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jerryking : art_market   13

Boom amid the bust: 10 years in a turbulent art market | Financial Times
July 27, 2018 | FT| by Georgina Adam.
September 15 2008, the date of Lehman Brothers' bankruptcy filing, was also the first day of a spectacular gamble by artist Damien Hirst, who consigned 223 new works to Sotheby’s, bypassing his powerful dealers and saving millions by cutting out their commissions........The two-day London auction raised a (stunning) total of £111m.......o the outside world, though, the Hirst auction seemed to indicate that despite the global financial turmoil, the market for high-end art was bulletproof....in the wake of the Hirst sale, the art market took a severe dive.... sales plunging about 41% by 2009, compared with a market peak of almost $66bn in 2007. Contemporary art was particularly badly hit, with sales in that category plunging almost 60 % over 2008-09. Yet to the surprise, even astonishment, of some observers, the art market soon started a rapid return to rude health...the make-up of the market has changed. The mid-level — works selling between $50,000 and $1m — has been sluggish, and a large number of medium-sized and smaller galleries have been shuttered in the past two years. However, the high-performing top end has exploded, fuelled by billionaires duelling to acquire trophy works by a few “brand name” artists....A major influence on the market has been Asia....What has changed in the past 10 yrs. is what Chinese collectors are buying. Initially Chinese works of art — scroll paintings, furniture, ceramics — represented the bulk of the market. However, there has been a rapid and sudden shift to international modern and contemporary art, as shown by Liu and other buyers, who have snapped up works by Van Gogh, Monet and Picasso — recognisable “brand names” that auction houses have been assiduously promoting......Further fuelling the high end has been the phenomenon of private museums, the playthings of billionaires....In the past decade and even more so in the past five years, a major stimulus, mainly for the high end, has been the financialization of the market. Investment in art and art-secured lending are now big business....In addition, a new layer of complexity is added with “fractional ownership” — currently touted by a multitude of online start-ups. Often using their own cryptocurrencies, companies such as Maecenas, Feral Horses, Fimart or Tend Swiss offer the small investor the chance to buy a small part of an expensive work of art, and trade in it.....A final aspect of the changes in the market in the past decade, and in my opinion a very significant one, is the blurring of the art, luxury goods and entertainment sectors — and this brings us right back to Damien Hirst....Commissions are probably also lucrative. E.g. a Hirst-designed bar called Unknown was unveiled recently in Las Vegas’s Palms Casino Resort. It is dominated by a shark chopped into three and displayed in formaldehyde tanks, and surrounded by Hirst’s signature spot paintings. Elsewhere, Hirst’s huge Sun Disc sculpture, bought from the Venice show, is displayed in the High Limit Gaming Lounge. ...So Hirst neatly bookends the decade, whether you consider him an artist — or a purveyor of entertainment and luxury goods.
art  artists  art_finance  art_market  auctions  boom-to-bust  bubbles  contemporary_art  crypto-currencies  Christie's  Damien_Hirst  dealerships  entertainment  fees_&_commissions  fractional_ownership  high-end  luxury  moguls  museums  paintings  Sotheby's  tokenization  top-tier  trophy_assets  turbulence 
july 2018 by jerryking
How Financial Products Drive Today’s Art World
July 20, 2018 | The New York Times | By Scott Reyburn.

How does one invest in art without going through the complications of buying and owning an actual artwork?

That is the question behind financial products for investors attracted by soaring art prices but intimidated by the complexity and opacity of the market..... entrepreneurs are trying to iron out the archaic inefficiencies of the art world with new types of financial products, particularly the secure ledgers of blockchain...... “More transparency equals more trust, more trust equals more transactions, more transactions equals stronger markets,” Anne Bracegirdle, a specialist in the photographs department at Christie’s, said on Tuesday at the auction house’s first Art & Tech Summit, dedicated to exploring blockchain......blockchain’s decentralized record-keeping could create a “more welcoming art ecosystem” in which collectors and professionals routinely verify the authenticity, provenance and ownership of artworks on an industrywide registry securely situated in the cloud...... blockchain has already proved to be a game-changer in one important area of growth, according to those at the Christie’s event: art in digital forms.

“Digital art is a computer file that can be reproduced and redistributed infinitely. Where’s the resale value?”.....For other art and technology experts, “tokenization” — using the value of an artwork to underpin tradable digital tokens — is the way forward. “Blockchain represents a huge opportunity for the size of the market,” said Niccolò Filippo Veneri Savoia, founder of Look Lateral, a start-up looking to generate cryptocurrency trading in fractions of artworks.

