Investing in art on a budget.
June 30, 2012 1:58 PM Subscribe
How can I find and buy art as an investment but without breaking the bank?
I'd like to buy works of art as a long-term investment. They don't have to be big and they don't have to be by famous artists, but since I'll be living with them, I'd quite like them to be nice to look at rather than 'interesting'. Let's say that my budget would be around one to two thousand Euros/Pounds/Dollars per item. This is going to be a once a year (or less) event, so I am happy (nay, I want) to do some research to make sure I am making a sensible choice, but I seek advice on where to start.
Auction houses occasionally sell sketches or peripheral work of [semi-]famous artists, and they sometimes lie within my price range. Often, they don't look that attractive sadly. Do these sorts of items hold their value well? Should I trust what auction houses give for the guide price?
Should I buy new things? I have some friends who are artists but I don't want to turn our relationship into one involving the exchange of money. Surely if I buy something from them, then (like a new car) it loses most of its value immediately? Is it worth the gamble?
Are there avenues of investigation that I have missed?
I saw this question but it doesn't quite tackle the same issue.
I'd like to buy works of art as a long-term investment. They don't have to be big and they don't have to be by famous artists, but since I'll be living with them, I'd quite like them to be nice to look at rather than 'interesting'. Let's say that my budget would be around one to two thousand Euros/Pounds/Dollars per item. This is going to be a once a year (or less) event, so I am happy (nay, I want) to do some research to make sure I am making a sensible choice, but I seek advice on where to start.
Auction houses occasionally sell sketches or peripheral work of [semi-]famous artists, and they sometimes lie within my price range. Often, they don't look that attractive sadly. Do these sorts of items hold their value well? Should I trust what auction houses give for the guide price?
Should I buy new things? I have some friends who are artists but I don't want to turn our relationship into one involving the exchange of money. Surely if I buy something from them, then (like a new car) it loses most of its value immediately? Is it worth the gamble?
Are there avenues of investigation that I have missed?
I saw this question but it doesn't quite tackle the same issue.
I have a family member who bought some pieces of art as investments about 30 years ago. These pieces of art are still in his home; the last time he had one appraised, maybe about 10 years ago, he found that it was worth much less than he had purchased it for.
Please be very very careful about this unless you are more of an expert than your question suggests. In my family member's experience, it is not an effective investment strategy. (Maybe you are an expert, though, in which case ignore me!)
posted by snorkmaiden at 2:23 PM on June 30, 2012
Please be very very careful about this unless you are more of an expert than your question suggests. In my family member's experience, it is not an effective investment strategy. (Maybe you are an expert, though, in which case ignore me!)
posted by snorkmaiden at 2:23 PM on June 30, 2012
Yeah I don't think it's that great of an idea or even really possible. You can scour auction houses and look for stuff from known artists that you like that may be selling a bit lower because of the economy but the markets are fickle and who know's if the artist you bought will be popular when you are ready to sell. When the younger generation gets older and have money to invest in art, what will they want to hang on their walls? If you can answer that then maybe you will have some luck.
You could also scour Ebay for deals too but the same caveat applies.
The alternative, buy what you like and support local artists and galleries and don't anticipate making any money on them long term.
posted by WickedPissah at 2:35 PM on June 30, 2012
You could also scour Ebay for deals too but the same caveat applies.
The alternative, buy what you like and support local artists and galleries and don't anticipate making any money on them long term.
posted by WickedPissah at 2:35 PM on June 30, 2012
I bought three mixed media pieces over six years ago at an art show here in Toronto. I had just bought my house and wanted to splurge on something. Alas, though I still like the art I bought, it doesn't work at all with the decor of my house, so now I've been trying to unload it on Craig's List, and am not finding any takers at any price.
Art is like jewelry in that it doesn't make a good investment. You'd be doing well just to realize what it initially cost you. And again like jewelry, it's best just to buy pieces that you love and spend whatever it's worth to you to own them. Assume you won't get your money back, because unless you're an expert or exceptionally lucky, you won't.
And by all means buy your friends' artwork if you really love it. (Don't buy it just to be kind.) If you're worried about what that will do to your friendship, follow this tip: don't dicker over the price. Pay what they ask you for the piece, or don't buy from them at all. The price of original artwork may seem high, but if you ask them how many hours it took them to make the piece and do a little math on how much they'll be making an hour, it'll start to seem reasonable, especially if you should compare it to what you probably make an hour.
posted by orange swan at 2:48 PM on June 30, 2012
Art is like jewelry in that it doesn't make a good investment. You'd be doing well just to realize what it initially cost you. And again like jewelry, it's best just to buy pieces that you love and spend whatever it's worth to you to own them. Assume you won't get your money back, because unless you're an expert or exceptionally lucky, you won't.
