Navigating the art investment landscape in 2024
Our Head of Merchant Banking and Private Clients, Hussam Otaibi, has a unique vantage point on the world of art investment.
In addition to his financial expertise, Hussam is a passionate art enthusiast and the founder of Modern Forms, an exclusive art platform. His personal collection and professional insights offer a valuable perspective for professional investors and ultra-high-net-worth individuals (UHNWI) looking to diversify their portfolio through art.
We spoke with him to find out more about this interesting space and his views on the evolving opportunities within.
Digital art and NFTs: The revolution continues
The advent of digital art and NFTs (non-fungible tokens) has revolutionised the art world, Hussam explains. “NFTs, unique digital certificates of ownership, have opened up new markets and opportunities.” He recalls the landmark sale of Beeple's "Everydays: The First 5000 Days" for $69.3 million at Christie’s in 2021, a moment that highlighted the potential of digital art.
While the initial frenzy around NFTs has calmed, Hussam believes the underlying technology remains robust. “The potential to reshape art ownership and provenance is significant,” he says, emphasising the ongoing evolution and opportunities within this space.
Exclusive opportunities for discerning collectors
For ultra-high-net-worth individuals (UHNWI), art investment remains an exclusive domain offering unparalleled opportunities. “Art has always been a symbol of prestige and discernment. Our clients seek not just financial returns, but the cultural and aesthetic value that comes with owning exceptional works of art.”
At Floreat, the focus is on curating a bespoke experience; if a client is interested in investing in art, then identifying pieces that not only promise appreciation but also enrich the collector's legacy is of paramount importance to us. “We tailor our approach to each client, ensuring their collection is both a source of pride and a strategic investment.”
We tailor our approach to each client, ensuring their collection is both a source of pride and a strategic investment
Hussam OtaibiLatin American art: A thriving art scene
Hussam is particularly passionate about the increasing prominence of South American and Mexican art. His own collection features works from these regions, and he is an advocate for their growing recognition in the global art market. “Artists like Diego Rivera, Frida Kahlo, and Fernando Botero have long been celebrated, but we’re now seeing a new generation of contemporary artists gaining international recognition,” he says.
He points to art fairs such as ArtRio in Brazil and Zona Maco in Mexico as key venues for discovering emerging talents. “These events offer a window into the dynamic and evolving art scenes of these regions,” Hussam explains. “The vibrant cultural heritage and unique artistic traditions make works from these areas highly desirable.”
Authenticity, provenance, and market trends
When it comes to investing in art, Hussam emphasises the importance of authenticity and provenance. “Ensuring the authenticity and clear provenance of an artwork is paramount.” This often involves detailed research and verification through trusted auction houses and galleries. Engaging art advisors or experts can mitigate risks related to forgeries and disputed ownership.
Understanding market trends and the potential of emerging artists is also crucial. “While established artists like Picasso and Warhol offer stability, investing in promising contemporary artists can yield significant returns,” he notes. Staying informed about exhibitions, art fairs, and industry publications is essential for making informed investment decisions.
Art has always been a symbol of prestige and discernment. Our clients seek not just financial returns, but the cultural and aesthetic value that comes with owning exceptional works of art.
Hussam OtaibiA personal journey in art
For Hussam, art investment is deeply personal. As the founder of Modern Forms, he has dedicated himself to supporting contemporary artists and fostering an appreciation for modern art. “Modern Forms connects a select group of collectors, artists, and enthusiasts, creating a vibrant community that celebrates innovation and creativity,” he explains.
His passion for art is evident in his personal collection, which includes diverse works, both contemporary and traditional, from around the world. “The bold expressions and rich cultural narratives found in these pieces resonate deeply with me,” he shares. “I’m committed to sharing this passion with our clients.”
Embracing art investment in 2024
As we look ahead, Hussam sees the art market as a unique convergence of cultural enrichment and financial opportunity. “We are here to provide comprehensive guidance, blending financial acumen with an appreciation for art’s intrinsic value,” he says. Floreat offers tailored solutions that align with our clients’ financial goals and risk tolerance; and for those with a passion for art, our arts consultancy team offer advice and insights into artist trends, galleries and rising talent.
“Investing in art is not just about capital appreciation; it’s about becoming a custodian of culture and history,” Hussam concludes. “Together, we can navigate the exciting landscape of art investment, transforming your portfolio with the beauty and significance of exceptional artworks.” Whether you are a seasoned collector or new to the art world, Floreat and Modern Forms are ready to guide you on this enriching journey.
Contact us to find out more
For professional investors and ultra-high-net-worth individuals only
Images:
Hero image and first gallery: Photo of Hussam Otaibi, by Thierry Bal 2021
Second gallery: Photos Hussam Otaibi, by Thierry Bal; sculpture by Jesse Pollock_CHAIN, 2022