Yesterday, we looked through the many ways that wrong art collecting methods can lead to financial losses.
But money can also be gained in the art market, with a structured process.
A true passion for art in itself is the first requirement on your road to art collecting success.
That love of art will assist you as you make good judgements over an artist's potential value, as well as providing you the self-control to hang on to them.
15-20 years being the optimum time period to get huge returns on your art investments.
The bottom line is not to be greedy when it's time to sell. Remember what Lord Rothschild said when building his empire: "I always sold to soon".
ART COLLECTING CHECKLIST
- Buy into the program.
Imagine if you had actually gotten one work from every program at the Daniel Weinberg Gallery in L.A throughout the late 1980s.
You would certainly have wound up with a Robert Gober, a John Chamberlain, an Eric Fischl, and also a Robert Ryman.
Build relationships with your own with an art dealer that has a history of finding victors in previous eras, such as Paula Cooper, or much more just recently David Zwirner, James Cohan, Adam Baumgold and also Zach Feuer, and watch your art collecting value rise.
- Get the queen. By sacrificing your pawn.
Usually, to make the above method viable, an art collector locates him- or herself needing to purchase a work or 2 by a gallery's much less renowned artists.
Years back, some thought that an excellent way to come close to the Mary Boone Gallery to get a work by Fischl or Schnabel was to also acquire a Gary Stephen or a Michael McClard.
Also the excellent Leo Castelli encouraged those looking for a Lichtenstein, Johns or Stella if they asked to buy a Cletus Boyer, Mia Westerlund Roosen and even a Keith Sonnier.
You have to put yourself into the mindset of the art dealer in order to get in front of the queue for those highly prized artworks you desire.
- Buy from an estate of the artist.
Be it Sam Francis or Andy Warhol, fortunate are art collectors and art dealers that could get close to a artist's estate, and be able to cherry pick from the chest of paintings the artist has left behind.
Estates commonly offer art listed below market for a number of factors, including to avoid speculation.
Their method is to position art works with high-level art collectors that will be certain to keep the work as opposed to deliver it off to public auction in a mode of art flipping.
If you are lucky enough to be able to obtain art from an estate, manage your opportunity properly - there are no 2nd chances.
- Buy limited edition prints.
Even though art prints have less investment opportunities than paintings, they do offer chances for appreciation.
And when it comes to prints its all about the profile of the artist and the edition type.
Make sure you invest in only limited edition prints with a maximum edition size of 500. Anymore and its less likely to be deemed as a valuable investment.
More important however are artist proofs, as they come directly from the hands of the artist.
- Buy artworks that are passed at auction.
A risky tactic but very rewarding when it pulls off. When an art work cannot make its reserve, anybody could come to the auction house with an offer to buy it after the sale.
On the negative side, the whole art world knows that the work failed to sell at auction and thus hangs a scarlet letter "B" (for burned) on it, declaring it was either substandard, blatantly over-estimated, had uncertain profile or other issues.
If you make a decision that it's a high quality work, go for it and make the auction house a lowball deal.
If the house approves, not only will you get a great bargain, but also nobody will know just what you spent for it. When you aim to sell one day, that will certainly prove very advantageous.
- Buy art directly from the artist.
Some artists are extremely loyal to their dealers. There are those ...
If you choose to work with an artist who sells direct, be aware that most of them like to be paid in cash.
You 'd be shocked at some of the big names who will bend the rules to pick up spending money for vacations, greens fees and fancy restaurants.
Remember, I'm not advocating that you do anything illegal. Just be cool about it so neither the artist or his dealer are embarrassed.
Under certain circumstances, some dealers are willing to look the other way when an artist makes deals on the side, such as Andy Warhol's arrangement with Leo Castelli.
- Buy before an artist switches galleries.
Artists are human. When the possibility to show at a more major gallery comes their direction, chances are they're most likely to take it.
Attempt to get a painting prior to the transition ends up being official.
In one recent instance, Robert Bechtle rejected a 30-year connection with O.K. Harris for greener pastures at Gladstone Gallery.
By showing at a gallery with a more powerful online reputation, Bechtle's job was seen in a fresh context, which assisted his status, this without mentioning what it did to his prices.
- Piggyback the museums board.
If you intend to make a sharp financial investment, simply figure out which artist your regional museum's trustees are presently obtaining for their individual collections. You will certainly discover that although it's a conflict of interest, a "value-increasing" program of that certain painter, at that certain gallery, is seldom much behind.
Years back, the San Francisco Gallery of Modern Art held a big study of Sigmar Polke's current portfolio.
While reviewing the wall surface tags, I discovered that an excellent percentage of the program was had by participants of the board.