Art Investment – Gallery Review Europe https://galleryrevieweurope.com Mon, 05 Aug 2024 07:25:27 +0000 en-US hourly 1 https://galleryrevieweurope.com/wp-content/uploads/2023/11/cropped-Gallery-Review-Europe-32x32.png Art Investment – Gallery Review Europe https://galleryrevieweurope.com 32 32 Physical Art Investment Tool Industry Future Trends Analysis – Economica https://galleryrevieweurope.com/art-investment/physical-art-investment-tool-industry-future-trends-analysis-economica/ https://galleryrevieweurope.com/art-investment/physical-art-investment-tool-industry-future-trends-analysis-economica/?noamp=mobile#respond Mon, 05 Aug 2024 07:25:27 +0000 https://galleryrevieweurope.com/art-investment/physical-art-investment-tool-industry-future-trends-analysis-economica/

Press Release, Orbis Research –The Physical Art Investment Tool Market Research report includes an analysis of different product types, applications, and geographical areas where Physical Art Investment Tools are used.

Request a sample report @ https://www.orbisresearch.com/contacts/request-sample/7196576

The Research delves deeply into the present patterns influencing the Physical Art Investment Tool market. It examines the factors behind industry growth in addition to the opportunities and challenges that exist.

By carefully studying data and conducting research, the report identifies the key factors that are increasing demand for Physical Art Investment Tools across several important industries.

Physical Art Investment Tool market Segmentation by Type:

Cloud-based
On-premises

Physical Art Investment Tool market Segmentation by Application:

SMEs
Large Enterprises

Direct Purchase the report @ https://www.orbisresearch.com/contact/purchase-single-user/7196576

Some of the main sectors covered in the report include:

1. Consumer electronics
2. Automotive
3. Telecommunications
4. Industrial applications

The competitive environment in the Physical Art Investment Tool industry is also examined in detail in this report. It provides information on the major companies operating in this space, including:

– What strategies these companies are using
– What products do they offer
– How they position themselves in the market

Key Players in the Physical Art Investment Tool market:

Clipchamp
Lovo.ai
Speechify
PlayHT
Murf
Synthesys
VocaliD
Respeecher
Speechelo
Wavve
Altered
Listnr
ReadSpeaker
VoCoVo
Semantix
ElevenLabs
Typecast
MicMonster
MetaVoice

For investors and business professionals, the report highlights potential opportunities for investment in the Physical Art Investment Tool market. It seeks to offer a thorough summary that can assist in guiding strategy formulation and decision-making.

Throughout the report, difficult concepts are explained in layman’s words. Even for people who might not be specialists in the Physical Art Investment Tool market, the information should be clear and easy to acquire.

The research methodology utilized in this report is comprehensive and methodical, designed to collect and examine information thoroughly related to the Physical Art Investment Tool market. The approach incorporates several key components:

Do You Have Any Query Or Specific Requirement? Ask to Our Industry Expert @ https://www.orbisresearch.com/contacts/enquiry-before-buying/7196576

1. Primary research methods: These form the backbone of the data collection process. The researchers engage directly with various stakeholders in the industry through:

a. Interviews: In-depth conversations are conducted with:
– Industry experts who possess extensive knowledge of market trends
– Manufacturers who have first-hand experience with production processes
– Suppliers who understand the supply chain dynamics
– Distributors who have insights into product distribution and consumer demand

2. Focus on market trends: The research pays special attention to current and emerging trends in the Physical Art Investment Tool market. This makes it easier to spot changes in consumer behaviour, technical breakthroughs, and legislative changes that could have an effect on the sector.

3. Customer preference analysis: A significant portion of the research is dedicated to understanding what customers want and need. This includes gathering information on product features that are most valued, price sensitivity, and brand loyalty.

About Us

4. Industry dynamics examination: The study examines the interactions between several industry segments. Studying business rivalry, supplier and buyer power, and the prospect of new competitors or replacement goods are all part of this.

Contact Us:

Hector Costello
Senior Manager – Client Engagements
4144N Central Expressway,
Suite 600, Dallas,
Phone: +1 (972)-591-8191,
Email: sales@orbisresearch.com



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Navigating the digital art revolution: Is it worth an investment? https://galleryrevieweurope.com/art-investment/navigating-the-digital-art-revolution-is-it-worth-an-investment/ https://galleryrevieweurope.com/art-investment/navigating-the-digital-art-revolution-is-it-worth-an-investment/?noamp=mobile#respond Mon, 05 Aug 2024 02:04:49 +0000 https://galleryrevieweurope.com/art-investment/navigating-the-digital-art-revolution-is-it-worth-an-investment/

An article by Fabian Ritter, head of community at CAST Studios

The way art is created, sold and owned will change forever. Yet the question remains: is digital artwork worth the investment?To answer this question, let’s look closely at the two core elements: Art and Digitisation.

Modern digital art concepts

The digital art revolution has democratised the art market and ushered in a new era that has not only expanded the creative boundaries of artists, but has also fundamentally changed the art market and investment opportunities. Digital art utilises the power of modern technology, such as blockchain, to create artworks that could not exist in the physical world. This development has led to unprecedented accessibility and interactivity that challenges traditional notions of art and its commercialisation.

A key advantage of digital art is its easy accessibility. Artists can distribute their works via the internet and thus reach a global audience. Here, artists are able to sell their work directly to collectors without the traditional gatekeepers. This not only opens up new revenue streams for artists, but also offers collectors unique investment opportunities. In addition to accessibility, digital art is characterised by innovation and interactivity, creating a truly new art market.

Of course, there are also challenges. These include the fact that the market for digital art is particularly volatile and prices can fluctuate greatly. Nevertheless, those who understand and carefully select the art and the technology behind it can realise considerable profits. The keys to success are research, diversification and a deep understanding of the rapidly evolving landscape of digital art and the technology behind it.

Traditional Vs. Digital art

Digital art differs from traditional art in several key aspects. While traditional artworks are based on physical media, digital art often exists only in electronic form. This raises questions about its originality and collectability, as digital artworks, unlike physical ones, are infinitely reproducible without losing quality. The digital art market often utilises online platforms and digital certificates such as Non-Fungible Tokens (NFTs) to verify authenticity and ownership, which is a contrast to the traditional art trade. CAST Studio’s platform and the link to its cryptocurrency Castello Coin offers this opportunity.

Digital art offers exciting new opportunities for investors. But despite everything, many interested investors still lack one thing above all: trust.

Digital art is only really becoming a relevant investment object thanks to cryptocurrencies such as the Castello Coin. Blockchain technology creates unprecedented decentralisation. NFTs based on blockchain technology make it possible to treat digital artworks as unique assets. They therefore herald a new era. Yet currently, only a low single-digit percentage of the world’s population has invested in cryptocurrency. Why? CAST Studio has identified four key challenges:

  • young market with few reliable sources of advice
  • technology is complex and difficult to understand
  • lack of trustworthy custody options
  • lack of emotional connection and human elements

The experts are sure that in order to strengthen trust in the digital component of digital art, there must be a bridge between this new world and the familiar, analogue world. The solution to this is the Castello Coin, which builds bridges by using a physical work of art as a brand ambassador. It is the first coin in the world to utilise a brand ambassador – a work of art made from 24-carat gold. In this way, it positions itself as trustworthy “digital gold”.

As the currency of CAST Studios, the Castello Coin enables investments in digital artworks that are offered on the specially created platform. By utilising blockchain technology, Castello Coin guarantees the authenticity and provenance of each artwork, which is invaluable for investors. Other direct responses to the aforementioned challenges include being based in Switzerland and the associated maximum security and transparency standards as well as exclusive custody and account options.

Conclusion

We are on the cusp of a paradigm shift in art investment, which is more transparent, accessible and diverse than ever before. Ultimately, the question of whether it is worth investing in digital art is primarily a question of whether you can build the necessary trust. But for those who are ready to take the path of the digital revolution, the Castello Coin with the CAST platform offers not only opportunities to invest in digital art, but also a change of perspective on how we value and experience art. The digital art revolution is in progress, and it is undoubtedly worth a deeper look.



