Criteria for Investing in the Market of Visual Arts
Science Journal of Business and Management
Volume 7, Issue 6, December 2019, Pages: 140-149
Received: Dec. 11, 2018; Accepted: Nov. 1, 2019; Published: Dec. 4, 2019
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Author
Elio Amilcar Farfan Torrelles, Faculty of Económic and Social Sciences, Carabobo´s University, Valencia, Venezuela
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Abstract
The market for the visual arts carries out a complex activity, which requires identifying key variables to establish valid investment criteria and obtain reasonable profits. This calls for differentiating the purpose of the purchase as either an investment or a collection. Then, focusing on the work and the artist, the trajectory of iconic and emerging elements is investigated and compared to identify the criteria that the buyer should consider when acquiring a piece of visual art. Accurate parameters are needed to invest considering this economic activity has clearly defined segments. For this reason, the claimed characteristics of the artwork, the artist and the market must be assessed as well as the need for the art piece or the added value that an artwork offers to the market and the reason why a certain amount of money must be paid to obtain it. The aim of the present research is to identify key variables to establish valid investment criteria, taking the case of the contemporary Venezuelan Art Market as basis. To achieve this objective, the documentary research methodology was applied and, in addition, interviews with some market agents were carried out, which revealed the presence of many agents with various interests within the market. As a conclusion, the study revealed that the visual arts market is a complex market, which requires different actors to handle accurate and reliable information when making purchasing or sales decisions.
Keywords
Art Market, Artwork (Piece), Artist, Collector, Investor, Profits
To cite this article
Elio Amilcar Farfan Torrelles, Criteria for Investing in the Market of Visual Arts, Science Journal of Business and Management. Vol. 7, No. 6, 2019, pp. 140-149. doi: 10.11648/j.sjbm.20190706.12
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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