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Investing in Art - Is it Investment or Pleasure |
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But is buying art, investment or pleasure, or both? And how does one start?
For those with investment hats and fat wallets names like Lucien Freud, Mark Rothko and Jackson Pollock will have appeal. But this art fetches very high prices. For instance at auction in New York a Rothko sold for $73 million. However, collectors have to start somewhere. And artists can appreciate in value.
You need to know what you’re looking at and you ‘have to love art in order for it to become a good investment’. So if art is a passion, which could in turn become an investment, the trick is to nurture your talent for recognising what touches you deeply.
It’s possible to make a lot of money by investing in artwork, but how can you avoid the pitfalls? Here are a few tips on how to make your money count.
- Try and predict the trends – buy cheap pieces from unknown artists for the most potential return.
- Find out as much as you can about the artist before you buy.
- What’s the piece made of? Don’t buy anything that might not physically pass the test of time.
- Think about what the work represents. A bad painting of a famous person may end up being worth more than a good one of the artist’s wife.
- Watch out for prints – what you think might be an original might be a very good copy.
- Remember that dealers don’t have to have any qualifications: what they know is often gleaned from their experience in the business.
- Most importantly, bear in mind that the value might go up or down – so buy something you love and want to own for its own sake.
The best places to find and buy art are from dealers or galleries - whether this is a local gallery or at an international art fair. After all, the most interesting and sometimes the most innovative art is shown in these spaces. There is an incorrect perception that galleries contain judgmental and snobbish staff who do not like to respond to someone who they don’t know who has walked in off the street.
With contemporary art, the artist will be producing new work, so you will have a better chance to get a top quality piece, probably at a reasonable price. It’s always good to buy the best piece you can, even if it’s a bit of a financial stretch.
It’s important to buy what you love, what touches your heart and what fits in with the pieces you already have. If you are aiming to build an important collection of older or contemporary art, then quality must always be your primary concern. Buy the best pieces - the most exemplary pieces by an artist that you can afford - even if it means buying only one or two great pieces a year. Quality is more important than quantity.
More web links:
The Guardian: Investing in Art
BBC: Investing in Art
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