Zilkens' News Blog

Zilkens' News Blog 28 2024

The hype surrounding crypto currencies and Bitcoin seems to have died down in the art world - at least people are no longer being flooded with it. The insurance industry has not yet developed a viable solution for Bitcoin-based NFT artworks. Perhaps it no longer needs to, because the active participants in this market have so far borne the risk themselves and an infinite increase does not seem to be given. Things are different in Central America, where you can withdraw crypto and Bitcoin from ATMs... but not NFTs.

For the German-speaking participants in the European Football Championships, the tournament is over. Switzerland, Germany and Austria can now go on holiday with peace of mind. Next Sunday is the French national holiday, and we can still look forward to seeing whether it will be possible to celebrate it with the final of the French team. France has voted, and the Front National does not seem to have made it. However, it is difficult to say what the new constellation will mean for art and culture. Perhaps the decision to turn Paris+ into Art Basel Paris was a little hasty, in the hope that it would score points against the now more left-wing UK. France is also getting a more left-wing government - which could mean redistribution and the question of wealth tax. In the 1980s, the flight of capital from France was a hot topic, because wealth was heavily taxed. The question is, where will the safe haven be? Switzerland is no longer a safe haven either, as the Young Socialists there are keen to get their hands on the wealth created by others in order to expand the welfare state under the guise of justice. Perhaps Hungary is a new destination - if in doubt, the environment of the acting EU Council President demands small "orbane" taxes and otherwise there is peace.

Last week, there were a number of auctions in London that even made collectors of old masters sit up and take notice. At Christie's, a Titian was auctioned off for the highest price ever, at around EUR 22 million including buyer's premium. That is encouraging, but there was a guarantee and only one bidder. A slack demand at a high level is a good opportunity for buyers to stock up. Unlike financing costs, insurance costs are in the per mille range - banks charge percentages.

We are looking to strengthen our team as soon as possible. Kristel Sarfatti will be leaving us at the end of the month to move into the property sector. We would like to thank her for her continuous support in looking after our customers over the past few years. If Cologne is an interesting place for you, you enjoy art and the challenges of the insurance industry, and you have the relevant knowledge, we would be delighted to receive your application.

Stefan Kobel's review of the art fairs at the end of the article.

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Stephan Zilkens and the team at Zilkens Fine Art Insurance Broker GmbH in Cologne and Solothurn