In most industries middlemen make a mint when sales are soaring. That is usually not the case in the world of eight and nine-figure paintings and sculptures. “As art prices go up and there’s growth in the market, margins go down inversely,” says Michael Plummer, former chief operating officer of Christie’s Financial Services and now a principal in the art advisory company Artvest Partners.
Jeff Rabin is principal and cofounder of Artvest Partners, a firm that offers investment advice for the art market, including custom strategies for acquiring and selling, financing, protecting art wealth, and passing it on to future generations. In today’s Digest Premium, he explains why investing in art is different than investing in stocks… and reveals some of the hidden costs in the art market…
For one recent example, look at Damien Hirst, says Jeff Rabin, principal and co-founder of Artvest Partners…In September 2008, Sotheby’s held a much-ballyhooed sale of the artist’s work, with prices ranging as high as $18.6 million. But the market for Mr. Hirst’s work has cooled, and those who bought at the sale “would have, on […]
“Ideally any tightening of the rules would be self-imposed,” said Michael Plummer, a former Christie’s executive who is now a principal in Artvest Partners, an art advisory company. “Unfortunately I don’t think the markets are going to have the discipline to do that.”