360° Coverage : A Banksy for under $170?

2 Updates

A Banksy for under $170?

Apr 10 2014, 4:32pm CDT | by

My Art Invest, a new trading platform that launched in London today, is the latest art exchange to attempt to democratize art by allowing people to buy and sell shares of individual artworks. One...

Filed under: news

 
 
 

20 weeks ago

A Banksy for under $170?

Apr 10 2014, 4:32pm CDT | by

My Art Invest, a new trading platform that launched in London today, is the latest art exchange to attempt to democratize art by allowing people to buy and sell shares of individual artworks. One share of Bansky’s spray paint on canvas Heavy Artillery Elephant, for example, can be yours for €120 ($166), while a share of Rome Pays Off, a Jean-Michel Basquiat screen print, one of an edition of 85, costs €166 ($229).

Buyers can either hold onto their shares until all the shares are sold and My Art Invest founder Tom-David Bastok sells the work,  distributing any profits, or they can opt to offer their shares for sale, at any price they see fit, on the My Art Invest exchange.

In theory, that is. As Melanie Gerlis reports in The Art Newspaper, “Attempts to divide works of art into equal shares, emulating companies that trade on a stock exchange, have proved problematic at best.” This is a diplomatic way of putting it, because as far as I can tell, every other attempt to set up an art exchange has failed miserably.

One of the more recent ones, Art Exchange, which launched in Paris in 2011, opened for business promising to make the art market more liquid by giving buyers an easy exit strategy, yet not a single art share has changed hands on the exchange since then.

Why is this model so difficult to pull off? One reason is that, unless you can actually trade your art shares, you make no return on your investment until all the shares in a work are sold, allowing the artwork itself to be sold, which could take “an estimated four or five years,” according to the My Art Invest website.

That is if the artwork can be sold at all, much less for a profit. The website does not address what happens if all the 100 or more shares in each artwork do not sell. Are buyers then holding on to a share certificate worth exactly zero indefinitely? Gerlis reports that since 2011 Bastok has already sold 200 paintings this way in his native France, where the company has already launched online, but has any cash has been distributed to investors?

If not, then the jury is out and the only reason one might still participate is if there is viable secondary market for buyers to resell their shares in the meantime. Is there? No, because according to the company’s website, “you have to wait until all the shares in an artwork have been sold in the primary market” first.

It’s true that My Art Invest offers buyers a couple of benefits that other art exchanges haven’t. The first is that a selection of the 100 works available to purchase will be shown in an East London gallery, which opened tonight with a street art exhibition featuring Banksy and Shepard Fairey. Would-be buyers can enjoy the works up close, and if they are so inclined, tap their share orders into one of the iPads made available.

The second is that if any one buyer purchases 25% of the shares in one art work, they can have that art work in their home for three months of the year. “We are different from other [art share schemes] because our aim is simply to be more democratic. We are making the art market more affordable and accessible,” Bastok told Gerlis.

Yet there’s a catch here. To take the art home, you must own at least 25% of the shares, have proof of an installed and working security alarm, appropriate insurance and pay a deposit equivalent to 150% of the price of the whole artwork, according to the website. For the most expensive works (which range from £500 to £100,000), you’d have to have £150,000 ($251,000) lying around in order to enjoy it at home for three months, however many shares you own in it.

Making the art accessible is certainly a great idea, because most art exchanges put their art in a vault, where the chance of buyers enjoying it is nil. Perhaps by showing works in a gallery, Bastok will be able to succeed where others have failed by developing a community of active buyers, and eventually sellers, for his exchange. With so much uncertainty about when any buyer can exit their investment, though, that could be tough.

Follow me on Twitter or find me on Facebook.

 
Update
2

2 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hits h ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Man with 'disconnected' brain, alive and kicking at 88!
New York, Sep 1 (IANS) This may sound and read unbelievable but there is an elderly man whose brain has no neural fibre connection between his two hemispheres!
 
 
Ebola toll in Guinea 460
Conakry, Sep 1 (IANS) At least 690 Ebola virus disease cases have been confirmed in Guinea, out of which 460 people have died, the latest data released by the health ministry here shows.
 
 
Caffeinated 'energy' drinks bad for heart
London, Sep 1 (IANS) "Energy" drinks which are so popular during physical exercise and even otherwise among children and younger adults can cause heart problems, a research shows.
 
 
Nepal too to restructure national plan panel
Kathmandu, Sep 1 (IANS) After the new Indian government decided to scrap the Planning Commission, the Nepal government also has decided to restructure, revamp and modernise its National Planning Commission (NPC), which is styled on the Indian planning panel.
 
 
 

Latest from the Network

Man with 'disconnected' brain, alive and kicking at 88!
New York, Sep 1 (IANS) This may sound and read unbelievable but there is an elderly man whose brain has no neural fibre connection between his two hemispheres! For a layman, human brain is divided into two hemispheres...
Read more on Apple Balla
 
Ebola toll in Guinea 460
Conakry, Sep 1 (IANS) At least 690 Ebola virus disease cases have been confirmed in Guinea, out of which 460 people have died, the latest data released by the health ministry here shows. A total of 143 patients were...
Read more on Business Balla
 
Southern African Development Community discusses Lesotho coup attempt
Pretoria, Sep 1 (IANS) The Southern African Development Community (SADC) Monday continued its meeting here on the attempted coup by Lesotho's military. Present at the meeting were SADC Chairman and South African...
Read more on Politics Balla
 
Iraqi forces recapture key town
Baghdad, Sep 1 (IANS) Iraqi security forces Monday recaptured the town of Sulaiman Beg in Salahudin province after more than two months of being under siege by the Islamic State (IS) Sunni extremist organisation, an...
Read more on Politics Balla
 
Caffeinated 'energy' drinks bad for heart
London, Sep 1 (IANS) "Energy" drinks which are so popular during physical exercise and even otherwise among children and younger adults can cause heart problems, a research shows. "People sometimes consume a number of...
Read more on Celebrity Balla
 
Nepal too to restructure national plan panel
Kathmandu, Sep 1 (IANS) After the new Indian government decided to scrap the Planning Commission, the Nepal government also has decided to restructure, revamp and modernise its National Planning Commission (NPC), which...
Read more on Business Balla
 
Women at greater stroke risk from resistant hyper-tension
London, Sep 1 (IANS) The condition known as Resistant Hyper-tension increases stroke risk by 35 percent in women and 20 percent in elderly patients, according to new research. "Patients with hyper-tension that does...
Read more on Apple Balla
 
Indian-origin inventor of 'email' slams critics
Washington, Sep 1 (IANS) V.A. Shiva Ayyadurai, an Indian-origin scientist who received official recognition as the inventor of the computer program for electronic mail system or "email" from the US government 32 years...
Read more on Politics Balla
 
Miley Cyrus still loves Liam Hemsworth
Los Angeles, Sep 1 (IANS) Singer Miley Cyrus says she still has strong feelings for her ex-fiance Liam Hemsworth, with whom she parted ways last year. The 21-year-old split from the actor in September 2013 following...
Read more on Celebrity Balla
 
No interference by Russian military in Ukraine crisis: Minister
Moscow, Sep 1 (IANS) Russian Foreign Minister Sergei Lavrov Monday said Moscow will not send out military troops to...
Read more on Politics Balla