Troika Dialog: Investments in Art. Art Banking and Art Finance
Friday, February 3rd, 14:30-16:00
“Troika Dialog: Investments in Art” is a round table dedicated to contemporary art. The panel discussion will highlight the international and Russian art markets as well as identify their key players. The participants shall be presented a hands-on approach and set of tools how to deal with and in the art market and its conditions.
Development in Russia
With the long-term global growth of wealth, alongside the growth in knowledge about the art market, a much larger community has become interested in collecting and investing in art. A number of funds dedicated to fine art investment allow private individuals through securitization to have an ownership interest in a broader art collection and, therefore, decrease the idiosyncratic risk of their art investments. The broader appeal in art as an investment class lies in the low correlation with other asset classes. Russian individuals are showing growing interest in art an as asset class as well as art as soft-benefit, meaning the communication and the social circle associated with art.
Generally the problems with the value of art as an asset class are that art and antiques are heterogeneous commodities and art is monopolized by one owner, art does not have a long-term equilibrium price, holding and transacting costs for art are comparatively high, and direct art investment does not offer a monetary dividend. Also, finding the right strategies for art investors during depressed market conditions remains a challenge.