Fine Art and High Finance

Art and finance coalesce in the elite world of fine art collectingand investing. Investors and collectors can't protect andprofit from their collections without grappling with a range ofcomplex issues like risk, insurance, restoration, and conservation.They require intimate knowledge not only of art but also offinance.Clare McAndrew and a highly qualified team of contributors explainthe most difficult financial matters facing art investors. Keytopics include:* Appraisal and valuation* Art as loan collateral* Securitization and taxation* Investing in art funds* Insurance* The black-market art tradeClare McAndrew has a PhD in economics and is the author ofThe Art Economy. She is considered a leading expert on theeconomics of art ownership.

1 An Introduction to Art and Finance (Dr. ClareMcAndrew).2 Art Appraisals, Prices, and Valuations (Elizabethvon Habsburg and Rachel Goodman, Gurr Johns; and Dr. ClareMcAndrew).How, where, and when people buy art and what they do withit.The economics of the art market: supply, demand, and pricedetermination.Valuation and appraisal issues; art as a financial asset;quantitative and qualitative issues.3 Art Price Indices (Dr. Roman Kräussl).Investment returns to art; assessment of performance betweenassets and over time.Art price indices--methods and debates.Art data.4 Art Risk (Dr. Clare McAndrew and Dr. RachelCampbell).Investment risk.Portfolio diversification.Risk management.Credit default swaps.Derivatives and structured products.5 Art Banking (Suzanne Gyorgy, Citi; and Dr. ClareMcAndrew).Art as collateral and downside risk.Art lending: history and current practices.Art financing solutions: comparative review of banks, auctionhouses, galleries, and others.The future of art banking.6 Art Funds (Jeremy Eckstein, Randall Willette, andDr. Clare McAndrew).Art funds: history and motivations.Art funds today: different methods and approaches.Strategies: sector allocation, opportunity funds, and hedgefunds.Current status of the market.Future outlook.7 The Government and the Art Trade (Dr. ClareMcAndrew; Rena Neville, Sotheby's NY; Anthony Browne,BAMF).Role of the government in the art market.Art and the national patrimony.Trade restrictions and investment issues.U.S. relationship between art and government.U.K. relationship between art and government.8 Insurance and the Art Market (Christiane Fischer andJill Arnold, AXA).Art as a real asset: risk issues and the insurance market.Insurance and the art market: history, practice, andmethods.Art appraisal and valuation issues.9 Art and Taxation in the United States (Ralph E.Lerner, Withers).Tax and the art market: global investment and the tax nexus.Income tax implications.Transferring wealth: capital gains and inheritance tax.Wealth taxes.VAT and trading taxes.Estate planning and the legal implications of inheriting,selling, and bequeathing art; divorce situations; prenuptialagreements; division among heirs.10 Art and Taxation in the United Kingdom and Beyond(Pierre Valentin, Philip Munro, and Samantha Morgan,Withers).The UK tax system.Direct taxes: income tax, capital gains tax and corporatetax.Indirect taxes: VAT.Wealth tax.11 Art Conservation and Restoration (Barbara A. Ramsayand John K. Jacobs, Artex).Conservation versus restoration versus preservation.Cost and return implications.Methods, practices, and services.12 The Illegal Art Trade (Charles T. Danziger andThomas C. Danziger).The black and grey markets for works of art.Provenance, fakes, and forgeries.Illegal import and export, repatriation, export licensing, andthe national patrimony.Art theft and stolen art: issues and anecdotes.The global movement of works of art: legal and illegal,repatriation, art and conflict.Index.