Sunday
Jan172010

EVERYONE CAN INVEST IN ART

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I think everyone should be able to buy and enjoy art - either for fun or for profit, or for both, so for a few tips and guidelines read on (and check out the website regularly for more postings....!)

 

SO, WHY INVEST IN ART?

  •   Art can be life enhancing
  •   Good art can appreciate in value
  •   So much can be learned through collecting art
  •   Collecting art can be a lot of fun, a hobby, a serious interest or even a career
  •   Investing in art can also mean investing in people

 

ART CAN BE LIFE ENHANCING

Like good wine or music, good art is one of life’s great pleasures, improving our mood, engaging our emotions and  affecting our wellbeing.  It can provide intellectual stimulus and can be outrageous, intriguing, exciting or relaxing, or simply beautiful.  It often provides a talking point and can be the basis for endless discussion (and argument!).

Original art has an energy and vitality about it that reproductions do not have,  says someone who bought one of my paintings.  “Yours is the only one that sings!”, was the comment, which I treasure.

David Hockney defined art as something which moves us.  Of the myriad definitions of art, this one rings most true for me.

Most advisors suggest we buy art for love. 

“Develop your eye, and then buy with your heart – always, always with the heart.”   says  Andre Emmerich,  dealer and collector.

A friend recently purchased an original art work because, she said, it was “full of humanity”.  It  had clearly touched her heart.

 

GOOD ART CAN APPRECIATE IN VALUE

Many years ago, while still a student at Glasgow School of Art, I earned a fee of 21 guineas (the equivalent of £22.05!) for a textile design sold to Pringle of Scotland, and found myself having to decide whether to buy a cooker or a David Hockney print.  I have to confess to buying the cooker. (I know, I know. I was young, I had a flat, no furniture and nothing to cook on...) The Hockney print now sells for around £6000. What is left of the cooker, now rusts, no doubt, in a hole in the ground.

Collecting art as an investment, that is buying in the hope or expectation that a work will increase in monetary value, is carried out by individuals (and you don't need to be Andrew Lloyd Weber to do this), companies, pension funds and major organisations such as trades unions, to the tune of billions of pounds per annum. Some American banks have been known to accept fine art as collateral for loans.

Your work of art may appreciate in value, but in order to realise a profit on it, it will be necessary to sell it.  You will probably be more emotionally attached to your art work than to any stocks and shares, so this may not be an easy thing to do. But, you may be parting with it in order to buy something better, or you may consider it an investment for your children or grandchildren, in which case...you can keep it for now.

As with stocks and shares the value of your investment may go down as well as up, which ties in with the next good reason for buying art.....

 

SO MUCH TO LEARN!

  • Learn about the kind of art you want to collect and you will choose wisely.
  • Learn about 'value factors' and you are more likely to see your art appreciate in value.
  • Learn something of how the art market works and you are more likely to get what you want at a price you can afford.
  • Learn how to look after your investment and display it to advantage and you will get the most out of it.
  • Learn about your own risk tolerance and investing will be a pleasure, not a worry.

Learning about art through books, magazines, exhibitions, courses and the internet can be a lifetime interest through which you can also meet like-minded people.

 

COLLECTING ART CAN BE A LOT OF FUN, A HOBBY, A SERIOUS INTEREST, OR A CAREER

It can be fun to buy your first piece of art.  Maybe you buy a painting because it looks fabulous in your first flat - it's a bit outrageous perhaps - it certainly gets friends talking and (in the nicest possible way) it's a bit of a status symbol.  It's original, unique to you.  It would be great if it went up in value, but you feel you've got your money's worth just by having it on the wall.

It may become a bit of a hobby and you decide to ask for a work of art for your birthdays (Christmases, anniversaries). You have a really enjoyable time looking for it, visiting galleries, lunching out, making a day of it. After a few years you find you have a small collection. Is there a theme? Do you want to build on that? (More on this later.) Its value to you is in the pleasure you get from it but you might want to find out if some of the first pieces you bought have gone up in value, and you might check that they are covered by your house insurance.