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Preservation, curation, investment – how Gallery G strengthens the art ecosystem https://galleryrevieweurope.com/art-investment/preservation-curation-investment-how-gallery-g-strengthens-the-art-ecosystem/ https://galleryrevieweurope.com/art-investment/preservation-curation-investment-how-gallery-g-strengthens-the-art-ecosystem/?noamp=mobile#respond Sun, 04 Aug 2024 06:31:10 +0000 https://galleryrevieweurope.com/art-investment/preservation-curation-investment-how-gallery-g-strengthens-the-art-ecosystem/

Launched in 2014, PhotoSparks is a weekly feature from YourStory, with photographs that celebrate the spirit of creativity and innovation. In the earlier 790 posts, we featured an art festival, cartoon gallery. world music festivaltelecom expomillets fair, climate change expo, wildlife conference, startup festival, Diwali rangoli, and jazz festival.

Gallery G at Lavelle Road in Bengaluru is hosting a group exhibition this month, featuring the works of eight artists from across India. Titled Mosaic of Modernity: Exploring Diversity in Art, the artworks span Indian motifs, landscapes, religion, and urban life.

The profiled artists are Jai Khanna, Dinesh Magar, Aarohi Singh, Damodar Aware, Tushar Shinde, Runa Biswas, Annamicka Kuchhan, and Tridib Bera. See Part I of our coverage here.

“We looked for pieces that not only displayed technical excellence but also conveyed relevant stories and perspectives that resonate with the complexities of modern life in India. The artists and artworks were chosen based on their ability to represent this theme with originality and depth,” Archana Shenoy, Director of Curatorial Practices, Gallery G, tells YourStory.

The displayed artworks depict spiritual themes by Dinesh Magar, abstract works by Damodar Aware, urban life and cityscapes Tushar Shinde, collage and mixed media by Runa Biswas, nature themes by Annamicka Kuchhan, and societal issues by Tridib Bera.

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“Visitors have appreciated the diversity and thought-provoking nature of the artworks. The feedback highlights the emotional and intellectual impact of the exhibition,” Shenoy proudly says.

She calls for more art appreciation in India through enhanced education and accessibility. “Incorporating art education into school curriculums can foster an early appreciation and understanding of art,” she suggests.

Public art installations and community projects can make art more accessible to a broader audience. “Digital platforms and virtual exhibitions can reach people who might not visit traditional galleries,” Shenoy adds.

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She also advises holding more dialogue and engagement through workshops, artist talks, and interactive sessions. They help deepen appreciation for artists’ work and strengthen the broader ecosystem.

Gallery G offers artworks for sale in several categories: modern, contemporary, and traditional art, as well as photography. The team sources from and represents collectors of antiquities and rare heritage pieces such as Mysore Tanjore paintings and Tibetan thangkas.

Artworks are also evaluated based on inputs from peer galleries, curators, consultants, auction houses, and collectors. Other services include restoration, preservation, and art investment advisory.

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Painting frames are sourced from Bengaluru and Kolkata, or even imported. Exhibitions are curated at the gallery and in public spaces such as corporate lobbies, hotel gardens, airport terminals, and mall atria.

“Success as a curator is defined by the ability to create exhibitions that resonate deeply with audiences and provoke thoughtful dialogue. It’s about curating shows that not only display artistic excellence but also engage with social and cultural issues in meaningful ways,” Shenoy explains.

This involves supporting artists in their careers and contributing to the cultural landscape as well. “Ultimately, it’s about making a lasting impact through the exhibitions curated,” she says.

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In that regard, the ongoing exhibition is a testament to the talent and diversity of contemporary Indian art. “I encourage everyone to continue engaging with art, supporting local artists, and fostering a culture of appreciation and dialogue,” she urges.

“Together, we can create a vibrant and dynamic art community that enriches our society,” Shenoy signs off.

Now what have you done today to pause in your busy schedule and harness your creative side for a better world?

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(All photographs were taken by Madanmohan Rao on location at the gallery.)

 





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Tokenization Sets New Standards for Art Investments https://galleryrevieweurope.com/art-investment/tokenization-sets-new-standards-for-art-investments/ https://galleryrevieweurope.com/art-investment/tokenization-sets-new-standards-for-art-investments/?noamp=mobile#respond Thu, 25 Jul 2024 09:32:28 +0000 https://galleryrevieweurope.com/art-investment/tokenization-sets-new-standards-for-art-investments/

Tokenization is said to make art investments more democratic and accessible. Finews.art editor-in-chief Simone Töllner interviewed Fatmire Bekiri, who heads the Tokenization Department at Swiss Sygnum Bank.

Fatmire Bekiri is passionately dedicated to the topic of tokenization. In her role at Sygnum Bank, she has played a significant role in building and establishing this new area.

World’s First Tokenized Artworks

Bekiri thrives on challenges, which led her to Sygnum. Under her leadership, the bank became the first in the world to tokenize artworks, starting with the Picasso painting «Fillette au béret» (1964).

It was the first time a Picasso painting was tokenized by a regulated bank. Since the investment began in October 2021, it has generated a total return of about 20 percent for more than 60 token holders. The project partner was Artemundi. Together with Sygnum Bank, they set new standards for art investments.

Picasso 680Picasso 680
Picasso’s Work «Fillette au béret» and the Artist Himself (Image: Shutterstock & ChatGPT)

Other projects followed, such as the NFT of the Blue-Chip Cryptopunks #6808 in 2021 and the tokenization of Andy Warhol’s «Four Marilyns» in 2022.

These initial steps in the world of digital art investments laid the foundation for further projects.

Without Expensive Intermediaries

Javier Lumbreras, CEO of Artemundi, emphasizes the importance of tokenization in the art trade: «Through quality, provenance, condition, and pricing, the fractional ownership of artworks via blockchain perfects ownership without costly intermediaries.»

Bekiri herself stated at the conclusion of the investment cycle of this Art Security Token: «The sale of ‘Fillette au béret,’ the first Picasso painting tokenized by a regulated bank, makes the benefits of tokenization tangible for token holders. These include unique art investments and portfolio diversification with the potential for significant returns.»

How It Works

The tokenization and fractionalization of artworks work by dividing a physical artwork into digital shares, called tokens. These tokens represent fractional ownership of the artwork, allowing investors to acquire shares in valuable artworks with smaller amounts of money.

Sygnum Bank uses blockchain technology to securely manage and trade these tokens. Each token is legally recognized as a security, ensuring the integrity and security of the investment.

Investment Case and Exit Strategy

Bekiri further explains: «It made sense to start with a Picasso painting because everyone knows Picasso. Art needs to be made accessible to people. Tokenizing young artists is certainly also meaningful, but the addressable market is smaller. It is important to find the right approach to attract investors. Renowned high-class artworks are suitable for this.»

She adds that the challenge lies in generating an investment case that defines how long one wants to own the asset and what the exit plan is. Either one sells on a secondary market or through an auction to create the opportunity to liquidate the investment and participate in the appreciation. «All these factors need to be considered to make the process successful,» emphasizes Bekiri.

Enjoying a Cigar

«We had to ensure that all contingencies were covered,» Bekiri further explains. «From what-if scenarios regarding offers for the underlying asset to minority rights clauses and forced transfer regulations. With the first complete investments on the blockchain, we demonstrated that tokenization works and trust can be built.»

Bekiri is not only a driving force in the world of tokenization but also enjoys the finer things in life. In the interview, she reveals that she likes to enjoy a good drink with a cigar, preferably a Cohiba.

Sygnum 680Sygnum 680

Bekiri at the Client Event «Art Masterpieces on the Blockchain in Zurich». In the Background – Cryptopunk #6808 (Image: Sygnum)

Shining Eyes

It is important to her to remain authentic and stand behind the things she does, she says. When she talks about tokenization, her eyes light up—especially in combination with art projects that give her a real connection to art.

