The art world is a strange, intoxicatingly beautiful and intriguing place. Art opens one’s mind to a myriad of ways of seeing. From the novice to the seasoned collector, the golden rule in collecting art is to have an open mind. From there on, you will always be learning on your aesthetic journey.
Be aware, great art extends well beyond decoration—be brave, be bold, and be open to what is possible to distinctively create in your home—the intrinsic rewards will flow.
In today’s world, the internet has made the experience of researching good art and finding where to view and buy what appeals to you relatively easy. As we deal with the restrictions inherent in public gatherings from the COVID pandemic—galleries are finding innovative ways for their audience to experience and understand art—and we are all the beneficiaries.
Before you take the plunge into collecting art, there are some golden rules to be aware of. Firstly, let’s talk about the investment side of things…the art world doesn’t love this conversation by the way! Yes, it can be a lucrative place to be, but remember it is essentially an unregulated market. Sales commission rates, fluctuations in buyer’s taste and demand for an artist’s work—all affect the value of an artist’s work over time, its potential resale value and investment potential. Just be aware that a few things need to line up for it to be the sort of investment that makes the headlines. That said, in a world where cash is relatively unexciting, stocks are hard to pick and property is shaky—a well-chosen art collection can act as an uncorrelated financial haven with an exciting upside. Art is a great diversifier within your broader investment portfolio and it’s guaranteed to give you the most joy!
So where to start?
It’s good to know that there are essentially two art markets—the primary and the secondary. The primary art market is based on art dealers and galleries selling new works by living artists. They create exhibitions for the public to see and potentially acquire. The secondary market is more formal—driven by the auction houses and secondary dealers—it is a more financially trackable marketplace. If an artist has a strong secondary market, you know there is the potential for an efficient exit strategy. The secondary market is typically a good guide to underlying tradeable value. But the beauty and excitement for me lies in backing an artist in the primary market, supporting and participating in the growth of their career and, ultimately, the value of their work.
How do you navigate these markets?
Education is key—viewing exhibitions either online or in person and calling to talk to a gallery’s fine art consultant regarding your strategy are both good starts. You want to find artworks that resonate with you or your space—a work that offers a visual conversation. Set a budget and buy the best you can afford. Collect over time—don’t rush… the world is awash with terrible art bought in haste. Join gallery mailing lists, subscribe to magazines such as Art Collector, Vault and Artist Profile.
The value of a trusted dealer or art consultant should not be underestimated. Good art dealers are a force of nature—they are not just there to sell art. They make sure that an artist’s market is protected and continues to build in an appropriate way, ensuring interest and value is maintained. They are there to take you on a journey that is exciting for not only being potentially financially rewarding but life enriching.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
Ralph Hobbs is Director of Nanda\Hobbs gallery, a Sydney-based Art Dealer & Arts Writer.
