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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. |
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 |