Basically, I can answer this question right off the bat and tell you that artwork from a Blue Chip artist is the best art to invest in.
This advice is especially true for investors who are new to the market and are unsure about the finer details of this alternative asset. Blue chip artists are those who have already established a prominent reputation in the art world and have a strong market presence. Thus, investing in these artists offers a lower risk than lesser-known or emerging artists. These established artists have already proven popular with collectors and art lovers, and success tends to beget success, meaning that they have a stable platform from which to improve their public profile, and increasing the value of their artworks.
Are they Household Names?
Within the classification of blue chip artists there are “household names” and “non-household names”. The former is an artist you might expect someone on the street to recognize, while the latter is famous in the art world but not so much outside this circle. Household names in the art world hold a distinct advantage over lesser-known blue chip artists, as their art carries broader appeal and recognition and are probably the best art to invest in of the two. The general public’s awareness of these artists can fuel the demand for their work, leading to higher prices and greater potential returns for investors.
Household Blue Chip artists include:
- Jean-Michel Basquiat
- Yayoi Kusama
- Damien Hirst
- Kaws
- David Hockney
- Banksy
- Andy Warhol
You can find Investment Reports on all these artists here.
Originals vs. Editions
In terms of what kind of artwork you should seek from Blue Chip artists, investing in original, unique artworks is the best art to invest in. The scarcity of original works ensures their value remains intact, and their potential for appreciation over time is significant. If you are not a millionaire, there is little chance that this is an option for you, unless you invest in these artworks via Masterworks or Yieldstreet. These two platforms offer fractional shares in Blue Chip original art and take care of all the administration and storage required to keep the artwork safe and secure before looking to sell for a profit after 3 to 10 years.
For those unable to outright afford original Blue Chip artworks but still want a hands-on art collection, limited editions with signatures and limited numbers can serve as a fine alternative. These editions still possess a level of exclusivity and are often produced under the artist’s direct supervision. While not as unique as original works, limited editions can provide a more accessible entry point into the art market.
The Risks of Emerging Art
Investing in emerging artists can be tempting due to its comparatively lower price point. However, it is important to acknowledge the inherent risks associated with these artists. Emerging artists, by definition, have not yet established a firm footing in the art world, and their future success is uncertain. If you are not keenly aware of what makes an artist more likely to ‘make it’, it is probably best you stick to investing in Blue Chip artists. There is a high chance that an emerging artist doesn’t “make it,” resulting in their artworks becoming worth-less or even worthless.