Pricing art and the art of pricing: On risk and return in art auction markets

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We study price determinants and investment performance of art using a vast sample of transactions worldwide over the past 60 years. We focus on paintings and drawings which have appreciated at a real (nominal) annual return of 2.49% (6.24%). Higher art returns are reached for paintings at the high end of the price distribution, oil paintings, more recent art movements and transactions by reputable auction houses. The risk–return trade-off of paintings underperforms that of other passion investments. Paintings' Sharpe ratios are below those of stocks, bonds and gold but outperform those of commodities and real estate. Investments in paintings enter the optimal investment portfolio.
Original languageEnglish
Pages (from-to)1139-1198
JournalEuropean Financial Management
Volume28
Issue number5
DOIs
Publication statusPublished - Nov 2022

Fingerprint

Dive into the research topics of 'Pricing art and the art of pricing: On risk and return in art auction markets'. Together they form a unique fingerprint.

Cite this