And by all means buy your friends' artwork if you really love it. (Don't buy it just to be kind.) If you're worried about what that will do to your friendship, follow this tip: don't dicker over the price. Pay what they ask you for the piece, or don't buy from them at all. The price of original artwork may seem high, but if you ask them how many hours it took them to make the piece and do a little math on how much they'll be making an hour, it'll start to seem reasonable, especially if you should compare it to what you probably make an hour.
posted by orange swan at 2:48 PM on June 30, 2012
I am thinking about the same kind of thing. I would suggest two things that might work.
The first would be to buy things that you really like, from artists who are currently in school or at the start of their careers (full disclosure - I help run a realist atelier in Philly). I mentioned something like this in a previous thread like yours. Many of these students, especially at the smaller schools that focus on craft and beauty, are very driven individuals who will make art their careers (not necessarily getting a degree to get a job types). Some of the work is incredibly good. These are the artists who paint all day long, and get into galleries, and build their whole lives around creating beautiful things. Many fail, but quite a few of them become successful. In any case, you can get some sick student work for a pittance, and you'd be helping some young artist out at a critical point in their lives.
Another good route would be in fine art prints. You can beautiful prints from super famous artists like Rembrandt for a few hundred/ thousand dollars. A Rembrandt will always be a Rembrandt, so it should at least hold its value. There are a few of his on eBay right now around $2500 US.
The big rule is buy what you love, so don't buy an ugly Rembrandt. Good luck, and happy hunting!
posted by amcm at 3:07 PM on June 30, 2012
The first would be to buy things that you really like, from artists who are currently in school or at the start of their careers (full disclosure - I help run a realist atelier in Philly). I mentioned something like this in a previous thread like yours. Many of these students, especially at the smaller schools that focus on craft and beauty, are very driven individuals who will make art their careers (not necessarily getting a degree to get a job types). Some of the work is incredibly good. These are the artists who paint all day long, and get into galleries, and build their whole lives around creating beautiful things. Many fail, but quite a few of them become successful. In any case, you can get some sick student work for a pittance, and you'd be helping some young artist out at a critical point in their lives.
Another good route would be in fine art prints. You can beautiful prints from super famous artists like Rembrandt for a few hundred/ thousand dollars. A Rembrandt will always be a Rembrandt, so it should at least hold its value. There are a few of his on eBay right now around $2500 US.
The big rule is buy what you love, so don't buy an ugly Rembrandt. Good luck, and happy hunting!
posted by amcm at 3:07 PM on June 30, 2012
I'd like to buy works of art as a long-term investment.
By all means, buy art you love, but it is a terrible investment. Just terrible. You only see the winners, so it looks much easier/more profitable than it is. It's really, really hard to pick those winners - gallery owners and curators can't do it reliably, and they see the best artists all the time. The average Joe doesn't have a hope in hell. If you buy art for several thousand dollars you will lose money; if you want to make money, put it in an index fund or buy some good real estate or something. I get the sense from your question you're thinking that you want to buy art cause you like it, and won't lose money. I'm afraid you will lose money, it's like a casino, the art world. Buy the stuff, don't expect to recover the expense or make a profit.
posted by smoke at 3:46 PM on June 30, 2012
By all means, buy art you love, but it is a terrible investment. Just terrible. You only see the winners, so it looks much easier/more profitable than it is. It's really, really hard to pick those winners - gallery owners and curators can't do it reliably, and they see the best artists all the time. The average Joe doesn't have a hope in hell. If you buy art for several thousand dollars you will lose money; if you want to make money, put it in an index fund or buy some good real estate or something. I get the sense from your question you're thinking that you want to buy art cause you like it, and won't lose money. I'm afraid you will lose money, it's like a casino, the art world. Buy the stuff, don't expect to recover the expense or make a profit.
posted by smoke at 3:46 PM on June 30, 2012
The best thing you can do is pound the pavement going to galleries. Emerging artists are usually the least expensive. For investment purposes, which is a really bad idea to start out with if you are not experienced, I think your only choice is emerging artists with a $2000. budget.
Looking at contemporary auction catalogues, Phillips de Pury, Christies and Sothebys is also really useful as well. They are online for free or you can subscribe. Often you can buy something nice, in your price range, particularly from Phillips.
If you do not have the time to spend educating yourselves it is best to hire an art consultant. They can guide you but charge a commission. Even in that case you have to assume that you are most likely to lose your money, or at best not see any appreciation for many years, particularly at your price level coupled with inexperience with the art world.
So best to love whatever you buy. At the very least you get an artwork that expands your consciousness and supports an emerging artist. Not all emerging artists are young, but most fall into that category.
posted by snaparapans at 9:23 PM on June 30, 2012
Looking at contemporary auction catalogues, Phillips de Pury, Christies and Sothebys is also really useful as well. They are online for free or you can subscribe. Often you can buy something nice, in your price range, particularly from Phillips.
If you do not have the time to spend educating yourselves it is best to hire an art consultant. They can guide you but charge a commission. Even in that case you have to assume that you are most likely to lose your money, or at best not see any appreciation for many years, particularly at your price level coupled with inexperience with the art world.
