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Contemporary Art: How to buy for pleasure and profit
The fine art of collecting – how to collect contemporary art for pleasure and benefit
With the Internet making it easier than ever for original works of art, it is relatively easy these days to create a large collection future.
While the prices of unique works are increasingly beyond the reach of many, limited edition, say, 150 more are economically and widely accessible, making it possible to acquire pieces by important artists at affordable prices.
There may be a disadvantage, however. While beating little pleasure that can bring a signed employment in general, the higher is an issue, the less likely they are to appreciate in value quickly – or even substantially.
However, the contemporary art market is full of contradictions, and with growing demand at all levels, recent trends this assumption has often been overturned.
As an obvious example, recorded in early Damien Hirst for Eyestorm constantly looking for $ 10,000 – $ 16,000 in the re-sale, a gain very systematic reviews of the original price. More recently, Banksy prints of other urban artists have proved equally lucrative.
In other words, is becoming increasingly possible – though by no means a certainty – to make substantial profits quickly with relatively little expense, but the trick as always, is knowing what to buy and sell.
Buying for quick profits
The art world has a curious attitude toward speculation. Buying and selling for profit is only considered a simple yet unpleasant enough, even though the art market is dedicated to this search. Maybe it's because art has a dual nature, interestingly, the combination of aesthetic and cultural value with a market value which can reach amounts far high.
In any case, it would be difficult to consistently make money in art without a genuine appreciation and understanding what one is going to stand the test of time. And many dealers are themselves collectors, at least in part to finance their own acquisitions through trade.
However, it is true that, contemporary art if it shows the remarkable performance of the investment, also become an attractive proposition for a wide range of buyers.
In general, unskilled speculators often trade in the work of artists whose frequent media coverage makes them well known to the public. And as evidenced by two examples above – Hirst and Banksy – this certainly can reap great benefits.
But it is also important to remember that in a world increasingly driven by the novelty, the next most important thing is usually just around the corner. "Famous artists' often take on the nature of a trend, and fashions may become obsolete with dramatic speed. Knowing when to sell such work is vital.
Ups and downs in the market are not related only with well-known artists with public profiles, of course. The world of art itself often generates its own "flavor of the month" buzzing. A few years ago, Martin Kippenberger prices rose dramatically, then even with the same speed. contemporary art from China and India have already undergone the same sort of niche markets trendy.
Clearly, money can be made through quickly identify and speculate on trends, but you must have your finger on the pulse steady. Knowing what is essential is considered interesting, but also need to determine how long this excitement is actually going to last.
Investment long term – knowing artists
When it comes to collecting art, you often read the following: the surest way to create a collection is simply to buy work that you really like.
This recommendation seems tailor-made to protect the collectors less knowledge of potential disappointment, and perhaps even encourage the sale of less desirable work. Buy a piece I love you and if the value is has done nothing wrong. If you win on price, that's a bonus.
In modernedition, prefer to buy art look a little different.
Of course it's important to buy the job you have and see.
But that contemporary art is presented real investment opportunities, it is logical to think carefully about what to add to your collection. After all, look at almost any online art site, and you will see that prices are fairly standard parts often equivalent to what you would pay to work with much greater investment potential.
Although obviously no way to predict with certainty the future value, the key is to familiarize yourself as much as possible with the background of the artists who are attracted.
How much long have they been practicing? Is there a theme or thought process behind your work? Has consistently evolved over the years?
Artists with at least some degree of complexity and persistence of vision are generally more likely to rise steadily in the assessment and price.
You also want to know if the artist has achieved some recognition. Is your work into the hands of collectors, galleries or museums? Have you been exposed constantly?
Opinion training is another important factor to help determine the long-term prospects of an artist. If a large number of critics and scholars agree in their high opinion an artist, this is another good sign that they retain or even gain value.
mid-career artists can be judged much more easily in connection with their work current, and after all, good art is not just about something that happens to look good on a wall.
It is a kind of commitment and a clear path of development. If all these factors are present, buying probably makes sense. Limited editions of Jeff Koons, for example, are relatively inexpensive 5 or 6 years ago, but with recent record prices for major works have also soared in value.
Even artists who disappear temporarily from the radar of the art market is much more likely to recur at a later time if they show the "right kind" of commitment and passion.
artists emerging and the Schlock of the new
New young artists are often ferment of ideas, many of which may seem novel or even radical, but the problem is still not have to prove itself long term.
That said, you can certainly get an idea of potential by applying the criteria above. It is especially important to determine if they express something genuine or simply using methods that could, over time, increasingly be seen only as a gimmick.
Of course, if you're looking to make a high return on investment, quickly emerging artists can be very lucrative.
In these cases, it is probably a good idea to invest in a piece as substantial as possible, although as we have seen, editions and multiples can also result from money for others.
But keeping a close eye on auction prices and signs of fatigue in the market. These artists may be the talk of the town in these moments, but to fulfill their initial promise?
If, after a few years, his work seems stagnant and prices appear to have stabilized or even decline, is time to think twice about long-term attractiveness. On the other hand, if they do continue to build a great job, any part purchased by relatively low amounts at the beginning of their careers should constantly increase in value.
Broadcast your bets
If you are lucky enough to have large sums of money to spend on art, new artists, as we have seen, can produce a significant return on investment.
But perhaps the best way to offset risk of never able to meet the expectation is to 'spread betting' through a selection of up and coming names.
Acquisition the work of several different artists may mean settling for less significant works, but with the right kind of knowledge – and luck – hitting a boat remains potentially viable.
If you've done your research, chances are pretty good that at least one – and hopefully more – of its selected artists can win in the survey.
And given the soaring prices of contemporary art, if that happens, the eventual benefits could far exceed the cost of purchases initial, although other work does not make the grade.
It is worth remembering that many famous collectors buy huge amounts of work by new, 'promising' artists.
Charles Saatchi is a particularly good example, and although it is famous for the apparent strength of his collection, a considerable proportion of the artists has purchased in recent years have faded into oblivion (not see these listed on the website).
However, the phenomenal rise in value of those who went to beome the big names – Peter Doig, for example – have reaped many millions of dollars in overall profit.
And if those are the prizes, probably can afford to make the odd error.
About the Author
Mike writes for modernedition.com, a contemporary art resource which specializes in information and news on contemporary art as well as the sale of limited editions and multiples by leading artists.
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