Beyond the Canvas: Blue Chip Art as an Investment
What is Blue Chip Art?
Blue chip art refers to artwork created by well-known, highly respected, and historically significant artists whose works have proven to hold or increase in value over time. Just like "blue chip" stocks in the financial world, blue chip art is considered a safe and reliable investment because the artists—such as Pablo Picasso or Salvador Dalí—are well-established, and their art consistently sells for high prices. Investing in blue chip art is generally seen as less risky because of the artists' enduring reputation and the stable demand for their work.
Not all art is created equal (or priced equally) in the investment world. Here's what separates the Picassos from other artists and qualifies his works as blue chip art:
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Artistic Legacy: A long and celebrated career with a significant impact on the art world.
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Auction Performance: Consistent high prices fetched at major auction houses like Sotheby's and Christie's.
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Market Demand: A strong and established collector base with a constant desire to acquire their work.
Why Blue Chip Art? The Allure of Timeless Value
Blue chip art refers to works by well-established and historically significant artists whose values have consistently appreciated over time. Artists like Pablo Picasso and Salvador Dalí are perfect examples, as their works are recognized globally and are staples of fine art auctions at renowned houses like Sotheby’s and Christie’s.
Unlike volatile financial markets, blue chip art has an impressive track record of providing stability. In fact, the $2.1 billion art and collectibles market is forecasted to reach $2.9 billion by 2026, with blue chip collections offering higher stability due to their enduring popularity and value. According to the Artprice100 index, blue chip art has shown a remarkable average annual return of 10% since 2000, making it a lucrative yet relatively low risk investment choice.
Artprice100 vs. S&P 500 and STOXX Europe 50 – Base 100 in January 2000
Investment Profile: Blue Chip Art
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Risk: Moderate
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Expected Return: 10%
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Investment Horizon: 2-11 years
The Case for Salvador Dalí and Pablo Picasso
When it comes to blue chip art investments, Salvador Dalí and Pablo Picasso stand out as prime examples of artists whose works consistently attract high returns.
Pablo Picasso is arguably one of the most influential artists of the 20th century. His pieces are synonymous with art history and high value. Picasso’s works regularly sell for millions of dollars, with some pieces, like "Les Femmes d’Alger," fetching over $179 million at auction. Picasso's diverse body of work, which spans painting, sculpture, and ceramics, ensures that his art remains in demand across various segments of the market.
Pablo Picasso, The Painter III, 1970 - available on Splint Invest right now!
Salvador Dalí, known for his surrealist masterpieces, offers a different but equally strong investment opportunity. His work, with its striking originality and iconic dreamlike quality, continues to attract serious art collectors and investors. Dalí’s works, like "The Persistence of Memory," have become cultural icons, and his influence on modern art continues to drive demand for his pieces.
Salvador Dalí, End, 1952 - available on Splint Invest right now!
Investing in Blue Chip Art: A Beginner’s Guide
1. Do Your Research: Understand the market dynamics surrounding the artists you're interested in. Salvador Dalí and Pablo Picasso have long-established market values, making their works excellent candidates for stable appreciation.
2. Seek Professional Guidance: Blue chip art investment often involves large sums of money and in-depth knowledge. Consulting experts or art investment platforms can help ensure the authenticity of the artwork and provide insights into its long-term potential. Learn more about our expert partner for blue chip art, Artemundi.
3. Consider Entry Points: Blue chip art can be expensive, but alternative investment platforms allow you to own fractional shares of masterpieces. This can significantly lower the barriers to entry, enabling more people to invest in high-value works like those by Picasso and Dalí.
Why Invest in Blue Chip Art Now?
Low Volatility: Blue chip art is one of the most stable asset classes, offering low correlation with financial markets and providing a hedge against inflation and economic downturns.
Growing Collector Base: The art market is expanding rapidly, with younger, tech-savvy collectors entering the market due to increased access through online auction platforms.
Proven Track Record: High-profile artists like Picasso and Dalí have consistently performed well over the years. As mentioned above blue chip art has a average annual return of 10% since 2000.
The Final Brushstroke
Blue chip art can enhance your portfolio, but as always diversification is crucial. Consider a portfolio mix that includes multiple alternative asset classes alongside your artistic treasures.
Ready to embark on your art investment journey? Remember, knowledge is power. By educating yourself, seeking expert advice, and starting small, you can turn your passion for art into a potentially lucrative investment strategy.
We are excited to announce a strategic collaboration between Splint Invest and ZURANI - Art Asset Management, a renowned firm advising prestigious clients, including the Royal Private Family Office of H.H Sheikh Ahmed Bin Faisal Al Qassimi, on art collection and investment strategies. Together, we are introducing an innovative art investment strategy designed for users looking to capitalise on undervalued blue-chip works by world-renowned artists such as Keith Haring, Andy Warhol, and Jean Michel Basquiat.
This blog is the second part of the series based on our recent Collectibles Report 2023/2024. In this blog we deep dive into two major categories of art and cars, providing market performance and insight from our expert partners.
At Splint Invest, we recognize that navigating the art market requires a discerning eye and a deep understanding of emerging trends. To ensure our investors capitalize on the potential upside of investing in up-and-coming artists, we've partnered with Maddox, a renowned leader in art market analysis.
