Connect with us

Art Transactions

How Masterworks Is Leading the Evolution of Finance for Blue Chip Art Transactions



Source: Global Trade

Art has long been used as an investment as well as a source of delight and contemplation. As an asset that can outperform inflation and is not correlated with other assets, art — particularly blue chip art — serves as an excellent hedge against economic turbulence. 

This has made it particularly attractive over the past few years of extreme uncertainty and turmoil, and will likely continue to do so for the next few years too. Records show that over the past quarter-century, contemporary art has driven average returns of 12.1% annually, 1.9x that of the S&P 500 over the same time period and with only negligible correlation to that index. 

Yet blue chip art was also long out of reach for many people. Finance served as a near-impenetrable barrier in a number of ways. Ordinary investors struggled to access the funds needed to buy blue chip artwork, were deterred by the difficulties liquidating those funds when necessary, and lacked the networks to help them to find buyers. Additionally, even art lovers weren’t confident that they could select paintings likely to appreciate over time.

Read more: