Wednesday, February 17, 2016

Plans to Remove €500 Note Might Impact Lower Value Range of Art Market

Are they fungible?
Gotta dash, time to front-run.

From Art Market Monitor
Front page of the FT is a story on efforts to remove the €500 note from circulation. The currency is used as a store of value outside of the banking system (you fill a safe deposit box or safe at home with cash instead of keeping money in the bank.) The move might be important to the art market because certain works of art have already begun to trade as a kind of reserve currency.
Highly traded, recognizable works like Warhol prints are a great way to keep “cash” at home. If the large Euro notes disappear, that might created more demand for works of art in the $5,000 to $50,000 range:.According to a study published by Europol last year, shops often refuse to accept €500 bills. Nevertheless they still account for one-third of the value of all euro banknotes in circulation....MORE
As we noted in "Value Added..." this  Warhol went under the hammer at Sotheby's in November 2009:

"200 One Dollar Bills" Silkscreen (1962) 
$43,762,500 to an anonymous buyer.
The piece had been purchased by London collector Pauline Karpidas for $385,000 in 1986

Seriously, I gotta get going.