Premier Art Finance Artemundi Group / 2019 Premier Art Finance Artemundi Group : 201 | Page 27

New Yo rk · Lo n d o n · Mexico C ity · Ma drid
Correlation based on Artnet “indices”
Correlation with S&P 500 Correlation with Case-Schiller
between 2000-2018 U.S. National Home Price
Index between 2000 and 2018
Correlation with Gold Fixing
Price between 2000 and 2018
EUROPEAN OLD MASTERS 29.96% 59.28% 51.14%
GLOBAL IMPRESSIONIST ART 27.45% 51.85% 74.19%
GLOBAL MODERN ART 54.20% 71.61% 81.94%
GLOBAL POST WAR ART 74.45% 76.93% 84.30%
GLOBAL CONTEMPORARY ART 73.63% 80.53% 81.97%
FINE CHINESE PAINTINGS &
CALLIGRAPHY 65.84% 48.91% 92.65%
XX CENTURY & CONTEMPORARY
CHINESE ART 65.84% 56.61% 92.14%
©Deloitte Luxembourg & ArtTactic Art &Finance Report, 2019
ELASTICITY IN SUPPLY AND DEMAND .
Holding a broad portfolio of artworks from a variety of artistic periods can reduce the overall risk of the art
portfolio considerably. Artemundi’s portfolio diversification strategy is based on supply and demand analysis:
CONTEMPORARY ART
Demand
ALL OTHER ART
Supply
Demand
Supply
P1
P2
P1
P2
Q1
Q2
Contemporary art is the most volatile segment of the
art market, it is also the most profitable when there
is an appetite for risk, or a very long- term strategy
combined with unparalleled vision.
The continuous production of contemporary art
increases supply, but if demand contracts, there will be
a decrease in the artwork’s pricing.
Q1
Q2
©Artemundi, LLC
The finite production of highest quality Modern, Post
War, XIX Century art and Old Masters categories
represents a scarce availability.
The limited artistic production and almost inelastic
demand cause the increasing or stable price of artworks
in these categories. This effect generates stable profits,
with average prices up 13% to 40% this decade, further
reducing risk.
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