Artists create a new financial currency, which is valued by the value of Art

Art Press Release from Australia. Published by Rebecca Gabrielle Cannon on Wednesday 09 May 2012.

Artists create a new financial currency, which is valued by the value of Art image Artists create a new financial currency, which is valued by the value of Art image

A group of Dutch artists have put away their paint and brushes, and instead picked up the artistic medium of financial economics in a new project they call the Art Reserve Bank.

Located in a real, physical bank within the heart of Amsterdam’s troubled financial district, the Art Reserve Bank began trading its new currency, called Art Works, on May 1st this year.

Coins in the Art Works currency can be purchased at an opening exchange rate of €100 per coin. Like a normal bank trading real currency, each coin is sold with a money-back guarantee. However the Art Reserve Bank is so confident of its unique banking process, that it also guarantees an impressive 10% interest per year on a buy-back.

The first Art Works coin designed by Bill Drummond can be purchased at the currency’s opening rate of € 100 per coin.

Each month for five years, a different artist will design a new series of four coins. Every artistic design will be limited to a circulation of only 100 coins.

Like other international currencies, the Art Works coins will be traded in an online dealing room, which will allow a free market economy to generate the currency’s international exchange rate.

Because the Art Reserve Bank is really just an experiment, in five years time the bank will deliberately close, after which point the currency’s money-back guarantee will disappear. Only then will the currency’s exchange rate be free to move below the bank’s existing buy-back value.

Not until that time will we really know whether the proposal that these artists are making is correct; that the artistic value of the Art Works currency will be sufficient to keep the public’s demand for the coins higher than the remaining supply, thereby continuing to increase the currency’s exchange rate, and economic worth.

But perhaps in the end, like any other tradeable art, the value of the Art Works currency will depend on how attractive the artistic designs end up being, to collectors of contemporary art.

The Art Reseve Bank