There’s a reason some of the world’s top banks and corporations have their own blue-chip art collections. If you go into these businesses, you’ll see their reception and conference areas are often turning into mini art galleries.
For example, UBS, with headquarters in New York City, has one of the most influential collections of contemporary art in the world. Mary Rozell serves as the Global Head of the UBS Art Collection, and she describes the goal as collecting the art of our time, primarily from artists living and working in the regions the company does business.
JPMorgan Chase started an art collection in 1959. David Rockefeller created the first art acquisition program.
Deutsche Bank has one of the largest corporate art collections in the world, with tens of thousands of pieces in their hundreds of offices around the world, including works from Pablo Picasso and Wassily Kandinsky.
So what are the business advantages of investing in art and curating a workplace collection?
Cultivating a Vision and Brand
The art a company invests in can solidify or represent its brand and vision. You can highlight business goals through the art you decide to buy and display. Art can tell a story about your brand, what gives you purpose, and the meaning behind your work.
In a survey of professionals working across a variety of industries, two-thirds of respondents said it’s either absolutely critical or very important for art to express its mission, brand and vision.
Unlike a personal collection, when creating a corporate collection, you want to take into account things like your target audience, location planning, and traffic planning. You want to create a connection between your organization, your audience, and the local community.
Smart Financial Investment
Investing in art can be a little scary. It’s hard to know what’s going to go up in value, but often art does appreciate over time and may end up becoming a very valuable asset.
Art is considered a long-term investment, and you’re not going to profit from it overnight. Instead, consider having a time frame of at least ten years.
The art market doesn’t go up and down with the stock market, which is part of its appeal.
Art is, however, risky. There’s no way to determine the actual value of art. You have to assume many different factors like the artist’s reputation and the economy in general.
There’s an element of expertise that needs to go into investing in art in many cases, at least from a business perspective. It’s more than just choosing what you like.
For a business investing in art, the focus is often on increasing value over time, so organizations might consult with professionals to choose pieces that give them the best likelihood of this outcome.
Not Affected By Interest Rates
Most investments are sensitive to the current interest rates. Art and collectibles aren’t, however, at least not in the direct sense.
It’s Tangible
For businesses making investments, so often, these are things they can’t see or enjoy. Their investments are likely in a bank somewhere. Art is unique in that it’s something you can see and enjoy every day. It can bring joy to your employees and make the workplace more interesting for everyone, so you’re getting an increase in quality of life.
Having art in your office can create an environment that’s pleasant, relaxing, and even encourages collaboration and creativity.
Avoid Market Volatility
We’ve touched on this a little, but we’re in a period with a lot of volatility in the stock market. There are wild ups and downs going on all the time. The financial markets are, in general, a roller coaster even in relatively good times. There are corrections, dips, and swings in both directions.
Investing in art can give you a bit of peace of mind and some protection from market volatility.
Other Benefits
When you have art on the walls in your business, it creates the sense that you’re successful. You’re conveying a lot of positive messages.
Another unique benefit of art investment for businesses is the fact that it can create networking opportunities. You may be in communication with high-level people through your art collecting and curation, and they could ultimately become a customer or client of your business. You don’t know who you’re going to connect with along the way, but the larger your business circle, the better in terms of new opportunities.
From creating the right tone and branding image for your business to financial benefits, it could be a good time for businesses of all sizes to think about investing in art.