The Evolution of Art as an Investment: Trends and Predictions

Art has always been more than just a visual feast. For centuries, art has been a medium for storytelling, self-expression, and cultural preservation. 

But beyond its aesthetic appeal, art has emerged as a compelling alternative investment. And with art markets reaching global heights and technology reshaping how we buy and sell, understanding the evolution of art as an investment is more crucial than ever. 

Join us as we explore how art became the valuable asset it is now, the trends shaping its market today, and what the future might hold.

A quick overview of art as an investment

Investing in art isn’t a new concept. It’s been around for centuries. During the Renaissance, wealthy patrons like the Medici family didn’t just commission art to beautify their homes; they understood its power as a status symbol and store of wealth. 

Art, in many ways, was the ultimate asset - tangible, timeless, and deeply tied to cultural prestige. Fast forward to the 20th century, and the art market became more structured. 

Auction houses like Sotheby’s and Christie’s transformed art sales into major events, creating a global marketplace where masterpieces by Van Gogh and Picasso fetched record-breaking sums. The narrative shifted: art wasn’t just for the elite to admire; it was for investors to buy, hold, and trade.

By the late 20th century, contemporary art began gaining traction as collectors sought works from living artists. The perception of art evolved from a passion-driven purchase to a calculated financial investment. 

Today, art auctions can be as thrilling as stock market openings, with investors eagerly watching the hammer prices. 

You can learn more about the current state of the art invest market in our recent 2024 collectibles report. 

Current trends in the art investment landscape

The art world has undergone seismic shifts over the past few decades, thanks to globalisation, technology, and changing tastes. Here are some of the most significant trends shaping art investment today:

Globalisation of the art market

The art market is no longer dominated by Europe and North America. Emerging markets, particularly in Asia, are making waves. China, for instance, has become one of the largest players in the global art market. Collectors from India, the Middle East, and Africa are also gaining prominence, bringing diverse tastes and significant purchasing power.

Online art sales and digital platforms

Buying art used to mean attending galleries or auctions in person. Not anymore. Online platforms have democratised access to art. Today, art collectors and investors can seamlessly browse, bid, and buy from the comfort of their homes. 

The pandemic accelerated this shift, with online auctions now a staple in the industry. Platforms like Artsy and Artnet have opened the doors for new collectors and investors worldwide, making art investing even more popular. 

Art funds and fractional ownership

Investing in art is no longer reserved for the ultra-wealthy. Art funds and fractional ownership platforms, like our very own Splint Invest, allow investors to buy shares in high-value works, much like buying shares in a company. This innovation has broadened access to the market, making art an attainable asset for more people.

Art as an alternative asset

In uncertain times, art has proven to be a reliable store of value. When stock markets fluctuate or currencies weaken, investors often turn to tangible assets like art or whisky. Blue-chip works are particularly sought after for their stability and potential appreciation.

The growing role of technology in contemporary art investment

When discussing modern art investing, it’s impossible not to mention the growing lore of technology. It has revolutionised the way we perceive, value, and invest in art. Here’s how:

NFTs and digital art

NFTs (non-fungible tokens) have introduced an entirely new dimension to art investment. Digital art, once considered temporary and irrelevant, now comes with proof of ownership on the blockchain. Collectors are snapping up pieces by digital artists, and some NFTs have sold for millions. On the downside, the NFT market remains highly volatile.

Virtual auctions and online viewing rooms

Virtual auctions have made it easier for collectors to participate in global sales. Similarly, online viewing rooms allow potential buyers to explore artworks from anywhere. This increased accessibility has brought in a new wave of tech-savvy investors. 

Today, you no longer need to travel around the world to attend auctions or art exhibitions. You can effortlessly browse and buy without moving an inch from your sofa. 

AI and data analytics

Gone are the days of relying solely on gut instinct to assess art’s value. AI tools now analyse trends, historical data, and artist trajectories to help investors make informed decisions. These technologies are particularly useful for identifying undervalued artists or predicting the next big thing. They do still make mistakes, but their potential is incredible. 

Predictions for the future of art investment

The world of art never stands still. It’s constantly evolving, now more than ever. As an aspiring art investor, keeping an eye on the horizon is a must. 

Here are some predictions from our experts for where the market might head:

• The growing role of sustainability. As global consciousness around sustainability grows, the art world is following suit. Investors are likely to focus more on works that align with environmental or social causes. Eco-friendly practices in art creation and curation may become selling points.

• AI-generated art. AI-generated art is already making headlines, but will it gain traction as a serious investment? As these works become more sophisticated and culturally significant, they may carve out their niche in the market - perhaps sooner than we all expect. 

• The rise of digital and virtual art markets. Virtual and augmented reality are set to transform how we experience art. Imagine putting on a VR headset to visit a gallery or using AR to place artwork in your living room. These technologies could revolutionise how art is bought and sold.

• More institutional investment. Banks, hedge funds, and other institutions are increasingly looking at art as a lucrative investment. This trend could lead to greater liquidity in the art market, making it easier to buy and sell high-value works.

• Increased transparency and regulation. The art market has often been criticised for its opacity. However, as more investors enter the space, there’s growing pressure for transparency and regulation. Blockchain technology may play a key role in providing verifiable ownership records and reducing fraud.

Splint Invest: A simpler way to invest in art

As the art market evolves, staying informed is key. Understanding trends, leveraging technology, and anticipating future changes will help you navigate the fascinating but often complex world of art investment. 

But even if you stay on top of all the changes and trends in the art investment sphere, investing in the right pieces can be challenging, not to mention highly expensive. 

This is why many art investors, especially those who are only starting to embrace art as an investment, opt for investing in art funds. By joining Splint Invest, you’ll be able to invest in carefully selected art for as little as 50 euros per share without worrying about purchasing, storing, or selling your chosen art pieces. 

We handle everything. All you need to do is invest, watch as your assets appreciate, and enjoy your returns when the time comes. 

Create your free investor account today!