Art as an Asset Class
The Deloitte Art and Finance Report 2021 highlights that art is increasingly recognized as an asset class, with 86% of wealth managers surveyed considering it a viable component of a well-diversified portfolio.
Performance and Returns:
The Artprice100 Index, composed of 100 blue-chip artworks, outperformed the S&P 500 over the past two decades, showing an average annual return of 4.3% (Artprice).
The Global Art Market grew at a compound annual growth rate (CAGR) of 7% from 2010 to 2020 (Art Basel and UBS).
According to the Art Market Report 2021, the market for post-war and contemporary art has seen remarkable growth, with a 1,370% increase in sales from 2000 to 2020 (Art Basel and UBS).
Diversification and Risk Reduction:
Including art in a traditional investment portfolio can potentially reduce overall portfolio risk due to its low correlation with other asset classes (Deloitte Art & Finance Report 2021).
Research by Citi Private Bank suggests that including art in an investment portfolio can enhance risk-adjusted returns by reducing volatility.
The Mei Moses World All Art Index, tracking the performance of artworks, demonstrated an average annual return of 5.3% over a 50-year period (1960-2010) (Citi Private Bank and Art Market Research).
Masterworks, an art investment platform, reported an average annualized return of 32.5% across its first 33 sold artworks, with some pieces experiencing returns of over 400% (Masterworks.io).
Global Market Size:
The global art market reached a total sales value of $50.1 billion in 2020, rebounding strongly after a temporary dip due to the pandemic (Art Basel and UBS).
China emerged as the largest art market globally, accounting for 23% of total sales by value in 2020 (Art Basel and UBS).
Online platforms and art market databases provide increased transparency by offering access to historical auction data, sales records, and research reports (Artnet, Artprice, Sotheby's, Christie's).
The Hiscox Online Art Trade Report 2021 highlighted improved transparency, with 65% of surveyed collectors feeling more confident in buying art online due to the availability of information and transaction data.
Art Indices and Benchmarks:
Indices such as the Artprice100, the Mei Moses World All Art Index, and the Art Market Research Indices track the performance of art as an asset class and provide benchmarks for evaluating its returns and trends.
These facts and statistics demonstrate the performance potential, diversification benefits, and growth of the global art market. However, it's important to note that the art market can be complex and subject to fluctuations, making proper research, due diligence, and expert guidance crucial for successful art investments.