Kathryn Tully reveals the risk factors for investors who put their money into art.
What are the biggest risks to the art market in 2014? What is the very worst thing that could happen and would that send art prices plummeting?
These issues were discussed last week at a panel in New York organized by the Art Investment Council, founded by the folks at Artvest. The discussion focused on unexpected events that can and do shake the art market, such as a fire or a natural disaster, terrorism, fraud or other criminal activity.
As Jonathan Crystal, principal of insurance advisers Crystal & Company, put it, “If you accept the premise, and many people even in this room do not, that art is an asset class… then you should accept the broader premise of applying disciplines that are actively used in the investment world. One of those disciplines is stress-testing.”
What are the biggest risks to the art market in 2014? What is the very worst thing that could happen and would that send art prices plummeting?
These issues were discussed last week at a panel in New York organized by the Art Investment Council, founded by the folks at Artvest. The discussion focused on unexpected events that can and do shake the art market, such as a fire or a natural disaster, terrorism, fraud or other criminal activity.
As Jonathan Crystal, principal of insurance advisers Crystal & Company, put it, “If you accept the premise, and many people even in this room do not, that art is an asset class… then you should accept the broader premise of applying disciplines that are actively used in the investment world. One of those disciplines is stress-testing.”