Investing in art - your thoughts?

Susievintage

Casting around for ways to safeguard my money (anything rather than spend it on bankers' bonuses yet again), I thought I might try the art market.

I've had a quick look at the Sotheby's website, just to see how the whole process works, and it seems that they charge (wait for it) 25% "Buyer's Premium" on any purchases. Can that be right?

Has anyone else dipped a toe into art investing? Any warnings, war stories or recommendations? I'm not talking original Rembrandts here - up to about GBP 15,000.

Myrmidon_J

Investing in art, collectibles (e.g. stamps, souvenirs), consumables (fine wine), etc. is a legitimate investment strategy. However, in my opinion it is most effective when considered as just a small fraction of a widely diversified portfolio - probably valued in the tens of millions.

There are several factors that make investing in art unattractive for smaller investors:

Costs - as you have discovered, these can be extortionate; not only in 'dealing', but in terms of 'holding' and 'maintaining',

Expertise - a great deal of specialist knowledge is usually required in order to stand a chance of turning a profit,

Income - whilst you possess the item in question, art / collectibles do not (generally) deliver an income!

Liquidity - it may not be possible to realise the value of your investment quickly, or indeed, at all, for long periods,

Value - may fluctuate wildly as styles and tastes change,

I would not therefore recommend art as a 'safeguard' against capital loss, nor as an isolated investment strategy.

Rachel_Jones

Art can be good long-term. I have bought over the years and always make sure the artist/sculptor is an Academician - either member of the Royal Academy or one of the regional Academies such as the Royal West of England Academy in Bristol - this gives confidence in quality of work and reputation of artist

Catalogues of annual exhibitions give contact details and, if you approach the artist direct, it is often possible to buy at very good price as they do not have the minimum of 50% commission which the galleries take.

Probably means going to exhibitions to see what you really like and get a feel for prices and then visiting some artists in their studios but this is really enjoyable.

I only buy what I am happy to live with but over the years have seen my collection increase in value more than any other investment (except buy-to-let properties both bought and sold at the 'right times')

I have sold some things through auction houses and, after their costs, still been very happy with profit as well as enjoying the pieces in the meantime.

the_walking_dude

only buy art as an investment if you know alot about it and only buy what you love, if you love it some one else probably will too and will probably be prepared to pay you a fair price for it.

dopester

I'm going to repeat a post I made a couple of months ago.

When more people are met with changed negative financial circumstances, they often bring stuff to market to raise cash. When they accept less for them than similar pieces sold at other times.. it lowers the values for owners of all similar antiques, even when they don't have them up for sale.

That is how markets work. The general values of anything are decided by those who are actively buying and selling, for not just themselves, but for the entire market, owners and non-owners.

You have to ask yourself whether it is possible many more people will be trying to sell off their valuables and antiques in order to raise money, and how strong the buying side of the market will be for prices to be achieved, with a view to the future.

tampabay.com

Saturday, May 16, 2009

KANSAS CITY, Mo. — Although they're not mind readers, personal property appraisers know when they pick up the phone that each caller is eventually going to ask the same question: "What's it worth?"

And in this shaky economy, the phones ring often.



"There's an urgency to sell things because a lot of people are nervous about losing a job," says Sharon Ring Rollins of Sugar Land, Texas, vice chairwoman of the American Society of Appraisers, one of the three main organizations that accredit appraisers.

"I have had a great uptick in appraisals," says Jay Loiselle, an appraiser who specializes in furniture and paintings in Tampa. "Everyone's selling. Not that many are buying."

Knowing what your piece is worth and pricing it correctly doesn't guarantee a quick sale, however.

The value of antiques in this recession is down 25 to 75 percent in many categories. "Antiques of value are following the same formula as housing," Hilbert says. "Everything has gone down."

Loiselle agrees, but says the news is good for some. As more people choose to part with their treasurers, he says, "people with money are having a field day."

telegram.com
Sunday, June 7, 2009
By Katie Nelson THE ASSOCIATED PRESS
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WOODBURY, Conn. — Walking what used to be a busy trail of antiques shops in this western Connecticut hamlet now is a lonely, quiet trek.

Throughout New England and the U.S., antiques dealers are having a difficult time drawing customers, canceling major shows from Boston to Minnesota as would-be buyers scale back on purchases during the worst economic downturn since the Great Depression.

“It’s awful,” said Ann Beckman, co-owner of Grass Roots Reruns, one of more than two dozen shops operating in a row of historic Woodbury homes and rustic barns. “A lot of people have just dropped out. You have to be able to weather the storm.”

A multimillion-dollar industry dominated by mom-and-pop shops and part-time enthusiasts, antiques dealers across the country are feeling the pinch.

bendix

I started collecting modern first edition books many years ago and even worked for a while on a magazine dedicated to the subject, so I got to know my subject. I consider my collection an important, though small part of my overall networth. I've focused on collectable authors like Graham Greene, Iris Murdoch, PG Wodehouse, Mervyn Peake etc, but also buy things which I see when I know they are underpriced and which I know I can get a much higher price for.

I found one first edition of a very early PG Wodehouse book in a shop in New Zealand, for around £1.50. I knew there was something special about it, and have since had it valued at around £1000. Another Greene title was picked up for £5 - I could easily get £400-£500 for it today.

The hard thing, though, will be parting with them!

pandora205

This is a very useful book if you want to get serious about investing in art.
http://www.amazon.co.uk/Art-Buying-Alan-S-Bamberger/dp/1933295201/ref=sr_1_1?ie=UTF8&qid=1250152604&sr=8-1