Red-chip art is a term used to describe different tiers of value and recognition within the art world. The name comes from a financial background. Typically, red-chip artwork is less expensive to purchase compared to blue-chip artwork pieces.
People starting their art investment journey tend to spend a lower budget on their first couple of pieces and usually look for red-chip-graded art to buy. Red-chip art is still high-quality, created by upcoming artists within the industry. It can be challenging knowing which red-chip artists to invest in; if you’re able to work alongside a trusted art advisor, we recommend doing so. To find out more about red-chip art, continue reading.
What is Red Chip Art?
What is red-chip art? Red-chip art is a term used to describe artworks by emerging or mid-career artists who are gaining recognition and popularity but have not yet reached the level of established blue-chip artists. These artists may have received attention in regional or national art scenes and are often represented by respected galleries.
The term “red-chip” implies that these artists are on the rise and have the potential to become blue-chip artists in the future. Although investing in red-chip art might seem more of a risk, these emerging artists do have the potential to rise to fame and become blue-chip-graded artists in the coming years. The value of red-chip art can vary, and it may present opportunities for collectors to acquire promising works before they become highly sought-after.
The Benefits of Investing in Red-Chip Art
There are many advantages that come with investing in red-chip artwork. Investing in red-chip art offers the potential for substantial future returns. As these artists continue to develop their careers and gain recognition, the value of their work may increase significantly. This can be especially attractive for investors seeking assets that may appreciate over time.
It can be daunting to invest in red-chip artists, especially if you don’t have solid confirmation that their work is on the rise. Investing in red-chip art certainly comes with more risk in comparison to blue-chip art, but that’s what makes it all that much more exciting.
If you’re interested in building up a collection of art, it’s best to start with a small budget; this helps you gain familiarity with the art market and how it works without spending a huge amount of money. Red-chip art is typically more affordable than blue-chip art, making it accessible to a wider range of collectors and investors. This affordability allows individuals with varying budget levels to participate in the art market and build a diverse collection.
If you have a genuine passion for art, it’s always good to support emerging artists and help them become more well-known. Investing in red-chip art goes beyond financial gains; it gives you the satisfaction of supporting artists and giving them a chance to succeed. These early stages of development for red-chip artists are crucial, and your investment allows these talented individuals to continue creating and contributing to the art world.
While the financial aspects are important, investing in red-chip art can also be a source of personal enjoyment. In most cases, investors collect art because they genuinely appreciate it and have a passion for the art world. Owning and displaying artworks that you appreciate can enhance your living or working spaces and make your environment a much happier place to be.
Understand the Differences Between Red-Chip and Blue-Chip Art
The main difference between red-chip art and blue-chip art lies in the status and reputation of the artists associated with the artworks. As we’ve previously mentioned, red-chip art is created by emerging artists whose artwork is sold at a lower price in comparison to blue-chip artwork. Understanding the differences between the two is vital when it comes to learning about the art market.
Both ‘red-chip’ and ‘blue-chip’ are terms that are widely used across the market, so knowing what they both mean is essential when you’re investing. Now we’ve got a clear understanding of what red-chip art is, let’s learn a little bit about blue-chip artwork and what makes it so valuable in comparison.
Essentially, blue-chip artwork is created by well-established and highly sought-after artists. These artists have typically achieved international recognition and have a history of strong sales and critical acclaim. Examples of well-known blue-chip artists include Damien Hurst, Banksy, Andy Warhol, Keith Haring, Claude Monet and Pablo Picasso to name a few.
Many blue-chip artists have their work displayed in museums, galleries and prestigious art fairs around the world. Blue-chip artwork is expensive to invest in, but it never loses its value. The art produced by blue-chip artists commands high prices in the art market and is considered one of the most valuable investments, often out of reach for the average collector due to the high costs.
Knowing the distinction between both red-chip and blue-chip artwork helps you make informed choices about your art investments. Although blue-chip art is more stable and offers security and reliability when it comes to returns, red-chip art offers opportunities for growth and supports artists trying to make it in the industry. Your budget and preferences are ultimately what dictate your decision on what type of artwork to invest in.
How Can Investments Help You Invest in Red-Chip Art?
At Art Investments, we dedicate time and effort to providing expert advice to our clients. Our trusted team can help you invest in art whenever you feel ready. We can offer guidance and support, whilst providing all the necessary information you need to know as you begin your art investment journey. Our team have a wealth of knowledge and experience within the industry and can’t wait to hear from you. For any further information, feel free to contact us today.
