In this Expansión article, by Rosario Fernández, we analyze how, in times of crisis, many collectors and artists turn to their artwork as collateral to obtain liquidity. Figures such as Annie Leibovitz and Julian Schnabel have mortgaged their assets and collections to access multimillion-dollar loans, a practice that is increasingly common in the United States but still nonexistent in Spain.
According to expert Elisa Hernando , director of Arte Global , in Spain "there is a lack of art culture and trust on the part of banks," which hinders the implementation of this type of operation, which is common in countries such as Switzerland or the US. Companies such as Art Capital Group and ArtLoan lead this business, offering loans backed by works of art with interest rates between 6% and 24%, and an annual growth rate of more than 25%.
Meanwhile, the art market is struggling: the Mei Moses index shows a 35% drop in prices during the first quarter, especially for contemporary and post-war art. Works by artists like Andy Warhol have lost value compared to classic 19th-century pieces, which are more resilient to the crisis.
Read the full article here .
