8/04/2012

Corporate Art Collecting


Forbes has a very interesting article on corporate art collections.  According to experts, the aim of corporate art collection is not an investment.  Some collect in order to decorate their walls, while others make it part of their corporate identities.

As appraisers, we typically see some form of corporate art collecting in our professional practices.  Some is quality art and investment grade, while others are purely decorative commodity art.  Either way, sooner or later the corporate collections need valuation or assistance in liquidating.

Forbes reports

Hundreds if not thousands of companies collect art—but only a few make an art of collecting.

Financial return is not the aim. “Art is a risky investment,” says Shirley Reiff Howarth, editor of the International Directory of Corporate Art, who points to the notion that there must be some financial payoff as one of the great myths that surround corporate art.

Some corporate collections are little more than furnishing, others are historical. The companies on our list of the top corporate art collections, however, fall under a third category of corporations that do more than just possess work. Nick Orchard, head of Corporate Collections at Christie’s Europe, calls this “proactive collecting.” UBS and Deutsche Bank, for example, have made art central to their corporate identities. Bank of America uses art to connect with the public.

To come up with our list of the best corporate art collections, we spoke to a range of writers, art advisers and curators. Their standard: the best collections use art to improve lives and to educate. In addition to expert interviews, we considered activity and buzz around the collection. This means owning fifty Picassos is not enough if they have been sitting in storage for a decade.

Some of the collections are managed by a staff of curators and others rely on outside advisers. Some are largely open the public and others are only accessible to employees. Collections that have been sold or donated to museums are not included and the corporation must currently maintain the collection to be considered for this list. None of the corporations we spoke with would disclose the value of their collection for this story.
Source: Forbes 

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