Introduction to Art as an Asset

At Global Art Club (GAC), we understand that art is not just an emotional and cultural sustenance but also a tangible asset with significant potential. Over the past decade, the art market has demonstrated consistent growth, making it an attractive option. Unlike traditional financial assets, art possesses intrinsic aesthetic and cultural value, often appreciating over time due to its rarity, significance, and demand.

The Growth of Art as a S.W.A.G Asset

The art market has seen a remarkable increase in value, with global art sales rising steadily. High-profile sales of works by artists like Banksy, Picasso, and Basquiat underscore this trend, showcasing how art can be safe and rewarding.

Banksy

Known for his provocative and often politically charged street art, Banksy’s works have seen exponential growth in value. A notable example is the “Girl with Balloon” piece, which was sold for £1.04 million at Sotheby’s in 2018 before it shredded itself—ironically increasing its value. Today, Banksy’s pieces are highly sought after, with prices continuing to climb.

 

Pablo Picasso

A cornerstone of Modern art, Picasso’s works have long been considered blue-chip assets. Over the last decade, his works have consistently broken records at auctions. In 2015, his painting “Les Femmes d’Alger (Version O)” sold for $179.4 million, demonstrating the enduring value of Picasso’s oeuvre.

Jean-Michel Basquiat

A leading figure in Contemporary art, Basquiat’s work has seen a dramatic rise in value, especially in recent years. His piece “Untitled” (1982) sold for $110.5 million in 2017, a testament to his growing market and the increasing recognition of his influence on contemporary culture.

Why Art is Safe

  • Diversification: Art provides an alternative asset option that is not correlated with traditional financial markets, helping to diversify portfolios.
  • Tangible Asset: Unlike stocks or bonds, art is a physical asset that you can enjoy while it appreciates in value.
  • Cultural and Emotional Value: Beyond financial returns, art provides cultural enrichment and emotional satisfaction, making it a unique and meaningful asset.
  • Limited Supply: The rarity and uniqueness of artworks ensure that demand often exceeds supply, driving up prices over time.

Market Trends Over the Last 10 Years

  • The global art market has grown by approximately 8% annually, driven by high-net-worth individuals and new collectors entering the market.
  • Online art sales have surged, making it easier for collectors to access high-quality artworks from anywhere in the world.
  • Auction houses have reported record-breaking sales, with top-tier artworks achieving unprecedented prices.

The Knight Frank Luxury Asset Index (KFLII) is an indicator that tracks the performance of various luxury assets, including art, classic cars, fine wine, watches, jewelry, and other collectibles. Art is a significant component of this index, reflecting its value as an Asset in the luxury asset class.

This graph compares the growth of the art market within the Knight Frank Luxury Asset Index (KFLII) against other key luxury assets such as classic cars, fine wine, and watches over the last 10 years.

  • Art Market: The art market has shown significant growth, especially in the latter years, indicating a strong performance within the luxury asset class.
  • Classic Cars: While also performing well, the growth has been steady, slightly below the art market’s growth.
  • Fine Wine: This asset class has shown more moderate growth compared to art and classic cars.
  • Watches: Watches have exhibited consistent growth, although at a slightly slower rate compared to art and classic cars.
  • Overall KFLII: The overall index, represented by the dashed line, shows the aggregated performance of all included luxury assets, with art contributing strongly to this growth.

This comparison highlights the robust performance of the art market as a luxury Asset, making it a compelling option for collectors within the luxury asset space.

The Opportunity of Emerging Artists

Emerging artists offer a unique opportunity to acquire high-quality art at the early stages of an artist’s career before their work gains widespread recognition. This approach can yield significant returns as the artist’s profile rises, and their works become more sought after in the art market.

Why Collect Art From Emerging Artists?

  • Potential for High Returns: Emerging artists often start with lower price points, making their works more accessible. As their reputation grows, so does the value of their art, offering the potential for substantial appreciation.
  • Cultural Impact: Emerging artists often bring fresh perspectives and innovative techniques, making their work not only a financial Asset but also a contribution to the evolving art landscape.
  • Support and Engagement: Collectors play a crucial role in supporting and nurturing new talent, helping to shape the future of the art world.
  • Access and Availability: Unlike established artists, whose works might be difficult to acquire, emerging artists often offer more accessible opportunities to purchase original works.

Identifying Promising Emerging Artists

  • Follow Art Fairs and Exhibitions: Art fairs, graduate shows, and smaller gallery exhibitions are excellent places to discover new talent. Platforms like the Global Art Club provide curated selections of emerging artists who show promise and potential.
  • Engage with the Art Community: Networking with curators, gallery owners, and other collectors can provide insights into up-and-coming artists and trends in the art world.
  • Research and Stay Informed: Keeping an eye on art publications, social media, and online art platforms can help identify artists who are gaining traction and recognition.

Success Stories of Emerging Artists

Kaws

Once an emerging street artist, Kaws has grown to become a household name, with his works now fetching millions at auction. Early collectors of his work have seen significant returns.

Yayoi Kusama

 Investing in Kusama’s work in the early 2000s, when she was still gaining international acclaim, would have been a lucrative decision, as her works are now some of the most in-demand in the world.

Amoako Boafo

Discovered by some collectors early in his career, Boafo’s paintings have since skyrocketed in value, with his work being acquired by major institutions and collectors globally.

How GAC Supports Emerging Artists and Collectors

At Global Art Club, we are committed to supporting emerging artists by providing them with a platform to showcase their work to a global audience. For collectors, we offer expert guidance and curated collections of emerging talent, making it easier to identify and invest in the next big name in the art world.

Investing in emerging artists is not just about financial gain; it’s about being part of the artist’s journey and contributing to the broader art ecosystem. By coming in early, you have the opportunity to acquire unique works that could become highly valuable assets in the future.

Our Invitation

At GAC, we invite you to explore this exciting aspect of the art market with us, where emerging talent meets the discerning eye of the collector, creating a dynamic and potentially rewarding Asset landscape.

Explore the world of art Asset with Global Art Club, where we democratize access to the art market and provide you with the tools and expertise to make informed and rewarding Asset decisions.

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