The art market has long been an exclusive circle for a well-connected collectors. But particularly in recent years, financial analysts have found fine art to be one of the most promising investment opportunities for a diversified and stable portfolio.
As data from Artprice shows, fine art has historically outperformed other assets and stock indices like the S&P 500. Art prices also have little to no correlation to other asset classes and economic downturns.
This holds true particularly for the top 500 artists in the world. These most sought-after artists are seeing the best price returns in the market and a growing global demand, especially in Asia. Auction results show that the profitablity rises with the value of the artworks, with the average annual return of artworks with a value over 200.000 EUR sitting between 7.6% and 8.2%.
Naturally, Encrypt Ventures focuses exclusively on this top 500 market. Our recent acquisitions have all been artworks from the Old Masters (Europes most recognized artists working between the Renaissance and 1800).
This segment is not only attractive for museums, collectors and enthusiasts. The demand for the Old Masters is continuously growing while there is a relative scarcity of artworks available on the market.
Some paintings in this segment have seen the highest short term capital gains in the art market, with price increases of over 200% in one year for selected artworks.