Her role also led her to the Art Basel for the first time two years ago, where she was inspired by new art projects.

Investing in Small Shares

Why art? For her, it was obvious to start with the tokenization of artworks because they are hard to access and fractionalization makes sense.

«If someone has a wealth of 10 million, they wouldn’t invest it all in a Picasso painting,» she explains. However, fractionalization makes it possible, even for wealthy individuals, to invest in a specific artwork without putting everything on one card.

Overcoming Challenges

The technical and legal implementation of such projects poses a challenge. Sygnum uses powerful, immutable blockchain technology to securely store information about transactions. Tokenized artworks are professionally stored, often in duty-free warehouses, to ensure the highest security standards.


Fatmire Bekiri holds a degree in Banking & Finance from the University of Zurich. She began her career in corporate finance at IFBC in Zurich, where she worked for several years. She then moved to Aargauische Kantonalbank (AKB), where she worked in the competence center for credit in the corporate client business. After almost a year at AKB, she sought a new challenge and decided to join Sygnum Bank. There, she heads the Tokenization Department.




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How much do we value public art? Wagga Council debates future investment in outdoor spaces https://galleryrevieweurope.com/art-investment/how-much-do-we-value-public-art-wagga-council-debates-future-investment-in-outdoor-spaces/ https://galleryrevieweurope.com/art-investment/how-much-do-we-value-public-art-wagga-council-debates-future-investment-in-outdoor-spaces/?noamp=mobile#respond Wed, 24 Jul 2024 01:48:40 +0000 https://galleryrevieweurope.com/art-investment/how-much-do-we-value-public-art-wagga-council-debates-future-investment-in-outdoor-spaces/

Wagga City Council has voted against a motion to lift the cap on public arts funding.

Wagga City Council has voted against a motion to lift the cap on public arts funding. Photo: Chris Roe.

Wagga City Council has voted down a proposal to amend the city’s public art policy and remove a cap on funding that has stalled recent investment in outdoor art across the local government area.

Councillor Jenny McKinnon had sought clarity on the funding of Wagga’s Public Art Reserve and why the previous allocation of a 1 per cent levy on the capital works budget has been capped at $50,000 since 2017.

Ultimately, concerns over tight budgets, expensive capital works, rising insurance costs and diminishing state and federal disaster relief funding saw the limit maintained.

“The outcome is very disappointing because there are so many benefits to having a great public art budget,” said Cr McKinnon.

“Art benefits the community in so many ways, both through the aesthetics, but also the economic benefits of attracting people from out of the district to come and spend their money locally.”

The complication in amending the policy stems from the fact that since 2020/21 the remainder of the 1 per cent levy has been directed into an emergency event reserve that the council uses to cover emergency repairs and unplanned works in the wake of natural disasters.

“I understand that council does have to find ways to reduce their insurance premiums, but why can’t we explore other avenues of funding for that emergency event reserve?” asked Cr McKinnon.

“These policies are scheduled to be reviewed next year, so I guess now we’ll have to wait to sort that out.”

The UV Spaghetti was a popular installation at this year's Festival of W.

The UV Spaghetti was a popular installation at this year’s Festival of W. Photo: Chris Roe.

Members of the local arts community attended Monday’s meeting and spoke passionately in support of the move to allow more money to flow towards creative public projects.

Friends of the Wagga Art Gallery President Vicky Birkinshaw said public art added meaning to spaces and allowed communities to create a sense of uniqueness.

“A good piece of public art can capture the spirit and atmosphere of a place,” she said, explaining that Wagga’s arts precinct attracts 33,000 visitors a year.

“If you look at it from an economic perspective, these arts dollar visitors are considered high-yield visitors, which means they spend more on average than every other visitor.

“The majority are 55-plus with a lot of discretionary income,” she said.

Eastern Riverina Arts Executive Director Tim Kurylowicz argued that a 1 per cent levy for public art was common in NSW local government and was considered best practice.

“It means that as a council, your public art spending increases and decreases with your other capital works. It’s a small clip of the ticket and it’s not a commitment that hobbles council as times change,” he said, explaining that public art covers more than just murals and sculptures.

“It can include creative lighting installations that ensure people can go out to the pub at night, knowing they can walk safely back to where their car is.

“You will see lighting projection installations like we’ve seen in the last couple of weeks, bringing people into their city and supporting hospitality businesses right at the time when they need to support the most.”

First Nations artist Sarah Levett and local animator Alice Peacock delivered projections for this year's Festival of W.

First Nations artist Sarah Levett and local animator Alice Peacock delivered projections for this year’s Festival of W. Photo: Katrina Roe.

Mr Kurylowicz said council should deliver more than just ‘roads, rates and rubbish’ to the community and that investment at the local level could also attract additional funding from state and federal arts bodies.

Councillor Mick Henderson pushed back, explaining that the majority of conversations he had with ratepayers centred around “fix my road”.

While he expressed support for public art, he warned that depleting the emergency event reserve could leave the council in a difficult position and said they should hold out until the next review.

The amendment was voted down four votes to one and the issue was relegated to the next council’s budget deliberations in the 2025/26 financial year.



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Five Strategies to Invest in Fine Art Profitably https://galleryrevieweurope.com/art-investment/five-strategies-to-invest-in-fine-art-profitably/ https://galleryrevieweurope.com/art-investment/five-strategies-to-invest-in-fine-art-profitably/?noamp=mobile#respond Tue, 23 Jul 2024 23:53:55 +0000 https://galleryrevieweurope.com/art-investment/five-strategies-to-invest-in-fine-art-profitably/

Five strategies to invest in fine art profitably have been put into action at a company called Treasure Investments Corporation that showcased its capabilities in a display at the recent FreedomFest Conference in Las Vegas that unveiled a pure silver head of the famed “David” monument designed by Michelangelo.

“We own the single, largest master mold collection in the world, consisting of over 2,600 original plaster molds from 230 different artists,” said Mark Russo, founder and chairman of Treasure Investments Corporation and Museo (Foundry) Michelangelo, of Battle Ground, Washington, not far from Portland, Oregon. “A plaster mold, or a mold of an artwork, is the negative of a positive and allows us to recreate the image, or any image, as an original in either one to the edition or as many as 10,000.”

The molds primarily are cast in bronze, the main medium, as well as precious metals such as silver, gold and platinum, cold cast resin and stainless steel. The molds are used to depict wildlife, patriotic images, as well as biblical, cultural, western and Renaissance art, Russo said in a recent presentation at the FreedomFest Conference.

Five Strategies to Invest in Fine Art Profitably: 1. Supply Charity Auction Statues

The size of the fine art can be as small as two inches to as large as the biggest monumental statuary art in the world, Russo said. The company has five distinct profit centers. One is a charity auction business platform, developed in 1998, that Russo said is “most endearing” to him.

“It’s an amazing story,” Russo said. “I sold a sculpture of two eagles to a neurosurgeon in town, and he asked me to put some materials together because he was going to put it up for a fundraising auction event. I had a chance and opportunity to go to the fundraiser where I saw the eagle sell for an astounding amount of money. But in that moment, I realized by watching all the bidders in the audience, it was incredible. It was a frenzy. I thought, ‘Oh my gosh.’ The piece sold for $63,000 ultimately.”

But the production cost at the time was only $1,000. The huge profit margin led Russo to explore using that same business model to help other charities raise money. Nine months later, Russo said he had hired 172 employees who were creating millions of dollars of revenue and also generating millions of dollars for non-profits.

“That was a successful business model,” Russo said. “And I didn’t know how big it was at the time.”

It turned out there were more than 11,000 live, fundraising auctions in the country. His company was the only business then that was providing statuary to the charities with no strings attached. Russo said he ended up selling that business model two separate times and now is using the same strategy again without a competitor in the space.

