“Blue-chip artwork has outperformed the S&P 500 by more than 250% since 2000.”

All artworks can rise and fall in value. Despite this, many financial experts have agreed that art values are driven by independent forces outside traditional markets. In fact, art has proven to perform particularly well during times of financial uncertainty and volatility. Many consider art a more stable store of wealth as it is comparable to other hard assets such as gold, vintage wine and whisky. It is also important to understand that artworks are not a liquid asset, meaning, it may take longer than expected to sell your artwork(s).

There have been numerous comprehensive studies on alternative asset classes such as art, and art has proven to be the number one for performance and market volume in the world.

Art is not only a tangible investment and an inflation hedge, but by being non-correlating, it can diversify exposure. Furthermore, this non-correlation contributes to the potential for superior returns over a period of time.

Elizabeth Xi Bauer provides the expertise for all of its clients who collect. You benefit from this because you only consider art from artists that have been very carefully validated to ensure that all art is of the highest quality now and even more desirable in the future.

To be clear, you will be buying at the right price, quality and kudos to deliver the safest and most desirable returns possible.

In summary, Elizabeth Xi Bauer mitigates risk by sourcing the correct artists that have achieved a great deal of success to prove that they are worthy of collecting, but, excitingly, they definitely still have the best yet to come!

The Economist found that the Art price index had shot up 211% in nominal terms between 2003 and 2013. This appreciation took place after the tech-wreck of the 2000s and during the financial crisis of 2008, the worst since the Great Depression, making it one of the most effective hedges during uncertain times.

Research by J. P. Morgan found that art prices have been less volatile than, and have fluctuated independently from traditional investments such as equities, bonds, commodities and property funds for over 25 years.

“Research has shown that fine art can function as a risk-reducing element in a portfolio because of its low correlation to equities or bonds, while also being a real asset, which provides a hedge against inflation” – Jean-Christophe Gerard, Head of Barclays Private Bank EMEA

88% of wealth managers advise apportioning a part of investment portfolios towards art – Deloitte Art and Finance Report

“For many investors, the market has grown too big to ignore” – Bloomberg

A survey carried out by AXA revealed that private investors consider art to be a more important investment than either government bonds or equities.

There is an obvious correlation between the wealth in the world and the amount of demand for art. Today’s high net worth individual (HNWI) combined wealth is over $61.3 trillion (Wealth-X).

“The global ultra high net worth individuals’ (UHNWI) population is forecast to rise by 22% over the next 5 years” – The Wealth Report 2019, Knight Frank

So, as the evidence suggests, as long as global wealth creation continues, the demand for art will continue and the art market will continue to be strong.

The most recent Art Basel and UBS Global Art Market Report estimates that global art market sales reached a total of $64.1 billion last year.

In 2014, it was estimated that there were $2 trillion of artworks held in private hands (Anna Dempster, Economist and Senior Lecturer at Sotheby’s Institute of Art). The Economist estimates that $3.6 trillion will be spent on art by 2025.

Absolutely not.

It’s true that successful art investment requires extensive know-how and that’s where Elizabeth Xi Bauer comes in. We give you the edge.

We give private investors the exciting and rare opportunity to collect museum-quality artworks only. Every artist and artwork has been stringently validated and verified by our award-winning team of experts.

Substance + Proven Track Record = Serious Potential

Museums are the ultimate art world validation and there is an acute shortage of museum-quality artworks available. Validated museum-quality art is a tangible asset class of deep intrinsic artistic value, low volatility and operates outside of the financial markets (J.P. Morgan) that can also be left to loved ones.