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Smart Art Investment Advisory

ArtCommodities.com embraces the notion of art as an asset class.
It advises for optimal investments in art and for avoiding financial losses, inefficient business, and trade.

Art is a good hedge against inflation, stock, bond, and currency market fluctuations: buying art allows investors to diversify their portfolios while pursuing financial gains. Works of art can be bundled with numerous investment funds or they can also be used as collateral in order to secure loans, for capital shields through tax-deductions and insurance value, or to disguise the transfer of assets.

ArtCommodities.com proposes a new formula for advanced art investments for reorganizing the economic and symbolic value of contemporary art while maintaining and assuring social, cultural, and financial capital returns.

Why Value Investors Should Buy Critical Art

ArtCommodities.com aims to build an art investment market whose social impact increases its potential for economic returns. As the social relevance and impact of a work increases, so does its market value.

Today's primary art market logic is highly dysfunctional and poor-performing over the long term.

Art collectors are endangered by incentives on short-run profits and the selling of quick, aimless, and trivial art, instead of being encouraged by an independent oeuvre of lasting quality and thought-provoking art.

This false paradigm of low-intellectual and cultural value as tied to high-financial value negatively affects the infrastructures and formations that sustain the cultural industry complex.

Overvaluation and mispricing of easily digestible and entertaining art is becoming more and more prevalent, a situation that misguides the investors and harms the whole art world, which is the real source of value. The present conservative model is often unsustainable, leading to collapse, and creating losses for its investors.

A simple economic analysis into the production of values of artworks

Symbolic value can be exchanged for high economic value, however commercial value is often exchanged for the symbolic, making the market unreliable. Misleading dominant economic forces have influenced popular taste and the artistic canon, which ultimately determines a false system of values.

ArtCommodities.com is committed to building symbolic and intellectual capital for creating a new market value of art, and promoting the equation between social value, artistic significance and economic development.

Art is a concept of value constantly requiring its own reevaluation. However, the factors influencing the valuation and validation of contemporary art, artistic reputation, and credibility are too often determined by the economic conditions and status of its producers, dealers, and buyers.

ArtCommodities.com wants to invert this paradigm, and assert a new scenario where the social validation of art influences its economic value, which is then redistributed to the social bodies that fuel and create the art economy itself. Economic evaluation should be democratic, hence conditioned by discernible quality and accessible artworks.

ArtCommodities.com promotes a new age of critique, awarding prestige and cultural capital to critical art, and encouraging its appreciation by popular audiences.

Many have questioned the authority of cultural experts and how they could legitimate their own valuations to generate estimations for inflating the value of artworks.

Some common traditional art market deceptions

1) Insider trading via privileged access to information is common practice. Dealers often offer art to auctions to drive prices up by bidding on their own sales, or they simulate sales by lending artworks to institutional investors for inflating their relevance. The lack of independent information on this trade endangers everyone in the art market.

2) Dominant art funds have higher acquisition budgets than public museums, and are able to manipulate the art market and extend their influence on the art world through tax-deductible donations to museums, sponsorships, and several types of advertorials in art publications.

3) Some collectors and art investors may only support artists who are subject to a celebrity or fashion logic, rather than artists who represent the real spirit of the time and medium of the contemporary.

Goals for high performance investments and acquiring social reputation and prestige as art collector

1) Establishing transparency in the market about prices and ownership by utilizing reliable sources of information.

2) Creating a market to maintain independent and autonomous production with democratic valuation of art that guarantees economic stability.

3) Supporting art that represents meaningful social and historical process, or art with socially transformative purposes.

Diagram about creation of art values for the market

Today, within the sphere of the contemporary visual arts, the agents whose interests determine the dominant values of art are mainly large institutional investors. Through their acquisitions these agents shape artistic reputations and taste, and establish the art market's elitist character.

The role of the public expert has been gradually replaced by financial ventures in the art market, which has shifted both intellectual and monetary values to bend to these power dynamics. Experts themselves have lamented this questionable inflation of superficial values in the art market, a scheme that ultimately harms both collectors and artists.

The traditional inefficient investment model

The proposed efficient investment model

ArtCommodities.com is published by Paolo Cirio Ltd, a company Registered in England, number 8188080. Registered Office: Suite 36, 88-90 Hatton Garden, City of London, EC1 N8PG, UK. Paolo Cirio Ltd. alone is responsible and liable for advice, information and services provided to its clients through ArtCommodities.com.