Art as an investment is increasingly being considered as an alternative asset, but the majority of South Africans are still not sure how to enter the art game. Anyone can buy and collect art intelligently. All you need is a love and appreciation of fine art (paintings, sculpture, photography, print making and handicraft), a desire to collect and the willingness to learn a few techniques that will allow you to evaluate art pieces.
There are four golden rules when buying art; define, select, research and buy. This will give you enough confidence to make an educated purchase.
1. Define
When defining what you like use terms that help dealers and other fine arts professionals pinpoint your collecting style. This requires some research on your part. Visit galleries, go online and research the artists and techniques used and learn some of the art jargon.
The next step in defining what you are looking for is to find art that fits into your budget. Have a clear idea of how much you are willing to spend on a piece and stick to it. Don’t let pushy dealers thrust pieces onto you that are way out of your budget and aren’t even to your liking. You will begin to hate the piece and regret the grudge purchase.
Most art dealers are highly professional and will take the time to get to know you better and respect your likes and dislikes. They will present you with the best pieces for viewing and possible purchase.
You don’t necessarily have to use an art dealer; if you have the time and patience you can source your own purchases. Be aware that the art market can become hard to understand and complicated as it is full of products that look and sound like original art, but are actually reproductions. It may take some practice to distinguish originals from reproductions or copies. Explore and discover the vast variety of art for sale; respond to it and begin to focus on your preferences.
2. Select
The art world is filled with opinions about how to collect, which artists are hot or not, what to buy, where to buy and how much to pay. Basically you need to make up your own mind; firstly understand, digest and analyse the information and then either act on or ignore what art critics tell you.
Shopping for art is like shopping for any other product; you can find it in many places at different prices. No matter what kinds or types of art interests you, you have to know who sells it in order to get the best quality and value for your money. Find out where and who sells your favourite art and do a comparison.
Art dealers and art galleries are very much a part of the art business. Finding the best art means learning who the best and most qualified dealers are. Once found, you will have to learn how to interact, communicate and negotiate with this dealer. You will have to get to know them and understand how they operate.
As simple as it may sound; the best customers get the best art for their collections. Being favourably positioned within the art market hierarchy ensures that you get special considerations when fresh and new art comes onto the market. Therefore, your dealer should become your best friend.
3. Research
Knowing how to locate and evaluate information about art and artists is the cornerstone of intelligent buying. Every piece of art can be evaluated in terms of its basic physical characteristics that impact on the value and desirability of the art work. Next gather and analyse data about the artist’s career accomplishments. The ownership history is also important as it often affects its value and collectability appeal. Piece together the history, evaluate it, record it, and maintain proper files on every work of art you own.
Two of the most important, least understood, and most abused documents in the art business are the Certificate of Authenticity (or COA) and the Appraisal. Learn how to distinguish a valid COA and Appraisal from a meaningless one.
The condition of a work of art affects the value and experienced collectors prefer works in perfect condition and not susceptible to problems in the future. Care for your works of art so that they don’t deteriorate over time.
Forgeries, fakes and scams are a small, but significant part of the art business. Learn how to spot forgeries, how forgers operate, and how to avoid being taken advantage of.
4. Buy
Art prices fluctuate and this is due to the liquidity of art and the different ways art is valued. The markets for different types of art differ due to factors such as stability, longevity, supply, demand, how accomplished the artist is, how broad collectors bases are, fashion, and what influential art experts do and say.
Every work of art has an asking price, evaluate this price by looking at factors such as the artist’s sales history and the type of art or artist’s potential future in the marketplace.
Negotiate the buy, as art prices are often flexible. Novice art buyers should consider buying art at auction. But first attend a few auctions to watch before tackling the auction arena.
When building an art collection, the whole is always greater than the sum of the parts. One work of art can enhance the value of the others and maximise the individual and overall values of the art that you already own.
Buying art intelligently not only becomes second nature, it also becomes an adventure. Once you get to know how things work, your quest for knowledge will evolve into detective work. Having this new found understanding of art not only increases your enjoyment of art, but also of the art world in general.
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