The Latin American art market: literature and perspectives

Objective The purpose of this paper is to present the progress and trends of the literature on art as an investment and to outline potential research lines to be developed. Design/methodology/approach This work gathers, analyses and critically discusses the attributes of investments in art in general, and in Latin American art in particular. Findings Most studies report that art (art in general, and Latin American in particular) has offered relatively low but positive real returns, which have tended to be below those offered by stocks and similar to those realized by bonds. Art has a low correlation with other investments. Research limitations and implications The literature on the attributes of Latin American art as an investment is limited and new research would help to close the knowledge gap with respect to this segment of the art market as it continues to grow. Practical implications Similarly to the research carried out into other segments of the art market, studies on Latin American art suggest that the works of art are worth more, ceteris paribus: the more renowned the artist, the larger the work, whether they were executed in oil, and if they were auctioned at Sotheby's or Christie's. The paper also details a series of practical implications for those who participate in the art market. Originality/value To the best of the authors' knowledge, this is the first exhaustive review of the literature on the attributes of Latin American art as an investment. The findings of this study are useful for academics, art collectors, auction houses, gallerists and others who take part in the arts market.