Lower Prices: During a bear market, art prices often come down as demand decreases. This can be an advantage for collectors looking to acquire pieces at more affordable prices.
Long-Term Perspective: Art should ideally be viewed for the long-term, regardless of market conditions. If you believe in the artistic value of a piece and think it has the potential to appreciate over time, a bear market might be a good time to buy, as you can acquire assets at a lower cost.
Diversification: Art can be a part of a diversified investment portfolio. In a bear market, it may make sense to allocate a portion of your portfolio to art as a hedge against traditional investments that may be underperforming.
Research and Due Diligence: Do your research before making any art purchases. Understand the artist's career trajectory, the historical performance of their works in the market, and the current state of the art world. It's important to have a solid understanding of the art market and specific artists or genres you're interested in.
Buy What You Love: This is the mantra of our director, Acris Andipa . . . he instills in us all that while art can be an investment, it's actually really a form of personal expression and enjoyment. Buy pieces that you genuinely love and connect with, regardless of market conditions. If the market takes a downturn, you'll still have art that brings you joy, and often bounces back up again when the markets pick up.
Negotiate and Be Patient: In a bear market, sellers may be more willing to negotiate on price. Be patient and don't rush into purchases. Negotiating with sellers or galleries can lead to more favorable deals, and all without the second-by-second stress of bidding at auction.
Quality Matters: In any market condition, quality is key. Focus on the quality and condition of the artwork!
Consult Experts: Always seek advice from an experienced and qualified art advisor, or fellow collector, or art curators who can provide insights and help you make informed decisions. Yes, that's where Andipa comes in. Always here to help wherever we can.
Storage and Maintenance: Remember that owning art also comes with responsibilities such as proper hanging (or storage) and looking after. Ensure you have the resources to take care of your collection, including a good quality frame and glazing, and insurance.
Re-sale: While you may intend to hold onto your art for the long term, it's wise to have a relationship with a dealer such as Andipa who can advise and assist in the resale of the work when the time comes.
Art should be a rewarding experience, and so it's essential to approach it with caution and knowledge, especially during a bear market. Ensure that your motivations for buying art go beyond just financial gain and encompass a genuine passion for the art itself, and don't forget to reach out to Andipa for advice.
For further information on buying art in financial downturns, please do reach out to Andipa on +44 (0)20 7589 2371 or sales@andipa.com