Art Collectors Guide

Art Collectors Guide 2024 Art Collectors Guide 2024

Welcome To Waran’s Fine Art Art Advisory Team

As the CEO of Warans Fine Art, it is both an honour and a pleasure to extend my
warmest greetings and heartfelt gratitude for joining our esteemed community of art
enthusiasts and collectors.
At Warans Fine Art, our dedication to your artistic aspirations is unwavering. We
specialise in the synthesis of expertise and innovation, meticulously tailored to each
unique collector. Together, we embark on an exhilarating artistic odyssey where your
creative vision takes centre stage in our priorities.
The Waran Fine Art Collectors Guide has been carefully crafted for you by a team
who are not just experienced individuals, but are true aficionados. Drawing inspiration
from the finest in the art world, we’re here to guide you through a personalised art
investment journey. Your dedicated art advisor will be your partner from the outset,
ensuring a unique and unparalleled experience tailored to your goals and preferences.
Whether you aspire to own a masterpiece by a modern virtuoso or a classic from
an emerging talent, our team is equipped to guide you. From the intricate details of
sourcing to the strategic considerations of selling, your advisor will provide real-time
market analysis and expert insights, ensuring every step aligns with your art collectors
objectives.

Rest assured that every decision you make will undergo meticulous scrutiny by our
advisors. Our commitment to transparency, diligent research, and an unwavering
dedication to your artistic well-being ensures that your journey is guided with
expertise and care.
This guide is crafted to assist collectors like yourself in making informed choices,
presenting a narrative that transcends the canvas. We specialise in illuminating
the structure and dynamics of the blue-chip art world, providing you with a unique
perspective on both established and emerging art markets.
Your journey with Waran Fine Art extends beyond mere transactions. It’s a curated
experience of building a bespoke art portfolio. Our advisors excel not just in acquiring
art but in crafting a collection that reflects your taste, ambitions, and the ever-evolving
art landscape.
From valuation to collection management, holding period considerations to exit
strategies, and finally, the realisation of your investment, our team orchestrates a
seamless symphony of services. Expect nothing less than meticulous attention to detail
and a commitment to your success.

As you delve into the pages of this guide, envisage a community of like-minded
individuals who, like you, share a common vision of artistic prosperity and growth. By
engaging with Warans Fine Art, you become part of a collective, where tradition and
innovation seamlessly coalesce to create a legacy of artistic success. Dev Waran Ashley Daniels Alfie Carney
Founder Marketing Executive Art
Director Consultant
Together, we will explore the ever-changing canvas of fine art, discovering
opportunities and overcoming challenges, all with the singular aim of enriching your
art collection and securing a future filled with artistic treasures.

Thank you for considering us as your artistic partner. We eagerly

await your engagement, ready to answer any questions and
guide you through your artistic journey. Welcome to a world
Holly Feldman Antonio Asamoah P. Ram
where each brushstroke tells a story, and every masterpiece Executive Art Consultant Art
is a testament to the fusion of art and artistic exploration. Assistant Consultant

Dev Waran,
Founder

Brandon Bennett Andrea Martinez William Ali

Art Consultant Art Consultant Art Consultant
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 Art Collectors Guide 2024 Art Collectors Guide 2024

The art market is roaring with

record-breaking sales pushing up
prices 30 per cent in the year to June,
according to the Luxury Investment
Index by the estate agency Knight
Frank. Luxury watches and jewellery
are up 10 percent and rare coins 8
percent. Over the same period the
FTSE 100 index climbed 5 percent.

Andy Warhol. August 2023

Marilyn Monroe (1967)

