How Do You Protect Fine Art?

Recently, international investors have begun moving away from digital assets and have started moving back to investing in fine arts. Europa Trust Company Ltd reports on strategies to protect fine art as an investment and Gibraltar’s continued development to become an art dealership hub for high-value works of art.
Digital assets continue to suffer the ups and downs of the Global market place. International investor trends are showing a shift towards tangible, “real assets”, with fine art being a key investment option.

Art has no correlation to the stock market. This means paintings can go up in value, even when markets crash. Art can also make a good diversification for an investment portfolio

“Isn’t Fine Art Reserved for the Super-wealthy?”
The most expensive painting ever sold, the “Salvator Mundi”,(pictured) which was possibly painted by Leonardo da Vinci, was sold in 2017 for £362 million ($450.3 million). The painting was originally bought at an auction for £45 (£56) in 1958. This fact highlights the often misconception that art investment is only reserved for the super-wealthy. You do not need to be wealthy to invest in fine art and quality art can be obtained from art fairs and online markets around the world. This enables ordinary people to obtain potentially valuable art.

However, obtaining the artwork is only half of the investment process. There are important strategies to consider when protecting the investment of fine art

“Can I Hang Fine Art on the Wall?”
Once you have obtained your investment, financial experts state not to hang it on your wall. Exposure to the sun, temperate fluctuations and dampness are contributing factors to quickly damaging your art work. Having the art work on display also increases the likelihood of theft.

“What’s in the Box?”
Placing an expensive work of art in a protective box can reduce burglaries. Protective boxes complete with detectors can also monitor humidity and temperature levels which further protect the art work. For added protection, these boxes are often locked in vaults or safes.

“Can I Place Art Work in a Company, Trust or Foundation?”
Art should be treated like any other important asset. It therefore requires asset protection. This can be in the form of a company, trust or a foundation. Many art investors often wish to leave their legacy in the hands of their children. A company, trust or foundation can hold the art work and make transfers of ownership easy and straight forward. Speak to one of our administrators today to learn more about how this can be achieved.

“Is Gibraltar Developing as a Art Hub?”
Back in July of 2014, the Gibraltar Chief Minister, Fabian Picardo said the Government would be eliminating import and export duties on the sale of art in all forms. The announcement of 0% import and export duties on the sale of art already added to the many benefits Gibraltar offers as a finance centre. It is possible to use Gibraltar for the acquisition and sale of high value works of art and Gibraltar continues to develop itself as a hub for art and artists.

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Working with The Europa Group

Europa Trust Company Ltd is part of the Europa Group. We have been based in Gibraltar for over 34 years and have built a reputation as a stable and reputable business.

We provide a comprehensive range of company and trust formation and management services including company and trust administration, foundations, partnerships, corporate directors, shareholders and secretaries, accounting, marine registration and other associated services.

Our clients are an eclectic mix of international executives, authors, sportsmen, corporations, wealthy individuals, families and many more. Their individual interests and needs are at the centre of our focus. Each client benefits from the experience and multi-jurisdiction knowledge of a dedicated Europa Group professional.

The Europa Group is able to work in over 31 jurisdictions around the World. We are licensed and regulated by the Gibraltar Financial Services Commission and are ISO 27001 (Information Security Management Systems) and ISO 9001 (Quality Management Systems) certified.