If investing in art is a serious interest, you are willing to invest in learning about art. As well as reading books, magazines and websites, and going to exhibitions, you talk to dealers and specialists, who begin to know you. You enjoy talks and lectures and maybe join the 'Friends' of your local art gallery and attend their events. You have an 'invest-in-art' savings account into which you put any extra money which comes your way - a gift, a bonus, an inheritance - or you put a fixed percentage of your income into it monthly. You may find yourself planning trips to important exhibitions or art fairs, planning your holidays to coincide with them (Miami anyone?). You may be selling one or two pieces in order to buy better ones. You insure them. You enjoy them. They are an expression of who you are, as much as of who the artists are. You keep track of their value and have a strategy for when to buy and when to sell. You don't have to be rich to do this.

Dealing in art and/or owning your own gallery is your dream job. There is no set career path in dealing in art, people come to it via many routes. A degree in an arts subject is one route, but marketing and public relations allied to a passionate interest in art is another. You are willing to get work experience in the gallery/museum/auction house field by volunteering or accepting quite low paid work, for which there might be quite a lot of competition. You are willing to move to get a job in the field. You are a good organiser, literate and numerate, and above all you are a good communicator.

Or perhaps your own collection gets too big! Or you offer to manage someone else's collection. You collect art work so successfully for your office that is becomes your job. Artists become gallery owners, and for many people it is a second career. You are doing something you love. (Read some biographies of art dealers for inspiration.)

 

YOU ARE INVESTING IN PEOPLE

For every outrageous Turner Prize winner (all part of the excitement!) there are hundreds, perhaps thousands of talented artists in this country striving to make an honest living for themselves and their families. It feels good to help a talented person by buying their work.

Art Fairs often have a special area for new or 'up and coming' artists to help them become known.  There are many grants and schemes and competitions to enable young artists to take part in the sometimes expensive business of exhibiting.  Many collectors enjoy the search for the next big name, and benefit from the generally lower prices of artworks in these settings, while giving support to new artists.

In your own small way, you can be apatron of the arts...

 

WHAT DO I CHOOSE?

The answer has to be things that you love.  They may be

  • Paintings
  • Drawings
  • Prints
  • Ceramics
  • Sculpture
  • Photography
  • Jewellery
  • Glass
  • Textiles
  • Furniture

 These, and more, can come under the heading of art. I plan to consider here mostly paintings, drawings, prints and ceramics, but there are many specialist books and exhibitions on all the others, including price guides, which may help you decide what you will collect.

There are practical considerations. Most of us have limited space for sculpture, and ceramics and glass have the disadvantage, especially if you have children or pets, of being easily damaged.

Of course you may collect several kinds of art, but there is a lot to be said for choosing one and becoming a bit of an expert on it.

Most important is to choose something you love. 'I don't know much about art, but I know what I like'. If these words have ever passed your lips, change them to 'I know a bit about art and I know what I like' and you will be on your way to becoming a successful collector and investor.

 

GETTING STARTED

You have decided -

  • You can invest in art
  • The level of interest you are at at present
  • The kind of art you will start your collection with (ceramics, paintings, prints..)

 

A FEW TIPS AT THIS POINT -

Start slow. Take your time to see what's out there.

Start small. Set yourself a sum you can afford to spend.

Start with what you really like.

Ask questions.

Make comparisons.

Keep an open mind.

Pick up gallery guides for your home area and any area you visit. The monthly guide 'Galleries' is essential, packed with information, free at many galleries, or you can subscribe and have it delivered.

Visit galleries. Ask to put your name on the mailing lists of galleries you like.         

Look at galleries online.

Take a look at art magazines. Buy one or two.

Consider what your personal investment objectives are - this will vary with your level of interest.

Enjoy!

 

WHEN SHOULD I BUY?

