What is Blue-chip art? Investing in Blue-chip art in 2024

In the past, only wealthy people had access to the prestigious blue-chip art market. But now, art by blue-chip artists is becoming more within reach for everyone. Whether you're thinking about investing in art or just curious about the art scene, it's good to understand the various types of artwork, including blue-chip art. In this blog post, we'll delve into blue-chip art, exploring examples of artists, the market, and the differences between blue-chip and red-chip art. Keep reading to find out more!

## **Blue-Chip art: What is it?**

The concept of ["blue chip"](https://www.investopedia.com/terms/b/bluechip.asp) was first coined by Oliver Gingold in 1923, referencing high-value poker chips. In art, it signifies works by artists with a strong reputation for creating pieces that appreciate over time. Blue-chip art is often associated with significant price tags, typically ranging from six to eight digits. These artworks have a dedicated collector base, contributing to their stability in value.

Similar to blue-chip stocks in the business world, blue-chip art is seen as a reliable and attractive option for collectors and investors. In the art world, "blue-chip art" refers to pieces created by highly recognized and important artists. These artworks consistently sell well, usually at high prices, and are considered a safe investment due to their track record of maintaining or increasing in value.

The history of success behind the artist's previous works adds to the confidence in the investment, making blue-chip art a secure choice for those involved in the art market.

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## **Blue-chip art vs Red-chip art**

Unlike blue-chip art, which has a strong reputation and a proven track record, red-chip art features emerging artists who are actively involved in both the primary and secondary art markets. Red-chip artists take a non-traditional path, bypassing galleries and dealers to promote their work online, often through platforms like social media.

These artists gain commercial success rapidly, selling their pieces for high prices, frequently at auctions. Unlike the predictability of blue-chip art, red-chip art is characterized by its unpredictability and unconventional nature. While not as established on the primary market, red-chip artists can command prices ranging from 200% to 500% of their initial value in art auctions.

Examples of red-chip artists include Issy Wood and Hilary Pecis, known for their significant online presence and social media following. Additionally, some red-chip artists specialize in creating digital art that can be converted into NFTs (Non-Fungible Tokens).

## **Examples of Blue-chip artists**

Blue-chip artwork is created by artists with a proven history of producing pieces that consistently appreciate in value, earning them a reputable status in the art world. These artists may be actively working, retired, alive, or deceased, but they all share a lasting impact on the history of art.

Notable blue-chip artists encompass a diverse range, including Andy Warhol, Jean-Michel Basquiat, Keith Haring, [Pablo Picasso](https://hedonova.io/resources/blog/pablo-picasso-an-artistic-journey-through-the-ages), Banksy, Claude Monet, Qi Baishi, Gerhard Richter, Fu Baoshi, and Amedeo Modigliani. The demand for their work surpasses the available supply, leading to intense bidding wars at art auctions.

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Blue-chip artists' pieces tend to perform well in auctions, demonstrating resilience against economic fluctuations. Owning an authentic piece can potentially yield significant returns. Some recent notable sales in fine art investing include Jean-Michel Basquiat's "Untitled, 1982" for $110.5 million (May 2017), Andy Warhol's "Silver Car Crash (Double Disaster)" for $105 million (November 2013), Banksy's "Game Changer" for $23 million (March 2021), and Picasso's "Les femmes d’Alger (Version ‘O’)" for $179.4 million (May 2015).

## **Investing in Blue-chip art**

Blue-chip artworks are not only available at auction houses but can also be purchased through fractional ownership. This is where you purchase shares among other art investors and become a co-owner of a piece of art. Because of this, the blue-chip art market has become more open to those without millions of pounds in the bank.

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The average value of art is steadily increasing, and the Artprice Global Index states that the value of art [has risen by a staggering 30% in the last two decades](https://hedonova.io/portfolio/art). If you’re new to the art scene, you may wish to start small; investing in art, regardless of the type, carries a risk. Likewise, you should understand your tastes. Be sure to purchase art that you enjoy.

Patience is key with blue-chip art; it is considered a long-term investment, with profit potential building over decades. It’s also important to know where to invest and when to invest in blue-chip art.

## **Is Blue-chip art a good investment?**

The suitability of blue-chip art as an investment varies based on personal circumstances and one's risk tolerance. While pieces by the top 100 artists often sell remarkably well, the art market can be unpredictable and subject to changes in trends. Relying on an artist to maintain their esteemed status involves a level of uncertainty.

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Successful investment in blue-chip art requires thorough research or professional guidance to choose the right piece and time for investment. The accessibility provided by digital platforms has democratized blue-chip art ownership, allowing a broader range of individuals to invest in pieces with the potential for consistent returns, regardless of the amount available for investment.

## **How to get started buying art**

Art transactions take place in both primary and secondary markets. The primary market involves purchasing art directly from the artist or a gallery for the first time. Once a piece is sold for the first time, it enters the secondary market.

Auction houses, such as [Sotheby’s](https://www.sothebys.com/en/) and [Christie’s](https://www.christies.com/en), predominantly operate in the secondary market. They sell artworks that individuals are seeking to profit from, both in-person and online. Online auction houses like Artfinder and Society6 also offer access to less mainstream art.

Art galleries, often part of the primary market, showcase pieces that haven't been previously sold. They provide a curated selection and can be found locally or globally.

Art fairs, like The Armory Show or Frieze London, offer opportunities to buy directly from artists. While prestigious fairs may curate valuable works, it's important for buyers to research potential investments.

For digital art enthusiasts, NFT (Non-Fungible Token) marketplaces like [SuperRare](https://superrare.com/) and [OpenSea](https://opensea.io/) provide platforms to buy, sell, and trade digital art. NFT drops offer digital art packs that may appreciate in value.

Fractional investing is a beginner-friendly approach to art investment. Investors can buy fractional shares in a piece of artwork, entitling them to a percentage of the proceeds when the artwork is sold. This method allows for affordability, pre-evaluated selections, and liquidity through trading or selling shares. It operates in the secondary market, as the artwork has already been sold once.

Blue-chip art, by established artists with proven appreciation, was once exclusive. Now, fractional ownership and new platforms open doors to this prestigious market. From traditional galleries to digital drops, explore diverse avenues to invest in art, whether you're an enthusiast or investor. Remember, research, patience, and understanding your risk are key to navigating this exciting world.


What is Blue-chip art? Investing in Blue-chip art in 2024

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