Business Idea #123 – Go Bud Fox on the Most Powerful Art Dealers

by Byron on June 25, 2012

The Problem:

Profitable art is a matter of the perception of a few. But wealthy art collectors rely on a relatively small number of powerful art dealers to tell them what art’s value will increase.  This leads to a virtuous cycle for those on the inside, vicious to those on the outside.

The Business

“Insider trading” for art.  There are no insider trading regs outside of the SEC are SEC covered securities.  The business, therefore, is to get whatever information you need from those powerful few art dealers.

I’m sure I’m not the only one with some form of this idea.  However, my guess is everyone else stops at reading industry publications and participating in the gossip.  You have to be willing to go all-in.  I’m talking about literally tailing these art dealers, seeing everything they do and everyone they talk to.  It’s this method that will enable you to find art you can buy for $10K today that’s worth $1M in five years.

Doableness

You need sophisticated people and tools to follow art dealers.  Then you need bright people with good research skills to analyze the information they are gathering and make decisions on how to profit.

Unless you both see the value and have the capital/willingness, you will need to get funding from someone who does.

My Thoughts

It’s the same with insider information everywhere.  Everything from which books get bought, to which toys get produced for the largest retailers, to what laws are going to be passed.  When it comes to securities or lobbyists and the laws, the level of regulation is high.  However, some areas have enough dollars at stake and a lack of regulation.  High dollar art fits the profile.

It’s this same idea that came up with the very lucrative concept of expert networks.

 

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