6 REASONS TO INVEST IN BLUE-CHIP ART
- Contemporary Art has offered an annual return of 14% over the last 25 years. (Source: CNBC)
- From 1985-2018, returns from the Art Market have been about the same as those of high yield bonds. (Source: Citibank)
- Art is now seen not only as an object of pleasure, however, also as a new alternative asset class.(Source: Deloitte)
- Art can function as a risk-reducing element in a portfolio because of its low correlation to equities or bonds.(Source: Barclays)
- Over £500 million spent on contemporary art during the COVID-19 pandemic.
- Blue-chip investment grade artwork can be purchased for as little as £5,000.
CLAIM YOUR FREE ART INVESTMENT GUIDE
BANKSY AUCTION SALES
Bought For : £9,000
Sold For : £77,720
Bought For : £32,160
Sold For : £100,500
No Ball Games
1 year 2 months
Bought For : £25,000
Sold For : £108,717
Bought For : £20,000
Sold For : £67,500
ART ADVISORY TEAM
WHAT’S THE PROCESS?
1. ART MARKET DISCUSSION
After you have entered your details to speak to a member of the Yield team, one of our art specialists will contact you and explain more about the art market as well as explore what opportunities are currently available.
2. START YOUR COLLECTION
Following on from your first discussion with a member of the Yield team, we will now have a clear understanding of your current investment holdings. One of our experienced art specialists will recommend a bespoke group of artists that are most likely to compliment your current portfolio and accomplish your investment goals.
3. ENJOY YOUR ARTWORK AT HOME OR AT YIELD GALLERY
From purchasing your first investment grade artwork, Yield Gallery give clientele the option of whether to have the artwork delivered to your home or have their pieces hung in our gallery fully insured to its value. Yield Gallery will assist you in your chosen preference.
4. RETURN ON YOUR INVESTMENT
Your designated art specialist will be monitoring the marketplace closely and will contact you when they believe it is the best time to consider selling your artwork. After receiving the information and you have decided to sell, Yield Gallery will market the artwork at the agreed price.
FREQUENTLY ASKED QUESTIONS
Yield Gallery can assist with both the advisory, management and final investment service when starting or assisting your art portfolio. Yield Gallery will provide you with the best advice from one of our art investment team. Your appointed advisor will aim to eliminate the risk attached when purchasing and expertly aim to deliver the best possible increase to your portfolio allowing you to enjoy your investment grade art.
Novel art investors are increasingly entering the art world shouldered by art advisory services. This gives them access to important art investment research, portfolio management, the monitoring, structuring and selection of art funds as well as art securitization.
Essentially, art investment follows a simple four-step course:
- Consultation with Art Experts
- Portfolio Management
- Stage or Delivery
- Return on investment
Like any other asset, art value can both depreciate and appreciate. It is consoling that the art market has grown consistently over the past 60 years, this even during the worst economic downturns of our times.
The art market categorises artwork by emerging, established and blue-chip artists. While the latter reaches for seven figure sums, the percentages in return can be smaller than that of emerging and established artists.
Since art is a heterogeneous product, it can lose value depending on judgements by art experts related to areas such as rarity, importance and provenance. Therefore, doing research and consulting with art experts to gain insider knowledge is imperative.
1. Has capital growth potential
2. Is a fully backed asset
3. Diversifies the investment portfolio
4. Hedges against inflation
5. Brings satisfaction of ownership
6. Outperformed property and stocks since 2011.
7. Is a non-correlated investment.
8. Zero percent link to global equities unlike the stock market.
The value of a piece is greatly influenced by an artist’s prestige and fame as well as their role in the history of the art movement. When an artist passes away the ‘death effect’ comes into play. The market realises that no more work can be produced and pieces become truly appreciated, demand increases typically causing the value to appreciate 3-5 fold in the first 5 years after an artist’s death. Date of creation, size, medium, subject matter, condition, provenance and rarity are all factors influencing value.
Unlike other markets, the art market is deprived of a valuation methodology. It is only lightly regulated and subject to the influence of insider knowledge. Hence, paintings amass value with changing tastes. For instance, religious works are not in vogue. Yet historical figures have maintained their value. Therefore, investment research and art advisory services are fundamental to determining the true value of a piece.
The art market is unregulated, contrary to many other areas of investment. However, there are some factors that mould the market. These include:
- Gallery representation, art fairs and solo exhibitions
- Auction results
- Corporate endorsement
- Lack of availability of work
- Press, books and journals
- Death effect
In 2019, art sales totalled to $67.4 billion globally. 2020 has seen record auction results with over £500 million spent on contemporary art during Covid 19 pandemic. Yield Gallery's average percentage profit by our clients stands at 18.75%.
Art prints certainly do not come with a high price tag. Yet, the rarer the print, the more it is valuable - especially if it has a small number of limited editions. This September, Banksy’s Girl with Balloon – Colour AP (Purple) realised £791,250 in Christie’s second offering of their aptly named online auction, ‘Banksy: I can’t believe you morons actually buy this sh*t’. Achieving over double its high estimate, the Screenprint smashed the previous auction record held by a Banksy print, set by Girl with Balloon – Colour AP (Gold) in September 2019 for £395,250.The art market has a dynamic pace but, Yield Gallery ensures you are well informed.
Once exclusive to famous celebrities like Oprah, Elton John and Steven Spielberg, high-end art has become more accessible to various social strata. With emerging art pieces being sold for as little as £5000, investment enthusiasts are including more and more art in their investment portfolio. Deloitte’s Art Finance & Finance Report reveals that some banks are even offering art investment fund products.
There is nothing like an original art piece. After all, it is one-of-a-kind and rare. And whilst they bear the highest prices, they also have the most headroom for payoffs. An art investor looking at long-term gain will greatly benefit from investing in original art.
Sales in the global art market in 2019 reached $67.4 billion, up 6% year-on-year. This second year of positive growth brought the market to its second-highest level in 10 years, and has advanced sales values 9% over the decade from 2008 to 2019.
The number of transactions reached its highest level since 2008, increasing 2% year-on-year to an estimated 39.8 million transactions.
The auction sector (including both public and private sales) made up 46% of the market, down 1% year-onyear, while the dealer sector (including dealer, gallery, and online-only retail sales) accounted for 54%.
Sales in the three largest markets – the US, the UK, and China – accounted for 84% of the global market’s total value in 2019.
Yield Gallery Limited
8 Denmark Street,
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