mind. This is becoming increasingly the case in recent years with the popularisation of NFTs as artistic collectibles. As the Art Market becomes more and more diverse and inclusive, you may find your artistic freedom being restrained for the benefit of the consumer – especially those artists that are working for a living.
It goes without saying that the Art World and its Market are better off being more inclusive and diverse in all ways imaginable, however, you should take into account the new demographic of art consumers arriving on the scene before you decide to invest in an art trend. Sometimes it might be best to do your own thing and create unique artworks that you love.
The benefits and downsides to investing in art trends for artists will vary from one artist to another, based on the nature, aims, style, medium, and content of their practice and that of the art trend. But we hope the list we have offered will be able to help you decide on the next move in your career.
Is Buying Into Trends Profitable and Wise In The Long Run?
As a collector or buyer of great art, you might find the recent developments in the Art World and its Market tempting to invest in. With the rise and popularisation of digital art and collectibles, as well as the emergence of digital currency into the Art World and its Market, it would appear that art makes for a good investment after all.
We have compiled another list of pros and cons specifically for art collectors and enthusiasts based on the profitability of art as a financial asset:
1. Quick Profit
By investing in art trends as an art collector, you have the potential to make some profit from your asset relatively easily compared to other financial assets.
Once you acquire an artwork currently in vogue, you are likely to find yourself targeted by other collectors, dealers, and buyers who are eager to possess the artwork themselves as well. If you are in need of money, investing in art trends can be a good option for you, as trending artworks have a quicker turnaround than other artworks as assets.
2. Revamp Your Collection
One of the unlikely benefits of investing in an art trend is the opportunity for you to revamp your collection with something new and exciting, perhaps even a little out of place with the rest of the works in your collection.
If you find yourself intrigued by the artworks of a trend, but are hesitant in investing because they are not entirely similar to what you are used to collecting before, don’t be afraid to pry deeper into the trend. Once you have familiarised yourself with the artworks of the trend, you will have a clearer idea of whether you truly have taken a liking to a trending artwork or not. If the answer is yes, invest in art trends might turn out to be a productive starting point towards diversifying your collection into something more complicated and intriguing than before.
3. Stability of Investment
The values in the Art Market are not as volatile and unpredictable as those found in other financial markets. The value of an artwork depends on a variety of factors that cannot be changed so easily compared to value-determining factors of capital.
For example, if the global economy sees a decline, the value of your artwork as a financial asset can remain unchanged throughout economic decline, as artistic appreciation and valuation, simply put what people like or don’t like, do not depend entirely on external economic factors. In this sense, art assets may be the safest investments out there.
This means it is unlikely for artworks produced according to a trend to entirely reduce in value after the period of popularity has passed them by. At the end of the day, it is still a piece of artwork, something that speaks to the soul and the human condition. And this alone is the basis of value for every artwork.
4. New & Emerging Artists
If you are thinking to invest in art trends, it may be best to invest in the art of new and emerging artists. As they are at the beginning of their career, they are likely to have the most room to grow and flourish compared to other, more experienced artists.
That being said, this may not always be the case. You can argue that new and emerging artists are less secure in the Art World and its Market than their more established colleagues, therefore their artwork and its value are more prone to devaluation than most. It is also true that tradition in the Art World has always had a hold on collectors’, buyers’, and dealers’ hearts. One needs only to look at the incredible values that old master works are still being sold and auctioned today.
Nevertheless, investing in an emerging artist whose work appeals to your eye during the period of trend has the potential for their artwork to grow in value, which can result in significant profit in the future.
Like any other trends, art trends are unpredictable and volatile. Interest and popularity in one specific trend may die out overnight. This often happens with little to no reason to account for this sudden disappearance.
This makes investing in art trends particularly risky. Especially if your aim in investing in the first place is to turn a profit in the future. You may easily find yourself stuck with a devalued artwork. One that can do more harm than good to your collection and investment career in the long run.
It is always important to do research before investing. There are many ways to tell what will be a safe investment option for you. Market trends and predictions from reliable sources are main ways to get this information.
2. You May Not Like The Trend
Once again, not all art trends appeal to every eye in the world. And you may not find current art trends appealing.
Even though investing in popular art trends can potentially turn a profit, it might not be the best option. Given the risks involved, you might find yourself stuck with a piece of artwork that you don’t particularly fancy.
Personal interest is always the priority when buying or investing in art. That way, you know you will still enjoy owning it. Even if the artwork ends up not as profitable in the long run.
3. Low Profitability
Once again, the popularity of artworks of a particular trend differs from time to time. And this could affect its value in the art market.
With a particularly unstable trend, for example, you may find the market values of artworks fluctuating at rather drastic rates. Here, you may not always turn as big a profit as you’d hoped.
Of course, you can still take a gamble and invest in art trends. Just make sure to conduct thorough market research. This is the best way to ensure you turn a reasonable and worthwhile profit.
4. Factors Affecting Trends
In a previous article, we talked about the wide range of different factors affecting the popularity of art trends.
Some would consider the art market relatively stable in terms of the values of its assets. Yet this rarely applies to artworks belonging specifically to a trend. Old-master works are unlikely to ever reduce in value. Therefore, they can be a relatively stable and reliable financial asset to invest in. Whilst contemporary and experimental art can be largely dependent on the current trends in the Art World and Market. So, ultimately making these works as volatile as your conventional financial assets.
5. Slow Turnaround
Investments in art trends may not always give the quickest results.
The same goes for all art investments. It takes time for a work of art to be valued on the Market. Once again, a myriad of factors play into how quickly and smoothly this could be done.
If you are a patient investor, artworks can be a viable option for your next financial venture. If you are looking to turn a profit quickly. It might be best to look toward other financial assets when investing.
That being said, things might be different at the height of art trends. Artworks might be transacted quickly on the market, resulting in a shorter turnaround time than you would normally expect. Again, market research will tell you whether investing in art trends will show quick or slow results.
In recent years we have seen fast fashion take over the contemporary styles of our everyday lives. This is a method focused on maximising production quantity at the expense of quality. We say this concept can be applied to art trends.
Investing in what’s popular and trending is always a tempting move. Who doesn’t want to be relevant and up-to-date with the rest of the world? Especially with the presence of social media! We are constantly reminded of how far behind we have fallen. With new trends popping up front, right, and centre every second.
However, it is important to assess risks and liability whenever you invest in art trends. Quality is crucial to any investment in art. You have to be sure the artwork is up to standards of the Art World and Market. This is for your financial safety and piece of mind. A good quality artwork is always the best asset. It retains its value even if the trend passes by relatively quickly. This way, you can still turn a quick profit by investing in the artwork.
Art trends are variable and are sure to change rapidly as the rest of 2022 unfolds.
Some of the predicted trends of this year include:
- a return to figurative art
- the use of flora and landscapes
- animal portraits, and abstract art
If you are considering investing in art trends, look out for these particular ones when doing your research.
A few of these predicted trends are layovers from recent years. These we have discussed in a previous article on the evolution of art trends throughout the pandemic.
Will these predictions hold till the end of the year? What factors will play into the evolution of art trends? It will be interesting to find out.