Adding fine art to your investment portfolio
Long gone are the days where fine art was only to be enjoyed and profited by the mega rich.
Here at ArtCap we create customised portfolios for clients to ensure that when the invest in fine art they are given tailor made advice to suit them.
We believe that whatever your financial situation there will always be a welcome place for art in an investment portfolio and here at ArtCap our experts work tirelessly to make sure that all of our clients are serviced in the exact way we would like to be serviced ourselves.
Sales Process & Payments
Our sales process is truly what sets us apart from many other companies.
We make the lion’s share of our income on the exit and on a percentage of the profits our clients receive.
So on advising a client about the market we will establish a budget that he or she is comfortable with. We then begin looking to acquire and isolate a piece we believe will match the goals and objectives our client wishes to achieve.
Upon doing this we will send the details of the piece over for the client to look at and decide whether they are to take personal receipt of the work or not.
We then complete the process by giving the following options of payment; Secure card payment using PayPal, UK bank transfer to our HSBC corporate account or by cheque. Whichever method best suits the client, will be paid directly to ArtCap.
With certain suppliers who ArtCap use to source Fine Art our clients may be prompted to pay the supplier direct when this is the case funds will be send to a FCA registered custodian where the funds will be held to purchase the piece but the contract of sale still remains with ArtCap.
From this point the piece will be delivered to the predetermined location and the initial sales process will be complete you will then receive your receipt of purchase and where applicable a certificate of authenticity which will be sent to the address on the signed contract.
Investment Grade Art Categories
Limited Edition Prints
Non-Correlation & Additional Benefits
The art market has consistently performed extremely well for a large amount of people over the years and this is not due to one reason alone.
Diversification
Art has long been integral to the assets of many of the world’s largest corporations. Fine Art is esteemed as a stable investment due to its non-correlation with other markets, making it an excellent diversification tool. Its performance often remains independent of traditional financial markets such as stocks and bonds, offering a hedge against market volatility.
Prestige and social benefits
Owning valuable art can bring social prestige and networking opportunities. Art collectors often become part of a community of like-minded individuals who share a passion for art.
Tax benefits
Depending on your location and the specific circumstances of your art investment, there may be tax benefits associated with owning and selling art. For example, some jurisdictions offer tax breaks for donating art to museums or other charitable organisations.
Tangible asset
Unlike stocks or bonds, art if a tangible asset that you can enjoy aesthetically while it potentially appreciates in value. You can display the artwork in your home or office, adding beauty and cultural value to your surroundings.
Sourcing
Our dedicated team work tirelessly to ensure that the pieces we advise our clients to invest in are of the highest quality and that all relevant checks are executed in regards to validity and providence of the piece in question.
ArtCap will only advise on pieces that we believe will have the desired effect of increasing in value. This is reflected in how ArtCap makes the Lion’s share of its income by charging 10% on profits made on acquisitions under £100,000 and 7% on profits made on acquisitions over £100,000.
Because of the way ArtCap makes the Lion’s share of its income (a percentage of the profit on sale) it is imperative that we source the piece at the lowest possible price and sell at the highest meaning that ArtCap and the investors interest in the market are aligned.
Taking all of the above into consideration our team have one consideration in mind isolating pieces of Fine Art with strong potential to increase in value over the mid to long term. Sticking to this strict strategy means that we cannot always accommodate personal aesthetic taste, ArtCap concentrate on the business of Fine Art as an investment and not pleasure. however if both are achieved then fantastic.
Physical & Online Galleries
With the number of purchases in the art world increasing it’s no wonder that the number of both online and physical galleries are shooting through the roof.
This is good news for everyone as it shows a clear and evident reassurance that the market and demand are growing and that there is money to be made in this market. Galleries essentially ‘invest’ into art in much the same way as our clients do. They buy the pieces from a source and mark up the product to sell onto a client, thus creating profit.
The issue with buying through a gallery is that the works have already had a lot of their margins taken out by galleries themselves meaning a desirable rate of return will take much longer.
This does not mean though that in some cases, we may be able to sell one of our client’s pieces off to a gallery at a profit if they believe they can still achieve more for it.
Supply & Demand
Most markets are dictated by supply and demand, the art market is no different.
In layman’s terms if you have an item or product where demand outweighs supply, you can be quite certain that you will see an increase in value.
The only thing that will affect your position is more supply, which in turn could saturate the market you are dealing in thus making your product or item less valuable.
Artists are very aware that saturation of their art can devalue their brand. For this reason they are extremely cautious as to how much of their work is published always making sure that the demand by far outweighs the supply.
Another example, if you were to invest in an Andy Warhol, Salvador Dali or Picasso all of which have represented fantastic returns over the past the few decades, it would be impossible for there to be any saturation, the reason being they are all deceased and cannot produce anymore work.
Exit Strategy
At ArtCap we state in our contract details that we want first refusal if you find a buyer for a piece of art acquired through us simply because we may believe we can get a higher price for your piece over the short term.
ArtCap make a percentage on exit and only on profit generated. We are a performance related brokerage meaning the more our clients make the more we make.
We aim to keep the sale of a client’s art in house and sold privately meaning there are no hammer fees as charged at auction making it much more profitable for the investor.
Why we are worth our percentage of the profit on exit:
As a performance related brokerage that makes percentage on exit and only on the profits, it makes perfect business sense that we sell you out at the highest possible price to maximize our profit. This also means that we are obviously going to get you involved at the lowest possible price again to fall in line with our business strategy.
As a tangible asset fine art can be sold at auction, gallery, or privately giving the investor numerous exit avenues.