Marelize van Zyl | CEO | Aspire Art | mail me |
In certain quarters, art has become an increasingly attractive alternative investment as part of a diversified portfolio. One of its biggest advantages is that, at the very least, it tends to hold its value. Over time, it can also increase in value. In the meantime, buyers get to enjoy their acquisitions.
The global art market was valued at US$552 billion in 2024. It is projected to grow to US$585.98 billion in 2025 and US$944.59 billion by 2033. This growth is primarily driven by increased sales of artworks, particularly amongst high-net-worth individuals.
As the number of high-net-worth individuals rises globally, there is growing demand for art as a viable asset class. These investors want to include art in their portfolios alongside traditional assets like stocks, bonds and real estate.
Emerging artists and accessible entry points
The acquisition of artworks is not only restricted to high-net-worth individuals. Aspiring art collectors can acquire more affordable pieces from emerging and up-and-coming artists. When a purchase is made based on sound advice, an investment into a piece of art can reap handsome returns.
The most common mistakes new art collectors make are not knowing the important components that influence the value of an artwork. These include understanding provenance and seeking expert advice. Naturally, the most important factor is the status of the artist and their biography. It is also crucial to consider the significance of the work within the artist’s repertoire and the social milieu in which it was created.
Before acquiring an artwork, collectors must research the artist. This includes understanding their background, creative output and what their work stands for. It also involves assessing how the work has been received by the general public, the art world and the broader art market.
This is where expert advice from specialists can make a significant difference. These experts understand the art market and current trends. Their guidance helps buyers distinguish between pieces that merely hold value and those that appreciate significantly.
Success stories in alternative art investments
For example, in 2012, I sold a stunning still life titled I Love You All the Time by artist Georgina Gratrix for R45,000. The work was from her first solo exhibition in the Cape, a career-defining moment for the young and emerging artist.
By 2018, Gratrix’s career had flourished. She had participated in notable museum exhibitions, prestigious residencies, and shows across Europe. In addition to holding another major solo exhibition in Cape Town, a seminal book on her work was published. Her paintings had become highly sought-after and widely recognised.
I encouraged the owner to put the piece up for an Aspire Art auction. It sold for R591,000, providing a 1,211% return on investment to the seller and setting a new auction record for the artist.
Significant appreciation in art value
Gratrix is far from the only local artist whose work has seen a significant appreciation in value in recent years. In 2018, an artwork by Lisa Brice (now living in London) sold for R39,000 at auction. In 2023, that same piece sold for R1.2 million at our auction. Another Lisa Brice piece, Adult Show, was sold for R30,000 in 2019. It went on to fetch R364,000 at auction just one year later.
Cinga Samson, a self-taught artist who started painting after joining a shared artist studio, Isibane Creative Arts, in Khayelitsha, Cape Town, is another rising star. His work has appreciated significantly. His breakthrough year was in 2021 with a solo show at the prestigious Perrotin Gallery in New York.
He was signed by leading contemporary gallery, White Cube, and held an exhibition at the FLAG Art Foundation in New York, cementing his international reputation. His works now reach £321,300 at auction. A very early, formative work titled Figure was originally purchased at an exhibition in 2010 for R1,700. It later sold at one of our auctions for R240,000 in 2023.
Supporting women artists in the investment space
One of my priorities is to promote the value of women artists’ work, particularly those who have been historically overlooked.
In 2024, we put a captivating landscape titled Drought by Gladys Mgudlandlu (1917–1979) up for auction. It had an estimate of R50,000 – R70,000. The piece went on to sell for over R152,425. The owner recalls purchasing the work for very little in the early 90s.
We specialises in 20th-century, modern and contemporary art. We curate live and online auctions, an exhibition and private sales programme, and offer art valuation and advisory services. These services help clients navigate the art market and build meaningful collections.
Each piece we put up for auction is carefully selected. We conduct detailed research into each artist and the artwork. We highlight each piece’s historical and cultural significance. Critically, we will never put an artwork up for auction that we’re not prepared to sell again at a later date.
Online auctions as alternative investments
Online art auctions are an effective way to embark on an art collecting journey. They offer a good introduction to the art world for new collectors. This holds true irrespective of whether they choose to buy a specific artwork or simply want to discover which pieces resonate with them aesthetically.
To make art collecting more accessible, we recently introduced a buy now, pay later model. This model allows buyers to pay off artworks over a three-month period interest free.
During the course of my nearly two decades of experience handling both primary and secondary art markets, I have learned a key lesson. The key to assisting a client in building an art collection is understanding their long-term ambitions.
Acquiring an Irma Stern painting is certainly a reliable way to preserve value and hedge your investment. However, high-end purchases like this may take a long time to appreciate significantly in value. Currently, Stern is the most valuable South African artist. Her paintings sell for an average of around R5 million, with the most expensive selling for £3,044,000 in London in 2011.
In conclusion
Acquiring an artwork from emerging talents, on the other hand, is significantly more affordable. However, it comes with a degree of uncertainty in terms of how much their work will appreciate in value over time. When it comes to art collecting, it takes experience and insight to recognise emerging talent. And a healthy dose of luck – which is why expert advice is always a good idea.
Art collecting is essentially about patience. An art collection is not built overnight and it does not always appreciate in value quickly. Instead, regard it as a passion project. It has the potential to be a lucrative investment if you have bought carefully.
It’s a buyer’s market right now. This means there has never been a better time to start collecting art. This environment allows for careful selection, strategic acquisitions, and a strong foundation for future appreciation when market conditions shift.