                 

  • As soon as you are confident that you know what you really like and can afford it.
  • The younger the better. In some European countries, and I am told, in Germany in particular, young people setting up home will often make a work of art a priority purchase.
  • Also, if you are young enough, and knowledgeable enough you may consider investing in art to create an additional pension fund.
  • On the other hand, it is never too late. Art makes a wonderful retirement present.
  • If you are older you may choose to invest in a collection to leave to your children, or to see your grandchild through university.
  • If your grandchildren have enough toys to fill Hamley's, you may like to invest in art as gifts to them, teaching them about the world of art and the world of finance at the same time - a good legacy.
  • A spokesman for Sotheby's commented that 'new young buyers in their forties' were energising London sales. Age is relative in the art world. (Some of the oldest artists are producing some of the youngest looking work.)
  • I once overheard a gallery owner advise 'If you like this artist's work, buy it now, because it will change. As I see how much my own work has changed over the years, I agree that this is good advice.

             

WHERE DO I BUY?

You may find a Michaelangleo drawing tucked in the pages of a book, or a Jacob Epstein bronze figure in you aunt's attic, or pick up a forgotten treasure at a country fleamarket, but it is more likely that you will buy from -

  • a gallery
  • an art fair
  • acollege degree show
  • an auction house
  • an artist's open studio
  • the internet

GALLERIES are the obvious place to start. Privately run and commercial galleries are free, hopefully friendly, and great places for information. Some can be intimidating, and you have to pass GOD (girl on door) to get in, but you can now enter some of these on the web, in the comfort of your own home and wearing your grubbiest clothes. Ask to be put on the mailing list if you like what they show (more on gallery 'etiquette' later). Never feel pressured to buy. Go in and look, talk about the art if you want, and leave - it's allowed! Prices are usually on the wall, and usually include VAT. Many galleries operate art loan schemes (more in my section 'How Can  Afford It'). Relax. Enjoy. Make repeat visits.

Public galleries sometimes have selling exhibitions, as do National Trust properties and similar institutions. These may be touring exhibitions of prizewinning work from competitions such as the RSW Sunday Times Watercolour Competition and the Jerwood Drawing Prize. Many of the works will be for sale, though you may have to wait till the tour of the exhibition ends before you can take your purchase home.

ART FAIRS are so easy, if you can handle seeing so much at once. Many galleries come together under one roof. At some, such as Battersea Art Fair, work is sold directly by the artists. There is usually an entrance fee of £5 -£10 (£15 at the Frieze Art Fair); sometimes if you have become known to a gallery - are on their mailing list or have previously bought from them - they will send you complimentary tickets. They are great places to make comparisons, and to find galleries which specialise in the kind of work you like. Check out if there is an area for new artists and/or dealers. It is even possible to arrange a personal shopper to assist you! There are often tours and talks. Ask questions - there is a lot of expertise there. Watch what is going on. Listen.

You can easily spend a whole day looking, and can usually take home any purchase there and then. Most fairs have a cafe where you can rest your feet, and your eyes.

COLLEGE DIPLOMA AND DEGREE SHOWS can be lively affairs. You may need an invitations. Phone and ask. Work may not be cheap (all the students are hoping that Charles Saatchi will come along) but prices will be negotiable. Prices are in fact negotiable in most venues. Keep an open mind about work you don't understand, and, as ever if you want to know - ask. Be prepared to reframe the work if necessary - students tend to do this as cheaply as they can. You may have to wait till the end of the show to collect the artwork, as in many shows.

AUCTION HOUSES can be mystifying if you are not used to them, though some television programmes have familiarised people with the procedures.

Catalogues and preview days are the means of looking to see if there is anything which interests you before the actual sale, and getting a good look and asking questions of the staff before you commit yourself. So, if you find something you really like and decide to bid.. you may have to register to bid (usually only at the larger auction houses) and you need to know the lot number which will be attached to the piece or 'lot', and the approximate time it will come up - ask staff, and give yourself plenty of leeway - you don't want to arrive too late! It is not easy to bid by accident, in spite of all the comedy sketches you have seen, but it is easy to get a bit carried away by the excitement as the bids go quickly up. It's all part of the fun provided you stick to your pre considered limit - if you can't, best buy your art somewhere else!

