With the rapid development of contemporary art in recent decades, investing in artworks by contemporary artists has become an increasingly attractive option for art collectors and investors. Contemporary art refers to works of art produced in the late 20th century or 21st century, which often reflect modern subjects, ideas, and techniques. There are several advantages of investing in contemporary art. First, works by emerging and mid-career contemporary artists have great appreciation potential. Second, contemporary art attracts new collectors and investors. Third, the contemporary art market is transparent with auction records and data. However, one also needs to do careful research on the artists, auction houses, galleries and art fairs when investing in this market.
Blue-chip contemporary artists are safest for investment
The safest bet for investing in contemporary art is to choose established blue-chip artists who already have a steady record of appreciation and sales at major auction houses. Jeff Koons, Gerhard Richter, Cindy Sherman, Damien Hirst are some examples of blue-chip contemporary artists whose works regularly achieve multi-million dollar prices at auction. While buying emerging artists can have higher returns, it also carries higher risks that the artist’s market may not take off.
Focus on contemporary artists with unique styles and innovations
When selecting contemporary artists to invest in, it pays to focus on artists with a unique and pioneering style or artistic innovation. Artists who push the boundaries of artistic mediums and break new ground tend to attract critical acclaim and collector interest more easily. For example, Cecily Brown is known for her lyrical abstract paintings that reference old masterpieces; Rirkrit Tiravanija is a pioneer of relational art involving social engagement; Ai Weiwei frequently makes conceptual art with a political message.
Research the career trajectories of promising mid-career artists
Mid-career contemporary artists who are gaining art world recognition but have not yet reached blue-chip status can offer good investment value. It is important to research their exhibition history at renowned galleries, inclusion in public collections, any big awards received, and the trend of increasing sales prices at auction. Adrian Ghenie, Njideka Akunyili Crosby, Julie Mehretu are some rapidly appreciating contemporary artists to look into.
Follow major contemporary art fairs and biennales globally
To identify the most promising emerging and mid-career contemporary artists to invest in, it is essential to follow major international contemporary art fairs like Art Basel, Frieze London, ARCOmadrid, as well as established biennales like Venice Biennale, Whitney Biennial, Documenta. Galleries choose to showcase artists in whom they see strong potential at these global events. Early buyer interest at an art fair can propel an artist’s career.
In summary, investing in contemporary art requires research into artists with unique styles, career momentum, and early collector interest. Following contemporary art fairs and biennales is key to spotting promising new talents before the mainstream art world catches on. With proper due diligence, contemporary art investment can yield strong returns.