Having investigated two works of art today on behalf of a company needing to know how they would “cash out”, I thought I would share some thoughts with the SavvyCollectors who read this blog.
Art used as collateral against money borrowed is valued from two different viewpoints:
- actual cash value, orderly liquidation
- actual cash value, disorderly liquidation
The difference is the time and place to liquidate. Disorderly liquidation generally references a very tiny time window to sell the property, such as one day or possibly as long as a week to sell it in place (meaning not transported to another, perhaps more advantageous locale). Orderly liquidation might reference a week up to 3 months or somewhat longer to sell. Either way, expediency in selling mandates these values are considerably less than gallery prices, especially when the art falls under the category of “Victim Art”.
“Victim Art” is art that is trendy. Often it is marketed to individuals who are away from home, on vacation. There is a spontaneity in the purchase of this art. Care in researching the artists, the gallery offering the art typically is NOT taken. Purchasers are victimized by the circumstance that is not conducive to carrying out some degree of careful investigation.
Wondering if the art you are drawn to fits the category of “Victim Art” ??? Hire an appraiser BEFORE you complete the purchase. I would rather be out the appraisal or consultation fee than thousands of dollars for art whose resale potential is miniscule.
To find a designated appraiser of personal property, try www.appraisers.org
Corinne Cain of www.SavvyCollector.com
Trendy art is deliberately excluded from offerings through SavvyCollector.com.
Thanks for your comments, Corinne! The phrase “Victim Art” is a great, descriptive term for some of those items sold in tourist-prone areas.
Anybody who doubts this situation needs only to read “The Great Dali Art Fraud & Other Deceptions” by Lee Catterall…in fact, read it twice!