Auctions do take up your time and sales may be during your working day, but you can leave a bid with staff if you can't be there yourself. Catalogues by the big auction houses give details of how to do this, how to bid by post, and full terms and conditions. The catalogues may well be illustrated and cost £20 or more, and are sold at second hand bookfairs for a few pounds - no use for a particular sale, but useful for your research.

Look out too for charity auctions.

 

OPEN STUDIOS allow you to discuss the art with the maker, and perhaps see them at work. The atmosphere is usually relaxed and friendly. The studios are often open as part of an Art Week or other local festival. Craftsmen may demonstrate techniques. It is all a great deal more intimate than the other settings in which you might buy art. You may have to ask the price, and, as ever, it may be negotiable, but in fairness to her galleries, and to maintain her good relationship with her gallery owners, the artist may be understandably reluctant to undercut his prices. Artists do have unseen overheads like photography and printing, insurance, transport, packing and framing - so don't drive too hard a bargain!

 

ONLINE. The internet is fantastic for looking and learning. From the seller's point of view a website is an advertisement, a catalogue, a window, a way of reaching people who, for whatever reason, may never visit a gallery. It acts like an assistant available 24 hours a day, who can take messages, and who doesn't intimidate the client.

For the purchaser, never was 'caveat emptor' (buyer beware) more relevant. To buy art with confidence you have to know the seller's reputation and examine the goods. You may be buying work sight unseen really. Many reputable galleries are online and do business this way, but it is not recommended for the inexperienced, and the jury still seems to be out on whether or not the internet will radically change the way people buy art.

The art trade is a largely unregulated and fragmented industry and the internet is probably the most unregulated and most fragmented part of it. Caveat emptor.

As a learning tool it is brilliant and you can explore the art world and great art galleries around the world in a way unimagineable a generation ago. It has never been easier to be well informed.

 

HOW CAN I AFFORD IT?

  • Finding the money
  • It's too expensive
  • How can I tell if the price is right?
  • Is the price negotiable?

FINDING THE MONEY

You can use savings, start to save, borrow, ask for it as a gift, think of ways to earn more, use someone else's money, or sell something you don't want. A friend of mine is starting her 'invest in art' fund by selling knick knacks which she has inherited but does not like or want, to buy a painting which she does want. Asking for an art work, or for money towards on for birthdays etc has already been mentioned and often pleases the giver as much as the recipient, solving the problem of what to buy for years to come.

Many galleries operate a scheme called Own Art. This is a loan to buy art, not to lend the art works to you. Funded by the Arts Councils it offers interest free loans over 10 months on works which cost up to £2000 - worth taking advantage of even if you have the purchase price, and excellent if the work you simply must have is likely to be sold before you can get the money together. The Arts Council of Wales have run their similar scheme 'Principality Collectorplan' for 21 years.

Some galleries run their own interest free credit schemes - it's always worth asking. Astute use of your credit card is of course another possibility.

If all else fails think of ways of collecting using someone else's money. You might persuade your boss that business would benefit if the company image was updated by displaying some exciting art in reception, or that staff morale would improve if original art was displayed in the staff room. You offer to do the research. You end up gaining collecting experience, and looking at art works you love every day. The same approach might work with a hotel, restaurant or other venue. There are many consultants who advise on corporate collecting.

      

IT'S TOO EXPENSIVE

If you think art is too expensive, do ask yourself 'compared to what?' The car which loses value as soon as you drive it from the showroom? The designer shoes which will be out of fashion next year? The new kitchen, scuffed within weeks? I'd rather have that marvellous ceramic pot than another sweater, and a stunning painting on the wall, which might increase in value over the years, and a fairly standard kitchen. That's my choice. I have on occasion stretched myself to buy something beautiful and can honestly say I've never regretted it (as I regret that decision to buy the cooker!)

It has never been easier to compare the prices for a particular artist's work; some galleries state their price range in their advertising material, and art fairs will often give a price range.

Only you can actually decide though....