Tag Archives: investment

A Guide in How to Invest in the Art Market Sensibly

Investing in the Art Market can be lucrative but like with all investments, there is risk involved.  This guide in how to invest in the Art Market is to help you make informed choices.

As small investors, we are probably not in the league of buying a Picasso or Monet.  However, there are still good investments to be made with lesser known and up and coming artists.  The secret is picking the right ones.

What should I Invest in?

I think to begin with we need to have an idea of what is selling and which markets are the most active at this time.  One of the ways to do this is to look at the main auction houses to give us a clue.  A recent study of paintings sold at Christie’s and Sotheby’s discovered that Impressionist and modern art accounted for about 30% of total sales.  25% was represented by 19th century paintings.  Post-War and Contemporary was 16% and lagging behind at 5% were Old Masters.

Henri Hayden ~ Browse & Darby
Henri Hayden ~ Browse & Darby

If we compare the results from the auction houses with the Mei Moses Art indexes ( widely recognized as the pre-eminent measure of the state of the art market) we will get an idea of what will give us the best return.  Researching the Mei Moses index we find that the Post-War Contemporary Index out performs the World Impressionist Modern Index by some margin.  This is especially true over the last 10 years.  Another index, The Art 100 indices also backs up these findings.

This gives us an idea of where the market is at this time.  However, we must remember that things can change.  What is popular now can very quickly become out of favour.  Therefore it is important to keep an eye on trends.

Continue reading A Guide in How to Invest in the Art Market Sensibly

Buying Art? ~ Buy it because you love it, not for any other reason.

Clients often ask me as they consider buying art if it is likely to go up in value.  My answer is always the same.  “Buy it because you love it not for any other reason.”

I am always surprised by this question.  When you buy a car, a sofa or furniture of any kind for the house, you do not expect the value to go up after time.  Rather, the odds are that it will decrease in value.  You surely have bought your car, furniture etc because you like it and it suits your purpose and for no other reason.

Why does the thinking change when buying Art?

Understanding why when buying art the thinking changes is curious.  It’s as if the re-sale value is the most important criteria when really it should come way down the list.

It’s always a bonus if a piece of art I have acquired goes up in value, but never the main reason for purchasing the piece in the first place. Continue reading Buying Art? ~ Buy it because you love it, not for any other reason.