INVESTING

 

Art gives safety from a total loss and is a reasonable invest especially for long term investors with patience.

 

A 1998 study from the New York University about art as an investment produced surprising results. It showed that art is both profitable and reliable as it returned on average +10.4%. Furthermore it proved to be protective against your individual portfolio volatility. As discussed later on our investment section, investing in just a single artpiece from a single artist or brand is considered as risky. Instead we recommend buying a diversified collection from various artist, styles and regions. If you are investing more that 10000 USD on a single artpiece you should keep track of the previous price developments of the artist. If his/her prices are volatile avoid an invest if you want to be on the safe side.

 

Factors

The popularity of an artist can be measured by three indicators. However his importance is not necessarily linked to the quality of his art and almost never linked to the profit you can make from  his paintings.

 

No:1

Overall prominence.

 

 

No:2

Representation in well known collections such as private collections or those of important museums.

 

No:3

Representation in well known galleries.

 

 

Why investing in a well known artist might not be the best idea.

 

 

Think of artists as if they were the stock of a company. If the stock increases by ten, your invest also goes up ten times. But it is almost impossible that well known companies like Amazon or Coca-Cola will increase their value by ten during the lifetime of just a single generation. Simply because they are already dominating their market field and there is simply not 10 times more space to expand on.

 

The same rules go for famous artists.

 

Conclusion

 

Buying from a young, not well known artist is the way to choose?

 

First you have to evaluate which artists are promising and which are not.

 

 

No:1

 

Is the artist´s concept unique?

 

What are his thoughts about his art and how he would like to further develop it?

 

No:2

Is his style consistent?

 

Consistency in style makes the artist more recognizable and easier to distribute.

 

No:3

Can you recognize the artist by his style?

 

Both a consistent and recognizable style is highly recommended.

 

No:4

How large is his artwork output?

 

Almost all great artists have in common that they have a stable and large output.

 

No:5

How strong is his will to get attention/ publicity?

 

Without superb marketing and a strong will to get attention the chances of an outstanding invest tends towards zero.

Ask for a strategy. It has to be convincing.

 

No:6

Is he using advanced or unique methods creating his art?

 

No:7

The artists nature.

 

Investing in art is just like every other invest. Look for mentally strong, consistent artists with the ability to reinvest your invest into their long term future or brand.

 

Part 2

 

Buy from the right artist.

 

Buying one or several one of a kind pieces is a reasonable way to invest. It doesn't matter if it is a print, a sculpture or an oil painting.

If you are looking after an edition always ask how much were made.

Here is an example:

If an artist made 700 smaller editions from an original and all his previous editions were limited to 20 pieces, the one you were just about to pick will be the least valuable of his whole collection.

 

THE EDITION PROBLEM

 

Only buy editions made by the artist himself. No reprints or some sort of verified artwork that is made after the death of the artist.

 

Note:

Look at the volume of editions always in relation to the previous volumes. The less are available the better.

 

 

CERTIFICATES

 

Reasons why you should insist on a certificate

 

If your painting gets damaged, insurance companies need trustful data that proves that you are the owner of the artwork.

 

If you want to sell your artwork, certificates prove your ownership.

 

A certificate proofs that you received an original.

 

Note:

A proper certificate contains the signature of the artist.

 

 

TRANSPORT

 

Transportation to your residence should be arranged by the gallery. A good gallery is covered by a shipping insurance.

 

 

Long Term Storage

It might be your decision to store your artworks instead of integrating them into your living environment.

 

For a proper Storage

 

No:1

 

Avoid touching the surface. If you have to to do so, use jewelry gloves.

 

No:2

Avoid too much moisture, smoke and direct sunlight exposure. A consistent temperature is also recommended.

 

No:3

Keep your prints completely covered by clear, dust free plastic foil.

 

No:4

How museums treat oil paintings:

 

Constant

+21 degrees celsius

45% humidity

 

No:5

Lighting should only be done by UV-radiation free lights such as LED lamps.

 

No:6

Be sure that the storage area is free of pests.

 

No:7

While prints can be stored in plastic bags, oil paintings should be stored in untreated not airtight wood boxes.

 

No:8

The storage area must not consist of humidity blocking materials such as humidity blocking wall paint.