With over 20,000 fundraising charities, Treasure Investments supplies them with fine art to sell at auction. It is a “phenomenal opportunity,” he added.

“I love it because we participate and raise money for causes that truly need those resources, and it’s been an anchor for us,” Russo continued. “We love that.”

“We are continuing to scale that model,” Russo said.

The quality of the art impressed Mark Skousen, PhD, who invested in paintings himself and later donated some of them to charity. Skousen, who heads the Forecasts & Strategies investment newsletter and is an economist who serves as a Presidential Fellow at Chapman University, also heads the FreedomFest Conference every year and gives Treasure Investments the most visible place in front of the entrance to the exhibit hall.

Mark Russo and Mark Skousen, head of Forecasts & Strategies, meet at FreedomFest.

Five Strategies to Invest in Fine Art Profitably: 2. Trade Show Sales

The second profit center for Treasure Investments is sales that it completes at trade conferences such as FreedomFest.

“We like to go to trade shows,” Russo said.

One of his favorites is FreedomFest, Russo said, but he also pointed out the company participates in the New Orleans Investment Conference that attracts gold investors. Other trade shows they attend include hard asset mineral conferences, bullion events and Barrett-Jackson’s “World’s Greatest Collector Car Auctions in Scottsdale, Arizona, and Palm Beach, Florida,” Russo added.

Going to a trade show is like doing field research to interact and gain immediate feedback from prospective buyers, Russo said.

Treasure Investments amassed nearly $2 million in art sales from events held earlier this year, Russo recalled. The company’s gallery partners also can be invited to display art pieces that they want to offer at their locations, he added.

The management of Treasure Investments expects to sell its fine art at 14 to 15 trades shows this year and likely will expand to 20 events for 2025, Russo said. Other pluses with the trade shows are that they provide “instant revenue,” allowing the company to identify what is hot and what is not, as well as respond quickly to bring an increasing number of the best-selling products to the market within just a few weeks, he added.

“No one in the world has the speed or capacity that we do,” Russo said.

Five Strategies to Invest in Fine Art Profitably: 3. Monument Division

The third of the five strategies to invest in fine art profitably with Treasure Investments is through its monument division. This business features large art pieces, such as a nine-foot, six-inch rearing stallion that the Ferrari Corporation commissioned in 1999. Monuments as large as 40-feet tall Eagle for Seven Feathers Casino Resort in Canyonville, Oregon, have been produced at the fine art company’s foundry.  The company also produces twice-life-sized elephant monuments for parks, zoos and corporations throughout the world, he added.

“We have the ability to do those pieces very, very quickly from the inception of a design from somebody’s idea or we can provide access or help to design those pieces for somebody,” Russo said.

Five Strategies to Invest in Fine Art Profitably: 4. Gallery Networks

Treasure Investments has more than 97 gallery relationships, consisting of the top art galleries and dealers in the United States, Russo said.

The company places art pieces in the galleries on consignment and shares revenues for any sales with the gallery on a 50-50% basis, Russo said. For example, the company has six gallery relationships in Las Vegas, as well as in Lake Tahoe, California; Aspen, Vale and Beaver Creek, Colorado; Key West, Florida; and Tucson and Scottsdale, Arizona.

“It is a very strong leg to the table for our company,” which is continuing to expand those relationships, Russo said.

“It’s a great part of the business model and it brings in a lot of revenue,” Russo said. “It’s very exciting because we have the best relationships with the highest-end galleries in the entire world.”

Five Strategies to Invest in Fine Art Profitably: 5. Precious Metals

“We have been casting pure silver pieces for decades,” Russo said. “We didn’t really realize it, but we were the No. 1 producer of silver sculptures in the world.”

Paul Dykewicz stands next to the Pieta in pure silver.

Other castings of Treasure Investments have been produced in pure gold.

Russo showed a 1,000-ounce pure silver casting of a bull and bear at 1,300 ounces. Silver is elegant looking and radiates energy as the most conductive metal in the world, while also offering healing properties, Russo said.

“The second you pour a piece into silver, it is not live spot value anymore,” Russo said. “The second you transpose a 1,000-ounce bullion bar worth $25,000 into one of our master molds… it becomes a $200,000 statue in this case.”

A Potential Sixth Strategy is Art Leasing

A potential sixth profit center for the company is fine art leasing.

Many museums have art-leasing divisions for their paintings that bring in millions of dollars a year from artwork that originally was donated, Russo said. For example, the Portland Art Museum collected $2.3 million in revenue last year by loaning out donated paintings.

“We believe that our platform for leasing sculptures could be extraordinary as we would be the only ones in the world leasing million-dollar collections for a few thousand dollars a month,” Russo said, “Our ROI on that is at month 4.”

Imagine all the locations from designers to law offices to dental offices that could have a collection of statues worth a million dollars that they are literally renting very inexpensively and have the bragging rights to showcase on their premises, Russo continued.

The money from the rental income alone pays for the product cost, Russo said. Treasure Investments would be the only ones in the world doing it, he added.

In addition, Treasure Investments would own the inventory and collect rent, Russo said. That business is expected to launch later this year, he added.

The museum is the home of the assets that could be sold to let shareholders in the private company monetize their investments, Russo said. Ways to do so include the company going public, selling the entire business or, possibly a better and higher value for shareholders, would be to sell the assets of the museum to produce the highest value per share price, he said.

One of the pieces is a casting of Michelangelo’s famed Pieta showing Jesus after his crucifixion, held by his grieving mother, the Virgin Mary. Another is a bronze casting of Michelangelo’s Battle of the Centaurs, a relief by the Italian Renaissance artist created around 1492. It is the second sculpture created by Michelangelo.

Yet one more bronze statue is Farnese Hercules. It is the only bronze statue made from the original mold, Russo said. The marble version of the statute is in the National Archeological Museum in Naples, Italy.

It is a unique way to enhance the value of bullion by turning it into a work of art, Russo said. That transformation especially holds true if the mold came from a creation developed by the hands of a great artist, he added.

“It’s an exciting part of our business model,” Russo said.

Even though Treasure Investments is a private company, its shares can be purchased by “qualified” investors. Anyone interested in considering purchasing shares in the private company can contact Michael Shepperd, a partner and director, by emailing michael@foundrymichelangelo.com or invest@treasureinvestmentcorp.com, as well as by calling 1-360-954-5453.

Shares are priced by the private company at $5.00 each but Treasure Investments offered them at $2.50 for a 50% discount at FreedomFest and agreed to extend the promotional pricing to readers of my column who qualify and commit soon. The Regulation D offering of Treasure Investments allows the sale of private company shares without needing to register the offering with the Securities and Exchange Commission (SEC). A Regulation D offering provides access to the capital markets for small companies that otherwise would face increased costs to register with the SEC.

The five strategies to invest in fine art profitably are succeeding for Treasure Investments, according to its founder, Mark Russo. The company’s plans for a sixth profitable revenue stream could be just months away.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Sale for Graduation Season! Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for reduced pricing on multiple-book purchases.





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The long-term investment value of the Chinese art market https://galleryrevieweurope.com/art-investment/the-long-term-investment-value-of-the-chinese-art-market/ https://galleryrevieweurope.com/art-investment/the-long-term-investment-value-of-the-chinese-art-market/?noamp=mobile#respond Tue, 23 Jul 2024 05:58:36 +0000 https://galleryrevieweurope.com/art-investment/the-long-term-investment-value-of-the-chinese-art-market/

  • The Chinese art market has boomed in the 21st century and is now the second largest globally. 
  • Continued collector and investor interest is expected as China’s economy grows. Chinese art seen as a long-term investment with inflation-hedging potential.
  • In the Spring of this year, ink paintings have outperformed oil paintings and modern art has outperformed contemporary art. 

