The Art of seizing the moment

[Artem]

The Art of seizing the moment
February 19,

Investing in art can yield high profits. In Ukraine, the art market is still in its infancy, and has good prospects. The event draws an irrational philosophy and Slavic soul.
Today we are experiencing a period of historical development of the art market of Ukraine. The cost of work is undervalued by about 40-60%, but demand is much lower offer. The main reason for this phenomenon - the total ignorance of our countrymen in this sphere.

Time

Few would argue with the fact that the first possession of information - a valuable asset of the business. When the settlers were basing a new city, where many trade routes intersect, this city is growing very quickly. And benefit those investors who are first restored shops, hotels, restaurants, parking and the rest of the infrastructure. This was the case with Chicago, the third most populous city in the U.S., which began its history in the settlement of 350 people in 1833. Less than 200 years it has become one of the largest agglomerations of the world only because of transport links.
Or, for example, the development of railways, railway construction always increases the value of land, which will take the train. On the one hand, benefit those who are used to buy up a large amount of land and then sell them more expensive than the railway company, on the other - those who build the infrastructure in the way of the railroad. In business, it is important first to note the changes and take this.

Roel Paul Durand (1831-1922), the first influential art dealer, is very well aware of this principle. He became a defender of the Impressionists, whose painting at the time shocked the artistic circles of Europe, buying up the vast majority of their work. After the death in store "Daddy Duran" was about 800 and 600 Renoir Degas.
"Buy low - sell high" - Ambroise Vollard said (1865-1939), collector and art dealer, publisher, morally and financially supported by Cezanne, Maillol, Picasso, Rouault, Gauguin and Van Gogh.
In 1904, the French financier A. Level convinced 12 investors to transfer x from 212 francs to the fund, "Bear Skin." During the years 1904-1914, the fund has bought more than 100 works of art, among whom were painting by Pablo Picasso and Henri Matisse. In 1914, the Fund acquired all the works were sold at auction, some of which are ten times more expensive than the purchase price.

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The birth of the European art market, as it is now, began with the end of the XVIII century, when, after the industrial revolution, stood out the figure of the merchant-art. He became the link between the producer (the artist), and the consumer. Since the art market began to operate the classical laws of competition, cost, demand and supply. In the XIX century has changed and the class of consumers of refined art. In place of the aristocracy came to the rich members of the bourgeoisie. With the acquisition of works of art they wanted to increase their capital, as well as to demonstrate the power and status.
Simultaneously there is a revolution in the outlook of artists. The artist freed from academic dogma and departs from the photographic reproduction of reality. The focus shifts to his personal vision and subtle attitude. Thus originate impressionism, expressionism, surrealism, abstraction, cubism and other trends. This is due to the rapid development of technology, in particular, the advent of photography, and sharp social shifts before the world wars. People like Roel Durand, Ambroise Volary, had greater business insight, feel the changes that have made the last bet and won.
Paul Gauguin, "Conversation," presented by Ivan Morozov Hermitage patron
Source: yandex
Thanks to the Shchukin and Morozov, the Russian patrons with exceptional taste, feel the breath of time, and the prospects of avant-garde movements, the Hermitage now boasts some of the best works by Gauguin and a unique selection of works by Matisse, which the envy of any Western museum.
Today's tycoons, millionaires, politicians (among the most famous Ukrainian - Dmitry Tabachnik and Viktor Pinchuk, Russian - Roman Abramovich), collecting art, actively participate in the auction and monitor trends in the art market. And these people understand about where to invest, and this fact will not argue.

Unknown As we know, scary. The state policy is not aimed at eliminating illiteracy among the population. Art - a mirror of social processes. Gallery - the torch of culture. The question arises, not by design with a molded illiterate Ukrainian nation that eats fast food, and cultural information. Thus society is much easier to manipulate.
Art - investments for intellectuals, it makes you think, requires understanding, not dry analysts.
In neighboring Poland, according to one of the articles in the magazine "ART Ukraine", the state provides funding for cultural and artistic activities and projects. Even a trip funded Ukrainian-Russian artistic delegation for establishing business contacts and cooperation. Poles are openly proud of violent cultural life, clear and regulated by the unit distribution of funds, but admit that they struggled for a long time for it and nothing has eluded just like that.
Material affects one of the main questions: Does a Ukrainian community cultural development, needs it? Perhaps an ordinary Ukrainian wants only "bread and circuses" and the government and media to meet these needs "adequate" level?
The biggest hope for the youth. In an interview with "reporter" Eckhard Schneider, Director of PinchuhukArtCentre, expert art from around the world, said that Ukraine has agreed to move to a primarily through the fact that the main visitor shows us - the youth (60%). Mr. Schneider noted that this does not exist anywhere in the world.

