Simply about the difficult: Art Investment. Beginning
ARTinvestment.RU   06 февраля 2020

"Just about the complex" — new column AI, which we make available, but it is open, describe the main concepts and players art-рынка. The very name of our site requires to begin with the notion of investing in art

every game has its own rules. In each category AI, they also have. Having undertaken to tell in simple words about complex topics, we decided to limit each material ten semantic paragraphs. For the convenience of your reading will be hidden difficult but very interesting task of structuring your knowledge of authors, where each line hides a huge number of studied and practically applied information. We begin:

1. As follows from the definition of investment — is a financial instrument which can be used to maintain or increase income. Investments in various forms existed since the private financing of the courts to send for spices in the Middle ages. However, the development of the art market in those days did not exist. So art had to wait for the demand (the amount of capital in private hands) and offer (artists and objects of their work) will come together in a certain area. This territory became the United States in 1950-х years.

2. The first book about investing in art was written by a graduate of Harvard business-школы Richard rush in 1961 and called themselves simple: Art as an Investment. The monograph has kept pace with the times, given the parallel development of the stock market, and even today looks significant difficulty. But among other recommendations it suggested "to have time to invest in art today, as after 20 years the art-рынок likely to die".

3. After 20 years art-рынок not only not died, but grew stronger and developed into its modern form. The main reasons for its development in the mid-1980-х — the next financial crisis and changes to the U.S. tax that has forced investors to reconsider the relation to traditional investments and to look into alternative assets. The queries of investors about the pricing principles and the capitalization of art, addressed to galleries, dealers and auction houses, resulted in the rapid study and the development of the science of art-финансах.

4. In 1989, two things happened that made the art market more transparent from the point of view of the investor. Sotheby's third attempt went IPO, becoming a public company, — now the art market it was possible to monitor not only the results of auction sales, but also the financial statements of one of the largest it vendors. The second event is wonderfully complements the first: appeared Artnet — company, who undertook to keep statistics of auction sales, bringing the data in a convenient database.

5. Given that at the time of Foundation Artnet Sotheby's and Christie's led the auction activities for more than 200 years of data to analyze was a lot. Two of the largest houses Artnet added statistics about 5 thousand auctions less — and became to systematize these data. Especially she was interested in the cases when the same piece of art was sold more than once, the so-called "re-sale". Before the Internet would send Artnet data collectors and investors on request, and gathering tables manually and using the Fax.

6. The data of repeat sales of art objects, after applying the regression (statistical analysis techniques) has allowed economists to see the following:

• How the cost of itemsart over time;
• one of the artists she's growing up faster than others;
• What is the optimal holding period of a piece of art between the buying and selling;
• What was the dynamics of the art market in General;
• Impact of financial crises on the art-рынке and how.

in Other words, the investor received the first Toolkit for independent fiscal forecasting.

7. In 1999, two American mathematicians, Michael Moses and David may, took the next step toward market transparency from the point of view of the investor. They asked the question: what other factors besides a temporary influence on the increase in value of a work of art? In the end their work by mid-2000-х was created the first index of the works of art, which showed the impact on the pricing of many variables: storage conditions, frequency of exposure, provenance, publications and others. This index Mei and Moses has posted on its website and began to charge investors a fee for access.

8. The effect of a particular variable index remained a trade secret. In other words, no one but the creators didn't know how a particular action of the collector affect the price of the item (and who wanted to know, he would spend several years and recalculate all the data by yourself). Nevertheless, collectors, and investors understand the following: in the interval between the purchase and sale of a work of art is the main instrument governing capitalization. Common name him — manage collection.

9. From mid-2000-х years began to appear the other company that provided a database of sales of art objects: Artprice, Artfacts, Artinfo, Artsy, SkatePress and other. Each of them either chose a certain segment of the market (the highest prices in transactions with art and top-художники), or focused on leading auction houses (which provided a large share of public sales). Its database with indexes and the Russian post-Soviet art created and ARTinvestment.RU (subscribe to her and work with data , and here). Thus, the investor has a choice of source, based on the cost of the subscription include a custom sort of the data.

10. However there was one problem that an investor in art did not take into account: the fact that the auction (public) sale — is only one side of the market. The other side — private sale — were not recorded anywhere. How do you know its volume? How to evaluate the veracity of rumors about the prices in private transactions? And whether to take in investing in art, if part of the market is hidden from the analytical eyes?

the Answer is "Yes", reassure investors and develop the sector of investment in art by the end of 2000-х years, gave the Irish economist Clare McAndrew and her company Art Economics. About this, as well as practical tools investor in art —, the following material is "Just about the complex".

Denys Belkevych, AI