“I see more transactions,” added Mr. Savoia, who pointed out that tokens representing a percentage of an artwork could be sold several times a year. “The crypto world will bring huge liquidity.”......the challenge for tokenization ventures such as Look Lateral is finding works of art of sufficient quality to hold their value after being exposed to fractional trading. The art market puts a premium on “blue chip” works that have not been overtraded, and these tend to be bought by wealthy individuals, not by fintech start-ups.....UTA Brant Fine Art Fund, devised by the seasoned New York collector Peter Brant and the United Talent Agency in Los Angeles.

The fund aims to invest $250 million in “best-in-class” postwar and contemporary works,...Noah Horowitz, in his 2011 primer, “Art of the Deal: Contemporary Art in a Global Financial Market,”.... funds, tokenization and even digital art are all investments that don’t give investors anything to hang on their walls.

“We should never forget that in the center of it all is artists,”
art  artists  art_advisory  art_authentication  art_finance  auctions  authenticity  best_of  blockchain  blue-chips  books  Christie's  collectors  conferences  contemporary_art  digital_artifacts  end_of_ownership  fin-tech  investing  investors  opacity  post-WWII  provenance  record-keeping  scarcity  tokenization  collectibles  replication  alternative_investments  crypto-currencies  digital_currencies  currencies  virtual_currencies  metacurrencies  art_market  fractional_ownership  primers  game_changers 
july 2018 by jerryking
Christie’s Jussi Pylkkanen and superauctions
NOVEMBER 10, 2015 | FT | John Gapper.

....Of all his crafty sales tactics, the one used to greatest effect by Christie’s 52-year-old global president — the auctioneer on top of the wave of wealth in the world’s art market — is the query: “Are you sure?” He asks it as one of the last two bidders in an auction drops out, threatening to finish it. As he halts the action for a few seconds — what he calls “the auctioneer’s pause” — pressure builds on the reluctant bidder.

'Are you sure, sir?'

Auctions are unusual in the 21st century - most things, even luxury items such as watches and clothes, sell at fixed prices although there is some room to haggle. Even many items on eBay, the electronic platform, are sold at fixed prices. In The Dynamics of Auction , Christian Heath, a professor of work at King's College, London, describes them as "a somewhat anachronistic method of selling goods, more common perhaps to traditional agrarian societies than post-industrial capitalism."

They are still used for art because every painting is different and has no intrinsic value - it does not yield anything and the cost of manufacture is usually tiny. They are also a good way to get high prices - when buyers compete against a deadline, they behave differently. The desire not only to acquire it but to beat others causes what Deepak Malhotra, a Harvard professor, terms the "emotional arousal" of auctions.

"We know that the Modigliani [being sold on Monday] is the artist's greatest work," says Pylkkanen, never short of an extravagant compliment for his inventory. "We know that it was painted in 1917. We know that it is being sold 100 years later, and that nobody in their lifetime has had an opportunity to buy it on the open market. We're all individuals and when we get a chance, it's like, 'That's the one. I've got to go [for it].' "

The task of the auction house is to gather as many people as possible - especially wealthy people - in a saleroom, or on the end of a phone line to the room, and to create the atmosphere for such moments to occur. The auctioneer must be charming, relaxed, and pleasantly ruthless. "You need poise, control and an element of openness because you're inviting people to this thing. You're making them compete without pushing too hard."
art  art_market  auctions  books  Christie’s  collectors  collectibles  high_net_worth  intrinsic_value  Jussi_Pylkkanen  power_of_the_pause  pricing  sales_tactics 
may 2018 by jerryking
Art market ripe for disruption by algorithms
MAY 26, 2017 | Financial Times | by John Dizard.