4 5

Why Collect Art
Value Preservation
Art acts as a sanctuary in inflation,
preserving value amidst currency
depreciation. Historically uncorrelated
to the S & P 500, it proves a stable
asset, buffering against inflation.
30%
Increase during the past 12 months
ensured Art once again topped the
Knight Frank Luxury Investment Index
Knight Frank 2023
6 Billionaires 2023
Art Collectors Guide 2024
Value Appreciation
Fine art has proven historical
resilience, maintaining and often
increasing in value during periods of
uncertainty. This stability is attributed
to its status as a tangible, real asset
that holds enduring appeal across
diverse market conditions.
240%
The contemporary art market has
performed extremely well over the last
40 years, outperforming the S&P500
Index by 240% since 1986.
Mr Controversial
7
RESILIENT ASSET CLASS
Art, as an asset, always
finds a buyer. The global art
market generated nearly $68
billion in 2022, and with the
advent of technology, art has
become more transparent
and accessible, leading to an
increase in transaction volume.
HISTORICAL
PERFORMANCE
Blue-chip art, created by some
of the world’s most renowned
artists, has demonstrated
strong performance over time.
For instance, fine art sales have
shown an average annual
return of 10% over the past four
decades. Limited edition artwork
from both emerging and
established artists have also
seen substantial returns.
CONSISTENT VALUE
APPRECIATION
Similar to stocks and bonds,
the value of art can appreciate
over time. The global art market
has grown consistently, with
art consistently delivering
average returns of 7.6 %.
Factors such as globalization,
increased knowledge, and
cultural interests contribute to a
growing marketplace for art.
Art Collectors Guide 2024
TANGIBLE ASSET
INVESTMENT
Art serves as a tangible asset-
backed investment. Each
piece is unique and physical.
Collections of limited edition fine
art not only provide aesthetic
pleasure but also offer potential
future profits.
PORTFOLIO
DIVERSIFICATION
Art is a crucial component of
a diversified portfolio, rather
than an alternative form of
investment. Incorporating art
into a well-rounded investment
portfolio can help boost
investments and maintain
revenues over the long term.
INFLATION SAFEGUARD
Art, having a low correlation
with traditional investments
like stocks and shares, acts as
a safeguard against inflation.
While all investments carry
risk, one of the significant
advantages of art is that it’s
an asset largely unaffected by
market volatility, inflation, or
currency devaluation, thereby
reducing investment risk.
 Art Collectors Guide 2024 Art Collectors Guide 2024

Contemporary art has outperformed

the FTSE 100 by 407% between January
1st 2000 to December 31st 2022.

August 2023

Celest Art
Post Meridiem (2023)

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 Art Collectors Guide 2024 Art Collectors Guide 2024

Art Market Outlook

Art has positioned itself as a compelling choice for portfolio diversification, emerging
not only as a mainstream strategy but also as a formidable asset class consistently
surpassing equities and traditional markets for the past 25 years. This includes
weathering significant events like the tech-wreck of the early 2000s and the financial
crisis of 2008. Remarkably, The Economist notes a staggering 211% increase in art prices
from 2003 to 2013, highlighting art’s resilience as one of the most effective hedges
during uncertain times.

J.P. Morgan’s research further illuminates the stability of art investments. Over the
past 25 years, art prices have exhibited less volatility and maintained independence
from the fluctuations observed in traditional investments such as equities, bonds,
commodities, and property funds. This establishes art not just as a reliable investment
but as a captivating and steadfast choice for those seeking enduring value and
stability in their portfolios.
Tangible asset
KFLII 10-year indexed performance v other assets (Q2 2013-100)

PRIME CENTRAL LONDON RESIDENTIAL UK HOUSE PRICES (NATIONWIDE PRICE INDEX) FTSE 100 GOLD KFLII

250

225

200

175

150

125

100

75

50
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23

Source: Knight Frank Research - THE WEALTH REPORT SERIES: LUXURY INVESTMENTS
Source: Knight2023
Frank Research

How some luxury investments have beaten the stock market

Return over one year *

Insight:
Art Watches Jewellry Coins Cars Wine
Francis Bacon
30% 10% 10% 8% 5% 5% Study for Head of Lucian Freud (1967)

In 1967, Roald Dahl purchased Francis Bacon’s ‘Study for Head

of Lucian Freud’ for £2850, funded by the proceeds from his
book ‘Charlie and the Chocolate Factory.’ In 2014, his family
Coloured diamonds Handbags Furniture Rare whisky FTSE 100
sold the artwork for an impressive £11.5 million.

10
4% 1% -0% -4% 5% 11
 Art Collectors Guide 2024 Art Collectors Guide 2024

Record Breaking Growth

Marbles Wine Baseball Stamps Coins
Cards
$40,000 $500,000 $3,120,000 $9,500,000 $10,016,875

Watches Manuscripts Classic Fine Art*

Cars
$24,400,000 $30,800,000 $38,115,000 $450,312,500

David Hockney
Portrait of an Artist (1972)

If we examine the record price paid for various collectables above,

we can see that Fine Art is very much at the highest end of the
spectrum. The record for the most expensive artwork ever sold is
almost four times more than all of the other records combined.

Art operates outside of the financial markets, it is off the grid, thus * Records at the
allowing for one to diversify exposure. time of print

An effective hedge; a safe port in times of trouble.

