High net worth (HNW) art investors view blue-chip art as a better diversifier than equities amid the strongest buyer's market in more than a decade, according to Morgen & Stern.

Its report on the global blue-chip market noted that while inflation, interest rates, and geopolitical instability were weighing on sentiment, 88 per cent of HNWs remained positive and viewed art as a safe haven.

Furthermore, 85 per cent of HNW collectors believed that art was a better diversifier than equities.

Morgen & Stern said it was the strongest buyer’s market in more than a decade, with 43 per cent of collectors planning to buy blue-chip art compared to 55 per cent looking to sell.

This was providing leverage for collectors, especially in private sales, with typical discount spreads of 10 per cent to 25 per cent.

A persistent pricing gap was identified, with sellers looking to anchor at 2021/22 peak valuations, while buyers were tending to use 2024/25 benchmarks.

While auction sales above $10m had fallen by 45 per cent in 2024, private sales at Sotheby’s and Christie’s increased by 17 per cent and 41 per cent respectively.

The report highlighted a ‘flight to quality’, with works by historically renowned artists such as Warhol, Monet, and Picasso remaining stable, while the more speculative ultra-contemporary art market had “collapsed”.

Collectors were also becoming more cautious, with 74 per cent researching pieces extensively before buying.

“In 2025, more works are for sale than buyers want to absorb, creating a clear buyer’s market - yet blue-chip prices and quality still remain resilient,” the report stated.

“Specialised players in blue-chip private sales outperformed the market, showing how private deals now set top-tier benchmarks.

“Across segments, polarisation intensifies - speculative markets decline while blue-chip icons remain anchors of stability and value.

“Despite macro headwinds, demand is fuelled by new and younger buyers - yet value, transparency, and pricing discipline define the market.”

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