Emma About All: Feb 22, 2009

Art to Keep - Why Collecting Art As an Investment is the Difference Between Hype and Value

Hype and value in the art market are two very different things. Hype may mean you end up buying art that sells well in the auction houses at the moment. My opinion, and I reiterate my opinion only is that the auction houses are a small step from the type of market manipulation seen so recently on Wall Street. Value art is based on Warren Buffett's philosophy, stick with good value fundamentals.So what gives art its value? It is after all just canvas and paint.Art markets work like all other markets - perception counts for about 60% and proof about 30%.Over the years I have developed these ten criteria to help me determine my purchases:Perception1. Is it scarce? If it is hard to find or tightly controlled there is a perception of specialness. That is why originals and limited edition artist prints are better value than mass produced.2. Is there a story behind the art and artist? It is hard to separate Van Gogh's life story from his art and indeed his popularity is a combination of the two.3. Is the artist well known? That doesn't mean he/she is doing the celebrity circuit but is there enough knowledge about the artist that people can feel safe in investing in him/her.4. Has the artist been widely exhibited? Sometimes a new artist may not fit this bill but in general the more exposure and recognition the better.5. Is the artist unique? That is, is his/her style recognisable, even if you don't know their name? Unique art stands the test of time and also makes people feel they know the artist and are themselves knowledgeable about art.6. Does the artist speak for his/her times? Art and artists help us define ourselves and the world around us. An artist in 2008 who expresses our issues and times will more than likely still be considered relevant in years to come. Think of how Lautrec embodied the Montmartre in Paris in the late 1800s. His art captured the times and place in a way nothing else did.Proof7. Is there provenance connected with the art? Can it be proven beyond a reasonable doubt that the artist created the original work, that the limited editions are as they state and is the work made out of the materials promised. This last point is very important as the longevity and integrity of the work for both originals and limited edition prints or reproductions rely on using materials that last.8. Have other collectors purchased work by this artist? This not only means someone else likes the work enough to buy it but that there is a known market should you choose to sell.9. How much are the originals selling for in todays market? This is where scarcity can have another impact. If the artist is putting fewer originals on the market or only doing commissions then the worth of limited edition prints or reproductions generally goes up along with the price of the originals and makes collecting the artist prints even better value.The Final 10%You may have noticed the points above only add up to 90%. They are really the quantifiable factors. That indefinable something is the 10% that counts.10. Is the work great? Forget for a moment about personal taste or whether the art goes with the furniture. Is it great? Does it draw your eye to it when you enter a room? Does it say to you, this is something special? Think of all the bands from the 60s, - who is remembered most? The Beatles of course. And this is true even if they aren't your favorite band - they were very special.I work extensively with an artist who fits all these criteria, Garry Duncan, and I know that although he is a "good buy" he has an almost indefinable something that makes me know that not only has it been a wise choice to invest in his art, it has been an even better choice to support it.So look for that magic, that genius, that power and more often than not if you also take the points above on board you will be getting value in your art investment for now and for the future.Connie Woodberry, Art Collector

Emma About All

Sunday, February 22, 2009

Art to Keep - Why Collecting Art As an Investment is the Difference Between Hype and Value

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