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 Art Collectors Guide 2024 Art Collectors Guide 2024

Art Tiers of Investment Red-Chip Art Vs Blue-Chip Art

Blue-Chip Artists

Red-Chip Artists
• Esteemed in the art
CURATORIAL ACKNOWLEDGEMENT
• Outstanding reputation Blue-chip art refers to works created by leading names in the art industry, such
within and beyond the as Andy Warhol, Keith Haring, and Banksy. These artists share common traits:
art world.
• Unique and renowned they create art that sells for high amounts at auctions and have a history of
artistic styles creating pieces that increase in value. Blue-chip art often generates record-
• Numerous influential
setting results at auctions, making it in high demand and low supply. This
bodies of work
• Established commercial combination is perfect for bidding wars among art collectors.
market
• Consistent curatorial
attention for museum
The term ‘blue-chip’ is borrowed from poker, referring to blue poker chips, which
• exhibitions and top-tier hold the most value. It was then used to describe high-quality stocks, known as
gallery shows ‘blue-chip stocks’, which are considered attractive investment options due to
• Typically operates a

Emerging Artists sphere

large professional their history of success.
• Active in primary and
secondary markets studio or is overseen by
• Initial phases of
• Distinctive artistic styles an artist's estate
professional journey Blue-chip art is considered a stable asset class. Its value tends to hold or
• Multiple bodies of work
• Experimenting with increase despite general economic fluctuations. For instance, the Artprice100©
• Art pieces held by
artistic language
esteemed collectors index, which tracks the performance of the top 100 artists based on auction
Uncovering signature and institutions INVESTMENT PERSPECTIVE
style • Extensive portfolio - revenue, increased by 3% in 2022, outperforming many traditional financial
• Cultivating and sufficient to supply • Reduced volatility markets.
engaging their exhibitions and satisfy • Dependable high
audience increasing demand returns with minimal
risk
• Fluid market with
INVESTMENT PERSPECTIVE INVESTMENT PERSPECTIVE global demand from
multiple buyers and
VS
• Minimal initial capital • Higher speculative sellers
needed returns than blue- . • Solid history of
• Prolonged holding chip artists, but less successful returns that
period, but fluctuation than remain steady over Red-chip art, on the other hand, is essentially the opposite of blue-chip art.
poten-tial for emerging artists time Red-chip artists typically rise to fame relatively quickly, gaining an online
remarkable returns • Disparity between • Provenance,
• Gratifying investment private and auction authenticity and following on platforms like Instagram and TikTok. They use these platforms to
journey, with the market prices market freshness are promote their work, achieving vast commercial success. Many red-chip artists
torestor playing the • Steady worldwide crucial when assessing
role of the artist's
are younger and are emerging into the art world at a rapid speed. However,
demand value
patron • Exceptional investment • Procuring work is more much like blue-chip art, red-chip art sells for remarkable prices at auctions on
• Strongest personal prospects at a lower intricate the secondary market. Red-chip art promotes a more democratic art market,
bond with the artist expense than • Long-term capital
• Eastest entry point blue-chip equivalents conservation
meaning that anybody can pave their own way to artistic success without
having to ‘pay their dues’, so to speak. Social media can also be a great way for
artists to make connections with others in the industry, whether it be art dealers
COMMERCIAL VALUE or other prominent artists.

While blue-chip art offers security and reliability when it comes to returns, red-
chip art offers opportunities for growth and supports artists trying to make it
in the industry. Blue-chip art is more stable and often outperforms traditional
financial markets, such as the FTSE 100. On the other hand, red-chip art, due to
its association with emerging artists, can offer higher potential returns, albeit
Waran Fine Art Insights with higher risk.
When diversifying your investment portfolio, it is important to acquire art at a
range of price points, styles, dates and mediums. It is also important to consider
the stage the artist is at in their career.
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 Art Collectors Guide 2024 Art Collectors Guide 2024

WFA Featured Artist

Residing in the heart of the UK’s

bustling art scene, Mr. Controversial
draws inspiration from his professional
background in the advertising industry.
His work is not just about aesthetics,
it’s a deep dive into the psychology
MR Controversial of marketing and consumer behavior,
revealing the artistry behind engaging
As Mr. Controversial’s presence continues to rise, his sights are set on a global stage. visual communication.
Mentioned as the one to watch in rising artistic talent in the UK, he is hot off the back
of multiple sell-out exhibitions and collections. Waran’s Fine Art is extremely excited to When not in the studio, Mr. Controversial
introduce him to their collector base, being the sole exclusive distributor of his latest art can be found in his favorite coffee
collections. Becoming a client gives you a chance to get hands-on exclusive artwork shops, sketching out ideas and wrestling
before it hits the market. with concepts inspired by everyday
conversations. His fearless approach
Hailing from London, Mr. Controversial is more than an artist, he is a storyteller who extends to his subjects – from poking
transforms vintage imagery into vibrant narratives. His creations, a harmonious blend fun at Oat milk drinkers to critiquing
of 1950s-inspired vintage pulp fiction and contemporary satire, offer a unique lens into the insecurities fueled by advertising,
the quirks of our digital age. consumerism, and capitalism.