Art consultants and dealers are convinced that theirs is a high-touch, rather than a high-tech business, and they have arcane skills that are difficult, if not impossible, to replicate..... better-informed collectors [are musing about] how to compress those transaction costs and get that price discovery done more efficiently.....The art world already has transaction databases and competing price indices. The databases tend to be incomplete, since a high proportion of fine art objects are sold privately rather than at public auctions. The price indices also have their issues, given the (arguably) unique nature of the objects being traded. Sotheby’s Mei Moses index attempts to get around that by compiling repeat-sales data, which, given the slow turnover of particular works of art, is challenging.....Other indices, or value estimations, are based on hedonic regression, which is less amusing than it sounds. It is a form of linear regression used, in this case, to determine the weight of different components in the pricing of a work of art, such as the artist’s name, the work’s size, the year of creation and so on. Those weights in turn are used to create time-series data to describe “the art market”. It is better than nothing, but not quite enough to replace the auctioneers and dealers.....the algos are already on the hunt....people are watching the auctions and art fairs and doing empirics....gathering data at a very micro level, looking for patterns, just to gather information on the process.....the art world and its auction markets are increasingly intriguing to applied mathematicians and computer scientists. Recognising, let alone analysing, a work of art is a conceptually and computationally challenging problem. But computing power is very cheap now, which makes it easier to try new methods.....Computer scientists have been scanning, or “crawling”, published art catalogues and art reviews to create semantic data for art works based on natural-language descriptions. As one 2015 Polish paper says, “well-structured data may pave the way towards usage of methods from graph theory, topic labelling, or even employment of machine learning”.

