Comments on: Betting on the Art Market Pt. 1 – artmarketblog.com http://www.artmarketblog.com/2008/10/15/betting-on-the-art-market-pt-1-artmarketblogcom/ Art Market Analysis by Nic Forrest Tue, 07 Feb 2012 17:54:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Lew Mantros http://www.artmarketblog.com/2008/10/15/betting-on-the-art-market-pt-1-artmarketblogcom/#comment-1625 Lew Mantros Fri, 17 Oct 2008 10:49:09 +0000 http://artforprofits.wordpress.com/?p=1040#comment-1625 These Intrade futures are interesting. You have some valid points, but whether we like it or not, I get the sense this is where the art world is heading, and these guys are rather ahead of the curve. One could argue how the availability of "art derivatives" as Rigetti calls them in the FT article would be good for serious collectors, because the ability to manage risk by trading in the futures market will make them more willing to pay premium prices for indivdual pieces. Distributing risk to those best positioned to manage it can create value, and hence help grow the industry as a whole. Ultimately, that's a benefit for art collectors, art investors, and artists themselves. These Intrade futures are interesting. You have some valid points, but whether we like it or not, I get the sense this is where the art world is heading, and these guys are rather ahead of the curve. One could argue how the availability of “art derivatives” as Rigetti calls them in the FT article would be good for serious collectors, because the ability to manage risk by trading in the futures market will make them more willing to pay premium prices for indivdual pieces. Distributing risk to those best positioned to manage it can create value, and hence help grow the industry as a whole. Ultimately, that’s a benefit for art collectors, art investors, and artists themselves.

]]> By: artforprofits http://www.artmarketblog.com/2008/10/15/betting-on-the-art-market-pt-1-artmarketblogcom/#comment-1624 artforprofits Fri, 17 Oct 2008 00:21:10 +0000 http://artforprofits.wordpress.com/?p=1040#comment-1624 Hi Christopher, Thanks for the comment. I agree that art hedge funds have also provided another more boring way of investing in art but at least the hedge funds have some involvement with artworks themselves whereas the art futures market is completely artless. Nick Hi Christopher,

Thanks for the comment. I agree that art hedge funds have also provided another more boring way of investing in art but at least the hedge funds have some involvement with artworks themselves whereas the art futures market is completely artless.

Nick

]]> By: Christopher Wheat http://www.artmarketblog.com/2008/10/15/betting-on-the-art-market-pt-1-artmarketblogcom/#comment-1623 Christopher Wheat Thu, 16 Oct 2008 15:10:47 +0000 http://artforprofits.wordpress.com/?p=1040#comment-1623 To answer your question on a company that has managed to come up with a way of investing in the art market that seems to have removed all the fun, excitement, enjoyment and interest that’s simple ART HEDGE FUNDS. There is plenty of great art and great living artists that have just as good a return or better. Yes the prices may be lower, so investors may have to buy more work. That benefits the artist and the investor. How? An artist has to build a collection of good work and have more than one sale to build a reputation and build value of investment. It’s Not always good to buy at top dollar, look at the mess the economy is in now. The whole idea of business is to buy low and sell higher at a fair price. To answer your question on a company that has managed to come up with a way of investing in the art market that seems to have removed all the fun, excitement, enjoyment and interest that’s simple ART HEDGE FUNDS. There is plenty of great art and great living artists that have just as good a return or better. Yes the prices may be lower, so investors may have to buy more work. That benefits the artist and the investor. How? An artist has to build a collection of good work and have more than one sale to build a reputation and build value of investment. It’s Not always good to buy at top dollar, look at the mess the economy is in now. The whole idea of business is to buy low and sell higher at a fair price.

]]>