Equity Mag Sep_17 Book Folder

FINANCE
Left: The Louvre Museum
Below: Sylvain Gaillard,
Director of Opera
Gallery in DIFC
necessity for an advisor. “The market is highly
unregulated and very opaque. If you don’t know
what you’re doing, you will spend and not be able
to recover it,” says Shaheem. “I'm not saying don’t
buy art you love. All I’m saying is you can have a
piece that you’re in love with, and one that may
have the ability to increase in value over time too.
It’s significant that thorough research is conducted
with every transaction,” she explains further.
Gaillard, on the other hand, suggests approaching
art as an investment with caution. “By definition,
I’m always very cautious when people approach
art as an investment because it is something you
buy hoping that the value will go up in the future.
Art must be taken extremely cautiously, because
you can strike gold.” His guidelines? “Always buy
what you like because you are going to leave with
the piece, and should go for the long run. People
always hear about the guy who made millions from
selling one or two paintings, but what they don’t
tell you is that probably in the same year, he bought
another five paintings which are worthless today.
So, you always have to be careful about investing
in art as there’s always two sides of the story.”
There are a few established names that are rooted
in history and probably will continue to be a great
investment opportunity over the next few years or
so. For instance, Gaillard reveals that Picasso has
done over 50,000 pieces, most of which are in the
Catalogue Raisonné. He is amongst the top five
artists at 2017 auctions. “If you buy a piece right
now, guess what? In 30 years, it’s going to be older,
rarer, so most likely, will appreciate again. There’s
no guarantee but most likely it will.” The lesson to
learn is if you’re adamant about investing in art,
think long term. “Go with true and tested names
and make sure you buy them at the right price.
That’s where you’re going to get the upside. If you
just want to flip things, you will flip it around one,
two, three or four times and then the fifth time you
may go bust and lose everything. Just because you
buy a painting and sit on it for ten years doesn’t
mean it will appreciate,” says Gaillard.
At The Fine Art Group, Shaheem works with
clients on a retainer basis, wherein she advises on a
piece, evaluates something a client spotted while
travelling and even pitches artwork her team have
spotted, reporting on the provenance, condition and
value. Opera Gallery in DIFC, on the other hand, is a
playground for art enthusiasts and those who want to
see talent before their eyes. Here, you can walk in and
build a relationship, gaining guidance and support
along the way. “The goal is not to sell the piece. It is
to get into their brain, understand what their aim is,
whom they are buying it for, the purpose, and then
manage their expectations. We also advise clients
what might be tax-efficient. It’s a lot more than just
the transaction,” says Gaillard.
At the end of the day, any investment requires
careful thought, and art is just the same.
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EQUITY