🖼 Would you add art to your investment portfolio? 🖼 On May 10th, Shot Sage Blue Marilyn by Andy Warhol sold for $195 million - an auction house record - at Christy's New York. Let's dive into the sale through a recap of Public's recent Live session on #Alts with @profgizemsaka and hosts @calumjohnson1 @elenags 👉 $195 million is an auction house record, not a sale record. That means pieces have sole for higher outside of auction houses - for example, a De Kooning piece sold for $300 million to Griffin in 2015 👉 Location of auction has influence, and is one of many factors of influence in pricing art. Others can include the artist, size, medium, if the piece has passed into questionable hands, etc. 👉 In relation to other markets, the art market has a positive relationship with the macro economy. 👉 Art offers diversification options. Some segments have near zero correlation with the S&P. However, as always the power of diversification lies in - you guessed it - diversification. 👉 Art is a very long term asset, and not always transparent - there have been instances of price fixing and illegal bidding. As always, do your own research to familiarze with the risks of each asset before investment. 💬 Key Quote: "So we have some segments of the art market... that have almost zero correlation with the s&p... my view as an economist regarding retail, art is a retail investing... as for any economist, whenever there is untapped potential, it shouldn't remain idle. But investors need to be careful because they'll benefit from this only if they're diversified. So in the same way that you know, we advise against picking a stock here as well, we can't advise picking one artwork and no one should hope to make a quick profit." - @profgizemsaka 📝 Art Vocabulary: Primary market: When a piece first goes to sale - example would be directly from the artist. 🧑🎨 Secondary market: Any resale of the work. This is typically where auction houses come into play. 🔗 Check out the full replay in the comments👇 and share your thoughts! - *Not investment advice.
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1,423 votes • Ended 05/24/22