The term “Blue Chip Art” is not so familiar to many. It is important to note that in case of blue chip art, it is not about how important the art is to a collector, museum or as a matter of fact, its place in history. It refers to one and one thing only, and that is its resale value. INVESTMENT IN BLUE CHIP ART
MORE ABOUT BLUE CHIP ART :
Blue chip art brings about a lot of “wow-moments”. Albeit, they vary in form, size, colour and style, but they are all immersed in a special aura that makes them stand out as historic landmarks.
WHO ARE BLUE CHIP ARTISTS? :
Blue chip artists are master painters whose art’s value has had consistent years of sale that have been confirmed at auction. The Art Price 100 is an index that lists the 100 top performing artists at auction within the last five years. Some of the blue chip artists are Picasso, Miro, Andy Warhol, Jeff Koom, Buffet and others.
BLUE CHIP ART AS AN INVESTMENT :
Welcome to the world of fine art investing. Just like stocks and bonds, now collectors can invest in multi-million dollar paintings. Many people who invest in blue chip art consider their investment just as part of their portfolio. They want to buy a theoretical “piece” of an artwork made by well-known artists who they know will go up in value, just as they want stock from companies who have plenty of room to grow.
REASONS TO INVEST IN BLUE CHIP ART :
Currently, the art market is at an all-time high, in the middle of seemingly never-ending period of growth like none we have seen before. What was earlier a niche community of enthusiasts, has now evolved into a legitimate global market.
As more investors have sought to diversify their portfolios with high-performing alternative assets, investing in fine art has drawn more and more interes. Six reasons to invest in Blue Chip art are :-
• High capital growth potential
• Fully-backed investment asset
• Outperformed property and stocks since 2011
• Zero percent link to global equities unlike the stock market
• Over 500 million spent on contemporary art during the Covid-19 pandemic
Investing in fine art has a good prospect but it is risky. Work with advisors to minimise the risk. Moreover it’s a long-term strategy so don’t expect returns in the short term. Also if
your strategy is liquidity, avoid blue chip art investment. And most importantly, invest in art, if you love it. That is fundamental.