The Chinese art market has demonstrated a lot of vibrancy as we entered the 21st century amid a boom in the Chinese economy. China now accounts for 20% of the global art market, second only to the US, according to the 2021 Art Basel and UBS Global Art Market Report. Data released by Statista shows that art transactions worldwide rose in value to $67.8 billion, among which works by Chinese artists living in Greater China and overseas (referred to collectively as Chinese artists) have been noteworthy. The MM Chinese Art Indices came into being in response to this trend: to track market developments, rationally value artworks, and support the healthy growth of the Chinese art market. 

On 5 September last year, I launched the MM Chinese Art Indices, a biannual reference guide that determines the changing popularity of the Chinese art market by measuring repeat auction sales, in collaboration with Michael Moses, a retired professor at New York University, and Jiang Guolin, a retired researcher at the Shanghai Academy of Social Sciences. 

The MM Chinese Art Indices examine prices, sentiment and artists’ liquidity. The aim is to offer a scientific, systematic, and comparable system that can aid decision-making when investing in Chinese art, still quite a black box to many in the art investment world. 

The long-term study is based on the auction records of Sotheby’s, Christie’s and Phillips in Beijing, Shanghai, Singapore, Paris, London and New York. The data comes from the official websites of these three major auction houses and artprice.com, an art price database, of artworks by over 400 Chinese artists which have been repeatedly put up for auction between 1980 to 2024. The latest 2024 Spring Auction Index shows that the Chinese art market is still in a period of consolidation, with a somewhat slowing downward trend. 

The long-term investment value of the Chinese art market

A period of adjustment 

We can consider the price index in three stages: 2000-2007, 2008-2013, and 2014-2024. In the first stage – the post-WTO accession period between 2000 and 2007 – China’s economy boomed as its Internet revolution gathered momentum and with it the Chinese art market. The index rose from 1 at the beginning of 2000 to 9.7 at the end of 2007, an increase of 8.7 times in eight years, indicating a veritable bull market. 

In the second stage – the global financial crisis era – the market plummeted 26.5% in 2008, but it then resumed its rise to 15 by the end of 2013 with a CAGR of 9%. 

In the third stage, the pandemic and interest rate hikes in the US put a massive dampener on the market, slowing compound annual growth to -2%. 

We note that the Chinese art market has entered a period of adjustment since reaching its peak in 2020, and will take some time to recover, in light of the impact of the pandemic and a Chinese economy in transition.

To capture a unique segment of the Chinese art market, the MM Chinese Art Indices include separate indices for ink paintings and oil paintings. To study the relationship between the era in which the artist lives and the art market, the MM Chinese Art Indices also include modern and contemporary indices, covering artists born prior to 1911, and since then. 

In Spring 2024, the ink painting index rebounded strongly, breaking the downward trend since 2012, returning to its 2016 level and outperforming the oil painting index. By the same token, the modern index also did better than the contemporary index in spring 2024 (Figures 2 & Figure 3).

The long-term investment value of the Chinese art marketThe long-term investment value of the Chinese art market

Take the contemporary Chinese artist Wu Guanzhong. 

Between 2001 and 2024, he sold more than 700 paintings for a total of $440 million at the three major auction houses. The Jiangsu-born painter’s long-term price trend is quite strong, with a compound growth rate of 11.6% from 2001 to the Spring of 2024, only slightly lower than that of his fellow China Academy of Art alumnus Zao Wou-Ki’s 11.9%. 

Wu Guanzhong’s age value curve peaked at about 51 years old, indicating that collectors are willing to pay the highest premium for works created around that age.

The long-term investment value of the Chinese art market

The liquidity of artists’ works 

The MM Chinese Art Sentiment Index measures the mood of the market, starting with a mean value of zero. Since the data needs of the sentiment index are not as stringent as for the price index, we start in 2000, dividing each year into Spring and Autumn sales. According to Figure 5, the Chinese art market sentiments can be divided into three periods: Spring 2000 to Spring 2008; Autumn 2008 to Spring 2014; Autumn 2014 to Spring 2024. 

In the first period, the sentiment index often exceeded 0.5, thus bidding was quite fierce and artworks were on average sold for 50% higher than average estimates. In the second period – affected by the global financial crisis, the sentiment index fell sharply, and then it gradually recovered. In the third period, the sentiment index fell to new lows in the Spring of 2020 and in the Spring of 2023. 

Although the 2024 Spring season showed that the collectors’ confidence recovered a little, market sentiment remained relatively low (Figure 5).

The long-term investment value of the Chinese art market

The purpose of constructing the MM Chinese Art Liquidity Index is to measure the liquidity of artists’ works. It consists of three indicators: the number of years when the artist’ works were auctioned during the last 25 years, the sale rate and liquidity, which is the combination of the number of years of auction and the sale rate. According to the liquidity index, between 2000 and 2024, the artists with the most liquidity were Wu Guanzhong, Zao Wou-Ki and Lin Fengmian. (Table 1)

A period of consolidation

The 2024 Spring Auction Index shows that the Chinese art market is still in a period of consolidation, and the downward trend continues, albeit at a slower rate. Chinese art continues to hold long-term investment value. As a physical asset, the artworks should offer an inflation hedge during a period of abundant global liquidity. Therefore, with the development of China’s economy and the growth of worldwide Chinese wealth, we expect that Chinese art will continue to receive strong interest from collectors and investors. 

Since the 1990s, China’s auction market for art has developed rapidly. In 2019, more than 680 companies were licensed to engage in cultural artefact and art auctions. The MM Chinese Art Indices have not yet made use of data from Chinese auction houses, which means they only cover a small portion of the Chinese art market’s total trading volume and cannot represent in its entirety the vast Chinese market. When the time is ripe, the MM Chinese Art Indices will cover domestic market transactions, so that they can offer a more comprehensive, objective and accurate overall picture of the state of the Chinese art market. 

We hope that the launch of the MM Chinese Art Indices will help provide more information on the Chinese art market. It may provide a measure of the rise and fall of Chinese fortunes around the world. It will enhance market liquidity and help global collectors better understand this market.

Mei Jianping is Professor of Finance at the Cheung Kong Graduate School of Business. His major areas of research include international asset pricing and real asset finance.



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Investing in Fine Art Made Simple https://galleryrevieweurope.com/art-investment/investing-in-fine-art-made-simple/ https://galleryrevieweurope.com/art-investment/investing-in-fine-art-made-simple/?noamp=mobile#respond Sat, 20 Jul 2024 14:26:50 +0000 https://galleryrevieweurope.com/art-investment/investing-in-fine-art-made-simple/

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

Masterworks is an alternative investing platform for fractional art investing from top-performing artists like Banksy, George Condo, and Andy Warhol. It’s a user-friendly platform that makes diversifying your portfolio with promising contemporary art simple. However, investing in art poses unique risks with limited liquidity.

Masterworks

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.37/5


Fees

1.5%/year plus 20% of profit

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-follow investing process
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Masterworks vets each offering/handles due diligence process
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Open to both accredited and non-accredited investors
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Platform is easy to navigate
Cons

  • con icon Two crossed lines that form an ‘X’. Extremely illiquid
  • con icon Two crossed lines that form an ‘X’. Prospective members have to participate in phone interview to join platform
  • con icon Two crossed lines that form an ‘X’. Holding periods can range from 3-10 years


Product Details

  • Access hundreds of fine and contemporary artworks that have historically outpaced the S&P 500.

Introduction to Masterworks

Masterworks is a dedicated art investment platform for retail and accredited investors who aren’t opposed to high-risk investments and long waiting periods. The top artists featured on Masterworks often outpace the S&P 500, and the price of art isn’t often affected by periods of financial stress.

Like many of the best investment apps that offer alternative investment options, Masterworks only accepts artworks that pass through its intense diligence process. Out of 24,000 analyzed artist markets, Masterworks accepts less than 3% of the artworks offered.

Masterworks is best for experienced traders who don’t mind the risk and limited liquidity involved with investing in contemporary fine art. It isn’t the best option for risk-averse investors who want investments with high liquidity. Also, you’ll need to hold assets for at least three years, depending on which art you invest in. 

