You're watching...
Liquid Rarity Exchange’s Andy Saigh on creating a new asset class from tangible cultural treasures.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
All right.
The FBI reporting more than six billion dollars an art fraud and theft just last year alone so would an investment in an art -- funding is sound investment.
We have someone who was creating an entire exchange of funds.
Backed by our and other rare collectibles -- size of managing partner of the liquid at rarity exchange and he joins us now Andy it's a fascinating.
Idea.
Two to financiers -- kind of securitize some of these art forms and it in a form of of socks but.
You know picking is a tough thing to do pricing of these stocks is even tougher to do.
Just ask Warren Buffett -- -- he takes years to decide the value of a company and that's a company with fixed assets how on earth.
Do you price something like it like an oriental rug or are painting.
-- a great question -- -- thanks thanks for having me personal.
You know it's -- not often you get somebody on your show talking about creating a new asset class.
So you know all all kind of give a little bit of an explanation into how we started -- I have a bit of explaining to do Hampshire.
You know with all the financial markets have been so far -- is -- unpredictable they've been.
People don't know where to put their money at the moment and at the same time we've been seeing.
So many stories in the news of of people's spending exorbitant prices on items like.
You know classic cars and fine art and you know music memorabilia sports memorabilia.
And we're in.
It seems like every day somebody comes out of the woodwork and spends that you know the highest -- in history and some of these items so we're wondering you know what's going on with that.
What does it take to invest in some in this sort of thing and make a good sound value decision.
There's a quote from and artists we all know and he said I can't even afford to buy my own art.
In other stuff is just outside of my price range missile -- can't afford that was part Pablo Picasso so the stuff you know they can be priced very high and it can be price.
Almost you know ridiculously high so -- let me it is -- just.
Ask you how this would work I assume US capitol you will -- Gemstones or -- rare art or fine art or art that may very well appreciate and that's that's kind of an -- -- -- stopped out to media mean when you look at -- you can look at say for example Donald sultan or Nancy -- and say well they're already up there but.
How much more valuable would they be common.
There are a lot of forgeries out there we just saw the scandal about the to coatings in the Jackson Pollock's how will it work that you can ensure that what you put in this -- to back it up.
Is of good quality.
Well all the items would be authenticated insured but that aside you know I have to be very clear on we're not an investment company and you know we're we're not issuing securities sure.
We leave that up to the investment bank -- that's their core competency.
Just that's it is the core competency of of rarity experts we say rarity as we really mean tangible items of high value that have a -- appreciation of our chance of appreciation.
So we have rarity experts on one side and we have the financial world on the other side.
And you know they don't want to do each other's job.
But the -- experts have a lifetime of of experience and confining these items and making those sort of value decisions for the investor.
And that's really what we're bringing it to -- bring it to the average investor who can't afford to pay from -- dish out money.
And doesn't have their guidance and expertise you know -- I.
I don't wanna get -- stuck in this want what but I do I do wanna jump off from what was was saying which is.
Cool holds the risk I mean you have to have legal obligations here who holds the risk yes.
And there have been examples if some of the sort -- turns out not to be genuine the issuer or the stockholder.
Well you know we talk about rarity is -- for talking about items that are almost instantly familiar to people.
So there's going to be a long history of prominence long history behind these -- -- -- ownership and in it's it's not like we're going and buying them now some -- street from somebody at that if these are gonna be items that about that have been owned by.
By by people -- for many decades a lot of cases so.
So you know there's that there's that and you know what we wanna put these into a fund that's going to be -- and there's -- management system as well -- track and then.
And keep -- -- all.
Have to do really mean to add to defer your side of this and there is something that tracks the art world and it's the MEI Moses world art index and we want to let our viewers know it outperformed the S&P.
Last year it was up about 10% that I didn't begin that I saw that the Chinese art component of this.
What's up 20%.
So while this one was -- -- percent outperforming.
The Chinese art world is going -- that's because the new Chinese millionaires and billionaires want this stuff as well so there's an opportunity possibly.
That's right and there's a number of private -- funds -- -- the world right now and existence we wanna do it publicly but in the private -- -- there's been you know double digit returns in some cases.
-- side it is always a pleasure to see somebody's opening up our brand new market and thank you for bringing -- selective.
I thank you so much is exciting to me and I think the public will feel the same way thank you thank you for coming in --
