Investing in art is a gamble, and an expensive one at that, but it’s full of excitement and opportunity.
In the eye of the beholder
Most art is subjective and often times simply bought because the buyer likes how it looks or knows the artist and either wants to support them, or is guilted into buying it.
Some art, however, falls into the category of a lucrative investment.
If you have disposable income, an taste for adventure and an eye for beauty, this might just be the investment game for you.
Some artists are so well known that their works will always be highly valued. We are talking about artists like Picasso, Roy Lichtenstein, and Jackson Pollock, (Not to mention the greats like the impressionists including Van Gogh and Renoir, the Dutch masters like Vermeer and Van Eyck.)
The problem with these artists, however, is that your “buy in” cost to own one of their works is simply (usually) too high. Yes, the returns are always stable, but what’s the point of buying an artwork for R25million, just to sell it for that price again a little while later. It is already expensive to start with, so there isn’t much room for growth.
Start low and take it slow.
What you are looking for when investing, is a relatively young or unknown artist, on the rise, but who’s work is still mostly affordable. Then, the plan is to hold on to that artwork for a decade or two, and then only sell it when the artist has reached some level of local or international acclaim.
There are numerous stories of people who’s parents bought a Pierneef or a Irma Stern while the artist was still alive for a very low price and then their children were able to sell it at auction for well over 6 figures
For South African art collectors, with Rand based buying power, this is the way to do it. Buy low, take it slow and one day you might be able to sell high.
Art should be loved.
Even if you buy it for its investment value, you still must look at it. There really is no point in buying art if you don’t enjoy looking at it. The risk/return ration of art as an investment is such that you must be able to find pleasure in it while you own it – otherwise you should rather invest your money through traditional routes or simply buy gold bullion. If you do not love the artwork, move on. Don’t saddle yourself up with a piece that doesn’t speak to you.
If you are still interested in buying art, or simply sniffing around auction houses to satisfy your curiosity, we have some of the best auction houses right here in South Africa.
They all have regular online and in-person auctions, and there is no harm in looking…Maybe something catches your eye!
