WHY
 INVEST

WHY INVEST IN ART


Art is not only a tangible asset that can accrue in value, it is also a unique creative work. Ownership confers many rewards. You can enjoy viewing the artwork in your home or workspace, learning and gaining more from it day by day. Later, as your tastes, opportunities, or needs change, you can sell it, often for a significant return.

Financial analysts consider fine art an investment-grade asset class in and of itself. Art has long had a stable and visible place in the global-investment market, even more so over the last few years as the art market has expanded.

Despite the recent economic downturn, the art world continues to flourish. Reports from art-market experts such as Christie's and Sotheby's, the Mei Moses All Art Index, the financial-advisory company Deloitte Luxembourg, and the art-market research firm ArtTactic all indicate that the art world is thriving. The vibrant art-investment market means that even first-time investors can reap its profits.

Whether you want to build wealth, diversify your financial portfolio, plan for retirement, or bequeath artwork to your heirs for future investment, a single piece of investment-quality art may meet your goals.

WHY YOU NEED AN
ART-INVESTMENT ADVISOR


Art investment can be an intriguing opportunity, but if you aren´t experienced in the art market, you investment could generate a huge loss you weren´t expecting. Having the help of someone with experience in the art market is an integral part in growing your collection and your investment. Here are a few reasons why you should seek the advice of an art investment advisor.

  1. ART IS NOT A SHORT-TERM INVESTMENT

    As a rule, investors should plan to hold onto art for at least ten to fifteen years. Investing in art does not afford the same liquidity as investing in stocks, so your investment is rarely short-term. When done with an expert advisor, investing in art entails little risk, but it does require patience.

  2. BUYING AND SELLING ART HAS LESS OBVIOUS COSTS

    Auction houses, dealers, and galleries all have their fees for buying and selling art. Inexperienced investors often overlook these transaction fees and forget that down the line there will be capital-gains taxes as well. An art advisor knows about these fees and costs and will factor them in.

  3. KNOWING WHAT TO BUY IS AN ART ITSELF

    Commercially successful art is not necessarily a good investment. An artist can be wildly popular, produce many works in large editions heralded as “investment grade” art, and have hundreds of collectors. This doesn´t mean the work will someday become more valuable.

    Far from it: Commercial artists often flood the market. When they do so, too many people are buying and selling the artwork, and an artist's popularity can fade. The collectors who rushed in may suddenly find that few people want to buy the work anymore.

    On the other hand, artwork by someone who produced few works or limited editions, or whose works are not being sold anymore, may be a fine investment–if you can find it. Scarcity increases the desire of collectors and investors and helps stabilize and increase the price over time. But rare art, by definition, is harder to find and more expensive to purchase. An art advisor can help you track down a rare piece of art, suggest a reasonable amount to pay for it, and let you know when the time is right (or not) to sell it.

  4. KNOWING WHEN TO BUY IS ALSO AN ART

    Say you pay an art gallery $40,000 for a painting by Catalan artist Joan Miró. Chances are that piece is going to remain at that price for years: Well-known art usually requires a long holding period to appreciate in value. Or say you buy work directly from a well-known artist: He or she may give you a great price, but the art or artist may have reached the top of its market. In that case, it won't have the potential to realize the gains you'd hoped for, at least over the period you allotted for your investment. An experienced art advisor can steer you away from artwork like this (unless you passionately love that Miró, in which case, you should buy it).

  5. NOT EVERYONE HAS AN EYE FOR ART

    The best value for your money entails buying art from an emerging artist with obvious potential. It takes years to develop an eye for that kind of work. Just after World War II, Herbert and Dorothy Vogel, a postal worker and a reference librarian living in New York, built an impressive collection of American post-war art by buying work from very promising artists at prices they could afford. A few decades later, their collection was worth millions. Clearly, they are an exception–and an inspiration.

    With informed direction from people who know art and the art market, it's still possible to buy investment-quality art at affordable prices, then sit back and watch the artist's market grow, as well as the value of your investment.

  6. UNDERSTANDING THE ART MARKET ISN´T EASY

    Nobody can predict the future of art sales with 100% accuracy. Like any market, the art market is subject to ups and downs: Trends come and go unpredictably; entire collections can be sold without warning. During more prosperous periods, resale value can drop. An art advisor can help you negotiate this terrain.

    That requires knowledge of art and art history, an understanding of art-buying psychology, years| of watching the art market, knowing the financial market, and many other intangible factors. Just as you consult an expert for financial or medical advice, you should work with someone who understands the art market to advise you on what to buy and when it's best to sell it. There's a reason a disproportionate number of auctioneers become millionaires: They have an eye for investment-worthy art.

    Understanding art as an investment is also an art.

WHY INVEST WITH ARTÉQUESTA?


At ArtéQuesta, we integrate finance and fine art: When creating a portfolio, we assess a client´s needs, desires, and preferences, striving to maximize his or her appreciation of the art as well as its investment opportunities.

ArtéQuesta helps individual and corporate collectors build and manage art collections that deliver long-term financial growth. Because we maintain close connections with preeminent collections and artists, we can get competitive prices on artworks by 21st-century masters and emerging masters.

We can provide a comprehensive analysis of short-term and long-term potential and the optimal number of years you should hold onto the artwork for the best return on your investment. We can create packages for quarterly and end-of-year spending reports for tax benefits.

And we can advance your enjoyment of art, your awareness of emerging artists, your insight into the art market. We want to give investors a dynamic experience in the art market, enriching their lives in countless ways.

ARTÉQUESTA OFFERS MANY ADVANTAGES


  • Extensive knowledge and experience in beginning and maintaining collections.

  • Exclusive opportunities to invest in works at prices unavailable to the general public.

  • Access to our quarterly catalogue of works, available only to our clients.

  • Specialized knowledge about specific artists.

  • Support in building and maintaining individual and corporate portfolios, including information and updated reports accessible through our secure online database.

  • Awareness of opportunities to utilize art investments through tax benefits, gift giving, and other options.

  • Opportunities to be part of historic projects available only to our investors and collectors.

INCLUDED WITH YOUR INVESTMENT ARE


  • Inside information on the art market.

  • Details about the artworks.

  • Career highlights from inside the artist´s studio.

  • Our monthly art world updates.

  • Resources to enhance your understanding of art and the art market, including private museum and gallery tours, studio visits, lectures and special programs, access to recommended books and films, and much more.

CONSIGNMENT


As a collector of historically significant or museum-investment quality art, there will be opportunities to sell your collection for maximum market value. ArtéQuesta is pleased to offer our consignment services that will not only meet your financial expectations, but will give you access to features only available in the primary market.

Information, photos, and questions regarding consignments should be emailed to: info@artequesta.com

  • LOWER FEES

    We only require a 20% resale fee, compared to 50% or more when sold through an auction house.

  • ARTWORK SECURITY

    We track the artworks in our proprietary software to ensure protection and preservation of the artwork, which is important for historic works of art.

  • DEFER CAPITAL GAINS TAX AND RE-INVEST IN ART

    We are able to offer 1031 Exchange when profits are reinvested into similar artworks.

  • LOWER PRICES ON PURCHASES

    Many artworks can be acquired privately in the primary market where they can be found below market value. When you choose to reinvest your profits with ArtéQuesta, you are eligible to purchase artworks below market value that can increase the overall value of your fine art collection. This feature is not available at auction houses and galleries.

  • LEAVE IT TO ARTÉQUESTA

    We handle all advertising, promotion and brochure material aspects in the consignment sale of your artworks

  • PERSONAL SERVICE

    We offer one on one support for the sale of the artwork to help meet the consignors financial or sale needs.

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