Fine Art and High Finance
Expert Advice on the Economics of Ownership
By: Clare McAndrew PhD (Editor)
Published: January, 2010
Format: Hardcover, 336 pages
ISBN-13: 9781576603338
ISBN-10: 1576603334
Publisher: Bloomberg Press
"In recent years, as some of its opacity has begun to slowly lift, the modern art market has begun to evolve into an international financial trading platform in which specialized assets are exchanged by a widening group of investors, both individual and institutional, with as many interested in their financial benefits as in their aesthetic beauty or historical importance", writes cultural economist and investment analyst Dr. Clare McAndrew, in her comprehensive guide to the fine art investment market Fine Art and High Finance: Expert Advice on the Economics of Ownership. The author, and guest expert contributors provide a detailed road map for navigating the often opaque but potentially very profitable world of investing in fine art.
Clare McAndrew, along with the noted art experts featured in the book, provide valuable insights necessary for understanding how the fine art market works as a financial investment arena. Included in the book are critical chapters on how fine art is priced, appraised, and valued in the marketplace. While in general, art is valued according to the well known laws of supply and demand, the book contains important information about how values are determined beyond basic economic laws. Clare McAndrew is a specialist in the field of cultural economics, including fine art, and shares inside information that can help the novice or more experienced art investor recognize where and how art is sold, and to ask the right questions to avoid many of the potential pitfalls that await the unwary. At the same time, the book goes well beyond the overt investment potential of art, and includes key chapters on storage, restoration, conservation, insurance, taxation, and the myriad of fees and commissions incurred in buying and selling works of art.
Clare McAndrew (photo left) and the other contributors examine the art market from the inside out, and from every possible direction. Along with demonstrating the opportunities for profit through art investing, the book also describes how to assess possible future value changes, including how to lower the possibility of future financial losses. While art can appreciate greatly in value over time, as a result of many factors described in the book, improper care can undermine the value of the work to a large degree. Through important chapters on understanding the roles and differences between conservation, restoration, and preservation, the investor can prevent physical deterioration of the art assets within a portfolio. The book also shares advice on displaying and storing art to avoid possible degradation as well. The chapters on taxation in the United States and the United Kingdom, along with the section on art and banking, provide a degree of sophistication found rarely in books on art as an investment.
For me, the power of the book is how Clare McAndrew and her contributing experts provide detailed information on the world of art investing in a clear and concise manner. The information is well presented, in logical order, and includes seldom discussed issues of art banking, art investment securities and funds, and art as collateral for loans. Other important and valuable chapters discuss the role of government and its effects in the art market, risk assessment and insurance, as well as the illegal art trade. The book works well for guiding art investors at every stage of ownership from understanding what art to buy, where to buy it and how to evaluate it properly. The writing team is also very detailed on how to understand and budget for the costs associated with purchasing and owning a fine art portfolio. The book then provides further information on selling art, a known illiquid asset, to best advantage and how to understand the tax implications of any art sale.
I highly recommend the indispensable book on art investment Fine Art and High Finance: Expert Advice on the Economics of Ownership written and edited by Clare McAndrew PhD, to anyone seeking to better understand the world of fine art investment, including investors, collectors, curators, artists, and advisers. The book removes much of the mystery and misunderstandings surrounding the art market, and describes the inner workings of the milieu in easy to understand language. The book contains valuable information for anyone regardless of their experience level in the world of fine art investing.
Read the essential guide book Fine Art and High Finance: Expert Advice on the Economics of Ownership written and edited by Clare McAndrew PhD, and learn why fine art can be an important addition to any investment portfolio, and how to maximize the potential earnings from current and future art investments. This book is the definitive reference book for art investing, and is a must read for any serious fine art investor or institutional buyer.
