Cosmo

AA. Based on your experiences is art an investment that is worth it?

 



 

 SB: For investors, markets fluctuate between rising and down. You know that investors need stability.

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 what's stable? A Picasso. A Picasso.



 

 Art is a natural asset with all the qualities we can use as an alternative asset category, and it also offers lower volatility than stocks, which can be prone to decline.



 

 double-digit losses in one day, for instance. Art gives investors the chance to convert some of their liquidity into an asset that is ideal for preservation.



 

 You can build wealth in periods of extreme uncertainty



 

 Javier Lumbreras, philanthropist, collector and investor, created the Guernica V Fund. This fund was his first in 2008, shortly following Lehman.



 

 Brothers collapsed. The market for art was at its lowest at the time, and you could still buy great artwork that was significant historically however, it was priced at a lower price.



 

 These were still worth millions of dollars, but they were less expensive due to the recession.



 

 Some collectors, people with high net worth, wanted to sell a few things to earn some cash. There were still other things to be completed.



 

 investors were looking to use blue-chip art as an asset class because it's not correlated to the S&P 500. Like is a good asset to own in times of economic and political turmoil.



 

 This is a great opportunity to diversify portfolios and buy art, as we see right now.



 

 An investment portfolio that includes art works is more likely to carry 10% to 20% higher risk than one with no art. In 2008, as we witnessed, the S+P 500



 

 The Moses Mei Art Index only declined by 4.5 percent. However, it fell 37%.



 

 The works were bought by the fund with the idea to sell them later. They waited for three to five years more before selling. At that point, the market had more.



 

 The fund is liquid and was able buy and sell the works whenever it was required to. This was possible by leveraging their network and geographic leverage.



 

 Arbitrage can be used to the advantage of currencies. The first Artemundi Global fund, launched in 2008, proved to be extremely successful. Investors saw a 19% increase.



 

 return.



 

 Covid is causing markets to become unstable again. So it was the perfect moment to create a brand new fund. That's how Guernica V came into existence.



 

 fund. Guernica V Fund has a high buyin (Guernica V, which is worth $200,000 is an illustration). However you are able to put your money into other funds.



 

 options available. If you're a visual artist, you don't have to purchase a Picasso to earn a good return.