Art Advisory

The true worth of a collection cannot – and should not – be measured solely in terms of its monetary value. Artistic merit does not necessarily follow the values set in the market. Although price tags can be – and are – attached to works of art, the beauty an individual sees in an object and the pleasure and satisfaction he derives from possessing it cannot be accurately or even properly gauged exclusively in terms of dollars and cents.”
J. Paul Getty “The Joy of Collecting”

The Art Advisory Service at LDJ Capital provides our clients access to expert insight and guidance in the world of art,as well as collection processes, from auction representation, acquisition, management and divestment.
Our network has expertise on the works of the Masters on Impressionist, Post-expressionist and Postmodern art. You can depend on this expertise as you build your collection or investment.

​Our services include but not limited to:
- Access to high quality works of the Art Masters around the world through the leading NYC art galleries.
- Access to the works by emerging contemporary artists directly from artists’ studios.
- Negotiating a private audience for select collections and access to limited exhibits.
- Purchase and sale of creative art in the space, to include Antiques, Modern, Old Masters,Contemporary and Impressionists’ work.
- Validation and attribution by the world’s leading experts to ensure authoritative due diligence and to avoid costly mistakes.
- Appraisal of individual art pieces and collections for use by insurance and market
- Management of logistics, to include licenses for export and import, shipping, restoration, framing for display in museums, mounting of objects and storage.
- Management of Art collections, which includes cataloguing, curatorial expertise and customized database management of a collection.
- Tailored insurance services.
- Provision of due diligence and expert opinion on proposed acquisitions or sales.
- Collaboration with your wealth manager, family office or attorney.
- Marketing your brand, works, as well as private and public collections of fine art to targeted media channels and social media, as a collector and investor.
- Art Finance that includes raising finance against existing artwork, loan management, legal advice, updated appraisals of collateral and security of the collateral.
- Philanthropy advice on effective wealth giving to the arts.
- Estate and Tax planning on Art issues.

Research Capabilities
By undertaking thorough due diligence on all decisions regarding transactions,, the client’s risk can be reduced. Our goal is transact wisely to make sure wealth assets are preserved and protected. Through expert research capabilities our clients have an additional level of confidence when buying and selling in the market place. This research also extends to clients who are investment led and wish for additional information on specific artists, geographies or against other more traditional investments.

US and Europe
There is a positive outlook for art wealth management services in the United States and Europe, as market values are reaching an all-time high. Wealth managers expect their clients to increase their total wealth allocated to art. An increase in allocation of wealth to art pieces and collection will generate more Art and Finance related services, in particular the services aimed at leveraging, enhancing art and protecting wealth.

Since the art market boom that started in 2004, the auction sales of US and Europe post war and contemporary art increased from US$621 million to US$ 3.39 billion in 2013, reflecting a 445% increase in total sales. Last year, was a record year for the post-war and contemporary art market, with a 24.2 % increase in auction sales. Based on winter, spring and summer sales in London and New York in 2014, London is 30% ahead of the equivalent figure for 2013, and New York is 43% ahead, which bodes well for another record year in the contemporary art market.

OUTLOOK
Market direction: 62% of 360 experts surveyed by ArtTactic believe the market will go up in the next six months (up from 54% in January 2014), while 38% (down from 46% in January 2014) said that the contemporary art market will remain flat in the next six months.
Expert confidence: The ArtTactic Art Market Confidence Indicator for the United States and Europe is now 5.8% higher than in July 2015. It was down by 7.1% in the first half of 2014. This data is the second highest reading since 2007. Experts see this result as a positive indication of the contemporary art market performance for the next six months.

Speculation risk: The ‘speculation barometer’ increased by 12%. Of the market experts surveyed by ArtTactic, 78% placed the speculation level at 7 or more, using a scale of 1 to 10, where 1 is the lowest and 10 is very high speculation. Experts expressed oncern that short- term investors and speculators are boosting art prices in the market, especially among the upcoming young artists that have seen significant success at auctions in 2013 and first half of 2014.

Art buying trends
From the 600 private bankers and wealth managers surveyed for the The Wealth Report 2014, 46% had net positive balance, and they expect an increase in the art buying of their European UHNWI clients. On the other hand, for the North American UNHWIs a net positive balance of 34% of private bankers said art buying will be on the rise.
Wealth outlook: Based on the Wealth -X and UBS World Ultra Wealth Report 2013, the population of UNHW apexed an all-time high in 2012/2013. The growth was attributed to the 10,000 UNHW individuals in Europe and North America with US$1.5 trillion wealth. From Knight Frank’s ‘The Wealth Report 2014’, 67% of private bankers and wealth managers disclosed that they expected North America’s UHNWIs to increase their wealth by 2014. Seventy percent (70%) said the European UHNWIs will also up their wealth. This projected increase in wealth may have a significant impact on the art and collectibles market. According to Barclay’s Wealth Insights Report (2012) , wealthy individuals (HNWIs and UHNWIs) in the United States hold an estimated 9% of their wealth in treasure assets such as jewellery, fine art, and furniture. It was also highlighted in the said report that the wealthy individuals in the European countries placed 6-14% of their riches in treasure assets.

​To find out more about this service, or to have a conversation on the opportunities on how to build and enhance your Art Collection, please contact our Client Adviser to organize it for you.

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