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Art doesn't yield dividends or interest, the only way to make money with art is by selling it, this is not investment but speculation. The point about commodif
by amadeuspagel 3y ago
Art doesn't yield dividends or interest, the only way to make money with art is by selling it, this is not investment but speculation.
The point about commodification is interesting. There is some need for unique and expensive physical objects, but not as an investment, rather as a way of showing off and feeling wealth.
- keiferski 3y agoValuable artworks are often used as collateral for loans and other financial instruments, so they can be used to make money. There was a time when art, while hopefully pleasurable to own, was a non-performing asset financially. No longer. As the worlds of art and finance increasingly converge, leveraging art collections to unlock liquidity has become a healthily growing sector, according to its participants. There are two main groups of players: specialist lenders, who loan against art and other assets, and banks, who as part of their service will give loans to their clients, their art and other assets being the collateral. https://www.theartnewspaper.com/2023/03/08/art-loans-spike-as-specialist-lenders-multiply https://www.theartnewspaper.com/2023/03/08/art-loans-spike-a...
- amadeuspagel 3y agoYes, you can't just sell it, you can also mortage it, to get money, which you can then invest in stock that pays dividends or bonds that yield interest.