Criteria for Investing in the Market of Visual Arts

Elio Amilcar Farfan Torrelles

doi:doi:10.11648/j.sjbm.20190706.12

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Criteria for Investing in the Market of Visual Arts

Elio Amilcar Farfan Torrelles

Published in Science Journal of Business and Management (Volume 7, Issue 6)

Received: 11 December 2018 Accepted: 1 November 2019 Published: 4 December 2019

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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.

Published in	Science Journal of Business and Management (Volume 7, Issue 6)
DOI	10.11648/j.sjbm.20190706.12
Page(s)	140-149
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Art Market, Artwork (Piece), Artist, Collector, Investor, Profits

References

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[3]	Artsgain. Art Investment Informative Leaflet. 2018. Retrieved from https://www.artsgain.com/wp-content/uploads/2017/12/Art-Investment-Leaflet-v4.pdf.
[4]	Securities and Exchange Commission. Sotheby's annual report. 2017. Retrieved from https://sothebys.gcs-web.com/static-files/3c843441-89db-4556-924a-fcbd6639c74b.
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[6]	Mei, Jianping; Moses, Michael. The Mei Moses Fine Art Index. 2014 Retrieved from http://www.artasanasset.com/main/artinvesting.php.
[7]	Artprice. El mercado del arte Contemporáneo. Informe anual Art Price 2013. Lyon. Retrieved from http://imgpublic.artprice.com/pdf/artprice-contemporary-2012-2013-es.pdf.
[8]	Badawi, Halim. Business is business: especulación y mercado en la obra de Óscar Murillo. Esfera Pública.2013. Retrieved from http://esferapublica.org/nfblog/?p=62949.
[9]	Song, Sophie. Chinese Painter Zhang Daqian's Works Earned More Than $500 Million In 2011, More Than Works By Pablo Picasso. 2013. Retrieved from http://www.ibtimes.com/chinese-painter-zhang-daqians-works-earned-more-500-million-2011-more-works-pablo-picasso-12863433.
[10]	El Universal. Una burbuja con mucho arte. Entrevista a Jason Edward Kaufman. Agencia EFE. Nueva York. 2013. Retrieved from http://www.eluniversal.com/arte-y-entretenimiento/131116/una-burbuja-con-mucho-arte.
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[12]	Yahoo Finance (a). Bank of America Financial Statemts 2017. 2019- Retrieved from https://finance.yahoo.com/quote/BAC/financials?p=BAC.
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[14]	Deloitte and Artactic. Art & Finance Report 2013. 2014. Retrieved from http://www2.deloitte.com/lu/en/pages/art-finance/articles/art-finance-report.htmlhttp://web.artprice.com/artmarketinsight/759/+Latin+American+Contempora ry+artists?l=en.
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Elio Amilcar Farfan Torrelles. (2019). Criteria for Investing in the Market of Visual Arts. Science Journal of Business and Management, 7(6), 140-149. https://doi.org/10.11648/j.sjbm.20190706.12

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ACS Style

Elio Amilcar Farfan Torrelles. Criteria for Investing in the Market of Visual Arts. Sci. J. Bus. Manag. 2019, 7(6), 140-149. doi: 10.11648/j.sjbm.20190706.12

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Elio Amilcar Farfan Torrelles. Criteria for Investing in the Market of Visual Arts. Sci J Bus Manag. 2019;7(6):140-149. doi: 10.11648/j.sjbm.20190706.12

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@article{10.11648/j.sjbm.20190706.12,
  author = {Elio Amilcar Farfan Torrelles},
  title = {Criteria for Investing in the Market of Visual Arts},
  journal = {Science Journal of Business and Management},
  volume = {7},
  number = {6},
  pages = {140-149},
  doi = {10.11648/j.sjbm.20190706.12},
  url = {https://doi.org/10.11648/j.sjbm.20190706.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20190706.12},
  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.},
 year = {2019}
}

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TY  - JOUR
T1  - Criteria for Investing in the Market of Visual Arts
AU  - Elio Amilcar Farfan Torrelles
Y1  - 2019/12/04
PY  - 2019
N1  - https://doi.org/10.11648/j.sjbm.20190706.12
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PB  - Science Publishing Group
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AB  - 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.
VL  - 7
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Author Information

Elio Amilcar Farfan Torrelles

Faculty of Económic and Social Sciences, Carabobo′s University, Valencia, Venezuela

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APA Style

Elio Amilcar Farfan Torrelles. (2019). Criteria for Investing in the Market of Visual Arts. Science Journal of Business and Management, 7(6), 140-149. https://doi.org/10.11648/j.sjbm.20190706.12

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ACS Style

Elio Amilcar Farfan Torrelles. Criteria for Investing in the Market of Visual Arts. Sci. J. Bus. Manag. 2019, 7(6), 140-149. doi: 10.11648/j.sjbm.20190706.12

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AMA Style

Elio Amilcar Farfan Torrelles. Criteria for Investing in the Market of Visual Arts. Sci J Bus Manag. 2019;7(6):140-149. doi: 10.11648/j.sjbm.20190706.12

Copy | Download

@article{10.11648/j.sjbm.20190706.12,
  author = {Elio Amilcar Farfan Torrelles},
  title = {Criteria for Investing in the Market of Visual Arts},
  journal = {Science Journal of Business and Management},
  volume = {7},
  number = {6},
  pages = {140-149},
  doi = {10.11648/j.sjbm.20190706.12},
  url = {https://doi.org/10.11648/j.sjbm.20190706.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20190706.12},
  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.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Criteria for Investing in the Market of Visual Arts
AU  - Elio Amilcar Farfan Torrelles
Y1  - 2019/12/04
PY  - 2019
N1  - https://doi.org/10.11648/j.sjbm.20190706.12
DO  - 10.11648/j.sjbm.20190706.12
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 140
EP  - 149
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20190706.12
AB  - 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.
VL  - 7
IS  - 6
ER  -

Copy | Download