Are you considering investing in fractional art or unique art objects? We provide our premium subscribers’ information on the investment potential of almost 1700 of the world's most actively traded individual artists based on their financial results achieved in the repeat sale auction market. Our individualized artist investment quotient (AIQ) is based on our innovative and proprietary Computerized Art Investment Estimation System (CAIS) (U.S. PATENT No. 11,200,622)
The AIQ for each of these artists is tailored to satisfy the clients’ behavioral preference (weights) for each of four financial performance factors which play a role in the decision process involving illiquid assets. CAIS also produces a list of artists ordered by AIQ based on the clients’ preference for artist transaction frequency and average sale price levels.
These analytical tools help our clients decide for themselves which artists are most likely to achieve their personal financial and collecting goals. All the analysis tools are based on works that were sold at auction since 2000 and had been previously purchased at auction since 1970. There are currently over 38,000 of these repeat sale pairs in the database. Our site will be updated with new data after every auction season.
Subscribers will be asked to assign a weight to each of the following four financial performance factors:
• MARKET ADJUSTED RISK PER UNIT OF RETURN! (MARPUR)
• SALABILITY! (S) THE PERCENT OF WORKS OFFERED THAT ACTUALLY SOLD
• LOSS LIKELIHOOD! (LL) THE PERCENT OF WORKS THAT SOLD AT A LOSS
• RELATIVE LIQUID MARKE SIZE! (RLMS) WHAT IS THE MARKET SIZE OF EACH ARTIST RELATIVE TO THE ARTIST WITH THE MOST MARKET LIQUIDITY
The incorporation of these performance factors and their user selected weights play an important role in determining which artists look most promising from a user’s investment perspective.
The site also provides information to aid in the wealth management process. We provide the correlation of the annual returns among artists with over 20 years and 15 years of continuous annual sales information in the repeat sale pairs database. The rank ordered list of artists based on their AIQ score is used to partition our database of repeat sales which is then used create AIQ based indexes. These indexes are then used to create the optimal allocation of assets that minimize risk at every return level.
Artist risk return maps are also provided for a user designated set of artists. The site also provides a measure of the momentum, average excess return over a mark to market value of a previous auction sale price, for each of our almost 1700 artists. This information can be used to determine which artists were hot and which were not in the 21st century.
In addition, the site will provide information on the health of the repeat sale auction art market via two proprietary performance measures. The first being an Art Market Performance Ratio® (AMPR) based on the returns produced by the works that sell and the percent of works that do not sell each semi-annual auction season. The second being a High-Net-Worth Exuberance Indicator® (HNWEI) based on the mean of the percent paid above a mark to market price of all works sold at each quarterly auction period that were purchased previously at auction.
You can explore the capabilities of this site for free by simply registering. But before you register, we ask you to reveal your relative preference for the four performance factors by using the preference slider below. The only constrain on your weights is that their sum be equal to one and that the minimum weight for any factor being 5%.
After registering we will make available, at no charge, a summary of all this crowd sourced information to allow you to see how your behavioral instincts compare to those of a wider audience.
Also after registering you can click on any of the horizontal tool bar pages above for an explanation of what is available on that page. Deeper analysis of these issues can be gained, after becoming a premium subscriber, by clicking on the left-hand side tool bar items associated with each page.
Additional information about our philosophy and the website can be obtained, again after registering, by clicking on any of the buttons on the left-hand side tool bar of this home page. The first left hand side button discusses our approach to the general idea about art as an investment. Clicking on the second button yields a discussion of the data we use to gain inferences into the financial performance of the repeat sale auction market. Clicking on the third button provides a discussion of the fee charged for premium membership. Clicking on the fourth button provides a barometer for the health of the art auction market which includes no sales, works that did not sell recently but did sell at previous auction some time earlier. Clicking on the fifth button provides our approach to determining the enthusiasm in the art auction market and what the level of enthusiasm implies about future returns. The analysis of the last two items is kept current for our premium subscribers.
The information on this website is meant for your own personal use and enjoyment. Any non-personal or commercial use of this information by any person or organization is not permitted without the prior consent of the authors. This information should in no way be construed as a recommendation for art as an investment. Past performance is no guarantee of future results.