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Is Banksy A Good Investment?
Why Invest in Banksy?-
Banksy vs Property
Property is one of the most common elements of an investor’s portfolio and, like Banksy art, has the potential for long, medium and short term growth. Stastiscs taken from data show that the growth over the past 10 years of the property market is very low when compared to the returns that investors have made on Banksy prints. What’s more, with the uncertainty generated by the Covid pandemic, art across the board including Banksy seems to have become a safe haven preserving people’s wealth and hard earned savings. Furthermore, art seems to be replacing, at least in part, mid and long term pension strategies. The upkeep and cost of property maintenance, when compared to the storage of a Banksy artwork, is an additional factor that shows why investing in a Banksy artwork be favourable compared to property.
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Banksy vs Gold
Gold has been treasured as an investment vehicle for centuries. Consistent and widely respected, investment in gold is a fairly common practice in investors whose portfolios are balanced. Particularly within the post-Covid landscape, investors have sought to return to so-called “safe havens” with gold proving a popular choice. Gold has shown a return of around 400% over the last 15 years e.g an oz of gold purchased in 2005 for $435 USD is now worth $1700 USD which is very healthy. However when we compare it to a Girl with Balloon single canvas (of which Andipa have dealt in many) that could be purchased for around £25,000 GBP in 2005 and is now worth over £2,000,000 GBP investing in a Banksy speaks for itself. Of course, gold generally remains a stable method of wealth storage but, compared to Banksy art, when looking to grow wealth the Banksy market proves far more lucrative and seemingly unaffected by global issues.
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Banksy vs S&P
Over the past couple of decades auction turnover for the contemporary art sector has risen dramatically from just $92 million in 2000 to $1,993 million in 2019. That’s equivalent to a 2,100% increase. According to the Citi Global Art Market chart, the sector has also performed well against the stock market over this period, delivering an annualised return of 14% over the last 25 years as of December 2020 against 9.5% for the S&P 500. Citi’s 2020 Global Art Market Report notes that even during the first seven months of 2020 Contemporary Art averaged a 6.7% return, beating all other asset classes. Source: Financial Times.
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Investing in Banksy - where to start?
Choosing a Banksy to invest in is an exciting step. An important decision to make, choosing the right artwork is key to ensuring that you maximise your return on investment. When choosing an artwork it is imperative that you choose work in the very best condition. The better the condition, the greater the value and the greater the ability of the piece to both retain and gain value. The edition size of a work is a key factor that dictates its price and can be a good indicator of how the investment may mature. Generally speaking, the smaller the edition size the higher the value. Where possible, we would advise on acquiring signed Banksy prints over unsigned works; the reason being that most signed editions are smaller than the unsigned ones, and generally collectors prefer artworks handsigned by the artist themselves. A certificate of authenticity,issued by Pest Control Office, verifies the work as an authentic artwork by Banksy. When buying a Banksy print or artwork it is vital that the work is accompanied by its certificate. For more information visit our dedicated resource on authenticating Banksy artworks.
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