In the UK, Justin Williams and Chris Carlson have set up the Art Trading Fund, an investment group aiming to trade art much like a hedge fund. According to their website, they are “focused on 3 to 12 month returns” and “buys and sells art via its global network of dealers, renowned artists, auction houses and galleries.”
They are essentially looking to buy and sell artwork just as galleries and private dealers do, but on a much larger scale. They also can eliminate the costs that go into gallery exhibitions and promotions, as well as the gofers in between, such as auction houses and dealers who would take fees out of the sale.
With a range of artists who steadily produce work to sell within their network, will this Fund eventually saturate the market and drive down prices? Or, if the art market is as dependent on the financial markets as it seems, will the buyers shrink away? Lets see in 3 to 12 months.
Art Trading Fund
Painting by Numbers [Economist]