So best to love whatever you buy. At the very least you get an artwork that expands your consciousness and supports an emerging artist. Not all emerging artists are young, but most fall into that category.
posted by snaparapans at 9:23 PM on June 30, 2012
Also, auction estimates are usually reliable. The estimates are based on similar pieces by any given artist that has sold on the secondary market (auctions, and re-sale galleries).
If I were you I would not buy from friends, particularly since you are hoping to buy as an investment.
MOMA in nyc, has a young collectors club or something like that for members. Other museums may have similar social groups with events to educate young collectors. At the events you can meet and talk to collectors. Usually you will find collectors trying to sell you what they collect, so take it all with a grain of salt.
Again best to pound the pavement, and spend as much time educating yourself. Second best, hire an art consultant.
posted by snaparapans at 9:57 PM on June 30, 2012
If I were you I would not buy from friends, particularly since you are hoping to buy as an investment.
MOMA in nyc, has a young collectors club or something like that for members. Other museums may have similar social groups with events to educate young collectors. At the events you can meet and talk to collectors. Usually you will find collectors trying to sell you what they collect, so take it all with a grain of salt.
Again best to pound the pavement, and spend as much time educating yourself. Second best, hire an art consultant.
posted by snaparapans at 9:57 PM on June 30, 2012
Another way to do this is familiarize yourself with localish artists whose work was neglected for decades but is now coming back into repute, and try to find pieces by those artists at estate sales and estate auctions rather than through the art market. This is a long game and not simple, but I do have acquaintances who have made some money this way.
posted by Sidhedevil at 10:09 PM on June 30, 2012
posted by Sidhedevil at 10:09 PM on June 30, 2012
Response by poster: Thanks for all the replies.
I'm not really out to make money, to be honest, but since I don't have all that much disposable income I just want to make sure it is spent wisely, even if all I am investing in is my own enjoyment.
The consensus seems to be: buy new stuff if you love it, but not as an investment. I am curious about fine art prints; in fact it was this thread that kicked off the chain of thought leading to me asking this question. Should i really buy prints?
posted by Talkie Toaster at 3:58 AM on July 1, 2012
I'm not really out to make money, to be honest, but since I don't have all that much disposable income I just want to make sure it is spent wisely, even if all I am investing in is my own enjoyment.
The consensus seems to be: buy new stuff if you love it, but not as an investment. I am curious about fine art prints; in fact it was this thread that kicked off the chain of thought leading to me asking this question. Should i really buy prints?
posted by Talkie Toaster at 3:58 AM on July 1, 2012
The advice to get affiliated with a museum as a "junior" patron is a good one. They may encourage you to join with others to buy a particular piece they want to acquire, but which would be too much for one patron to swing.
Once you're part of the "acquisitions" team, you'll be privy to a lot of knowledge about emerging artists, safe bets in the local market, and good deals which might not be museum quality, but might have good provenance and be right for you to enjoy at home. You get a lot of good guidance for your investment (and a tax write-off for your donation.)
posted by halfbuckaroo at 6:07 AM on July 1, 2012
Once you're part of the "acquisitions" team, you'll be privy to a lot of knowledge about emerging artists, safe bets in the local market, and good deals which might not be museum quality, but might have good provenance and be right for you to enjoy at home. You get a lot of good guidance for your investment (and a tax write-off for your donation.)
posted by halfbuckaroo at 6:07 AM on July 1, 2012
Not giclee prints, Talkie. Woodcuts, drypoints, etchings, lithographs, that kind of thing.
posted by milk white peacock at 8:53 AM on July 1, 2012
posted by milk white peacock at 8:53 AM on July 1, 2012
I am curious about fine art prints
Prints will appreciate the least... and IMO, with funds of between $2000-3000, you can buy a nice small painting or several drawings by an emerging artist. Also, work from outsider artists are often interesting.
Best bet to spend money wisely is educate yourself by seeing as much art as you can, galleries, museums, art history classes.. and then buy something that you fall in love with.
posted by snaparapans at 1:07 PM on July 1, 2012
Prints will appreciate the least... and IMO, with funds of between $2000-3000, you can buy a nice small painting or several drawings by an emerging artist. Also, work from outsider artists are often interesting.
Best bet to spend money wisely is educate yourself by seeing as much art as you can, galleries, museums, art history classes.. and then buy something that you fall in love with.
posted by snaparapans at 1:07 PM on July 1, 2012
This thread is closed to new comments.
People will buy art from an unknown artist only when it personally moves them. So, in order to sell your pieces, you will have to show it to a *lot* of people and make it cheap. Think yard sales and you get the idea.
As an actual investment, the sketches and whatnot from well-known artists are probably not terrible. There's at least theoretical demand for it in the future.
But I don't think I know anybody who seriously considers art, beyond a handful of masterpieces, as true investments in the stores-value-sells-easily sense.
posted by Netzapper at 2:08 PM on June 30, 2012