Art Market: Opportunities & Impact

In this episode of The Yield, Naomi Baigell, Managing Director of Client Relations and Cynthia Sachs, Managing Director and CIO of Yieldstreet/Athena Art Finance discuss the state of the art market and art finance during these unprecedented times. The art market has seized the opportunities presented by COVID-19 to grow its global footprint and continue to engage with their community. While the pandemic has required a more conservative approach to art valuations and logistics, the art market is coming out of this pandemic stronger than ever. Naomi and Cynthia highlight some of these beneficial changes and conclude the discussion with a Q&A session regarding risk assessment, art pieces that offer the greatest investment opportunity and whether the art market will ever return to normal. Key Takeaways:[:50] Shifts in the art market in this post-COVID-19 time include the digitization in how seasoned and new collectors interact with art galleries, art fairs, auction houses, museums and the art itself.[4:22] The newfound transparency in the art transaction space is increasing the understanding of the stability of the art market, and that is having an impact on the traditional valuations of art.[6:02] The beneficial impact of COVID-19 on the art market has resulted in an impressive shift away from the traditional business models while also requiring a more conservative approach to art valuations and art market logistics.[13:19] A comparison of the effect of the 2008 market crash on the art market to the current situation, including technological accessibility growth and the engagement of new clients.[18:20] The trajectory of the art market including art investment opportunities has improved as a result of COVID-19.[22:24] Details about the recent Athena Art launch and a look at the beginnings of this rapidly growing asset class.[29:05] The metrics that ensure that art investments make the most economic sense for all invested parties.[34:23] Where do art pieces in the offerings come from and can there be more transparency as to the underlying when offering an art deal?[35:40] Will the art and art finance world ever return to normal? A look at the permanent and positive changes that have come to the art world as a result of COVID-19.[38:36] What is the art lender competition doing and how does Athena Art differ from that?[40:54] Are art loans backed by a diversified pool of works of art or does an investor choose which pieces are the collateral?[42:30] From a risk perspective, how is a piece ranked?[44:14] How do art investors deal with the physical aspects of risk associated with COVID-19?[45:50] How do you define the minimum amount of diversification?[47:35] What is the typical ROI on an art investment?[48:04] What kinds of art portfolios are considered an opportunity worth investing in?Mentioned in This Episode:YieldstreetYieldStreet Athena Art Finance