Art Basel, in its 14th year is by far the most anticipated event for both artist and art connoisseur in Miami. The festival takes place the first week of December in the art district of Miami’s Wynwood. Art Basel provides a huge opportunity for both artist and galleries to show and sell their work, providing them access to collectors, museum directors, and curators. It has established Miami’s place in the art world and with the number of both artist and visitors increasing each year, it when it comes to art communities in the United States it could eventually put Miami on the same level as New York City.
Fabio Palumbo, is an Investment Advisor from Rome, an avid art collector of Contemporary Art, and an Advisor Board Member of UAU ART(http:/uauart.com/). Last week we spoke to him about the new company he is planning to open here in Miami and how it will affect the constantly growing art scene.
Fabio Palumbo, is an Investment Advisor from Rome, an avid art collector of Contemporary Art, and an Advisor Board Member of UAU ART(http:/uauart.com/). Last week I spoke to him about the new company he is planning to open here in Miami and how it will affect the constantly growing art scene.
“The new company will be a Fine arts support Service. It will provide investors that are interested in Fine Art the opportunity to invest in both up and coming artists, as well as more established artists that live in Miami. The company will also support the growing number of artists from around the world that show their work at the Art Basel Festival.”
He mentioned a quote published recently on FT.com that reads:
“Old Masters have been left bleeding in a Fifth Avenue gutter, but lots of new capital are trying to get into Art Finance”. Mr. Palumbo mentioned that “Investing in art is a high-risk venture, but it can be very profitable for the investors who have both an interest in Fine Art and are knowledgeable about the value that a work of art can provide.” In explaining how his company will work, he said “my company will not only help the investors , but it will also help artists who show a great amount of potential with a sum of money up front, so that the artist can continue working on both his art and making a name for himself in the Fine Art World. In exchange for the sums of money the investors paid, they will be given the opportunity to purchase any one piece of the work the artist makes in the next ten years for a very cheap price, so both parties win.”
As to why he chose to start his business in Miami, Mr. Palumbo said,
“I chose Miami for a number of reasons, the first being the diverse and vibrant art scene Miami has to offer. I especially enjoyed both the Graffiti art on the walls of the art district and, of course, the Art Basel festival in Wynwood. I also saw the growing influx of artists from around the world that are coming to Miami for the unique cultural environment and I saw the investment opportunities that this will provide for my investors. I saw the influx of people in Miami with a substantial amount of money with an interest in art that may not have any idea of the investment opportunities that art can provide. This is where a person like myself comes in to provide them with both the knowledge and the assurance they need to feel comfortable investing in art. Miami is a very trendy city, that has and attracts people from around the world looking for different ways to invest their money and art is that opportunity.”
Lastly, I asked Mr. Palumbo if he saw his company being a platform for both the talented artist who is not well known as well as the artist who is already somewhat known. Mr. Palumbo said,
- “I could definitely see it as a platform for both because it offers two types of investment opportunities. The lesser known artist work can be bought for less and will offer more of a profit in the long run. The work of an artist who’s already made a name for himself will cost more and can probably sell for a higher profit in a shorter period of time. Both investments are still risky, but the more you know about the art market the less your risk will be.
”Mr. Fabio Palumbo has over 20 years in Investment Banking and is both a Financial Analyst and Investment Advisor for many art collectors and services who he provides financial, technical, and logistic consulting services. He started as a Financial Analyst for IBM in 1989 and became a Board Member Monrif Net S.r.L.(htpp://www.monrifgroup.net/). He was an Adjunct Professor of Corporate Governance at the University of Cassino in Italy. He is currently an Advisor Board Member of UAU ART(http:/uauart.com/).