Blue-Chip Artworks Outperform Stock Market
Scientific research and market analysis have shown that "Blue-chip" artworks offer higher returns on investments compared to art investments in general. These works created by the 100 top artists in auction volume have scarcity value, established transaction records, and a global collector base.
The graphs below show that the Artron’s Chinese Modern Master index and Artprice 100 index significantly outperformed the S&P 500 index between 2000 and 2017. The annualized growth rate of Artron’s index reached an astounding 17.85%, and the Artprice 100 index grew at 8.9% rate. These deliver higher returns by 11.4 times and 2.2 times, respectively, versus the S&P 500 index in the same period.
HISTORICAL RETURNS (2000–2018)
Fine Art is Uncorrelated Asset Class Ideal for Diversification
The weak correlation to the global equity markets also makes Blue-chip art investment a diversifier of risk. Scarcity value of Blue-chip artwork resembles gold, luxury real estate, classic car, fine wine and other tangible assets. It has a global collector base and is portable to be traded in any country and in any currency.
The graphs below illustrate the correlations of returns matrix by asset classes.
Correlations of Returns