There’s a reason the ultra-wealthy like to invest in fine art.
Works by sought-after artists are, by definition, scarce. And scarcity makes them immensely valuable.
Moreover, multimillion-dollar artworks have a long-term correlation coefficient of just 0.12 with the S&P 500 Index, which is very low. And low correlation means art can help investors diversify traditional portfolios in the modern age.
Better still, real-world assets (including art) only benefit from falling real interest rates, providing protection in inflationary environments, just like we’re seeing today.
But buying and selling art can be a costly endeavor, not least because traditional auction houses like to charge commissions of anywhere between 5%-25% of the sale price — at least, that used to be the case.
Now, however, thanks to blockchain-powered platforms like the Elitium NFT marketplace, investors can buy and sell artworks from acclaimed artists paying just a fraction of the fees typically associated with the process.
Meaning fine art has now become one of the finest ways to diversify investment portfolios of any size.
Here’s how to invest in art today.
What Makes A Good Art Investment
Several factors determine the value of art.
The artist’s name is perhaps the main driver (better-known artists sell for more, naturally). But aspects like originality and rarity are valuable attributes too.
An original piece will always be more valuable than a copy. While a limited-edition canvas will have more worth than a mass-produced print. That’s why it always pays to look for respected artists and buy original works that are unlikely to be reproduced.
Sounds easy in practice, but it’s only just become simple.
At Elitium, we partner with some of the best names in the art world to curate works from only the best in their field.
And when you buy a piece from the Elitium NFT Marketplace, you buy an actual NFT, meaning you get a digital certificate of authenticity that guarantees the piece is original (while we also show the sales history of the artwork itself).
Moreover, the platform offers a full bio of each artist, ensuring you know you’re buying a name that’s either on the up or has already hit the big time.
And when it comes to selling, our fees won’t impact your ROI.
Selling Your Art Investment
People invest because they hope to one day sell their investment at an attractive gain. That’s as true with art as any other asset.
However, as we mentioned at the start, selling an artwork can incur high costs. And during boom times, when many investors look to cash in, demand can push commissions up, only reducing the return on investment.
But the Elitium platform returns a degree of power to both artists and investors, giving you a simple way to buy and sell original artworks via a trusted, secure, and compliant NFT marketplace.
In doing so, Elitium is helping to deliver the kinds of returns investors hope for when buying the artwork in the first place.
Make art part of your investment strategy: sign up for the Elitium platform.