Frequently Asked Questions (FAQ)
Q: What are we creating?
A: Investors will be able to participate in the appreciation that violin family instruments have enjoyed for decades – 10-15% on average over the past 30 years. Additionally, we are making it possible to trade these fractional shares in the secondary market. An illiquid asset class that up to now was available only to very few, high net-worth investors who have the specialized knowledge in violins will now be a liquid investment, accessible to all investors.
By creating an internationally accessible, highly vetted and trustworthy digital market, we multiply the demand, with an expected substantial value increase resulting from this new demand.
Q: Why does this have value? What problem are we solving?
A: Currently, collectibles are highly illiquid. We are bringing transparency and liquidity to the collectibles market by selling high value rarities in shares that can be traded on the LIQRX platform.
The historical dealer dominated market is opaque and secretive, while the auction market allows only limited vetting and adds high percentage charges on each transaction. Both business models put buyers and sellers at distinct disadvantages. We are creating a market where instruments are highly vetted, presented in a legacy database that allows market-driven pricing.
How does this make money for investors?
Annual appreciation in the primary market investment: 12 to 15% (Wealth Magazine)
Appreciation of the shares once they are traded on the secondary market of an expected 4 to 6%
Early investors can expect a 30 to 50% step up appreciation by our moving from appraisal valuation to market driven demand and the resulting liquidity in a worldwide market with new demand from thousands of investors.
Portfolio diversification with great hedge potential in an investment with low stock market correlation;
Highly tax efficient business model (museum, orchestra and music school collection program) for profit maximization.
Q: What kind of Rarities do you deal with?
A: We work within all segments of the art market ranging from Old Masters to Contemporary Art. Liquidity of the art being a main measures.
Q: Which Rarities do you fractionalize?
A: We currently work clients who already own and want to finance.
Q: What are the leasing rates?
A: We offer single digit rates. The rates are derived from the collection’s fair market value and liquidity and must be thoroughly vetted prior to listing.
Q: Who keeps the art asset?
A: The asset owner who has monetized his rarity through fractional shares may retain possession of the collection, provided our specialist approves the safety of the location and other elements such as insurance. Certain assets may be placed in museums or be kept in art storage facilities or other types of secure vaults approved by us.
Q: Who pays for insurance and installation?
A: Insurance and installation are arranged by the Specialists, giving rarity owners, a total turnkey selling opportunity. The related costs being added to his or her monthly lease payment.
Q: Who are your clients?
A: Our clients are private collectors, rarity dealers, rarity investors, investment banks, broker/dealers, museums, corporations, hospitality groups.
Q: Where do you operate?
A: We are located in St. Louis, New York City and Paris but our services are offered globally.