3 out of 4 PINOCCHIOS
PINOCCHIOS nose grew so fast he cannot even get his nose through the door of the room. Is this also why art buyers believe their art purchases cannot be also an investment asset.. there is no way for it to get out of the room?
What is the truth? First big Art returns may only be in reality just a hand full of artist… leaving the possibilities of personal discovery and rewards slim.
Second, an art piece value as a member of an asset class is eroded by its subjectivity. An art piece is merely a tchotchkes with no real intrinsic value to measure. Only if it’s with “blue chip” artist collected by Russian oligarchs, Chinese tycoons, Arabian royal, wise guys or celebrities and evaluated by the new blossoming art advisors.
Third, Art is considered merely a collectible asset, that does not add to a portfolios diversification. Although this asset class is only taxed on gains of 28%, and performed better the any other asset class in an inflationary environment.
Fourth, the art market is like Pinocchio controlled by the very few strings of power, and opinion of the gallery and auction markets even though the growth is being celebrated by internet exposure and sales.
FA-C will help expose 3 out of 4 PINOCCHIOS and fake art values and truths.