Investors should always looking for undervalued investments so that they can swoop in and hopefully reap the rewards once the market re-balances. For example, stock investors may look for undervalued companies that they believe will increase in value once the company delivers on its growth plan. In this way, art investors should be no different.
Investors can benefit from imbalances in the art market by identifying and investing in ‘types of art’ and ‘types of artists‘ that are currently under-appreciated (and under-valued) by collectors. One ‘type of artist’ that may be under-appreciated and under-valued right now are women artists.
Why you should invest in women artists
There has perhaps never been a time when Anglo-American and European male artists didn’t garner the most praise, publicity, and the highest prices for their art, including in the 21st century.
To illustrate the current lack of appreciation for art made by women, one can turn to the Artprice100© Index. The 2020 Index show that only 4 of the 100 highest traded artists globally (by dollar value in the secondary market) were women. While this shocking ratio is no good from an equality point of view, it may be good from the perspective of an investor looking for imbalances in the market. As the imbalance has no basis to exist, it could likely correct at some stage, and investments in under-appreciated artists could increase in value by a considerable amount.
Thus, it may be the perfect time to find and invest in the work of women artists. For a list of women artist you might like to consider, please visit our 10 artists to watch in 2022 list.
The tide may already be turning for women
Repeat sales between 2012 and 2018 at Sotheby’s found that works by female artists increased significantly more in value than pieces by male artists. Female artist rose in value by an average of 73%, while art by male artists rose in value by 8%. This is perhaps proof of a rising demand for the work of women artists, and another great reason for you to think about prioritizing this kind artist when building out your portfolio.