More and more people are making the decision to invest in art as opposed to other assets such as the stock market or property. In times of financial uncertainty, people feel more assured investing in tangible assets that aren’t prone to excessive fluctuations.
However, before investing in art, it’s important to know your options. Blue-chip art is one of the best art investment options out there. Whether you’re new to the art market or you’re looking to expand your portfolio, blue-chip art investment is a great way forward.
Read on to learn more about blue-chip art investment, and some of the top reasons to invest in blue-chip art. We’ll also be exploring how our team of art experts at Grove Gallery can assist you in your art investment venture.
Blue-Chip Investment – What is It?
You may be wondering where the term ‘blue-chip’ comes from, and what it actually means. The term was first used to describe stocks in a reputable business – hence, a blue-chip company is a well-performing company with a history of success.
The term ‘blue chip’ originates from the blue chips found in poker – the most valuable poker chips. Back in 1923, the term was first used to describe stocks by Dow Jones employee Oliver Gingold. Gringold became aware of certain stocks trading at $200 and over per share, and coined these stocks as ‘blue-chip stocks’.
Blue-chip shares are attractive to investors as they are more likely to increase in value – blue-chip companies have a solid history, and are generally the largest companies around – making blue-chip stocks a safe option to invest in.
Now you understand what blue-chip stocks are, you may be wondering how this relates to art – what is blue-chip art? Blue-chip art refers to art that has been produced by prominent artists that have a solid reputation in the art industry.
Artists such as Andy Warhol, Banksy, Jean-Michel Basquiat, Keith Haring and many more are known as blue-chip artists as they are well-established within the industry, and have a verified history of producing quality art that increases in value over time.
Reasons to Invest in Blue-Chip Art
Now you have an understanding of blue-chip art and blue-chip art investment, let’s explore some of the key reasons why you should invest in blue-chip art.
There are many benefits of blue-chip art – one of the main benefits being that it is considered a safe and secure investment.
Likewise, accessibility isn’t too much of an issue with blue-chip art; you can find blue-chip art in art galleries, art auctions, and at art fairs. Read on for more reasons to invest in blue-chip art.
Blue-Chip Art is a Safe Investment
First and foremost, the most appealing factor when investing in blue-chip art is that it is a safe investment.
Blue-chip art typically sells for the highest prices at art auctions. Likewise, it is expected that blue-chip art increases in value over time. This makes blue-chip art a safe bet for art investors and art collectors.
Likewise, blue-chip art is a worthy tangible investment asset due to the fact that it can preserve its value, acting as a hedge against inflation.
Despite the fact that blue-chip art generally has a high price tag, blue-chip artworks come with low risk. At the bare minimum, blue-chip art retains its value – but can also yield exceptional returns.
Because of this, blue-chip art is generally the most sought-after among art collectors, alongside old masters. These types of artworks have limited availability and high demand – with years of consistent sales and value, blue-chip art is truly a great investment.
The value of art appears to be increasing at a steady rate. The Artprice Global Index states that the average value of art has risen by an impressive 30% in the last 20 years – now is the right time to invest in art.
Blue-Chip Art can be Passed Down as an Heirloom
Another reason to invest in blue-chip art is that a piece of art can be passed down through your family for generations. When you purchase a piece of art, you are purchasing something that will remain long after you are gone.
When passed down, art can steadily increase in value, meaning it can be sold for a huge profit in years to come.
Blue-chip art can work great as both a short-term investment and a long-term investment. You don’t have to buy blue-chip art and sell it straight away – you can hold onto it for generations until you’re ready to part ways with it.
Gifting art from prominent blue-chip artists to your children or grandchildren gives them a stable asset that will increase in value over time – also giving them the choice whether to sell it for profit or to pass it down to further generations.
Art tells a story – from cave paintings and renaissance-era paintings to modern-day art, a painting tells a thousand words. Blue-chip art typically has a solid provenance, something which contributes to the overall value of the piece.
Likewise, as you grow your art collection, you may be in a position to choose which artworks to sell for a high price and which pieces to bequeath to family members as family heirlooms.
Blue-Chip Art can be Enjoyed
When you invest in art, you can enjoy it. Art is a tangible investment – it’s something you can hang up in your home or office and appreciate.
If you are an art lover, you can purchase art that genuinely interests you. Profit doesn’t have to be the only reason to buy art – you can purchase art you enjoy, and decide to sell it for a profit further down the line if you wish.
Art is subjective – you may be attracted to a piece of art that others don’t enjoy and vice versa. Choose blue-chip art that speaks to you; something that will brighten your day whenever you see it.
Likewise, art can be consumed – when you look at art, it doesn’t decrease in value. However, other investments such as fine wine, for example, will drastically decrease in value when consumed.
You may be wondering whether you have to be an expert to invest in art – the answer to this is no. Although having an expert eye or help from an art advisor can help, having a love for art can certainly help.
Invest in Blue-Chip Art with Grove Gallery
At Grove Gallery, there are many investment opportunities available to you regardless of the funds in your bank. You can invest in art with as little as £2,000 – with annual growth rates averaging from 8% to 12%.
If you wish to start building your art portfolio or simply expand your existing collection, we can help. The art world can be difficult to navigate, which is why we offer high-quality, impartial art advisory services. Our team of experts can share their wealth of knowledge, helping you decide when to invest in art, what to invest in, and even when to sell your art.
To learn more about art investments, check out our helpful blog post outlining everything you need to know about art investments. Alternatively, download our art investment guide or speak to one of our experts at Grove Gallery today.