Around 58% of US high net worth (HNW) investors have bought a piece of art without ever having seen it in person—a percentage that has more than doubled from last year (26%), according to research.
UBS Global Wealth Management’s 2018 Investor Watch Pulse Report, “Art in Motion,” studies the attitudes and behaviours of 175 HNW fine art collectors in the US with at least $5m (£3.9m, €4.4m) in investable assets.
Among the collectors, 67% follow an artist on social media, while 65% have seriously considered buying art after first seeing it through their social media platforms.
Karl Ruppert, market head of Florida private wealth management at UBS Global Wealth Management, said: “The technological trends changing the economy are increasingly changing the art market.
“There are potential opportunities presented through future growth of the online art market to attract new buyers at different price levels, which is beneficial to the health of the overall market. For gallerists, fairs, auction houses, artists and collectors, digital tools will be a key area of growth over the next five years.”
Buying
HNW collectors are eager to grow their art collection with half stating they’re always looking to add new pieces, and 34% are opportunistically searching.
Moreover, 58% are ready to make an addition in the upcoming calendar year, while 64% of fine art collectors are gearing up to spend more than $100,000 on their new additions in 2019.
More than half (58%) of these wealthy art enthusiasts view their collections as their most prized possessions.
Not surprisingly, collectors are only willing to sell up to a third of their collection.
When it comes to passing art along to the next generation, 58% of art collectors are worried their heirs won’t know how to care for the collection and 57% are concerned about taxes when passing on to the next generation.
Investing in female artists
Almost three-in-five collectors see the artist’s gender as a determining factor when purchasing a piece, and 70% plan on purchasing works by women in the next year.
“While male artists continue to lead overall sales within the market, we found clients are increasingly recognising that women artists are undervalued,” said Ruppert.