His artistic philosophy revolves around

making the ordinary extraordinary,
infusing each piece with a dark, satirical,
and controversial twist. The result is art
that speaks to individuals on a personal
Scan QR code or level, inviting viewers to discover the
Press play button on laptop hidden stories behind the captivating
imagery.

In the world of fine art, Mr. Controversial

is not just an artist; he is a provocateur,
an authentic voice pushing the
boundaries of creativity. Keep an eye on
this rising talent, as he transforms the
mundane into the extraordinary with
each stroke of his controversial brush. Mr. Controversial exhibiting at the Rolls-Royce
Spectre unveiling event in 2023
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 Art Collectors Guide 2024
Benefits Of Waran’s Fine Art
At Waran’s Fine Art, we redefine your art investment experience, making it seamless
and low-maintenance. Our dedicated consultants manage your entire portfolio,
tailoring our services to meet your individual needs, whether you’re a full-time collector
or seeking art for decorative purposes.
EXCLUSIVE ARTISTRY
ACCESS
Discover a world of exclusivity with
Waran’s Fine Art. Gain privileged
access to limited-edition fine art,
unique original works from emerging,
established, and blue-chip artists.
EXPERT INSIGHT
Benefit from our insider knowledge of
the art market. With a vast network
of valuable connections, we position
ourselves to offer expert advice,
ensuring your investments are
not only sound but also poised for
profitability.
ART MARKET MASTERY
Mr Controversial
Our diverse expertise in the art
market guarantees a precise,
professional evaluation, and
Pulp Fiction Collection - authentication of your artworks.
Trust in our understanding of the
People Will Stare (2023) intricate nuances of the art world to
safeguard and enhance the value of
your collection.
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Art Collectors Guide 2024
PERSONALISED ART
COLLECTION
Experience the creation of profitable
collections with Waran’s Fine Art.
Our commitment is reflected in
personalised art investment plans
designed to ensure the growth
and stability of your portfolio. Your
success is our priority.
DETAILED MARKET INSIGHT
Waran’s’s Fine Art provides
unparalleled insights into the art
world, making curated investment
collections accessible. Rely on our
detailed market analyses, based
on both past and current trends, to
guide you towards a collection that
transcends traditional boundaries.
“Contemporary art has
offered an annual return of 14%
over the last 25 years. As of
December 2020, versus a 9.5%
annual return from the S&P
500”
according to the Citi Global Art Market chart.
CNBC, 2021 Fine Art Report
 Art Collectors Guide 2024 Art Collectors Guide 2024

How To Get Started Understanding The Art Market

Drawing on their refined expertise, the Warans Fine Art advisory team is poised to guide
you through every facet of art investment portfolio management. From providing In the intricate world of art acquisition,
strategic advice to executing seamless sales, our experts are here to elevate your art understanding the dynamics of the art
investment experience. market is paramount. This nuanced
exploration unveils two pivotal avenues
that shape the art landscape, presenting
collectors with a diverse range of
Advice on Personal opportunities and perspectives.
When to Sell Consultant

Portfolio Bespoke
Management Proposal
How to Primary Market
get started
In the primary market, the inception of
Certificate of Simple Acquisitions artworks occurs through direct sales from
Authenticity Process artists or their authorised representatives,
typically galleries bound by contractual
agreements. This is the realm of
artistic genesis, where collaboration
Curatorial Artwork between galleries and artists brings
Advisory Logistics forth fresh creations to the discerning
eye. The primary market fosters direct
engagement, offering collectors exclusive
access to studio visits and previews. It
serves as a launching pad for artists,
enabling them to garner exposure, build
reputations, and lay the groundwork for
future artistic ventures.

