Art Investment

The fine art market often outperforms the stock market

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Written by
Kim Randall-Stevens

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21 August 2018

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Many investors choose to explore the fine art market due to its perceived lower volatility when compared to other investment opportunities such as stocks.

Learn more about art as an alternative investment here.

We mention this because after a pretty solid bull run of nine years, volatility has crept back into the stock market - most notably in February 2018, when the popular indices entered a ‘shallow correction’ period.

Any period of volatility can prove a frightening time for investors. Meanwhile, the fine art market is traditionally seen as a lower-risk area for investors to place and potentially accumulate their wealth if they do their research, work with the right people and invest in the right pieces.

For many, though, the art market can seem like something of a closed shop. Maecenas is looking to alter that perception and make access to the art market easier than ever with blockchain technology.

FREE Art Investment Explainer Document > 

Better access to the fine art market with Maecenas

“In my experience, when the market goes up and down, up and down, that’s good for art,” says Christophe Van de Weghe, speaking recently to Bloomberg.

The New York dealer adds: “Over the last 30 years, volatility has been very good for us dealers, because that’s when people want to buy a hard asset.” He also highlights that since the stock market peaked at the start of the year, he’s been selling more pieces to investors and that the art market has been ‘very bullish’.

It’s a perception that many in both the art and financial worlds explicitly agree on, and it’s hard to argue when looking at the figures for the second quarter of 2018. According to MutualArt, the market has seen a 17% year-on-year increase for Q2, while the Postwar & Contemporary category has risen an astonishing 80% since the same period last year, amassing sales of $1.3 billion USD.

No wonder the fine art market can be an attractive proposition to investors. For those new to the market, though, it can be tricky to navigate. Where should your money go, what categories are set to see growth, how do you know if a piece is genuine and – most important of all – do you even have enough capital to enter the market?

Democratising the art market with the blockchain

All of those questions and others are answered with Maecenas’ decentralised art gallery, powered by blockchain technology to open what is, essentially, a closed opportunity for millions of art lovers and investors the world over.

One of the biggest barriers investors face is that the market has effectively remained unchanged for centuries. The Maecenas platform works to open up that market, remove intermediaries, provide more accurate information and build a strong open network of trust between artists, collectors and investors.

Most importantly, Maecenas gives investors the chance to own fractionalised digital interests in some of the world’s most popular and famous works of art, allowing anyone and everyone to invest and potentially increase their capital in some of the planet’s greatest masterpieces.

Find out more in our Art Investment Explainer Document.

FREE Art Investment Explainer Document >

 

Topics: Art Investment

Kim Randall-Stevens

Written by Kim Randall-Stevens

Kim Randall-Stevens was born in Hong Kong and grew up residing across the globe in South East Asia, Europe and the United States . She graduated with a masters degree from Inchbald School of Design and went on to manage David Gill Galleries, a leading contemporary art gallery in London before moving back to Asia in 2007 to continue her work in the arts. With her consulting & art advisory partnership, Kim brings a wealth of experience of 18 years in the world of contemporary and fine art. Based in Singapore, Kim works with collectors, advising and acquiring art for private collections and funds. Kim also consults closely with art galleries, artists and art fairs, advising on strategy and development, most recently, working with the Singapore Contemporary Art Show and the Asia Contemporary Art show in Hong Kong managing their exhibitor relations for the entire south east Asia region.

Please read the following disclaimer >

This blog post is illustrative and for informative and general education and discussion purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation. This information is provided with the understanding that with respect to the material provided herein (i) MAECENAS is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation, (ii) that you will make your own independent decision with respect to any course of action in connection herewith, as to whether such course of action is appropriate or proper based on your own judgment and your specific circumstances and objectives, (iii) that you are capable of understanding and assessing the merits of a course of action and evaluating investment risks independently.. MAECENAS does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and any material with regards to investment decisions. You may not rely on the material contained herein. MAECENAS shall not have any liability for any damages of any kind whatsoever relating to this material. No part of this document may be reproduced in any manner, in whole or in part, without the written permission of MAECENAS except for your internal and/or personal use. This material is being provided to you at no cost and any fees paid by you to MAECENAS are solely general educational purposes. All of the foregoing statements apply regardless of (i) whether you now currently or may in the future become a user of MAECENAS’s platform or products and (ii) the terms contained in any applicable contract between you and MAECENAS.

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