Fine Art and High Finance : Expert Advice on the Economics of Ownership

by Editor: Clare McAndrew

• ISBN13: 9780470883457
• ISBN10: 0470883456
• Format: eBook
• Copyright: 2010-05-01
• Publisher: Bloomberg Press

Summary

Art and finance coalesce in the elite world of fine art collecting and investing. Investors and collectors can't protect and profit from their collections without grappling with a range of complex issues like risk, insurance, restoration, and conservation. They require intimate knowledge not only of art but also of finance. Clare McAndrew and a highly qualified team of contributors explain the most difficult financial matters facing art investors. Key topics include: Appraisal and valuation Art as loan collateral Securitization and taxation Investing in art funds Insurance The black-market art tradeClare McAndrew has a PhD in economics and is the author of The Art Economy. She is considered a leading expert on the economics of art ownership.

Table of Contents

An Introduction to Art and Finance

Art Appraisals, Prices, and Valuations

How, where, and when people buy art and what they do with it

The economics of the art market: supply, demand, and price determination

Valuation and appraisal issues; art as a financial asset; quantitative and qualitative issues

Art Price Indices

Investment returns to art; assessment of performance between assets and over time

Art price indices-methods and debates

Art data

Art Risk

Investment risk

Portfolio diversification

Risk management

Credit default swaps

Derivatives and structured products

Art Banking

Art as collateral and downside risk

Art lending: history and current practices

Art financing solutions: comparative review of banks, auction houses, galleries, and others

The future of art banking

Art Funds

Art funds: history and motivations

Art funds today: different methods and approaches

Strategies: sector allocation, opportunity funds, and hedge funds

Current status of the market

Future outlook

The Government and the Art Trade

Role of the government in the art market

Art and the national patrimony

Trade restrictions and investment issues

U.S. relationship between art and government

U.K. relationship between art and government

Insurance and the Art Market

Art as a real asset: risk issues and the insurance market

Insurance and the art market: history, practice, and methods

Art appraisal and valuation issues

Art and Taxation in the United States

Tax and the art market: global investment and the tax nexus

Income tax implications

Transferring wealth: capital gains and inheritance tax

Wealth taxes

VAT and trading taxes

Estate planning and the legal implications of inheriting, selling, and bequeathing art; divorce situations; prenuptial agreements; division among heirs

Art and Taxation in the United Kingdom and Beyond

The UK tax system

Direct taxes: income tax, capital gains tax and corporate tax

Indirect taxes: VAT

Wealth tax

Art Conservation and Restoration

Conservation versus restoration versus preservation

Cost and return implications

Methods, practices, and services

The Illegal Art Trade

The black and grey markets for works of art

Provenance, fakes, and forgeries

Illegal import and export, repatriation, export licensing, and the national patrimony

Art theft and stolen art: issues and anecdotes

The global movement of works of art: legal and illegal, repatriation, art and conflict

Index

Table of Contents provided by Publisher. All Rights Reserved.