Secondary Market
In stark contrast, the secondary market
comes into play after the initial sale
of artworks. Private sales orchestrated
by dealers, public auctions hosted by
renowned auction houses, and the
vibrant platforms of art fairs define this
realm. Here, artworks transition into a
space influenced by market demand
and various factors shaping an artist’s
career trajectory. The secondary market
bears witness to record-breaking prices
at auctions, intricately tied to the latest
developments in an artist’s journey and
the echoes of public attention. This arena
is where art ownership evolves, reflecting
the ebb and flow of artistic fortunes.
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 Art Collectors Guide 2024 Art Collectors Guide 2024

Our Client Returns

The following examples exemplify Waran Fine Art’s robust history of delivering client
returns* for emerging, established, blue-chip and red-chip artists across a diverse
spectrum of styles and mediums.

CELEST PATRICK PROCKTOR SIMEON STAFFORD

LOCKDOWN VIEW FROM A WINDOW St Michael’s Mount, Cornwall

+47% RETURN +27% +31%

CLIENT CLIENT CLIENT
RETURN RETURN

ANDY WARHOL DAVID HOCKNEY DAMIEN HURST

QUEEN ELIZABETH II RAIN ON A WINDOW For The Love Of God (Lenticular)

+17% +19% +64% RETURN

CLIENT CLIENT CLIENT
RETURN RETURN
Waran Fine Art Advisory is committed to delivering a
truly white-glove service that is at once independent and
rooted in deep industry knowledge across global, national
and regional markets.
Leonardo da Vinci
Mona Lisa (1503)
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 Art Collectors Guide 2024 Art Collectors Guide 2024

What Does This Mean For

Me As An Investor?
In the primary market, collectors and investors enjoy unique opportunities for personal
engagement with artists, such as studio visits and exclusive exhibition previews.
Conversely, in the secondary market, investors often have limited contact with the
artist. Stability characterizes secondary market prices due to the existence of a sales
history. However, sellers strive to maximize resale prices to realize returns on their initial
investment, a strategy that also fosters the artist’s career development. This dual
approach ensures a delicate balance between financial considerations and the artist’s
professional trajectory.

Selling Your Art

Traditional Art Galleries Art Fairs Auction Houses

Anchored in history, Dynamic events gather Public platforms host

renowned galleries
connect artists and
collectors, ensuring fair
pricing and professional
sales management
galleries, artists, and
collectors under one
roof, fostering a vibrant
atmosphere for art
discovery.
live bidding for artworks,
providing a chance
to participate in the
excitement while accessing
curated selections.

Off-Market Dealers Digital Age Platforms

Transactions
Discreet private sales
offer exclusivity and
direct access to
coveted artworks, often
revealing hidden gems.
Each avenue offers a unique approach to art acquisition, tailored to diverse
preferences and strategies.
Experienced art dealers Online accessibility breaks
provide personalised down geographical
expertise, guiding barriers, democratising
collectors towards pieces art for global collectors.
aligned with preferences
and investment goals. Insight:
Peter Doig
Iron Hill (1991)

How Long Should i hold my investment for?
The advisable duration for holding an artwork is contingent upon the nature of the acquired piece.
While there is no stipulated minimum holding period, our initial recommendation encourages retaining
artworks in your portfolio for a minimum of 2-3 years, typically extending to 3-5 years. It is strongly
advised to seek independent tax counsel.
24
Staurt Evans, founder and curator of the Simmons & Simmons Art
Collection, bought Peter Doig’s ‘Iron Hill’ for a six thousand pounds for one
of their offices. It was sold for insurance purposes, as the value increased
so rapidly, for £500,000 and then again for over £1 million a year later, and
its current value is estimated to be approximately £7 million.
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 Art Collectors Guide 2024

Contact

WARAN’S FINE ART

Tallis House,
2 Tallis St,
London
EC4Y 0AB

0203 026 2029

info@waransfineart.com

Waransfineart

waran-s-fine-art

Monday to Friday: 10AM - 5PM

Saturday & Sunday: By Appointment Only

Disclaimer
Waran Fine Art Advisory is not subject to regulation by the Financial Conduct Authority
and is not authorised to provide guidance on regulated or unregulated investments.
For investment decisions, it is advisable to seek counsel from an independent financial
advisor or another regulated professional.

The value of art investments can fluctuate, and this document’s information should
not be solely relied upon for investment choices. Waran Fine Art Advisory, including
its affiliates, officers, directors, and employees, provides no assurance, warranty, or
representation regarding the accuracy, completeness, suitability, or content of the
information within this document, and shall not be liable for any errors, omissions, or
inaccuracies contained herein.