Valuable Art

What makes a piece of art worth so much money? When people think about buying art the first word that comes to mind is "overpriced." This in many cases is true. It is doubtful that many of us are willing, and/or able to buy a Van Gogh painting for $28 million. Much work by "big name" artists is out of reach for most buyers. However a point that must be remembered are the values of lesser known artists' works can increase and often at greater rates than those of the big names Collecting art can be one of the most enjoyable ways to invest your money. A beautiful work can provide its owner with years of viewing pleasure and it may also give monetary joys as well. It is possible to not only collect, but also invest in art. As in any other field, research must be done before the investment is made. Profits can be made through the purchase and sale of art, but it is also easy to lose money doing so. The trick of course is predicting which works of art will increase in value. The problem with this is that there are so many artists in the world and finding the one that will become the next Rembrandt or Picasso can be next to impossible. However, this does not mean that you cannot find works that will increase in value; they are out there. When you start collecting art, you should not think about the investment potential in it. Buy it because you like it. The reason you collect art is because you love it, you understand it, and it's going to enhance your life. Fine art is becoming more and more a part of the public psyche. There are art galleries and art stores, books on art, magazines devoted to every facet of the subject, newspapers with art sections and now, even a cable TV station. The overall demand for artwork is booming. On the supply side, the supply of fine artwork is absolutely limited. With notable exceptions like Bushmen art, Australian Aborigine art and Native American art, investment-quality artwork generally implies a dead artist. As more of this limited supply is purchased, there is progressively less available for sale. So, the remaining demand must be satisfied out of this limited and now-decreased supply. It looks like the perfect investment: An increasing demand coupled with an absolutely limited supply. Collecting art for the purpose of investment must be carefully considered. Art is a long-term investment, and can be a hedge against inflation, but you must understand that most appreciation occurs over time. It is very important to like the art you buy since you will probably have it for a significant period of time. What determines the value of a painting or a work of art? A simple answer would be that it is determined by what the buyer is willing to pay for the work and what the current owner is willing to sell the work for. Secondly the economic principle of supply and demand applies: when an artist, culture or generation dies, the supply ceases and if the demand increases, it results in higher prices. If you are interested in "the latest rage" in the art world, you will have to pay top dollar for it. If a particular style has become fashionable its prices go through the roof. If you happen to know what art will be the next rage, you have a huge advantage over everyone else. Art has an immediate and practical advantage over other types of investments: - Art can be used to furnish a home or a business office. - Art may provide an aesthetic element or simple comfort to an interior. - Art may also offer an instant pedigree (in the home) or instant credibility (in the office). - Investing in art takes place over a longer time span at a moderate level of risk. Buy a work of art primarily because you like it, and because it is an expression of your tastes. The profit potential should be a secondary consideration. What are the biggest mistakes a new collector can make? - If you are not well informed you may buy a piece which doesn’t have the kind of depth a work of investment art should have or you might be too conservative and miss the opportunity to buy something only to realise later that you should have bought it. It might become available again, but at a higher price or at a time when it does not suit your budget. - Acquiring a piece in desperate need of restoration without knowing it - Framing a work by a framer of ill repute - Buying a watercolour and displaying it in the brightest spot in the room to impress your friends - To never pay attention to the condition of your collection -the conservation of a collection requires regular inspections for possible damage caused by moisture or insects - Having no insurance cover on your valuable works Conclusion When looking at investment art, it's vital that you buy a piece that you love. There's no point in spending loads of money on an artwork if it just ends up sitting in your attic. Buying art can be a tricky business. There are many so called 'experts' that will try and convince you what to buy and what will be the new craze. We often get asked which Bushmen artist is going to be the next Picasso or which Bushmen painting they should buy for investment purposes. It is difficult to say exactly what is going to happen but Bushmen art will always have a huge advantage over other art categories. Bushmen art is a visual diary portraying the lives of the few remaining Bushmen. Their traditions and culture are beginning to fade in the fast encroaching westernized world. Art has become a means to preserve their heritage and culture in this difficult, changing time.