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Peculiarities of selection of investment artworks

Author

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  • Daiva Jurevičienė
  • Božena Kostecka

Abstract

The article deals with the art market and key dimensions of investment in art and distinguishes the peculiarities of selection of artworks for investment purposes, covering the main features of the art market. Methodologies of composition of art price indices are analysed. An art market trend analysis is conducted based on statistical data and variations of the Artmarket Global index for the last decade. Using the ARIMA forecasting method, the forecast of artwork price changes in 2014-2015 is conducted. The forecast is presented for the aggregate Artmarket Global index and for different art movements (old masters, impressionism and post-impressionism, modern art, contemporary art) to figure out which of them are the best for investments in the near future. The paper further investigates a new Artistic Power Value (APV) ratio and its adequacy for analysis which makes it easy to assess the suitability of investment in artworks and to compare works of art from various sections. Finally, investment decision-making characteristics of the art market are distinguished.

Suggested Citation

  • Daiva Jurevičienė & Božena Kostecka, 2014. "Peculiarities of selection of investment artworks," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2014(5), pages 71-88.
    • Handle: RePEc:prg:jnlaop:v:2014:y:2014:i:5:id:453:p:71-88
    DOI: 10.18267/j.aop.453
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Art market; investing in artwork; art market trends; art price index forecast;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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