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Writer's pictureShidonna Raven

Why this could be the year to invest in contemporary art

By Katherine Swondells

January 17, 2023

Source: Spear's WMS

Photo / Image Source: Abstract Water Color #18. Shidonna Raven Fine Art & Giclees. Please contact us for republishing permission & citation formatting.


Young professionals are embracing a diversifying art world, which could mean a continued boom for contemporary and ultra-contemporary works

‘Apainting is not a picture of an experience, but is the experience’. Mark Rothko’s famous sentiment is increasingly being echoed by investors who are ploughing their money into attractive tangible assets – namely contemporary art. It’s a movement that experts believe is here to stay.

The past two years have seen huge levels of activity in the global art market as a whole, with newer artworks – contemporary art produced since the 1970s and ultra-contemporary, which tends to refer to recent works produced by artists under 40 – experiencing a particular boom among younger customers. ‘I’m seeing more and more younger collectors – especially young professionals who are not necessarily linked to the art world, in terms of their industries, who are turning to art as a form of investment,’ says Bojana Popovic, a Spear’s 500 top recommended art advisor, formerly of Christie’s auction house.

‘In particular, contemporary art, because they want to hang something eye-catching and visually striking in their home, but equally, they hope it can become a good investment.’ Global art turnover surpassed $17 billion in 2021 – up 28 per cent on 2019, according to data provided to Spear’s by ArtPrice. Contemporary and ultra-contemporary works have driven much of this growth.

During the same period, contemporary art sales grew by 54 per cent while ultra-contemporary art turnover swelled by almost 600 per cent. Contemporary accounted for 15 per cent of global art turnover in 2019; by 2021 and 2022 it made up a fifth, with sales exceeding $3 billion - 54 per cent higher than in 2019. Ultra-contemporary turnover’s proportion increased almost five-fold in 2021, from 0.6 per cent up to 2.7 per cent, with art sales totalling more than $450 million - growth of close to 600 per cent.

The trend continued into 2022, with $7.5 billion turnover across almost 350,000 sales in the first half of the year, according to ArtPrice.

And while contemporary has increased in value by 27 per cent over the past decade, Modern art and the Old Masters have seen values fall.

There is so much activity and buzz in what a lot of people would see as a very niche field,’ John Russo, CEO of Maddox Gallery, told Spear’s. ‘And the growth is just demonstrated year on year.’

‘It’s becoming this new, safe haven for people to put their money and realise that years later they're going to achieve a very exciting return. And it becomes fun, as opposed to stocks or pensions that aren't quite as sexy as the art world.’

As well as the obvious lure of buying art over investing in the stock market, younger collectors are also influenced by the growing role of social media, which has enabled so-called ‘Red-Chip’ artists to thrive by reaching new international audiences.

And Popovic says other key factors in the market’s success that are much more long-lasting and resilient are the art world's push towards accessibility and diversity, both for collectors and for artists themselves.

Everyone from major museums and galleries to small private collectors is looking to feature more women, artists of colour, and those from indigenous backgrounds. Influential contemporary art fair Frieze hosted almost 100,000 people at its London fairs in October, with 29-year-old Joy Labinjo, who has only been on the scene for a few years, selling out of works shown by Tiwani Contemporary gallery. The Gagosian too, placed every one of their works by British-Nigerian artist Jadé Fadojutimi, 30.

The winner of the event’s 2022 Frieze Stand Prize was a booth by Thomas Dane Gallery, curated by Anthea Hamilton, showcasing works dealing with queer identity, feminism and the Black and South Asian female experience.

‘These groups are now finally being represented and should have been sooner, quite frankly. They are gaining the delayed momentum they deserve. So, as a result, I don't see this as a bubble that will burst.’

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