Why using artmarketanalyses.com for Art Investments?
Individual Art Market Research Reports
Despite our updating policy, the artist database is not exhaustive. Thus, visitors and members can request art market indices, which are currently not yet available online, by sending us an individual request form. The forms are available for all three modules: Individual painting estimates for painting appraisals, individual artist and category performance for the respective artist and art category art price indices.
If the liquidity requirements for individual painting, artist, or art category choices are met, we can provide the same performance numbers - art index, return rate, risk, and correlations - as available in our three on-line modules. The fees applied for the individual art market research reports are posted in our Subscription section.
Continuous Art Market Index Updates
Our art market indices consist of the artists available in our database. We are constantly searching for new artists which are meeting the liquidity criteria of our models, to allow for reliable performance measurement. Thus, the number and quality of art market indices is increasing over time.
Existing art indices are either modified to improve quality or simply updated. Research shows - by comparing hedonic art market indices from different timeframes - that taste in art seems to change rather slowly and unpredictably. As a result, our database also contains art indices with investment horizons from previous years, since their significance for art investment research is not outdated.
|Reliable Performance Measurement|
Reliable Art Market Performance Measurement & Art Investment Advisory
The most reliable art price of any art object is determined when the auction hammer goes down - not earlier. The best choice to calculate the financial performance of artists or art market portfolios is using hedonic art market price index models, since they account efficiently for heterogeneity.
The other two art market research methodologies often used in practice suffer from major drawbacks. The primary problem with applying repeat sales regression to art data is the paucity of available information. There are not enough matching sales pairs to calculate the performance of single artists or small art portfolios. Average calculations are not reliable enough - the problem is heterogeneity - to provide meaningful art return rates, risks, or correlations for successful art investments.
Liquid Artists are the Main Subjects of our Art Market Analysis
Art is a unique and scarce good with limited supply and potential value appreciation over time, but no income stream. These characteristics and its durability make art usually a good store of value. On the other hand, they often also lead to subjectivity in art valuation and limited liquidity.
All artists in our database - currently more than 4'000 - are meeting minimum requirements in terms of available art market transactions at real art prices. A minimum liquidity level is necessary for two reasons. Firstly, reliable performance measurement is only possible using a sufficient number of real art market transactions, secondly, some of the main problems collectors recognize in investing in art is tradeability, or trying to invest only for the short-term.