Invest in art: How to get into a millionaire’s market
The art market is quite like the stock market. Prices can fall as well as rise.
Art can be a great investment if it’s purchased in a smart way: returns vary, but according to the AMR Art 100 Index, art prices have increased at a compound annual growth rate of 8.0% over the past 25 years. We gathered advice by experts in the field to find out ways to start investing in art and turn an art collection into a valuable asset.
Tamen, ‘HOPE’ , 80 x 120 cm, Acrylic on Canvas
• Never buy a poor work based solely on an artist’s reputation or fame. A bad picture is always going to be a difficult seller in any market – no matter who painted it – whereas a piece of quality will always find a buyer.
Andre Nadal, ‘BC90118’, 100 x 100 cm, Oil on Canvas
• Presentation is hugely important. The right framing and a good clean can make a big difference, while a good restorer can bring a painting back to life. Making this extra investment, when required, can pay big dividends in the sale room. To know a piece of art you have to see it in the flesh, to touch it, even smell it! The back of a painting can often tell you more than the front, and nine times out of 10 your first instinct about a picture is the right one. So don’t be afraid to ask to take a painting off the wall and hold it in your hands. You should get to know your painting as well as you can before you buy it.
Dusk After the Thunderstorm by Zhao Yanan & Zheng Qiaosi, 150 x 180 cm, Oil on Canvas
• Cultivate your taste, make considered choices but trust your instinct, and if you need professional advice don’t be afraid to ask. When thinking about buying a painting ask: ‘Is it a good example by the artist? What is the condition? Will I need to spend money getting it reframed? Where will it hang?’ Investors should think long-term. Buy the best you can afford instead of mediocre examples.
Yayoi Kusama, ‘Pumpkin 1984’, 30 x 40 cm, Silkscreen Print
• Sometimes trust in the traditional aesthetic of collecting, rather than investing, and buy paintings which give you pleasure. Real quality stands the test of time and endures beyond changing trends in taste.
Chang Lei, ‘Color on Silk’, 78 x 58 cm, Oil on Silk
• Buying art involves an emotional and financial commitment – it’s rarely one without the other. I think it’s therefore important to buy what you like, but also to know what you’re buying. Is it a good example by the artist? Is it sensibly priced? How is the market performing? Don’t be afraid to make mistakes, because you will. Buy the best work of a lesser artist than the worst work of a famous artist. Be willing to buy the best examples you can in any given category. Don’t buy “names” just because everyone else is buying them. Dare to be different.
