Alternative Investment — Success in Art industry with no cost

If you still have the doubt about the investment potential on artworks, please have a look what has happened in a recent auction.

On 28th of April, a total deal of 13.2 million US dollars was made in Coeur d’Alene Art Auction in Grand Sierra Resort.

For people who consider stepping into the artwork industry to diversify their investment, high price is certainly a significant barrier. For example, a total transaction volume of 1.58 billion US dollars transections was made for contemporary artworks across the globe from July, 2016 to end of June, 2017. It was 3.2% higher than that was made the year before.

Meanwhile, the average price of a piece of contemporary artwork has risen to 27,600 US dollars from 26,160 US dollars. The competition in the market is very aggressive and traders and auction companies have strong information protection. For business conducted in world top auction companies, both buyers and sellers have very high premium.

If an investor has no wealth, how can he realistically view art as a diversified investment?

Many painings are sold at prices of hundreds of millions US dollars in auctions. The most recent one is ‘Sur le Cote Gauche’ by Modigiliani, which was painted in 1917. It was sold at the price of 157.2 million US dollars by Sotheby in May, in New York.

In end of May, artwork from the great contemporary artiest Wuji Zhao (French-Chinese) dominated the event hosted by auction companies Christie’s and Philip’s. The work of ’14.12.59’ was sold at 1,767 million HK dollars (approx. 22.6 million US dollars), this is the 3rd highest price among his works sold in auctions. For millions of people who would like to get involved in the world of artwork investment, this kind of auctions is un-approachable.

However, because of the development of Block Chain technology, the whole situation will be changed.

Block Chain opens the ownership of art to the public, but not limited to super rich people. It gives opportunities to more people to explore the possibility of art investment, in order to grow their wealth, in a more stable alternative market compared to the traditional market.

There is an opinion that more than 9 digits sale price is becoming more and more common. It is great benefit for investors and auction companies because they have earned substantial amount of commission. It also indicates that artwork investment market is extremely isolated from normal public.

There are very few individuals who can compete with investment and art foundation organizations, who have cash flow of billions of US dollars to invest most famous artworks around the globe.

The vision of DIPChian is to change how this market run.

From our point of view, we are expanding the diversity of DIPChain artwork market and create opportunities for individuals to enter the market in a completely new way.

The artwork industry remains unchanged was not challenged at all in the past few centuries. The founding of DIPChian platform is to break this situation and provide an option to auction companies, allowing everyone to have opportunities to buy most well known artworks.

DIPChain is aiming to build an art market without agents’ involvement, making potential investors to access the information more easily, creating new ways for galleries and collectors to grow their capitals, reducing total cost and improving flowability. Essentially, it opens the art market to everyone in the world.

In 2018, artwork has become the best luxury product instead of wine.

The analysis shows that since 90s of last century, the annual return on investment by artwork trading has exceeded all other forms of investment. What especially makes it differs from precious metals, properties, trust fund and index fund, only richest people have the accessibility to this form of investment. They exaggerate their wealth rapidly by investing artwork.

Of course, DIPChain can change this phenomenon.

This raises a question: among various investment methods, where does contemporary art market stand? For people who would like to step into it, what shall they do?

Although the answer depends on individual’s circumstance, the recommendations by experienced investors could be valuable.

It is difficult to estimate the proportion of the capital going towards artwork investment. Same happen to the millionaires/billionaires, they are on the headlines every time they purchase a master piece.

Now days, all the obstacles are cleared. Art can be part of everyone’s investment plan.

Art Dip #art #blockchain #blockchainart