Money

Ukrainian art market less than 20 years. Its annual turnover is about $ 100 million, but exact figures are quite difficult, because most of the transactions remain in the shadows. The eastern and western neighbors, some are ahead of us, Russian - the scale, the Poles - in the settlement process (in terms of the domestic art market than Poland) but took the best from their experience of Ukraine has all chances to become a powerful cultural center of Europe.
We all have one thing in common - the imprint of the Soviet era, which is somewhat distorted the natural processes in the arts. On the one hand, the artist in those days was provided by the social, the other - rooted out dissent. But the artist - a man who sees the world from a different angle. The fact that the pictures you can successfully make and generally no idea existed. In the bright capitalist future, we take a step with reinforced concrete, as a Soviet monument stereotypes. But this is not the fault of the population, and the wreckage of the old system.
The event draws an irrational philosophy and Slavic soul. For example, in 2005 a picture of Ukrainian artist Alexander Bogomazova "Abstract Landscape" was sold at Sotheby's London for $ 1,353,687! The previous owner paid for it a few years earlier, $ 200,000.
Anatoly Krivolap "Night. The horse "
Source: investukr.com.ua
The work of Anatoly Krivolap "Night. Horse "this year was sold for a record for domestic modern artists price ($ 124, 4 thousand). And it's not isolated examples, and trends.
Joanna Vickery, director of Russian auction, Sotheby's, said that Ukrainian artists for several years occupied a strong position on the Russian trading and attract growing interest of collectors.
Competent investment in art can yield many times more profit than the classic. They are little dependent on the political and economic crises, and therefore a reliable repository for capital in volatile times. To invest in this area without proper knowledge or expert advice is risky.
At the end of the twentieth century. Western banks have introduced an alternative comprehensive service to manage the investments of VIP-customers - Art Banking, one of the directions, and a logical extension of Private Banking.
The Bank provides a full range of services that includes specialist consultation, find the necessary work, the preparation of papers for the transaction of sale, credit, storage, transport, restoration, insurance, works of art.
Manager-art, which is often experienced gallery owner or art dealer, together with the client develops a strategy for the collection, helps create an optimal investment portfolio, taking into account the wishes and goals of the depositor against the risks, the expected profit, cost, time (long-or short-term investments).
Basically, these contributions are calculated for 5-10 years. During this period, the artists usually rise in price by more than 50%. Not uncommon cases where the growth in value over 100%. Stable interest rate that can be counted in the beginning - 12-15%per annum.
The undoubted advantages - the existence of guarantees, ease, independent peer review. With the help of partners of the bank customer can gain access to private collections. But the bank - it is an intermediary, that is contributing to the pricing. Of course, without an intermediary to buy cheaper, but the bank can still provide service investment insurance, and this is a major plus.

State

Ukrainian art market is spontaneous and like a powerful force that has no vectors, no exit. Create the necessary direction and processes to resolve - the duty of the state. The art market, if the take it out of the shadows, can become a full direction of the national economy. We need change.
Back in 2007 arranged a round table, which involved not only the gallery owners and artists, but also politicians, experts and journalists. Then took part in the discussion, even Dmitri Tabachnik, while Deputy Prime Minister for Humanitarian Affairs. But more than talk things have not gone so far.
In December of this year, Ukrainian experts discussed with representatives of the EU Eastern Partnership program in culture, raising the question of priority reforms in the industry. Like five years ago, problems and needs remain the same:
- Crossing the border, import and export of cultural property tax. This inaccuracy - the perfect base for speculation. Many questions do not decide the laws and customs officers actually do. Even the definition of "cultural value" in the current legislation does not have permission, explain lawyers. For the importation of works of art on the territory of Ukraine must pay a fee of 30%! Under these conditions, the civilized exchange of cultural achievements and integration into the global artistic process is complicated at times
- Inadequate system of taxation, bureaucratic red tape. This problem exists not only in domestic spaces, but also in developed Western countries. For example, in France, most of the agreements in this field are "among its" without the knowledge of the state. That is why the tax system should be as simple as possible. This state will do better than his first. For comfort suppress activity in the sense of the art business will disappear, and according to the budget will come from money transactions and operations on the art market.

- Weak institutional framework. Ukraine lacks institutions, experts, art historians, professional art business. There is no single system of evaluation of art objects and antiques. So often there are discussions that the price of the work are taken from the ceiling and is not always a reflection of reality

- Lack of funding and social support art projects and activities. Domestic information and education policy in the field of culture. As a consequence - Ukrainian artists do not realize the full potential.
To achieve the effect of all these issues need to work systematically and comprehensively, following a clear strategy for development and not kichas one-time actions. Creating an effective legislative framework, regulating and ordering of cultural processes is beneficial for everyone: for the state to make a profit, and intellectuals, who will receive social security, guarantees and favorable conditions for the functioning and development. Let me remind you, is less than 150 days will start the European football championship. Tourists and investors to familiarize themselves with the Ukraine, in particular, with our art. I'm sure right now is the time to use the art of seizing the moment.

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