In the Principality of Monaco the policy of supporting culture and creativity has been pursued both nationally and internationally. Art has always represented a point of interest in the Principality.
For example the excellences of the contemporary art are honoured every year by the Fondation Prince Pierre. H.S.H Princess Charlene is also an art lover and the promotional video of Monaco’s “Green is the new Glam” campaign is built up around colors.
There are many excellent art galleries and advisors in the Principality such as Rosemont Art Advisory which offers bespoke fine art asset management services for artists, art professionals, collectors, art institutions, private museums and foundations, private banks, family offices.
Also important note that Rosemont Art Advisory wishes to emphasize the philanthropic dialogue with art and the Monegasque and International artistic community and help support the Monaco Philanthropic Associations.
Having world-wide more than 400 000 art collectors with an estimated art asset of 1.5 trillion USD a great demand has been created for innovation regarding art. Since 2007 art is identified as one of the best performing asset in long term, and thanks for the environmental changes wealth and asset managers started to see and consider art as a reliable tangible asset.
Dr. Mei Moses at the Stern Business School found art a fantastic investment with minimal correlation to other asset classes, and a long-term average return of 10.47% alike SP500 of 10.95%. In the past 10 years contemporary art has outperformed equities, bonds, property, hedge funds, private equity.
The Monaco Freeport
Many countries have also noticed the value of art, therefore more and more Freeports are opening and helping the tax free art transactions in favour of diversified tangible asset portfolios. These Freeports are also considered as the most effective tools in art collection management.
In its dynamic cultural context the Government of the Principality of Monaco has also decided in 2013 to create a free port in Monaco with the aim of promoting and developing the art market in the Principality. The new facility was entitled as “Monaco Freeport”.
Now-days art is considered as a new type of asset class for over 40% of the asset managers. Furthermore almost 10% of the total net worth of the wealth are held in treasure assets. The Monaco Freeport makes it possible to store in Monaco works of art, items from collections, antiques and jewellery from countries outside the European Union, without incurring duties and taxes.
Why to invest into art
According to last year’s Art Basel and UBS Global Art Market Report, on the list of motivations for why people buy art, financial investment was just number five – coming in after aesthetic, emotional and cultural motivations and such.
Meanwhile the main motivation to invest in contemporary art is still the emotional value, art market professionals are seeing the financial aspects too to invest and hold art assets. In the year of 2013 financial motivations became more and more important in the art market, which triggered the need of new services from the wealth and asset managers. It seems art became a great tool for them to win new businesses.
An impressive art collection strengthens your corporate image, improves client’s first impression of you and makes a bold statement of your company’s identity.
Some of the motivations to invest in art are:
- Social status,
- Taxation benefits,
- Economic slowdown,
- Capital appreciation,
- Extended Boom Period,
- Corporate Identity and
- Brand Management.
At Monaco’s Rosemont Art Advisory private collectors as well as corporate clients are given a unique opportunity of very discreet and strategic advice encompassing all aspects of the art collecting process, from acquisitions to collection management, market analysis and sales all the while confirming the authenticity and provenance.
Many banks are also offering art secured lending as their complementary services for HNWI, therefore they are becoming ideal partners for the collectors. Banks are offering a new experience to them by giving transparent pricing, quick decision timeframe and personal services.
We at Monaco Wealth Management also love art as an investment and an asset class but from a more human type of consideration. We believe art is all around us and the aesthetic inspiration is our footprint to the next generation. Art is not just a piece of canvas, a product but a passion and a message from our century. Something from us to our grandchildren. They are telling us their stories and sharing their emotions. Find the moment to understand them, allow them to communicate to you and to tell you their individual messages. When you find this harmony you can also combine the passion with the profitable long term investment.
Why is art so expensive?
Well, most art isn’t. Pieces sold for six and seven figures tend to make headlines, but most living artists’ works will never sell for that much.
Emerging artists’ works are generally priced based on size and medium. Works on canvas are priced higher than works on paper, which are priced higher than prints.
It definitely is a good example of a winner-take-all market, where just 0.2 percent of artists have work that sells for more than $10 million, according to the UBS and Art Basel report.
Many people love art and are passionate about the feelings that artistic masterpieces communicate to them. Falling in love with an artwork almost equals with love, since you can share your journey with it during your life and it will always remind you of the moment when you first saw it. Real artworks are energies on canvases which are able to evoke feelings in us.
When we are talking about art collectors, we are usually making a difference between three types of collectors. The art collectors, the art investors and finally the art lovers. They are all looking for different exchanges from the art market and in the meantime they are complementing each other.
Many of the investors and art lovers are fascinated by and find the “Primary market” exciting since the artworks are usually coming straight from the artist’s studio, they have never been seen before in public and they are able to pump up the adrenaline level in all the passion oriented people. In these kind of art investments the key factor is the artist itself and the market demand to his/her artworks.
“The life path of a contemporary artist is one of the greatest help for an investor. You can monitor the improvement of the artist, the social appearance, the artistic development of his/her technique and the fact whether he/she consistently maintains the artistic path.” – says Zsolt Szemerszky from Monaco Wealth Management
Where to buy art
The “Primary market” is all about the excitement, the passion and the aim to find the never-seen-before rare diamonds in the artistic ocean. Meanwhile the “Secondary market” represents the liability and stability to make a savvy investment.
Rosemont Art Advisory can help in negotiating the terms and conditions of sale and purchases on behalf of our clients. Following an initial dialogue, the advisory targets a series of museum and gallery exhibitions to visit with clients.
They continue the process by accompanying clients to international art fairs, biennales, auction previews, and by visiting artists’ studios. This practice is a critical step in identifying the collector’s own art historical and aesthetic leanings. Trust is key to every business relationship.
“We want to start the journey by taking you to a private museum or a gallery tour where you have always wanted to stop, admire and be enchanted by the artistic influence of the objects seen but somehow you never really got the time nor the motivation to push the door.” – says Peter Brigham from Rosemont Art Advisory
Many smart investors have also realized that art is not just about the past, it is about the present as well. As you can find remarkable art pieces from the past, the same way you can discover new rising talents of the present, pieces from emerging artists, directly from the “Primary market”.
- Discover Monaco Wealth Management’s in-house art selection
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