Machine-learning techniques, such as software programs for deep recurrent neural networks, have already been used to analyse and predict other auction processes.
algorithms  disruption  art  art_finance  auctions  collectors  linear_regression  data_scientists  machine_learning  Sotheby’s  high-touch  pricing  quantitative  analytics  arcane_knowledge  art_market 
june 2017 by jerryking
30 things about art and life, as explained by Charles Saatchi
He rarely gives interviews, but a new book offers an intriguing insight into what drives the enigmatic collector's passion for art
You've been successful at discovering new artistic talent. But are there not always great artists who go undiscovered?
By and large, talent is in such short supply that mediocrity can be taken for brilliance rather more than genius can go undiscovered.
You have been described both as a "super-collector" and as "the most successful art dealer of our times". Looking back on the past 20 years, how would you characterise your activities?
Who cares what I'm described as? Art collectors are pretty insignificant in the scheme of things. What matters and survives is the art. I buy art that I like. I buy it to show it off in exhibitions. Then, if I feel like it, I sell it and buy more art. As I have been doing this for 30 years, I think most people in the art world get the idea by now. It doesn't mean I've changed my mind about the art that I end up selling. It just means that I don't want to hoard everything for ever.
Your practice of buying emerging artists' work has proved highly contagious and is arguably the single greatest influence on the current market because so many others, both veteran collectors and new investors, are following your lead, vying to snap up the work of young, relatively unknown artists. Do you accept that you are responsible for much of the speculative nature of the contemporary art market?
I hope so. Artists need a lot of collectors, all kinds of collectors, buying their art.
Do you think you have messed up anybody's life by flogging off all their work?
I don't buy art just to make artists happy any more than I want to make them sad if I sell their work. Don't you think you're being a bit melodramatic?
Before you went into advertising, what other career did you consider?
"Consider" isn't quite how it was. At 17 and with two O-levels to show after a couple of attempts, a career path wasn't realistic, nor a chat with the Christ's College careers officer, who wouldn't have recognised me in any event as my absenteeism record was unrivalled. I answered a situations vacant ad in the Evening Standard for a voucher clerk, pay £10 weekly. It was in a tiny advertising agency in Covent Garden, and a voucher clerk had to traipse round all the local newspaper offices in Fleet Street – of which there were hundreds at the time – and pick up back copies of papers in which the agency's clients had an advert appearing. The voucher clerk's role was to get the newspaper, find the ad, stick a sticker on it so the client could verify its appearance, and the agency could get paid. Vital work, obviously. One of the advantages of it being a tiny agency was that one day they got desperate when their creative department (one young man) was off sick, and they asked me if I could try and make up an ad for one of their clients, Thornber Chicks. This ad was to appear in Farmer and Stock-Breeder magazine, and hoped to persuade farmers to choose Thornbers, as their chicks would grow to provide many cheap, superior quality eggs and a fine return. I didn't know how you wrote an ad, or indeed how to write anything much other than "I will not be late for assembly", for which I had been provided much practice. So I looked through copies of Farmer and Stock-Breeder and Poultry World, chose some inspiring-sounding words and phrases, cobbled them together, stuck on a headline – I think I stole it from an old American advertisement – and produced "Ask the man who owns them" as a testimonial campaign featuring beaming Thornber farmers. The client bought it.
Does a love of art, particularly Renaissance art on a biblical theme, make one feel closer to God?
I believe God must be very disappointed in his handiwork. Mankind has clearly failed to evolve much in all these years; we're still as cretinous and barbaric as we were many centuries ago, and poor God must spend all day shaking his head at our vileness and general ineptitude. Or perhaps, we might just give him a good laugh. But of course, I hope God likes our art enough to forgive us our sins, particularly mine.
I like the new gallery but hated your gallery in County Hall. What were you thinking!
I was stupid, stupid, stupid. I got bored with knowing my first gallery in Boundary Road too well, so well in fact that I could hang my shows to the centimetre while sitting on a deckchair in Margate. Plus, I wanted to introduce new art to as wide a public as possible, and I went for somewhere with a much bigger footfall on the South Bank next to the London Eye. So I gave up the airy lightness of Boundary Road for small oak-panelled rooms, and nobody liked it. I saw it as a challenge, but one which I clearly wasn't up to.
Which artists do you display in your own home? Are you constantly changing the works you have there? Is there a core of favourites which stay there?
My house is a mess, but any day now we'll get round to hanging some of the stacks of pictures sitting on the floor.
Who are the artists you are most pleased with discovering?
Over the years I have been very lucky to see some great artists' work just at the start of their careers, so that I could feel "pleased with discovering" them. However, I have also "discovered" countless artists who nobody but me seemed to care much for and whose careers have progressed very slowly, if at all. So I certainly don't have an infallible gift for spotting winners. I think it's fair to say that I bought Cindy Sherman in her first exhibition in a group show, with some of her black-and-white film stills framed together in those days as a collage of 10 images, and went on to buy much of her work for the next few years. I bought most of the work from Jeff Koons's first exhibition in a small and now-defunct artist-run gallery in New York's East Village, which included the basketballs floating in glass aquariums and the Hoovers and other appliances in fluorescent-lit vitrines. But this is getting too self-congratulatory and the truth is I miss out on just as many good artists as I home in on.
Are paintings a better investment than sharks in formaldehyde? The Hirst shark looks much more shrivelled now than it used to, but a Peter Doig canvas will still look great in 10 years and will be much easier to restore.
There are no rules about investment. Sharks can be good. Artists' dung can be good. Oil on canvas can be good. There's a squad of conservators out there to look after anything an artist decides is art.
Why do overseas museums have better collections of Britart than the Tate?
Because the Tate curators didn't know what they were looking at during the early 1990s, when even the piddliest budget would have bought you many great works. But I'm no better. I regularly find myself waking up to art I passed by or simply ignored.
Looking ahead, in 100 years' time, how do you think British art of the early 21st century will be regarded? Who are the great artists who will pass the test of time?
General art books dated 2105 will be as brutal about editing the late 20th century as they are about almost all other centuries. Every artist other than Jackson Pollock, Andy Warhol, Donald Judd and Damien Hirst will be a footnote.
If you were commissioning your own portrait, in which medium would you choose to be represented?
I'd rather eat the canvas than have someone paint me on it.
What is it like being married to a domestic goddess?
She's too good for me, I know, but she knows it too and reminds me every day.
Do you ever do the cooking?
I can do eggs. And cornflakes.
Do you encourage your children to look at your art and go to museums and galleries?
My children think it's very uncool to have anything to do with my gallery. But they quite like the gallery shop.
What advice do you and your wife give your children?
Nigella's mum gave her an invaluable insight into nice behaviour. According to Nigella her advice went something like this: "It is better to be charmed than to charm." By this she meant that what makes people feel good about themselves is feeling as if they have been charming, interesting; in short, have been listened to. For her, the notion that one should oneself be riveting or aim to be quite the most fascinating person in the room was a vulgarity and just sheer, misplaced vanity. Trying to be charming is self-indulgent; allowing oneself to be charmed is simply good manners.
Should the country be spending money on saving old masters for the nation, or buying up works by the next generation of artists?
At the risk of being lynched – again – by the art crowd, I don't think there is a great need any more to save paintings for the nation at the cost of supporting new art. What difference does it make if a Titian is hanging in the National Gallery, the Louvre or the Uffizi? This isn't the 18th century: people travel, so there's no need to be nationalistic about the world's art treasures. Much more important is to back living artists.
What is your favourite museum in the world?
The Prado in Madrid. I have a weakness for Goya, but the museum itself is so unfussy, and clearly loves to display its many masterpieces as unshowily as possible, each visit reinforces my belief in the enduring importance of art.
I know very little about contemporary art but have £1,000 to invest. Any advice?
Premium bonds. Art is no investment unless you get very, very lucky, and can beat the professionals at their game. Just buy something you really like that will give you a thousand pounds' worth of pleasure over the years. And take your time looking for something really special, because looking is half the fun.
What is your proudest achievement?
I don't do pride. That's not to say I don't have an ego the size of an aircraft hangar, but I'm not even very proud of that.
How much money have you lost in the recession?
I daren't look.
Aren't those dot paintings [by Damien Hirst] just like wallpaper?
You may as well say that Rothko paintings look like nice rugs. There's no crime in art being decorative.
With Mark … [more]
art  collectors  Saatchi_gallery  Reality_TV  Art_and_design  Culture  Media  The_Observer  Features  via:millersashley  art_market 
november 2016 by jerryking
Is loyalty to an art gallery outdated? — FT.com
SEPTEMBER 23, 2016 by: Harriet Fitch Little.

