James Tozer, August/September 2016 | The Economist – 1843magazine.com
Art Stocks and the Rise of the Art Market
“Making money is art,” Andy Warhol once declared, and if the trajectory of so-called Art Stocks is any indication, his legacy remains remarkably profitable. Warhol’s work alone has generated more than $3.38 billion at auction over the past decade. According to Artprice, he is one of ten artists to surpass the billion-dollar mark since 2006, alongside global superstars and lesser-known figures whose success reflects powerful regional markets—especially the rapid rise of Chinese collectors.
How Art Stocks Compare to Traditional Investments
Most collecting categories have outperformed the stock market, but some segments have outpaced it by extraordinary margins. Research from Art Market Research Developments indicates that the underlying value of American Pop Art has increased nine times faster than the S&P 500 in the past decade—an extraordinary result that positions Pop Art as a leading component of modern Art Stocks. Niche categories have also posted impressive gains, including 19th-century American photography and 20th-century Belgian painting. René Magritte has been a standout performer within the Belgian group, with 22 paintings selling for more than $5 million each.
By contrast, Italian Old Masters have lagged behind the S&P since 2006. Still, lovers of Renaissance art may find current conditions favorable for purchasing works that are historically important even if they have not followed the upward trajectory of contemporary Art Stocks. For collectors looking to diversify beyond financial markets, these slower sectors may offer cultural rather than financial dividends.
The Strength of Post-War Art Stocks
Post-war art—encompassing icons such as Willem de Kooning, Francis Bacon, and Alberto Giacometti—has also shown strong performance within the broader category of Art Stocks. Of course, prices at this level can be prohibitive. The average Mark Rothko canvas sells for $11 million, while a Jackson Pollock may cost $2.5 million or more. Yet the market still offers more accessible entry points. Salvador Dalí, for instance, produced thousands of prints, many of which remain relatively affordable with an average price around $19,000.
Twentieth-century Spanish art has also outperformed traditional financial holdings, offering returns that exceed what an equivalent investment in share certificates might provide. For collectors who track Art Stocks alongside conventional markets, these trends underscore how art can serve as both a cultural asset and an alternative financial vehicle—one that, in many cases, has outshone the S&P 500.
For readers interested in Warhol’s market performance specifically, explore our internal analysis on Warhol print values and related movements across Pop Art categories.
~ JAMES TOZER
(Source: The Economist, 1843 Magazine)