Banking on Banksy: Banksy Prints as an Investment

Abstract

The dual aim of this study is to understand if investment in prints by “Banksy” yields a non-negative return and to compare it to the conventional financial instruments. To achieve this, we estimate an annual index of prices between 2007 and 2020 for 552 price pairs of modern prints by “Banksy.” Our results suggest the financial performance of Banksy prints considerably improved, in terms of returns, from 2014 onwards. We surmise two explanations for this. First, the perception of Banksy's street art is growing more favorably by the public—both in and out of the “artistic community.” Second, the supply of original works of art by Banksy is finite. Hence, a rise in wealthy professional investors at online auctions caused the estimated index to behave in this way, crowding out less affluent collectors in the process.