Zilkens' News Blog

Zilkens' News Blog 49 2023

Just in time for the 1st Advent, the Cologne theatre staged a beautifully spoken production of Franz Kafka's "Trial" in which Josef K. does not know why it is being done to him. Another K. was told by the author of a catalogue raisonné of a no longer living artist that the work he had offered for expensive money at an auction would not be included in the catalogue raisonné because 1. it was not signed and 2. in the opinion of studio colleagues from the time, it had not been completed. However, the artist's related estate has written a confirmation. I wonder what it will be worth? The potential buyer is faced with a few insurance-related questions: Title insurance is out of the question because the transfer of ownership is clearly documented. In classic art insurance: what value is insured? Hammer price plus premium, even if the catalogue raisonné rejects the work as unfinished? Pure replacement value because the work was not signed and authorised? What does the liability insurer do if a claim is made against the agent because an essential circumstance is missing from the catalogue description? Does the purchaser even have a right of cancellation? Kafka's "Trial" has only survived in fragments and has been preserved for later generations by Max Brod. Directors of all genders turn it on stage the way they want to see it. Both stand side by side as independent art forms and are distanced from the author. Can the same be said for a work of visual art? It is possible that courts will be involved, which would bring us back to the " trial".

The German art market, which Claire McAndrew always describes in small print in her Art Market Report published with UBS, can sell millions after all. Most recently, a self-portrait by Max Pechstein sold for EUR 3 million including buyer's premium at Lempertz on 1 December.

Do you deal in art? Then the United Nations office for drugs and crime is interested in you. In Germany, the Financial Intelligence Unit (FIU), with which you must be registered as an art dealer from 1 January 2024, as the BVDG points out. The art trade is on a par with the car trade/ship trade/aircraft trade and watches, jewellery, gold and precious stones. Other trading companies have until 2027. Anyone who wonders why politicians and the press always associate art with money laundering will be in for a surprise.

The European Cargo Association Elvis speaks of a "moment of truth for the German transport industry" that will come at the turn of the year. The background to this is the massive burdens facing the industry, which could threaten the existence of some companies. The main cause is, of course, the increase in the lorry toll, but Elvis also points out that many lorries will slip into a higher fee category and an additional CO2 surcharge will make diesel more expensive. The concerns are correspondingly great and there has long been resentment in the industry. This also increases transport costs when shipping works of art. For the insurance industry, this means a higher risk if the selection is not based on quality but rather on the cheaper parcel pushers, who are known to have little expertise in art.

Changing language causes confusion - TAZ headline: Already 14 dead cycling travellers this year. Mon Dieu, the gentle reader might think. Is the Walking Dead now becoming a reality? Is a zombie apocalypse breaking out in Berlin? Corona survived and now the undead are ringing wildly and disregarding all street signs? Will we be spared nothing? This year alone, 14 new cycling zombies on Berlin's streets. Sure, we've seen them before, but they rarely rode bikes and were more likely to come out of Berghain (a famous disco in Berlin) on Monday mornings. And what about dead people driving cars? They no longer have anything to fear from the climate catastrophe, so they couldn't care less about the climate stickers. If these frenzied revenants broke through such a blockade and were reported and charged, who would be legally responsible for these relatives of Count Dracula? The Last Judgement?

With this in mind, we wish you an Advent week with less linguistic confusion and, for those who make it to Miami, great enjoyment of art and good business - despite the crises and wars that accompany us.

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

PS : next week Andreas Cappenberg will write the news blog.