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Covid19-The death of cash deals?
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Started by stinkininkin,

50 posts in this topic

stinkininkin

stinkininkin

Posted
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Might be a subject too touchy/hot to handle, but with the pandemic accelerating the rise of touch-less cashless transactions in the economy, I started wondering if the cash component to art deals was dying? It's not a big secret that there are a lot of green cash deals that take place in the hobby, ones that in fact can even generate discounts against the asking prices (draw your own conclusion as to why, hm). I think this is true especially on the high end side of the hobby which can generate fat stacks of bills. But as it gets harder and harder to actually find places that will take cash payments for purchases, will cash lose its, er, cache? I'm sure the BSD's and high rollers probably just have cash recirculate as they consummate deals with each other, but at some point when the music stops, where are they going to spend that cash when society more and more doesn't want that form of payment any longer?  

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grapeape

grapeape

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3 minutes ago, stinkininkin said:

Might be a subject too touchy/hot to handle, but with the pandemic accelerating the rise of touch-less cashless transactions in the economy, I started wondering if the cash component to art deals was dying? It's not a big secret that there are a lot of green cash deals that take place in the hobby, ones that in fact can even generate discounts against the asking prices (draw your own conclusion as to why, hm). I think this is true especially on the high end side of the hobby which can generate fat stacks of bills. But as it gets harder and harder to actually find places that will take cash payments for purchases, will cash lose its, er, cache? I'm sure the BSD's and high rollers probably just have cash recirculate as they consummate deals with each other, but at some point when the music stops, where are they going to spend that cash when society more and more doesn't want that form of payment any longer?  

I think cash deals will still get done Scott. For hundreds of dollars or less yeah preference maybe non cash.

But large ticket items will still draw cash preference. For obvious reasons.

😆

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stinkininkin

stinkininkin

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1 hour ago, cloud cloddie said:

I’m sure there’s less going on right now, but once people can easily meet in person again, I don’t see any change with cash. 

That's not my point at all. When art that is sold for 5 or 6 figures is transacted with cash, how does the recipient of said cash actually spend it when cash transactions (outside of buying more art) are becoming less and less an option?

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vodou

vodou

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1 minute ago, Skizz said:

They don’t spend it now. They wait for the world to go back to normal and human activity to resume. Until then they ...

 

328751BC-F9E1-4528-B444-C46CAFB66824.jpeg

Imagine the power of a Sovereign cancelling all that black-market unbanked currency ;)

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Rick2you2

Rick2you2

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Posted (edited)
2 hours ago, stinkininkin said:

That's not my point at all. When art that is sold for 5 or 6 figures is transacted with cash, how does the recipient of said cash actually spend it when cash transactions (outside of buying more art) are becoming less and less an option?

Cash is legal tender for all transactions. In NJ, and NYC, it is now illegal to refuse to take cash (the laws are being phased in over the next few months). I happen to like to pay cash. It makes budgeting easier. When you run out, you are over budget.

You will just have to take my word on this. But, there are parts of the business world which will always operate on a cash basis so long as they make paper money. Do you really think all those unemployed people are really unemployed?

Edited by Rick2you2
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Rick2you2

Rick2you2

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Hato

2 minutes ago, Ryan. said:

Can't the cash just be deposited into a bank account? ???

That sort of defeats the purpose of it. Why do you think there are check cashing companies? It isn’t just poor people who can’t afford a bank account.

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Sideshow Bob

Sideshow Bob

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Let's ignore taxes.

For me, the real benefit of the cash deal is also peace of mind that a) for the buyer, that the art is in your hand after inspecting it and b) for the seller, that the check isn't going to bounce/a bogus fraud claim is going to get filed on PayPal. At today's prices for some A and A+ pieces, people will continue to do cash deals. Collectors in NYC will still do it. But maybe you don't fly across the country to do it where you might have considered a couple hundred dollar flight cost as part of the economics of the deal. 

Edited by Sideshow Bob
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grapeape

grapeape

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3 hours ago, vodou said:

...e-payment is mandated, ensuring 100% tabulation and compliance with tax reporting and collection?

Excellent question :)

You’re right Vodou and  it was a great question Scott.

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grapeape

grapeape

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2 hours ago, Bill C said:

Whew. Looking at that picture, I thought for a second I actually saw a plastic straw among all those heroin needles strewn about the pavement. That would have been very unsettling. Carry on. 

I thought when I saw that picture I had clicked on the Sandman mixed media art thread.

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