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Collateral Loans on Fine Wine a Growing Trend?

By   /   June 13, 2013  /   No Comments

Many art collectors today are opting to use their fine art collection as collateral for loans rather than selling.  In a recent survey, 41 % said they’d consider art-secured lending.  Another option that has recently been getting headlines is wine.  Andrew Cader, a former senior director at Goldman Sachs, took out a loan this week backed by 15,000 bottles of fine wine.  While wealthy individuals have been using assets from jewelry to antiques as collateral, Cader’s recent loan leaves many wondering if more will follow in his footsteps.  Many asset-based lenders are concerned about the ease of making counterfeit fine wine.  However, there is plenty of concern about fakes in the art and jewelry market as well.   In some ways wine may even be a safer bet for lenders in comparison to collateral such as art, antiques and jewelry.  You can actually find a market price for many fine wines, however, in the art and jewelry market prices are subjective to taste.

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