Art Investing: What Questions I want to Get Answered

2 minute read

Two weeks ago, I started my “Artventure” of investing in Art. During this time, I wrote one article “Why I invest in Art this year”. In my first research iteration, I found a cost-effective way of investing in Art with limited editions. Besides writing, I am scraping data to get data to find answers and gain insights.

As a data analyst, you write down the questions you want to get answers to before digging into the data. Otherwise, you get lost. It’s what I want to do in this article.

What artists do I like?

My goal is to invest only in artwork, which I really like. You might ask yourself how I can answer these questions with the help of data.

First of all, I collect data from different artworks. I want to develop an application that let me rate the art pieces without knowing the artist. After ranking the various pieces, I want to find out which artist I like.

How can I rank the potential artists?

I want to rank the artists I like to find out their potential. As I am not an art professional, so I data-based metric for this.

Different metrics are interesting, like followers on Instagram, price history of art pieces, number of searches on search engines.

Is it realistic to get artworks from well-known artists for an affordable price?

My goal is to spend between $500-$2000 per piece to not invest in just one piece to diversify my art investments. These amounts are unrealistic if I would buy an artwork with only a single copy, which is typical for, e.g. for paintings.

To tackle this problem, I want to invest in pieces from Limited Editions, a cost-effective way to invest in Art. There is more than one copy of an artwork that counts as original Art. The copies are signed by the artist and numbered. They are common in printmaking, photography and sculpture casting.

However, I must still find out if it is realistic to get pieces for that price. To find an answer, I want to analyse pricing data.

Is it realistic to get artwork directly from the artists?

My goal is to build up a personal relationship with artists to get on their waiting lists. I am not sure if this approach is naive.

I try to collect the email addresses of artists’ personal websites and try to send them a private message.

What influences the price of an artwork?

There are several categorical or quantitative variables for art pieces. E.g. the size, in what technique it was created, the marking or size of the edition. I want to find out what variables have an impact on the price.

An exploratory data analysis will help me to find

How is Art correlated to other asset classes?

Asset classes are often linked with each other. It’s often said that Commodities or bonds are negatively correlated with stocks. I want to evaluate how art investments fit into the whole picture.

Summary

To invest in Art I want to get answers with data. Before starting my analysis, I needed to answer the questions I have. These are the questions I am having right now:

  • What artists do I like?
  • How can I rank the potential artists?
  • Is it realistic to get artworks from well-known artists for an affordable price?
  • Is it realistic to get artwork directly from the artists?
  • What influences the cost of an artwork?
  • How is Art correlated to other asset classes?

Do you want to join me on my adventure journey to investing in art?

I will share all insights I gain with you

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