Masterworks: Overall Rating

How Masterworks Works

The Masterworks research team uses proprietary data to pinpoint the best artist markets and purchase promising works. Once purchased, Masterworks files them with the SEC to securitize the art pieces. In other words, it converts artwork into securities anyone can purchase. Individual investors can’t hold more than 10% of shares for a specific artwork in their portfolio.

After you buy shares of a specific artwork, you must wait until Masterworks sells the painting (typically after a three to 10-year waiting period) before receiving potential earnings. Once your shares have been liquefied, the funds will be deposited into your account.

Masterworks offers art investment research on the contemporary and fine art market, including up-to-date market data. Datasets show recent sales, annual returns, and gross artwork appreciation. 

Wallet Account

You also have the option to sell shares directly to other US users on the platform’s secondary market. However, you must have a qualifying brokerage account to access fee-free trading on Masterwork’s secondary trading market. You must also wait at least 90 days after purchasing shares before being eligible to start selling. 

Masterworks doesn’t offer a brokerage account directly. Instead, users can open a wallet account provided by Templum Markets to deposit funds and participate in trading on the secondary market. Templum is a multi-asset investment platform that offers automated investing strategies, secondary trading, and data. A Templum wallet account can also fund purchases on Masterwork’s primary market. 

You may get more liquidity from your assets if you sell early on the secondary market rather than waiting for Masterworks to sell on the primary. However, the secondary trading market is only available for US users. 

Fine art is generally more risky and overall has low liquidity. If you play your cards right, you may be able to sell your assets for a high price. But you’re still at risk of losing most, if not all, of your money. Only folks who are knowledgeable about fine art should invest in it. 

To sign up with Masterworks, you must first fill out a membership application, and then participate in a phone interview. The interview process is primarily focused on your goals and financial objectives.

Risks to Consider

Masterworks alternative investments come with several unique risks. The platform outlines these in its disclosures:

  • Unproven business model: Many of Masterworks’ features are untested. In other words, success isn’t guaranteed. The platform says it may have to auction off artwork if its business model fails.
  • Issuers are un-diversified: Investments with single-asset issuers can be risky since you’re investing in a single piece of art. In addition, issuers that offer investments in a collection of different art pieces may still only offer limited access to that particular art market, according to Masterworks.
  • Illiquidity: Masterworks issuers typically hold paintings for three to 10 years. However, there’s still a possibility that investors won’t be able to liquidate their shares after the holding period, and there isn’t a guarantee that all shares will ever be tradable. 
  • Potential Masterworks conflicts of interest: Masterworks doesn’t have a fiduciary duty, and its interests (plus that of its Board of Managers) may not always align with client interests.
  • Ability to trade shares: The platform says there isn’t an active public market for those who want to exchange their art shares actively. Masterworks also says such a market may never exist and that those using the resale secondary market might either pay excessive fees to resell shares or may not be able to resell at all.

You can find more information on the risks of investing through Masterworks on its website.

Masterworks Fees

Masterworks fees generally vary depending on the artwork you’re interested in and the number of shares. To start investing, you’ll need at least $15,000. There’s also a 1.5% annual management fee, which covers security, insurance, and similar costs. 

Shares are used in $20 increments. Plus, Masterworks will charge you a steep 20% commission on profits when you sell. Since fine art liquidity can be low, this can be a significant cut. 

Pros and Cons of Masterworks

Masterworks Trustworthiness

The Better Business Bureau gives Masterworks an A+ rating. BBB ratings range from A+ to F, and Masterworks has received the highest rating. 

Ratings reflect the bureau’s opinion of how well companies interact with customers, but they also take into account factors like the type of business, advertising issues, licensing, and government actions.

Masterworks’ record is clear of any major lawsuits or scandals.

Masterworks vs. Other Alternative Investment Platforms

Masterworks vs. Yieldstreet

Masterworks and Yieldstreet both offer investable art pieces from top-performing artists. However, the platforms differ regarding investment options, account options, and fees.

In general, Masterworks should be the go-to for art-focused investors interested in fractional ownership of fine art for long-term art appreciation. Compared to Yieldstreet, Masterworks offers a more comprehensive selection of vetted artworks. Moreover, users can increase liquidity by trading through the secondary market. 

If you want to invest beyond fine art, Yieldstreet is the better platform offering simple portfolio diversification. It offers a range of alternative investment options, including multi-asset class funds, short-term notes, and debt securities. Yieldstreet also offers artwork-back loans that provide monthly income streams. 

Yieldstreet review

Masterworks vs. Republic

Republic is another alternative investment platform for accredited and non-accredited investors to diversify their portfolio with startups, crypto, real estate, music, and art starting at $50. Masterworks and Republic are drastically different platforms for specific investment choices, but both provide assets classified as alternative investments.

Masterworks is best for long-term-focused investors who appreciate art, while Republic best suits those who want to invest in up-and-coming startups. Though Republic doesn’t specifically provide art investments, you can still use its platform to invest in startups that specialize in art.

Masterworks FAQs

Masterworks is not a scam. All of Masterwork’s art offerings have been filed with the SEC. However, prospective investors should note that the company itself isn’t registered or licensed by the SEC; only the offered securities. 

Masterworks determines the value of artworks using the Fair Market Value appraisal, which is a method frequently used by the IRS. A team of USPAP-certified appraisers and art market professionals evaluates all the components of the artwork, including its condition, the artist behind it, and when it was created. 

To sell your shares on the secondary market, you must choose “create wallet” in the Secondary Market section of Masterworks’ platform. (Note that Masterworks currently only offers this service to US investors.) You can only sell your art shares after 90 days from the offering’s final closing date. 

Why You Should Trust Us: How We Reviewed Masterworks

Masterwork’s alternative investment platform was reviewed using Business Insider’s rating methodology for investing platforms to examine investment options, ethics, fees, and overall customer experience when reviewing investing platforms. Platforms are given a rating from 0 to 5. 

Investment platforms usually offer multiple assets, trading tools, and other educational resources. Some platforms are better for more advanced investors or active investors, while others may be better for beginners and passive investors. Masterworks was evaluated with a focus on how it performs in each category.





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Navigating The Evolving Landscape Of Art Investment In 2024 https://galleryrevieweurope.com/art-investment/navigating-the-evolving-landscape-of-art-investment-in-2024/ https://galleryrevieweurope.com/art-investment/navigating-the-evolving-landscape-of-art-investment-in-2024/?noamp=mobile#respond Fri, 19 Jul 2024 13:42:04 +0000 https://galleryrevieweurope.com/art-investment/navigating-the-evolving-landscape-of-art-investment-in-2024/

In an era of economic uncertainty and market volatility, high-net-worth individuals (HNWIs) are increasingly turning their attention to alternative investments. Among these, the art market stands out as a compelling option, offering not just potential financial returns but also the allure of owning pieces of cultural significance. However, as we delve into 2024, the landscape of art investment is undergoing significant shifts, presenting both challenges and opportunities for savvy investors.

The State of the Market: A Delicate Balance

According to the latest UBS and Art Basel Art Market Report, the global art market experienced a slight contraction in 2023, with sales dipping 4% year-on-year to an estimated $65 billion. This decline, following two years of growth, reflects the impact of high interest rates, inflation, and political instability on the market. Yet, it’s crucial to note that despite this downturn, the market remains resilient, with values still above the pre-pandemic level of $64.4 billion in 2019.

Interestingly, while overall value decreased, the volume of transactions increased by 4% to 39.4 million in 2023. This trend suggests a shift in market dynamics, with more activity at lower price points and a pullback in the high-end segment. For investors, this presents a nuanced picture: while blockbuster sales may be less frequent, there’s increased liquidity and opportunity in the broader market.

Geographic Shifts: New Centers of Gravity

The art market’s geographic landscape is evolving, offering new avenues for diversification. While the United States maintains its position as the global leader, accounting for 42% of the market by value, its dominance showed signs of weakening with a 3% year-on-year decline.