Dealer-client relationships have been founded on what he terms “proper social conversations”: dinners out, trips taken and “[the collector’s] ability to share with the gallery the enthusiasm, the sheer admiration and wonder at an artist’s work”.

But art fairs, auctions and the internet have rendered conversations with dealers a choice rather than a necessity for buyers. In Selling Contemporary Art (2015), [North York Central Library, Book Lang & Lit 5th Fl Nonfiction In Library 706.88 WIN] which charts how the market has transformed since 2008, author Edward Winkleman uses a phrase he acquired from the Los Angeles-based collector Stefan Simchowitz to describe the shift: “cultural Lutheranism”. Collectors now have the tools to evaluate and purchase art without the hand holding of a gallerist — perhaps without ever even visiting an exhibition....the fickleness of the contemporary art market, where artists are “on the top ten hits parade for a while and then you never hear of them again” makes the dealer whose taste one trusts an indispensable guide....art lovers stick with particular dealers if they demonstrate a commitment to art that goes beyond the financial....for a gallerist, “Where you have a choice is the artists you choose to work with, the clients you choose to work with,” -- “The key for the whole thing is trust.”
trustworthiness  David_Bowie  mentoring  collectors  collectibles  art  dealerships  galleries  loyalty  taste-makers  books  contemporary_art  relationships  high-touch  art_market  customer_loyalty 
september 2016 by jerryking
Hollywood Talent Agency’s New Division to Manage Visual Artists’ Careers - WSJ
By KELLY CROW
Feb. 10, 2015
Should painters and sculptors be treated like movie stars? United Talent Agency thinks so.

The Beverly Hills, Calif., agency known for representing actors like Johnny Depp and Angelina Jolie said Tuesday it has launched a division called UTA Fine Arts to manage the careers of contemporary visual artists.

The move marks the first time a Hollywood talent agency has stepped into a role traditionally played by art galleries, and it underscores the growing commercial appeal that top artists wield in the global, multibillion-dollar art market.

Jim Berkus, chairman, said the agency won’t broker art sales or show the art as galleries do, but he said the art division will help contemporary artists amass financing for their creative projects and sign potentially lucrative corporate sponsorships and merchandising deals. Mr. Berkus said the firm will also assist artists who want to get more involved in the moviemaking business....The agency’s arrival is likely to rattle the art establishment, particularly the growing list of mega-dealers who have opened gallery branches around the world and are known for transforming artists into museum-ready superstars.

Marc Glimcher, who oversees the New York powerhouse Pace Gallery, said he thinks talent agents could drive a divisive wedge between artists and their dealers, who have historically guided artists toward commissions or relationships that may secure them a lasting place in art history.

“It sounds like an interesting idea, but it’s going to be super hard to pull off,” Mr. Glimcher said. “If you’re going to be an artist’s agent, you need to know more about their work, their prices and their collectors than their own dealer does—and no dealer will be induced to share that kind of information.”

Beyond market intelligence, Mr. Glimcher said talent agents will need to discern how many commercial deals an artist can shoulder without looking like a sellout to art-world insiders: “Do too much, and you’re just not cool anymore,” he added.
Hollywood  talent_management  career  contemporary_art  artists  product_launches  galleries  lawyers  entertainment_industry  market_intelligence  talent_representation  superstars  art_market 
february 2015 by jerryking
Hedge-Fund Managers Playing Larger Role in Art Market - WSJ.com
By
Kelly Crow,
Sara Germano and
David Benoit
Jan. 23, 2014

Hedge-fund managers, who play a vital but disruptive role in the broader financial markets, are increasingly throwing their weight around the art market: They are paying record sums to drive up values for their favorite artists, dumping artists who don't pay off and offsetting their heavy wagers on untested contemporary art by buying the reliable antiquity or two. Aggressive, efficient and armed with up-to-the-minute market intelligence supplied by well-paid art advisers, these collectors are shaking up the way business gets done in the genteel art world.....Today, are applying their day-job tactics to their art shopping, dealers say.

