by Yieldstreet | Staff
On this episode of The Yield, Noah Kupferman, Head of Business Development for Yieldstreet x Athena Art Finance sits down with Jacqueline Towers-Perkins — Auctioneer & VP, Director of Post-War & Contemporary Art, Bonhams to discuss the rapidly changing art investment landscape and the areas of growth currently reshaping it. Since joining Bonhams in 2017, Jacqueline has been involved in many important sales and events, most recently the previously unseen single-owner sale ‘Kusama: The Collection of the late Dr. Teruo Hirose’. In their conversation, Noah and Jacqueline dive into the latest art market trends that are making it a potentially more desirable- and accessible- place for investors to focus their attention than ever before.
[3:57] Bonhams’ strategic approach to the art market has experienced positive benefits
[8:29] The impact of Covid on Bonhams’ 400+ annual sales.
[9:11] Distinguishing characteristics of Bonham’s up to $10 million art pieces.
[15:25] Bonhams’ unique approach to sales is paving a new path in the art market.
[20:54] Reflections on the post-pandemic middle art market by the numbers.
[24:44] Assumptions about the connection between the top and the middle of the art market.
[26:50] Finding the balance between supply and demand of the art market.
[32:44] NFT strategies for entry into the art market.
[39:29] Tax advantages that can accompany art transactions in times of inflation.
[42:15] Shifting demographics within the art market.
[47:20] The prep work that goes into such sell-through rates.
[51:21] How to get the art in your garage or attic appraised.
[52:10] Jacqueline’s post-pandemic market predictions.
In their conversation, Noah and Jacqueline dive into the latest trends and most impactful changes that have recently come into the art market, making it a potentially more desirable and accessible place for investors to focus their attention than ever before. In a post-pandemic world of NFTs, online sales, and digital artists, today’s art market is evolving at an incredible pace.
But how can the beginner investor enter the often elusive world of investing in art? The answer lies within what exactly is offered by the Big 4 art companies. The sweet spot for offerings at Bonhams is found in the $10,000 up to $10 million price range. With a unique focus on investments ranging from precious jewelry and Native American art to clocks and classic motor cars, Bonhams’ offerings are curated to fit an array of tastes. Bonhams aims to champion those lesser-known and potentially undervalued markets and artists and present them to collectors as investment opportunities. They consistently offer interesting, potentially more esoteric pieces, that are quality works by fascinating artists.
More than once Bonhams has included undiscovered or undervalued artists in their sales with a positive result. Jacqueline highlights several times in which they have highlighted surprising artists only to end in even more surprising — and rewarding — market results. While their approach to the art market may be somewhat less traditional, there is no question based on their sales that they are getting something right.
As Jacqueline recounts the post-pandemic art market by the numbers, it is clear to see a trend in buyers showing an increasing appetite for both contemporary art and the desire to get more involved in sales as well. And with the widest breadth of collectors, great involvement from new and serious investors, and the most diverse cross-section of collectors, the middle market offers promising insights into the robustness of the art market.
Many savvy investors are curious about NFTs, but how do they play into the art market? Jacqueline offers a high-level overview of the path that Bonhams is taking in offering investors what they are asking for by collaborating with pioneer digital artists to offer new pieces. And with less intimidating price ranges from $10,000 up to $150,000, digital art offers an entry-level for those who are just starting out in the NFT world.
Simply put, the intersection between art and investing is one that we hope will continue to grow and thrive. Noah and Jacqueline also discuss the tax implications of investing in art, shifting demographics within the resurgence of the art market, insights into global auctions, and which pandemic-induced trends investors can expect to see as the new standard in the art market.
Take all of our content on the go with you and listen on demand no matter where you are. Subscribe on Apple Podcasts, Spotify, YouTube, or wherever podcasts are available so you don’t miss an episode.
Sign up with your email address
Securely verify your identity and link a bank account
Verify your accreditation (if applicable) to access all of Yieldstreet’s offerings.
Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.
1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.
2 Represents a net estimated, unrealized annualized internal rate of return (IRR) of your portfolio and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date, after deduction of management fees and all other expenses charged to the investments.[read more]
3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.
4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share.
5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.
6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including Sept 6th, 2021, after deduction of management fees and all other expenses charged to investments.
8 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.
No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.
Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.
Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.
Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.
Banking services are provided by Evolve Bank & Trust, Member FDIC.
Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.
Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.