Blue-chip art has proven to be such an asset, with an annual average appreciation of 8.9% since 20001. The S&P 500 comparatively increased 4.2% year-on-year over the same period2 . This long-term performance during periods of both economic growth and turbulence could make investing in art a sensible choice when building a diversified investment portfolio.
Diversification is key to weathering economic recessions and avoiding significant losses. Art, with its low to negative correlation to other traditional asset classes, such as stocks and bonds3, provides just the diversification that investors need in their portfolios. Financial advisors are increasingly recognising the benefits, and in a recent report by Deloitte, 85% of wealth managers believed art should be included as part of a wealth management service. Up from 78% in 2016, and 53% in 20144.
In addition to its low correlation, contemporary art can also provide a hedge against inflation. As the real value of money decreases over time, the value of assets that appreciate in value can help maintain purchasing power. Art, with its limited supply and historical track record of price appreciation, is one such asset. Furthermore, the increase in the value of art is not limited to just a few top-performing pieces but can be seen across the entire market.
The historical performance of art during economic recessions highlights its resilience and stability. During the 2008 global financial crisis, for example, contemporary art was amongst the most resilient market sectors, with prices declining by only 10% on average, while other categories such as equities and real estate saw declines of up to 40%5 . Furthermore, following the financial crisis, the art market was swift to recover. According to ArtPrice, global art sales fell by 51% from 2008 to 2009, but rebounded strongly in 2010, with sales increasing by 52% from the previous year6. By 2011, global art sales had surpassed their pre-crisis peak, and the market continued to grow over the following years. Meanwhile, the S&P 500 took a further two years to return to its pre-crash heights.
Whilst the 2008 financial crisis is an individual example that shows art’s low correlation to traditional assets and resilience in the face of market shocks, art’s historical long-term performance emphasises this further. Over a 35-year period, from 1985 to 2020, art had annualized returns of 8.3%. Contemporary Art performed particularly well, with returns of 11.5%7.
Investing in art not only provides the potential for financial gain, but also the enjoyment of owning beautiful pieces of work. With its low correlation to other assets, its ability to hedge against inflation, and its historical resilience during recessions, investing in art can be a smart investment choice for those seeking to balance their portfolios and mitigate risk. The limited supply and growing demand for investment-grade art, even in the face of economic uncertainty, further reinforces its role as a safe haven for investors.
We welcome any owner who wants to unlock liquidity from their collections to contact our Fine Art Team. This includes individual investors, galleries, institutions, and artists. Please reach out if you're interested in listing your artwork on the Mintus platform.
All artwork offered by Mintus is stored in climate-controlled, specialist art storage facilities, under a Mintus account. Current paintings are held in a facility in Delaware.
Artwork is acquired through our unique relationships with the world’s most renowned collectors and galleries. Our Fine Art Team marries their own expertise with insights from fellow industry experts to identify one-of-a-kind investment opportunities from established artists with high-growth potential. Our team examines metrics such as the artist’s market track record, recent price velocity and momentum, and the size of their international collector base when making investment decisions.
If you need support you can send an email to firstname.lastname@example.org or schedule a call using the links on each page of our website. If you need to make a complaint you can write to email@example.com. A description of our complaints policy is set out in the Investment Terms & Conditions for each investment.
Mintus Trading Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom under firm reference number 942522. For more details on our regulatory permissions please see the Financial Services Register.
For more information on risks, see the Memorandum for the relevant artwork and the important disclosures.
Mintus does not sell NFTs. NFTs are digital assets. Mintus enables qualifying investors to participate in the art market by purchasing interests in high value, physical artworks. Mintus’ platform facilitates investment in real, iconic artworks created by established artists.
Mintus will introduce a Secondary Market for investors in permitted locations, which will facilitate selling of shares to buyers, dependant on demand.
According to the regulations, certain investments can only be made available to investors who fall within these categories and Mintus must also follow appropriateness requirements when registering investors.
Fees are dependent on the specific artwork and the specific structure of the investment opportunity. Fees are clearly shown in advance for each artwork / investment opportunity, as displayed in the Memorandum that relates to the artwork / investment opportunity; this document is available to download from the profile of each artwork under the Opportunities section.
Both individual investors and institutions can invest in artworks. Individual investors will need to declare themselves to be ‘high net worth individuals’, ‘sophisticated investors’ or 'accredited investors' during the account creation process. Individual investors will also need to pass an appropriateness assessment. Professional investors including wealth managers, private banks and family offices should contact our team for more information on investing as an entity or managing multiple client accounts on the platform.
For the opportunities listed, a minimum investment of $3,000 is required however investments can be for any amount above this and generally range from $15,000 to $100,000. International payments are accepted.
Funds can be sent from any denomination into our USD bank account. We will show you the estimated cost in your chosen currency during the investment process, however this may change at the point of transfer, and does not account for fees charged by your bank. When transferring, your bank may show an estimated conversion; alternatively the funds can be sent in your local currency and converted at the point of receipt. Other transfer services such as Wise display exact fee and currency conversion rates to ensure you're sending the subscribed amount.
Mintus does not provide tax advice. We recommend that investors obtain their own tax advice as every person has specific tax circumstances. Generally, income and profits generated from your investment can be subject to either income tax or capital gains tax (depending on the individual investor and the specific structure of the investment). Artworks are not income-generating during the period they’re held. If you are unsure about your tax or other legal requirements, please speak to a professional advisor.
Not directly. In order to take an investment from one artwork to another, shares would need to be sold to a willing buyer on the future Mintus Secondary Market and then proceeds reinvested on the platform. The Secondary Market will only be available in permitted locations.
Typically, valuations occur at the end of June and December, with reports distributed to investors as soon as possible thereafter.
All actions in relation to the asset are at the discretion of Mintus. Mintus will communicate with investors on a six-monthly basis with an update on the net asset value, and any further news will be communicated on an ad-hoc basis.
Distributable profits will be made available to investors as soon as possible, once all sale-related administration is complete.
Profits will be received into your Mintus wallet, with the option to withdraw the profits into a bank account or reinvest on the Mintus platform.