Wealthy people consider liquidating art assets as recession looms - Business Insider

Interest rates for art lending have fallen dramatically over the past few years, attracting more companies and art collectors that are looking to secure loans. In fact, von Habsburg said that last year alone, Winston Art Group appraised more than $3 billion worth of art to be used as collateralized loans.

"The benefits now as in the past are many — it is a way to make that asset class work as a financial tool; it is an alternate source of liquidity in a normally rather illiquid asset," she said. "For those collectors or dealers who have large stocks of stored art that is not being hung or transacted, that art generates funds rather than sits as a static asset; and the art can be held and hung on collectors' walls even while being used as collateral.

Art shows, fairs, and private and public auctions have been canceled amid the coronavirus pandemic. Museums around the world, such as the Louvre and the Met, have also closed, as have the galas usually thrown to help raise money for them.But there could be a negative side to using art as collateral, she said, which could become more apparent over the next few months. Especially because this season's art shows and auctions have been postponed, while private sales have started to slow down..

Naomi Baigell, managing director of Marketing and Client Relations at Athena Art Finance, told Business Insider that "Art holds a special place in the world of assets," and "Collectors tend to be very personally committed to the artists they collect, to their works and to the inherent and immeasurable cultural and social values they represent.

"Works may have to be sold to cover the debt, and the market has a sharp nose for works being sold under duress, which can lead to lower than normal financial results," according to von Habsburg."Art collectors are waiting until the public part of the market opens to sell their art, while art investors are using this time to find interesting stressed opportunities," Sachs told Business Insider. "This global pandemic is clearly a new paradigm for all asset classes.

Been thinking in the same direction, only question is how and where to sell them at this moment.

Cash really is king😩

Wealthy Ppl don't need cash, dumbells!

Only wealthy people think ugly paintings are worth a lot of money.

Now do one exclusively on Faberge eggs. I'm fascinated by how the 0.01% is struggling through this pandemic.

Must be nice...

Good. Bring everyone to the same level and create balance. SilverLining

Why when the cash will have no value? Better to invest in Golden 9mm rounds

wealthy people have the power to bring up cash value of an art piece

Cash is not a good investment that wont last long more likely they will shift assets to logistics and health

Looks like Momo

Kindly highlight when the vintage Bordeaux and Burgundy cellars are at risk 👍

Fuck yes, I’m gonna be able to finally afford a Dali. 👌🏻

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