ART Asset Class: when figures take over

What is the value of art? When does a Koons become overpriced? Is there a correlation between the financial and art markets. In times of (almost) zero returns on bonds and accounts, investors are looking for new horizons. Basquiat, Richter and Hockney are the new Amazon, Alibaba and Tencent. I became quite intrigued in the mechanics of this 64 Bio USD market. So from now on there will be a new (and English) Asset Art Class section added to my blog.

On May 19 2020 UBS organised a webinar on the impact of Covid-19 on the Art Market.

One of the takeaways was that collectors are looking for new and innovative ways to enter the art market. Stories about the artists and their works will always be top of mind (and will always be a big part of the dutch part of this blog) but gradually there will be a shift towards data mining of Art.

Will we be comparing P/E and DCF’s of artworks as if it were stocks? Will art prove to be a risk proof differentiator in portfolio management? Can you own % of a Warhol or a Hockney?

The road is long and winding. But I have always been a fan of Robert Frost.

Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.

So it will be a journey for me. A journey that will take me from the well-known country of stocks and bonds to the unknown horizons of Art Finance and data mining. Feel free to join me.

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