We thought this was an interesting article about the art market in the NY Times.
By Jason R. Berne, Esq.
The global search for liquid cash is leading many to look to their art collections for more than mere beauty. This NY Times article told these stories of collectors looking to sell art collections. Most owners of valuable art – corporations, families, foundations, museums – think art’s value can only be accessed through a sale. In fact, often owners choose not to sell, but instead borrow against their art. In many instances, clients borrow in order to purchase more art (for example, to be able to snap up a work suddenly or rarely on the market) or to take advantage of other investment opportunities they see in the stock market or real estate. In our experience, loans made with art as collateral are primarily to high net-worth individuals, galleries, trusts, and museums as a service to their existing private client or trust customers, but we have also seen businesses use their art collections as collateral (or in parlance of the finance world, monetize their assets).