Investing can take many forms, from stocks and bonds to real estate and cryptocurrencies. However, one of the best avenues of investment is blue chip art.
Blue chip art refers to the works of established and renowned artists, whose pieces have stood the test of time and have consistently shown appreciation in value.
Read on for some of the top reasons why you should invest in blue-chip art, and for information on how you can begin investing in art today.
1 – Art is Tangible
Unlike digital assets or stocks, blue chip art offers a tangible and aesthetic value that can be appreciated and enjoyed every day.
Art can evoke thought and emotion and can start conversations. Having a beautiful piece of blue-chip wall art hanging in your home can be a talking point. It’s something you can enjoy every day until you decide to sell it for profit.
Furthermore, fine art provides an opportunity to experience the beauty and emotions conveyed by the artist’s vision. This nature of investment and enjoyment makes blue chip art a unique addition to any portfolio.
2 – Blue-Chip Art Has Historical Significance
Blue chip art often carries historical significance, reflecting the cultural, social, and artistic influences of its time.
Often, pieces of blue-chip art have a notable provenance. It may have been displayed in museums or famous art galleries, or been owned by renowned art collectors.
Owning a piece of such history connects you to the past and allows you to be a custodian of human creativity and expression. This historical relevance can make your investment even more rewarding as the years go by.
This contrasts with red-chip art. Although red-chip art can be an excellent investment, it lacks the historical significance that many blue-chip pieces hold.
3 – Blue-Chip Art Has Limited Supply
One of the key factors driving the value of blue-chip art is its limited supply. Unlike stocks or bonds that can be endlessly replicated, each artwork is a unique creation.
As the years pass, the number of available pieces naturally decreases due to loss, damage, or ownership changes. This scarcity can lead to increased demand and higher prices.
For example, there should be approximately 29,000 Banksy prints in circulation. However, this doesn’t account for damage or loss. Over time, this figure has decreased – making these prints increase in value over time.
His early prints, for example, were released before he developed his reputation – and people treated his prints as though they were posters. They had no idea that the value of these prints would rocket in value.
4 – Blue-Chip Art Has Steady Appreciation
Blue chip art has demonstrated a consistent pattern of appreciation over the years. While stock markets can be volatile and unpredictable, the art market has historically shown more stability.
Even during general economic downturns, the value of blue-chip art has maintained or even increased, making it a reliable long-term investment option.
5 – The Global Appeal
Art transcends borders and languages, making it a truly global investment. Blue chip artworks have international recognition and appeal, attracting a diverse group of collectors and investors.
The art market stands tall against recessions, whether they be national or global recessions. This global demand can create a competitive market that drives up prices, offering potential returns on investment that go beyond local economic conditions.
Take blue-chip artist Picasso, for example. He was born in Spain and died in France, yet his artwork is recognised all around the globe. Collectors from around the world work to get their hands on Picasso’s artwork at art auctions and art galleries – art transcends global borders.
6 – Art Investment Can Make a Great Diversification Strategy
Diversifying your investment portfolio is a fundamental strategy to mitigate risks. Including blue chip art in your portfolio can offer diversification benefits by adding an asset class that is not directly tied to traditional financial markets.
Ultimately, investing in artwork can help you balance your overall portfolio and reduce vulnerability to market fluctuations.
7 – There is Professional Guidance Out There For You
Navigating the art market/ art world can be complex, especially if you’re new to the scene and can’t tell the difference between a Keith Haring piece and a Warhol piece. However, you can make the most of expert guidance.
Whether you’re a beginner or a seasoned art investor, we recommend that you seek the support of experts.
Art consultants, art advisors, auction houses, and galleries can provide valuable insights into market trends, potential acquisitions, and the overall art investment landscape.
Invest in Blue-Chip Artwork Today
If you’re concerned about the price, you can rest assured knowing that the contemporary art market is accessible to all. Historically, only those with lump sums in their bank accounts could invest in art. However, with Art Investments, you can start your art investment journey with just £3,000.
Blue chip art is a compelling investment opportunity that combines aesthetic pleasure with the potential for profit. It’s an attractive investment for private art collectors and art lovers alike.
Its tangible and historical significance, limited supply, steady appreciation, global appeal and diversification benefits all contribute to its attractiveness as an investment option.
So, whether you’re a seasoned investor or someone looking to diversify their financial strategy, blue chip art deserves serious consideration as a valuable addition to your investment portfolio.
It’s essential to do thorough research, seek advice from professionals, and make choices that align with your financial goals and risk tolerance. With the right approach, blue chip art can offer not only potential financial gains but also a rewarding journey through the world of creativity and culture.
Begin your art investment journey today with Art Investments. You can generate between 8% to 12% from art investment per year with Art Investments – there’s a reason why 81% of ultra-high-net-worth individuals invest in art!