The art market: United States
The U.S. art market experienced a resurgence of growth in the wake of the Covid-19 pandemic, with buyers returning to auction houses, galleries and online art buying at an unprecedented pace.
According to The Art Market 2022 report by UBS and Art Basel, the U.S. art market experienced sales growth of 33% in 2021, with a total value of $28 billion in art sold.
In this regard, Freeport offers users the opportunity to invest directly in works of art and the fine art market in general.
This market is comprised of auction houses, advisors, dealers, galleries, museums, public institutions and other participants in the growing fine art network, which Deloitte has valued at an estimated total of $1.7 trillion.
As global wealth increases, so does investment and interest in the fine art and collectibles market.
Traditionally, non-accredited investors have been unable to take advantage of the opportunities offered by the premium art market, although the recent increase in consumer interest in digital art has allowed more investment opportunities in fine art and collectibles to emerge.
Freeport notes that global markets have refocused their tastes toward asset diversification following the volatilities seen in markets since the onset of Covid-19.
According to Deloitte, 67% of wealth managers expect greater transparency and regulation in the art market.
According to Arts Economics, 88% of high-net-worth collectors bought works of art in 2021, 80% decorative art and 52% other collectibles.
Despite this, the report shows that 54% of art purchased by high-net-worth (HNW) collectors sells for more than $100,000.
Although this art is often inaccessible to consumers due to its high price, high net worth investors can and, in most cases, do choose to take advantage of the investment opportunities that exist in the growing art market.
According to Deloitte, $1.48 trillion of the $1.7 trillion fine art market could be held by high net worth individuals by 2020.
This data suggests that 87% of the value of all artworks and collectibles are owned by a select few.