Why Buy A Warhol?
For any art collector, to be able to buy an original work of art by Andy Warhol is a tremendous accomplishment, as well as a sound addition to a collection of timeless art. Warhol prints and canvases are heavily sought after and often difficult to come by, so when one does buy Warhol, it could quite possibly be something that will be passed down for generations.
The reputation garnered in the art world by Andy Warhol not only in recent years, but during his lifetime as well, could be a reason that people go out of their way to buy Warhol art. But there is a reason his work has achieved such massive success: there is something so timeless and quintessential about his works, that the further we drift away from the days of the “Silver Factory”, the more valuable and cherished Warhol’s snapshots of history become.
Andy Warhol created over 10,000 works in his lifetime, many of which are still in the hands of original collectors. This massive influx in the quantity and quality of original works he created has produced the ideal conditions for a thriving secondary market of his prints and paintings. This liquidity allows for investors to easily realize their return on investment.
Over the past decade the S&P 500 fell by almost 25%. Over the past 4 years the global real estate index has fallen nearly 40%. During the recession in 2008 some of the major global indices, the S&P 500, the DAX, and the Nikkei 300, fell by, 51%, 41%, and 44% respectively. The extremely volatile decline in the global markets resulted in large losses in traditional investments like stocks and bonds. This led many investors to search for alternative investment opportunities. Since the recession in 2008 the art auction market has more than doubled, and Andy Warhol has led the way as the markets largest player.
Warhol’s Performance vs the S&P 500
Art is a potential component of a well diversified investment portfolio. Historically art has seen the largest increase in value when compared to other asset classes, such as the stock market. Investing in art can be more stable than investing in other material assets.
Unlike many other capital investments art’s value continues to appreciate as it ages and scarcity increases. The stability of the art market, coupled with its intrinsic value and its scarcity make investing in art a hedge against other investments and inflation. as well as a store for wealth
The market for art exists as a subsection of the global economy. There is clearly a correlation between the global markets and the art market, however this detachment provides contemporary art some autonomy.
The 2008 credit crunch saw markets worldwide crash, and there was a large decrease consumer spending, especially in areas like culture. However investment in stable commodities, namely art, rose during this period. Earlier, during the stock market crash in 1987, the art market was shown to be a dependable alternative for investments.
Not only did the art market remain relatively stable during these crashes, the art market bounced out of these crashes faster, and with more force. As a comparison, the Dow Jones took 15 months to recover from its 1987 crash- at the same time the art market enjoyed one of its most flourishing periods to date.
The global art market is poised to continue its exponential record-breaking growth in 2015. This combined with the proliferation of art investment funds, and the overall increase in liquidity in the market, show it may be an opportune time to add contemporary art to your portfolio. Andy Warhol’s continued dominance of the market suggests one of his works may be an ideal starting point.
If you’re interested in buying Warhol prints and canvases may contact the staff at the Revolver Warhol Gallery. When you are ready to buy Warhol art, you may specify which piece you are interested in, along with the edition and color combination. After filling out a simple form online, interested parties will be contacted by the Revolver Gallery via email or phone.
Here at Revolver, we can help you purchase your very own Warhol – whether it is your first fine arts purchase or a statement piece to add to an already well-established collection.
CONTENT NOT TO BE CONSTRUED AS PERSONAL INVESTMENT ADVICE