EDITORIAL Invest<strong>in</strong>g <strong>in</strong> art: Tips and tricks from top collectors Art may be seen as a frivolous purchase or a statement of social prestige, but it may also be a f<strong>in</strong>ancially astute one. Invest<strong>in</strong>g <strong>in</strong> art can provide a substantial return on capital if done carefully. However, it’s not as simple as pick<strong>in</strong>g up any artwork and hop<strong>in</strong>g for <strong>the</strong> best. In this article, we’ll explore some tips and tricks from top collectors on how to <strong>in</strong>vest <strong>in</strong> art successfully. Invest <strong>in</strong> established artists with a strong track record While mak<strong>in</strong>g an art <strong>in</strong>vestment, it’s important to th<strong>in</strong>k about <strong>the</strong> artist’s previous works. Look for artists with a long-stand<strong>in</strong>g reputation and a dist<strong>in</strong>ct style that sets <strong>the</strong>m apart from <strong>the</strong> crowd. Invest<strong>in</strong>g <strong>in</strong> established artists can provide a sense of security <strong>in</strong> terms of <strong>the</strong> artwork’s value and <strong>the</strong> potential for appreciation over time. As a top collector, Beth Rud<strong>in</strong> DeWoody says, “I always advise new collectors to buy what <strong>the</strong>y like, but also to buy from artists with a track record. An artist’s longevity is key to <strong>the</strong> value of <strong>the</strong>ir work.” Educate yourself on <strong>the</strong> art market Knowledge of <strong>the</strong> art market is essential for mak<strong>in</strong>g wise art <strong>in</strong>vestment selections. You can learn a lot about current trends, prices, and what’s <strong>in</strong> demand by visit<strong>in</strong>g art shows and auctions. Develop a network of art professionals, <strong>in</strong>clud<strong>in</strong>g dealers, curators, and collectors, who can provide valuable <strong>in</strong>formation and guidance. As collector Jeanne Greenberg Rohatyn notes, “It’s crucial to stay <strong>in</strong>formed about <strong>the</strong> market and have a lot of sources you trust.” Build relationships with reputable galleries and dealers Collectors can ga<strong>in</strong> an edge <strong>in</strong> <strong>the</strong> competitive art market by cultivat<strong>in</strong>g relationships with respected galleries and dealers, who may be able to provide access to rare works. These experts can advise collectors on up-and-com<strong>in</strong>g shows and artists, as well as help <strong>the</strong>m negotiate <strong>the</strong> best possible deal. As collector Eli Broad advises, “The best advice I have for anyone start<strong>in</strong>g to collect is to f<strong>in</strong>d a dealer <strong>the</strong>y trust and respect, someone who is knowledgeable, who will stand beh<strong>in</strong>d what <strong>the</strong>y sell, and who will be <strong>in</strong> <strong>the</strong> bus<strong>in</strong>ess for <strong>the</strong> long haul.” Diversify your collection! Diversification is key to a successful art <strong>in</strong>vestment portfolio. Ra<strong>the</strong>r than <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> one artist or style, consider build<strong>in</strong>g a collection that <strong>in</strong>cludes a range of artists, mediums, and styles. As collector David Mugrabi says, “I always encourage people to have a diverse collection. You don’t want to have everyth<strong>in</strong>g by one artist or <strong>in</strong> one medium. That way, if one market goes down, you have o<strong>the</strong>r th<strong>in</strong>gs to rely on.” Appreciate <strong>the</strong> art Last but not least, it is essential to value <strong>the</strong> work for its own sake ra<strong>the</strong>r than as a f<strong>in</strong>ancial commodity. Collect<strong>in</strong>g works of art may be a reward<strong>in</strong>g and educative <strong>in</strong>terest because <strong>the</strong>y serve as visual representations of our rich cultural heritage. As collector Peggy Cooper Cafritz notes, “Art should be about liv<strong>in</strong>g with th<strong>in</strong>gs you love and th<strong>in</strong>gs that are mean<strong>in</strong>gful to you.” Additionally, mak<strong>in</strong>g a f<strong>in</strong>ancial <strong>in</strong>vestment <strong>in</strong> art needs serious thought and <strong>in</strong>vestigation. Investors should be aware of <strong>the</strong> risks <strong>in</strong>volved <strong>in</strong> <strong>the</strong> art market. Art valuations can fluctuate based on factors such as <strong>the</strong> artist’s reputation, market demand, and <strong>the</strong> condition of <strong>the</strong> piece. It’s essential to work with knowledgeable advisors and conduct thorough due diligence before mak<strong>in</strong>g any <strong>in</strong>vestments. Most importantly, top collectors stress <strong>the</strong> need of appreciat<strong>in</strong>g <strong>the</strong> art one is collect<strong>in</strong>g, as well as diversify one’s hold<strong>in</strong>gs, learn about <strong>the</strong> art market, develop a network with reputable galleries and dealers, and <strong>in</strong>vest <strong>in</strong> artists who have shown <strong>the</strong>mselves <strong>in</strong> <strong>the</strong> past. Follow <strong>the</strong>se guidel<strong>in</strong>es, and you’ll be well on your way to mak<strong>in</strong>g <strong>in</strong>vestments that not only yield f<strong>in</strong>ancial rewards but also provide a lifetime of aes<strong>the</strong>tic satisfaction, whe<strong>the</strong>r you’re a first-time collector or an experienced veteran. 12 <strong>April</strong> <strong>2023</strong> www.magzoid.com
EDITORIAL www.magzoid.com <strong>April</strong> <strong>2023</strong> 13