Caroline Taylor: Valuing Fine Art and NFTs - [Making Markets, EP.10]

My guest this week is Caroline Taylor. An art valuation expert, Caroline founded the Appraisal Bureau to bring data and analytics to the highly subjective world of art appraisals. We start the conversation with Caroline’s backstory before talking about the appraisal process for both fine art and NFTs and the problem that the Appraisal Bureau is solving in this space. We also cover several unique aspects of the art market, such as Block Trading, Irrevocable Bids, the place of NFTs in the Art world, and more. Please enjoy this conversation with Caroline Taylor.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Show Notes:

(00:02:00) - (First question) - Why Deutsche Bank has an art collection

(00:02:54) - Caroline’s background in art 

(00:03:57) - A basic overview of the curation of art for a corporate collection

(00:04:32) - The balance between investing in value or genuine interest in the pieces

(00:06:00) - Caroline’s moves after the corporate art curation for Deutsche bank

(00:08:15) - How advisory fees are structured in the buying process

(00:10:47) - Appraiser ratings and determining their proficiency in valuing unique items

(00:14:26) - Other valuation methods beyond insurance

(00:17:32) - The complexities of irrevocable bids at an auction

(00:19:10) - Profits from using low irrevocable bids and the long-term valuation of acquiring art through auctions

(00:20:13) - Other unconventional bidding methods beyond room-based and irrevocable bids 

(00:21:15) - A background of Dmitri Cherniak's 'The Goose' NFT, which sold at Sotheby's Auction for $6.2M

(00:23:36) - The breakdown of the audience at Sotheby’s auction for The Goose

(00:25:10) - Caroline’s journey to becoming the sole approved appraiser of NFTs in the insurance market

(00:28:36) - The nuanced valuation of CryptoPunks from an art appraisal perspective

(00:30:57) - How she initiated Appraisal Bureau to address the lack of neutrality in the market

(00:35:18) - Caroline’s validation process, especially when significant discrepancies arise

(00:35:37) - Navigating customer segmentation within Caroline’s clientele

(00:37:37) - The potential impact of artificial intelligence

(00:40:44) - How Appraisal Bureau conducts thousands of appraisals yearly without being able to disclose what they’re working on and who they’re working with 

(00:41:32) - NFTs impact on bringing new people into the art world, Eric attending Art Basel

(00:42:12) - NFTs permeating the traditional art world with positioning in places like MoMA

(00:43:10) - Caroline’s opinion on the NFT market transitioning from a tough phase into a hopeful outlook

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