In the most recent auction for the a painting by Leonardo da Vinci that is five centuries old, the highest bidder won the art by paying $450 million – a whooping amount which took the whole world by storm. Nowadays, not everyone have the money to buy these premium artworks but the latest trend is word art works. These can be bought ready-made, have it custom-made to choose the words you want or make your own at home by following DIY instructions online.
Considering the latest action, many people think that the price is absurd but there are many factors that dictates how much the cost of an art is and it will remain a question to regular citizens.
According to Fine Art Financial Services’ chief executive, Freya Stewart, their firm accepts arts in exchange for loans. Art has always been considered very personal and people who desire to have a trophy piece will be willing to spend a lot of money on it. The value increases if the art is rare.
It can be peculiar to see people spending so much on art considering that it is not a house with 10 bedrooms and many facilities. Its only purpose for existing is to be enjoyed by the onlookers. When we think about subjectivity, we always think of the famous saying “Beauty is in the eye of the beholder”. This means that the high price can be surprising to those who do not view the art as beautiful.
Financially, it is now possible to get a loan with the use of these high quality art pieces. Art is an asset because its value will change depending on the supply and demand in the current market.
The business handled by Stewart makes it possible for client to loan money with high-value art as the collaterals. The process is the same when homeowners decided to borrow mortgage moneywith their property on the line.
The firm is willing to lend a maximum of 50 per cent of the arts value and there is an interest rate which is about five percent. The company will keep the art until the loan has been fully paid. Do not be sad if the hanging word art in your living room is not legible for the loan. After all, the firm only accepts high value and rare art pieces.