Jean-Michel Basquiat, Boxer Rebellion, 1982/2018
Main reasons to invest
Return Potential📈: An investment of 500 EUR is projected to be worth approximately 645 EUR in 2 years.
Cost-to-Return Ratio⚖️: After deducting 3.8% in annual total costs (including exit fees), your net return could reach 13.6% per year.
Discount / Short-Term 🌠 : Investing in Basquiat's artwork has proven to be lucrative, with auction prices soaring from an average of $20,000 in the early 2000s to exceeding $100 million for select original pieces by 2021. Acquiring prints offers a way to benefit from this upward trend, as they typically increase in value alongside original works. Additionally, this particular print was acquired at a 16% discount compared to the current secondary market value, positioning it as a strong short-term investment opportunity.
Description
To ensure the competitiveness of the investment, we conducted a thorough verification of the purchase price by analyzing recent secondary market transactions. Our analysis confirmed that the price offered, inclusive of all associated fees, is highly competitive. To estimate the potential ROI, we used the spread between the current secondary market trade value and the purchase price. For our conservative scenario, we assumed the value of the painting would grow at the rate of Swiss inflation, reflecting a defensive approach. In the balanced scenario, we annualised return based on the assumption that the work will be sold at the lower end of the current secondary market value of 72k EUR within 1.5 years. Finally, in the ambitious scenario, we annualised return based on the assumption that the work will be sold at the mid range of the current secondary market value of 74.4k EUR within 1 year.
Exit Options at Maturity 🚪
We will manage the exit strategy in collaboration with our expert ZURANI on behalf of our investors, ensuring the best possible outcome based on market conditions at the time. After releasing the print the work will be offered immediately on the secondary market for sale.
Why Invest in This Category? 🎨
The art market has recently witnessed a shift towards contemporary art. The popularity of works by emerging and mid-career artists is rising, leading to increased sales. In 2020, contemporary art sales accounted for 55% of the total sales, up from 49% in 2019. Blue-chip art offers historically solid performance, averaging 8.9% annual growth since 2000, over 3x better than the S&P500, according to the Art Price 100 Index. It is among the best-performing asset classes, with a market size of USD 67.8 billion in 2022 and an estimated USD 1.7 trillion in art globally, compared to USD 9.8 trillion in private equity funds.
Why Invest in This Asset? 💎
Investing in Jean-Michel Basquiat's print "Boxer Rebellion" offers a unique blend of cultural significance and financial potential. As an iconic representation of Basquiat's exploration of race, power, and resilience, this work resonates with collectors and investors alike.
Appreciation in Value: Basquiat’s artwork has consistently appreciated, with his original pieces reaching over $100 million in auction. Prints like "Boxer Rebellion" have also shown steady value growth, benefiting from the increasing demand for Basquiat’s work.
Cultural Impact: Basquiat's exploration of Black identity and historical struggles through symbols like boxing and the Boxer Rebellion connects with today’s conversations on race and empowerment. This cultural relevance strengthens long-term demand for his art, ensuring a stable investment.
Market Demand: Basquiat remains one of the top-selling contemporary artists, with over $500 million in sales in 2021 alone. His works are consistently in high demand, and limited prints like "Boxer Rebellion" stand out due to their rarity and importance.
Context in Time ⏳
Over the last 20 years, Jean-Michel Basquiat’s art has experienced unprecedented growth in both value and cultural impact. His prominence in the art world has soared, particularly after his untimely death, making him one of the most sought-after contemporary artists. The rise of contemporary art as a major asset class, along with the increasing digitization of the art market and greater global participation in auctions, has further driven up demand for Basquiat’s work. In this context, investing in his prints allows collectors to capitalize on a rapidly appreciating market that shows no signs of slowing down.
Conclusion 🎯
Investing in Jean-Michel Basquiat prints offers a compelling mix of cultural significance, market demand, and financial upside. With a track record of impressive price growth and a limited supply of available prints, these assets present an attractive opportunity for investors. The additional advantage of acquiring this print at a 16.6% discount below secondary market prices puts investors in a strong position to achieve short-term returns. Combined with flexibility in exit strategies and the overall strength of Basquiat's market, this investment is a valuable addition to any diversified portfolio.
Expert
Zurani caters to the distinct needs of family offices, wealth managers, and UHNWIs implementing investment strategies in the art market. Our expertise lies in assisting investors in navigating the global art market and optimising their portfolios. Our core services include market analysis, acquisitions, advisory services, portfolio management, risk management and estate planning. We educate partners on the opportunities and challenges of art as an asset class. Our approach is centred on understanding each partner's unique needs and providing tailored solutions accordingly.
