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Art valuation in disruptive times
The International Family Offices Journal
Vol. 5 - Iss. 4 pp. 49–55
Jun 2021
Mary Elizabeth Klein notes that: "The pandemic has necessitated a more fluid sale schedule, many more online sales at all price points, a re-thinking of art centres to include more international focus on Paris and Hong Kong salesrooms, and pop-up venues from the Hamptons to Palm Beach". She gives a detailed explanation of the elements of a proper appraisal, which can be a very complex procedure. She lists the subjective and the objective drivers of price. The several manners in which outright fraud can occur are listed in a table. She offers advice: "Family offices can avail themselves of the International Foundation of Art Research (IFAR) website to protect against art fraud." For some purchases (and sales) a specialised lawyer can be very helpful: "to review a contract for the purchase of a work, or to review a bill of sale, especially for significant art transactions, can protect buyers against purchasing art without clear title, stolen art, a potential dealer or gallery bankruptcy, or a Ponzi scheme, all of which scenarios have been covered by the news media of late". She closes with the caution that what is different now is the pace of change and complexity of factors meaning that: "Family offices need to approach the management and opportunities related to art with diligence to protect their wealth in this time of great change."