Corporate raiders a generation ago typically held their art purchases for at least a decade. Today, the average holding period for contemporary art is two years, according to a former Sotheby's specialist. That is enough time to reap a tidy profit on a rising-star artist but hardly enough for art history to rule on the artist's lasting merits.
art  artists  collectors  Wall_Street  hedge_funds  contemporary_art  moguls  Sotheby's  investors  dealerships  Citadel  Ken_Griffin  volatility  Christie's  market_intelligence  herd_behaviour  aggressive  art_advisory  real-time  holding_periods  art_market 
january 2014 by jerryking
The Francis Bacon indicator? Art world soaks up excess cash
Nov. 19 2013 | The Globe and Mail The Globe and Mail | BRIAN MILNER.

Investors, collectors and dealers forked out nearly $1.2-billion (U.S.) last week – far above industry expectations – for a handful of illustrious names at the fall contemporary art auctions in New York. ...Art market experts, just like their counterparts in commodities, real estate, stocks and bonds, insist this is no bubble: The market is healthy, demand is growing and supply is limited....But the rich are eagerly parting with their money for art for a variety of personal and financial reasons. As a rising asset in a low-interest rate world, it’s viewed as a potential hedge against future financial storms. After all, demand remained relatively stable in the aftermath of the Great Meltdown. Also, owning a famous piece of art offers a heck of a lot more prestige than buying another commercial property. And it’s a lot cheaper than trying to compete with the Russian oligarchs (who are also big art buyers) for sports franchises.
art  bubbles  collectors  auctions  high_net_worth  contemporary_art  prestige  hedging  low-interest  art_finance  alternative_investments  art_market 
november 2013 by jerryking
From the VIP Art Fair to Art.sy, the Art Gallery Goes Digital
JANUARY 14, 2011 | WSJ.com |By ELLEN GAMERMAN and KELLY CROW

The question of whether top-tier art can successfully be sold online has long bedeviled the art world. High-end collectors have traditionally been leery of spending significant money on art they haven't seen in person, and a number of online-art selling ventures fizzled early on. But as more and more powerful art buyers emerge from Asia, Russia and the Middle East, the need to quickly reach collectors around the globe has never been greater. And dealers are looking for ways to reach a younger generation that's beginning to explore the art market—without alienating their best clients.

Now, some of the biggest names in the worlds of art and technology are betting that collectors will spend millions on paintings and sculptures that they've only seen online. A who's who of top galleries is taking part in the VIP Art Fair, an online-only event where potential buyers can shop for works by contemporary and modern artists like Jackson Pollock, Louise Bourgeois, Francis Bacon and Damien Hirst. Nearly 140 galleries from more than 30 countries—including blue-chip dealers like David Zwirner, Larry Gagosian and the Pace Gallery—have paid to host virtual booths.
collectors  art  e-commerce  art_galleries  art_market  Damien_Hirst  high-end  top-tier 
january 2011 by jerryking
Asher Edelman, the Art World's Gordon Gekko - WSJ.com
JANUARY 29, 2010 | Wall Street Journal | By KELLY CROW. A
former corporate raider is shaking up the market with brash tactics and
big plans as an art financier. After navigating the art world for
decades as a collector, museum director and gallery owner, Mr. Edelman
recently set up his own firm, Art Assured Ltd., to arrange art
investments.

The field of art backing is a financial Wild West these days. When the
recession upended the art market a year ago, a number of traditional
institutions like banks and auction houses pulled back from loans and
other financing deals based on the expected selling prices of fine art.
An aggressive set of boutique lenders and financiers have stepped in to
fill the gap. The most prominent art lenders operate as blue-chip
pawnshops, doling out quick cash to collectors, dealers and artists in
exchange for the right to sell the borrowers' artworks if their loans
aren't repaid.
art  art_finance  art_galleries  investing  fine_arts  high_net_worth  collectors  financiers  boutiques  auctions  banks  pawnbrokers  blue-chips  art_market 
january 2010 by jerryking

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