An untested company helmed by alittle-known art dealer might have trouble getting traction in the reputation-obsessed art world, advisors suggest. “In theory, it sounds like agood idea. But how can they guarantee the property owner comfort?” asks Jeff Rabin, co-founder of art investment ﬁrm Artvest Partners. “I don’t know what they own or the scope of their guarantees. But if all their clients try to cash in at once, they might be forced to go into bankruptcy and liquidate. And if that happens, what happens to all the people they guaranteed?”
“From an investment standpoint, fine art-contemporary, impressionist and modern art-is a deep market. It’s globally traded and liquid,” says Michael Plummer, co-founder of New York-based Artvest Partners, which advises wealthy families and individuals on investing in fine art.
Lively and controversial panel discussion hosted by the Art Investment Council on whether or not the art market is in a bubble. Co-founded by Artvest in 2011, Art Investment Council is a non-profit organization dedicated to promoting a greater understanding of art as an asset class by encouraging transparency, best practices, education and consistency of terminology and reporting.
This program will consist of the two panels addressing the basics of where the worlds of art and finance overlap. During the first panel, the panelists will discuss Art Investment Funds, from their formation to investment strategies in the global market. The second panel will address structuring, documenting, insuring and other related issues arising in the context of lending transactions where art is utilized as collateral.