TIMING IS EVERYTHING

Falling Shopper (2011) by Banksy

One of our investment axioms in Artemundi is to keep our general and administrative costs at a minimum. Historically these have been less than 1% of AUM (Assets under management) or 0,8 to be precise. Lower than most alternative funds anywhere in the world.

For the non-financial art savvy, art is very inexpensive to maintain. The fix portion is storage and insurance, and it is relatively cheap. The variable portion is… well, dispensable. If you own the art (secondary market masters), you could close the shop and come back in a year. Time would be better spent on something else, research for example. Or definitely buying art if you have the means to do it now. It is the best occasion, in almost a century!

Timing is everything. I do not recommend anyone to sell now unless you do not have a choice. Here is what you can expect if you must sell: If you own an extraordinary artwork from the late 19th or 20th centuries, you might be able to sell it at fair market value, or very close. If your work is a second tier painting (under the same categories), expect to discount it as much as 15% – 35%. Everything else is illiquid.

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