China, including Mainland China and Hong Kong, has emerged as a formidable player, increasing its market share to 19% and growing by 9% to an estimated $12.2 billion in 2023. This shift is particularly noteworthy for investors looking to diversify their art portfolios geographically.

The United Kingdom, traditionally a strong player, fell to third place with a 17% market share, while France maintained its fourth position with a 7% share. These changes in the global art landscape underscore the importance of a geographically diversified approach to art investment.

The Digital Revolution: Online Sales and NFTs

One of the most significant trends reshaping the art investment landscape is the continued growth of online sales. Despite the overall market downturn, online sales increased by 7% to an estimated $11.8 billion in 2023. This figure, while down from the peak of $13.3 billion in 2021, remains almost double the pre-pandemic level and now accounts for 18% of the market’s total turnover.

The online market presents unique opportunities for investors, particularly in the lower to mid-price ranges. Data from the fine art auction sector in 2023 showed that 58% of the value in online-only auctions came from sales under $50,000, with over 85% from works sold for less than $250,000. This trend suggests that online platforms are democratizing art investments, allowing for more diverse portfolio-building strategies.

However, the NFT (non-fungible token) market, which captured significant attention in recent years, has shown signs of cooling. Sales of art-related NFTs on platforms outside the traditional art market declined for the second consecutive year, reaching $1.2 billion in 2023 – a 51% year-on-year drop. While this figure still represents a market 60 times larger than in 2020, it indicates that the NFT space remains volatile and requires cautious consideration from investors.

Emerging Trends: Prints, Multiples, and Market Bifurcation

Looking ahead, several trends are shaping the art investment landscape in 2024 and beyond. The prints and multiples market is set for continued growth, building on its impressive 18% increase in sales from 2023. This segment offers accessibility and affordability, potentially attracting a broader range of collectors and investors.

Another notable trend is the growing divide between established and emerging segments of the market. According to MyArtBroker, blue-chip artists and the secondary market are poised for continued strength and stability, while the primary market, art fairs, and ultra-contemporary artists face an uncertain future. This bifurcation presents both opportunities and risks for investors, depending on their risk appetite and investment goals.

Investment Strategies for the Discerning Collector

Given the complex and evolving nature of the art market, HNWIs should consider the following strategies when approaching art investment:

1. Diversification is Key: The divergent performance of different geographic markets and market segments underscores the importance of a diversified art portfolio. Consider balancing investments across regions, mediums, and price points.

2. Focus on Quality and Provenance: With a contraction in the high-end market, there may be opportunities to acquire blue-chip artworks at more favorable prices. However, thorough due diligence and expert advice remain crucial. Focus on works with strong provenance and established market histories.

3. Embrace Digital Platforms: The continued growth of online sales presents opportunities for acquiring art at various price points. Platforms like Artsy, Saatchi Art, and Artfinder offer access to a wide range of artworks and can be particularly useful for building a diverse collection or for those new to art investing.

4. Consider Fractional Ownership: As the market for high-end artworks becomes more challenging, explore opportunities in fractional ownership platforms. Companies like Masterworks allow investors to buy shares in high-value artworks, providing access to blue-chip pieces at lower entry points.

5. Stay Informed and Attend Key Events: Keep abreast of market trends, emerging artists, and technological developments in the art world. Attend major art fairs like Art Basel, Frieze Art Fair, and The Armory Show to discover new talent and stay connected with the pulse of the market.

6. Explore Alternative Investment Platforms: Platforms like Yieldstreet offer asset-backed art investments, providing alternative ways to gain exposure to the art market without direct ownership of artworks.

7. Be Cautious with NFTs: While the NFT market remains significant, its volatility requires a cautious approach. Consider allocating only a small portion of your art investment portfolio to this segment, if at all.

8. Seek Expert Advice: Given the complexities of the current market, working with reputable art advisors, gallerists, and auction houses is more important than ever to make informed investment decisions.

The Future of Art Investment: Challenges and Opportunities

As we look to the future, several factors are likely to shape the art investment landscape:

1. Technological Integration: Expect significant advancements in digital tools for valuation, authentication, and portfolio management. This tech revolution will enhance transparency in the market and potentially attract more tech-savvy investors to the art world.

2. Shift Towards Private Sales: As public auctions face challenges, particularly with single-owner collections, there will likely be a noticeable shift towards private transactions. This trend could reshape how high-value artworks change hands in the future.

3. Sustainability and Ethical Considerations: As environmental and social concerns become increasingly important to investors, expect to see a growing focus on sustainable practices in art production, transportation, and exhibition.

4. Emerging Markets: Keep an eye on emerging art markets in Asia, Africa, and Latin America, which may offer new opportunities for diversification and potential high returns.

5. Regulatory Changes: As the art market becomes more financialized, it may face increased regulatory scrutiny. Stay informed about potential changes in tax laws, anti-money laundering regulations, and other legal considerations that could impact art investments.

Platforms and fairs for art investing

Over the past five years, art dealers have significantly increased their use of online channels for transactions, driven by advancements in online viewing rooms and imaging technology. The COVID-19 pandemic notably boosted online sales from 13% in 2019 to 39% in 2020. As live events resumed, this share decreased but remained higher than pre-pandemic levels, stabilizing at 23% in 2023.

Dealers’ own online-only sales saw the most significant growth, doubling in share since 2019 and accounting for 20% of total sales in 2023. In contrast, sales through online art fairs and third-party platforms remained minimal. High Net Worth (HNW) collectors showed a strong preference for purchasing through dealers’ websites, though a majority still preferred in-person transactions.

The proportion of online sales to new buyers, who had never visited the gallery in person, fluctuated, indicating challenges in converting these buyers into regular clients. Larger galleries saw a higher share of regular online buyers, while smaller galleries experienced mixed success with new clients.

Despite the growth in e-commerce, dealers continued to face challenges, including political and economic instability, which affected demand. Many dealers had to offer higher discounts to close sales in 2023. Looking ahead, nearly half of the dealers expect online sales to grow in 2024, highlighting the ongoing importance of digital strategies in the art market.

Below are the most popular online platforms and offline events for exploring art investing:

1.Masterworks:

  • Description: Masterworks allows investors to buy shares in high-value artworks. The platform purchases paintings and then offers shares to investors, who can benefit from the appreciation of the artwork’s value over time.
  • Website: Masterworks

2.Artsy:

  • Description: Artsy is an online platform that connects collectors with galleries and artists. It offers a wide range of artworks for purchase, allowing investors to buy pieces directly from the platform.
  • Website: Artsy

3. Art Investment Platform (AIP):

  • Description: AIP provides a marketplace for investing in contemporary art. They offer a range of services including art advisory and portfolio management.
  • Website: Art Investment Platform

4. Saatchi Art:

  • Description: Saatchi Art is an online gallery that allows collectors to purchase original artwork and prints directly from artists around the world. It offers a wide selection of contemporary art.
  • Website: Saatchi Art

5. Yieldstreet:

  • Description: Yieldstreet is an alternative investment platform that includes art among its offerings. Investors can participate in asset-backed art investments with the potential for attractive returns.
  • Website: Yieldstreet

6.Maecenas:

  • Description: Maecenas is a blockchain-based platform that allows investors to buy fractional ownership in high-value artworks. It leverages blockchain technology to ensure transparency and security.
  • Website: Maecenas

7.Artfinder:

  • Description: Artfinder is an online marketplace where collectors can buy original art directly from independent artists. It features a diverse range of artworks, from paintings to sculptures.
  • Website: Artfinder

8.Rarity:

  • Description: Rarity is a platform that specializes in rare and limited-edition artworks. Investors can buy and trade rare art pieces, with a focus on high-value and collectible items.
  • Website: Rarity

Finding new and promising artists who may be good investment opportunities often involves attending key art events and exhibitions. Here are some of the best events and exhibitions for discovering emerging talent:

1.Major Art FairsArt Basel (Switzerland, Miami, Hong Kong)

  • Renowned for showcasing contemporary art from leading galleries worldwide. It’s a premier event for discovering both established and emerging artists.
  • Art Basel

2.Frieze Art Fair (London, New York, Los Angeles)

  • Focuses on contemporary art and features a mix of established and emerging artists. It includes Frieze Masters, which showcases historical art.
  • Frieze

3.The Armory Show (New York)

  • A leading international art fair showcasing important 20th- and 21st-century artworks, with a strong emphasis on new artists.
  • The Armory Show

4.Art Brussels (Belgium)

  • Known for its focus on discovery, it offers a platform for both established and emerging artists, with a strong emphasis on the latter.
  • Art Brussels

5.Venice Biennale (Italy)

  • One of the most prestigious cultural events, featuring contemporary artists from around the world. It’s a key venue for discovering new talent.
  • Venice Biennale

Venice Biennale 2024: experience and its implications for art investors

Attending the Venice Biennale can be an overwhelming experience for aspiring art investors. The event spans kilometres of beautiful and thought-provoking art, but it’s incredibly time-consuming and often the most engaging pavilions don’t necessarily align with the best investment opportunities. For instance, one of the most popular and fun exhibits; Serbian pavilion’s “Exposition coloniale” offers a profound exploration of colonialism’s lasting impact, challenging viewers to reexamine power dynamics and societal anxieties. Visitors would spend around 20 mins enjoying the immersive and sensory stimulating time machine that pushes you into the early 90s. Similarly, Zimbabwe’s pavilion presents a visually striking and conceptually rich exhibition centred around the concept of “kududunuka,” or unravelling, which pushes boundaries of time, identity, and nationhood in a sustainable way. While these exhibitions are incredibly intellectually stimulating and culturally significant, they may not translate directly into lucrative investments. The sheer volume of stimuli at the Biennale can be daunting for newcomers to the art investment world. As such, alternative approaches like fractional ownership or online sales platforms may offer a less immersive but more accessible entry point into art investing, allowing individuals to gradually build their knowledge and confidence without the sensory overload of major international exhibitions.

Conclusion: The Art of Long-Term Thinking

Investing in art requires a delicate balance of passion and pragmatism. While the market may face headwinds in the short term, the long-term prospects for art as an investment remain strong. As with any investment, a well-informed, diversified, and patient approach is likely to yield the best results.

For HNWIs looking to combine cultural appreciation with portfolio diversification, the art market in 2024 offers a canvas rich with potential. By staying attuned to market trends, embracing technological innovations, and focusing on quality and long-term value, investors can navigate the challenges of today’s art market and potentially reap significant rewards in the future.

As we move forward, it’s clear that the art market will continue to evolve, influenced by global economic trends, technological advancements, and shifting cultural values. Those who approach art investment with a blend of passion, knowledge, and strategic thinking will be best positioned to succeed in this dynamic and fascinating market.

In the end, investing in art is not just about financial returns; it’s about participating in the ongoing dialogue of human creativity and cultural expression. As you consider adding art to your investment portfolio, remember that beyond the potential for financial gain, you’re also acquiring a piece of history, culture, and human ingenuity. It’s this dual nature of art as both an asset and a cultural artifact that makes it a uniquely rewarding investment for those willing to navigate its complex landscape.



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The art of investment can be learnt better by experience https://galleryrevieweurope.com/art-investment/the-art-of-investment-can-be-learnt-better-by-experience/ https://galleryrevieweurope.com/art-investment/the-art-of-investment-can-be-learnt-better-by-experience/?noamp=mobile#respond Wed, 17 Jul 2024 06:55:03 +0000 https://galleryrevieweurope.com/art-investment/the-art-of-investment-can-be-learnt-better-by-experience/

If doctors can advise on health, and family for happiness, maybe having anadvisor for wealth is not a bad idea, the advisor could be a person or just your own time andexperience

“Bhaari Bharkam Shabdon Me, Ho Sahi Cheej Chhupi Jaroori To Nahin.

Nivesh Sahi Jo Sahaj Aur Saral, Varnaa Koi Majboori To Nahin”

Translation: It’s not necessary that right investment ideas reside always in verbosity.

Invest! not as a compulsion, only if convinced with concept and simplicity.

Recall Boman Irani as Dr Viru Sahastrabudhhe and Aamir Khan as Ranchhodddas Shamaldas Chhanchhad in ‘3 Idiots’ and try to understand the difference in their approach to the life. Just imagine how Virus would complicate a simple chore like ‘Shaving’.

While scientists kept on guessing for years the Einstein’s ‘Theory of relativity,’the Genius himselfexplained the concept in very simple manner through his famous quotation.

“Put your hand on a hot stove for a minute, and it seems like an hour. Sit with a pretty girl for anhour, and it seems like a minute. That’s relativity.” How simple and co-relatable the explanation is!

Even the complex concept like ‘Time Dilation’ and ‘Length Contraction’ can be understoodconsidering the Einstein’s referred quotation.

Let’s try to understand simplicity in the context of investment. As told by Willium Green, the famous writer of ‘Richer, Wiser, Happier’, “intelligent people are easily seduced by complexity whileunderestimating the importance of simple ideas that carry tremendous weight.” And everyone isintelligent in his his/her estimation; hence liable to be seduced by complexity or verbosity. Simpleideas don’t appeal to our ego.

The first and simplest thing is to be getting started. A lumpsum investment can be done with anamount as small as Rupees five thousand only and that an SIP; with Rs 500 only. There is nouse of searching for complex things like valuations, earning projections, market sentiments etc., tostart an investment journey. Investment can be learnt better by experience.

Let’s ponder over a few simple things of investing.

Play your own game

There is valuation based on three or four different models or fundamental or technical or flow analysisand there is what suits you as an investor. Morgan Housel advises to be beware of taking financialcue from people playing a different game than you are. There are experts in the field to guide you,but they may not be able to act on the same guidance on themselves. There is cost of advice andadvice which may cost you.

Set your own benchmark

So, in a complex world of relative and absolute returns, look at what is your target which for most isdefined in certain lifestyle needs and stages. Till you can analyse different types of return on yourown instead of getting influenced by so-called finfluencer, compare your return with the return earnedhitherto.

I once heard from a professor that the opposite of a good thing is …. No, not a bad thing but alsoanother good thing. So don’t think about that 15 per cent return over 3 years is better than 10 per cent return over 5years but think of were you able to achieve something in relation to your goals. A simple index fundinvested for a long time gives better return than taking money in and out of 10 thematic funds whichgo in and out of flavour.

Filter the noise

Another question we often get asked – noise is everywhere and how do you filter? Not an easy one toanswer in a small article but always question with a mindset that what you hear could be true and tryto find evidence to disprove rather than ignore everything or in another extreme follow somethingblindly.

Diversification is a free lunch

Having told in so many words that there is “no one size fits all”, not all 22-year-olds have sameinvestment targets and neither do all 50-year-olds. Also, women may not have risk tolerance differentthan men and may be comfortable with longer time horizons. But there is something which does stayeternal like in a world of no free lunches, “diversification is a free lunch” that almost everybodybenefits from. Don’t put your eggs (at least not what you can lose) in same basket because there israndomness in every aspect of life including investing. Second, most “too good to be true things” areactually just that – too good to be true. And hence coming from the above two golden rules there ismerit in diversifying where you invest and also seeking advice for it.

Having an advisor for wealth is not a bad idea

Health, wealth and happiness – if doctors can advise on health, and family for happiness, maybe having anadvisor for wealth is not a bad idea, the advisor could be a person or just your own time andexperience. Sometimes one hears “no better teacher than time” so give time to wealth which may helpin what you want to do with your time!

(The writer is Executive Vice President, SBI Funds Management Ltd)

(Translation and synopsis by Mansi Sajeja, Deputy Vice President, Research &Fund Management, SBI Funds Management Limited)



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