Art Investment Blog

Art Investment Strategies

Successful art investing requires strategies similar to those from equity markets. The strategies are based on: continuity, quality, and focus of the art investments. The continuity criterion refers to the time horizon of the art investment. The quality aspects include …

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Calculation of Art Investment Returns

The pros and cons of the three most frequently used art investment return rate calculation methodologies. The basic form of art investment performance measurement is using some sort of average price calculation. The most evident form is looking at repeat …

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Art Markets and Monopolies

In some ways, the international art family is inaccessible to the general art public. The inner circle is kept alive by tightly connected art insiders. They are particularly well informed about the very high-end art market transactions. Those art transactions …

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Art Investments and Resale Royalties

In some countries, artists or their heirs receive a succession duty each time a work of art is publicly sold. Resale royalties (French: droit de suite, DDS) are calculated on the art sales prices, usually between 0.25% and 10%, depending …

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Art Investments and Taxes

Art investments are subject to indirect taxes, direct taxes, and special fees like royalties. Art acquisitions are made globally nowadays and customs and other duties may apply. The regulations differ from country to country. Art investors should be aware of …

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Money Laundering and Art Investments

Financial institutions are obliged to apply proper customer due diligence procedures to bank accounts and related financial transactions. They have to know their customers and business parties involved in such transactions. Art market participants, are subject to similar, but not …

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Art Investing and Art Market Transaction Costs

Transaction costs include all commissions, market impact costs and taxes associated with moving physically an asset from seller to buyer. Transaction costs in art markets are on average considerably higher than in financial or commodity markets. Generally, a decline in …

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Pricing in Art Markets

Recent media coverage on skyrocketing art auction results leads to the impression that art market prices fluctuate randomly. Art prices seem to be determined by global art investors who are willing to invest any amount of money to complete their …

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Art Investment Strategies and the Crystal Ball

If financial and art market were efficient (EMH), this article would be obsolete. As all available information is already incorporated in prices, analyzing assets and subsequently implementing action plans would be a waste of time. However, the financial success of …

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Legal Aspects of Art Investments

The identity of buyers and sellers of works of art is usually not known to art investors. This is true for transactions with art dealers, auctions houses, and private acquisitions. As a result, there are inherent art title risks and …

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