There has been much espoused in the last few years, about the benefits of investing money in art
I guess the hardest thing to do do, is to sort the sheep from the goats, the misinformation from the facts and the liars from the honest Johns (or Jennies!) In Australia, there is a vibrant investment market, driven by big players in the top end of the market, the so called b'blue chip'
artists. These artists are diverse in their styles and subjects/ genre, but seem to have a similar thing in common. Most of them are all dead! These are highly esteemed painters, the likes of Arthur Streeton, Charles Conder, John Glover, Rupert Bunny, Julian Ashton, Sidney Nolan, Arthur Boyd etc etc. Artists who have been in and out of the auction houses many times over. Their work naturally increases in value with the passing of time, but is also prone to market forces. A few years
back, the market for the traditional painters like Roberts and Streeton, was in a slump, clearance prices were thousands of dollars below what they now sell for. So as you can see, it is not all beer and skittles! Like any market and economy driven forces, you have to buy the right painting, by the right artist, at the right time. Oh.. and you won't be able to meet him, cause he's probably already dead !! In the last few years, there has been a big hoo haa about buying art through superannuation funds and tax deductibility of purchases. This is a field I profess to know not a lot about!! I have had it explained to me a few times, but think I fell asleep during the
process! Basically, if you wish to have your paintings as a fully tax deductible investment, they have to be stored in a fireproof strong-room, in a house with bars on the windows, a back to
base alarm system and an SAS team guarding all entrances and exits! Bottom line... I think I'd rather buy shares !! (or property)! Then we come to the bottom of the pond, where some artists with a bit of talent, a few shows under their belts and a whole lot of the blaa blaa
blaa.. tell people that if they invest in their art. " It will be worth X amount of dollars in a few years time". I have seen it all in the last ten years! Hiking up prices by telling people that "this painting sold for 25 thousand dollars, then the same painting being there a year later, with the same story attached still being perpetuated! Then there's the old "this painting was just put into print" or "This painting is in this book , it is worth twice that of the others" Facts and
figures can easily be manipulated to the unwitting investor. At the end of the day, the proof is in the pudding. If you see an artist, who's prices are climbing steadily (in several different galleries) and who's work has won awards or recognition and most of all... who's work you like and would be happy to hang on your wall... then buy it! To Quote Brian Kino, a well known Australian art investment consultant, when asked the question on a recent ABC radio interview, of what he sees when he looks at a good painting... "There's several things that I go by. The ones that always stand to mind is when I'm buying (I
could waffle on for hours) but when I'm looking for buying art as investment, what I always do for myself and for my clients is the following: No.1, I always buy the dearest and best and most typical of an artist's work. If you have the best, then the sky's the limit. Everybody wants the best." " When you're buying a house or a car, you
know within 5% exactly what it's worth, but a painting, let's face it, the canvas costs a few hundred dollars, and the frame costs a few hundred dollars, and from there it's all perception. If I tell you it's worth $10-million, it's worth $10-million; if I tell you it's worth 2/6d, it's worth 2/6d, it's the easiest thing to make money out of, and it's the easiest way to burn money. Unless you know what you're doing you can walk into a gallery or go to
auction and buy something for $20,000 tomorrow and find the next day literally, you're going to sell it? You're going to get $5,000 or $6,000. That's the common situation, so you need to do your homework." And to quote the interviewer, Gerald Tooth: "The other characteristic of this
marketplace is that it's entirely unregulated, there are no rules really, the rules are made up by whoever's dealing with whoever they're dealing with. That's unlike the Stock Market. It's unlike every marketplace where you have investment tools and commodities." So, the final word: Be careful, instincts go a long way, ultimately, if you are buying purely for investment, consult several
professionals or look to some other commodity. But if you want art for art sake, then follow your heart, then your head! And last but not least.... please, when you consider buying a painting, ask for the artists CV! Disclaimer: Any advice contained herein is purely for entertainment purposes only and should
in no way be mistaken for professional advice. For information on investment in art or of any sort, please seek the help of an industry professional. |
