Investing in art can be an interesting way for you to preserve or even grow your wealth. Apart from the usual buying and selling of art pieces – which is a common way to profit from it – art collectors can secure loans with their art pieces as collateral. In this way, lenders are able to place a lien on artwork while art collectors keep possession of the artwork for the duration of the loan.
According to recent estimates, the art-secured lending sector is doing in excess of US$15 billion of business per year. The sector is at its finest and most developed in the US – particularly New York, which is not surprising – given the city’s position as both an art and financial capital.