Investing in pictures and how to do it
Among wealthy people it has always been considered prestigious to be the owner of paintings by famous artists. But for most buyers of paintings is not just the satisfaction of their desires to decorate the interior, and the opportunity not only to save money, but also to multiply.
As many media outlets say, today investors' interest in investing in art is growing. I believe that at all times, rich people were much closer to art, and always in their homes were paintings and sculptures of famous authors and not just for the sake of visual pleasure. Nevertheless, today the sphere of art has become an opportunity for many investors to make good money. The yield of the art market ranges from 80% to 100% per annum, and in certain cases - overcomes even 500%.
But making money on investing in paintings is not as easy as it may seem. As in any profession, there are some nuances in this investment direction. It is necessary to have cultural and financial training to be able to make an adequate assessment of a particular picture.
According to representatives of auction houses and art galleries, most buyers are players in the stock market and buying pictures for them is a way of investing. They also say that no antiquarian or art lover is investing as much money in it as there are players in the stock market. Individuals now buy paintings more often than large companies or banks. Among the current owners of paintings are traders and mathematicians, people who are inherently far from art. But by financial measures, they appreciated this type of investment and are now successfully engaged in it.
How to invest in paintings
There are two ways in which an investor can go.
The first way to buy paintings of modern authors. This path is accessible to a large number of investors, since it does not require very large investments. The paintings of contemporary authors, perhaps even little-known at the time of purchase of the painting, are not as expensive as the paintings of Van Gogh for example. The whole point is to see the potential of the artist and the prospects for his growth. So if you saw the talent and bright future of the author, in 5 years his picture can increase in price by 10-20 times. If the artist continues to be exhibited in galleries, to work and to advertise, then he will inevitably become more famous, which means that the prices for his paintings will grow in value.
The second way to buy pictures of world-famous authors such as Titian, Rembrandt, Botticelli, Manet ... Their paintings are worth millions, but they become more expensive with the years. Pictures of such authors will never be cheaper and lose popularity. Investing in paintings
Investing in paintings is always a long-term investment, and you need to be prepared for the fact that the benefits from investments can be obtained no earlier than in 5-10 years. But there is no doubt that this is the most aesthetic kind of investment.
According to the catalogs of famous galleries, one can often find changes in prices for paintings by years. So for 5 years, the price of a painting can easily grow by 700%.
If you decide to invest in paintings, you need to have your own consultant. The thing is that there are a lot of fakes and copies on the art market. And the authenticity of paintings is sometimes very difficult to install even professionals. It is not uncommon in the art world to argue with litigation. For example, there is a small story. In 2004, a scandal broke out at the Sotheby's auction: I. Shishkin's Landscape with a Stream, was withdrawn from the auction, although the authenticity of the work was confirmed by the experts of the Tretyakov Gallery and Sotheby's. The picture was estimated at about $ 1 million. It turned out that it was the work of the Dutchman Andrian Kukkuk. Ivan Shishkin as a pensioner of the Academy of Fine Arts was trained in Europe at the artists of the Dusseldorf school. Therefore this school is really very close in a manner of execution to this Russian artist.
According to dealers and owners of antique galleries, recently, not only sellers but also buyers have become much more competent: they do not risk acquiring things whose authenticity is not confirmed. The only way to avoid fakes is to carefully check documents for items and use the services of a consultant. Antiques collector's level is always sold with a certificate - an expert opinion of experts. In addition, all the salons, antique galleries and auction houses have their own consultants.
Most experts are former or current museum workers. As a rule, they specialize in the specific direction of painting, metal products, etc.
Since investing in the paintings of the authors of world fame can very narrow range of investors, let's talk about investing in modern art. Many believe that the prices for paintings are unfair. But for gallery owners, pricing is a clear algorithm. "The price of the picture is influenced not by its quality, but by the artist's biography: it is important where his exhibitions were held, in which galleries the works are stored. For example, participation in the Venice Biennale is like a nomination for an Oscar. And if the artist's paintings are in well-known museums of contemporary art, you are definitely not wasting money, - says Irina Filatova, curator of the fine art gallery. "The more" the track record "of the master, the higher the cost of the painting."
It is worth saying that in Russia, investment in paintings is not as profitable as in Europe or America.
On the London Stock Exchange there is a special index Mei Moses All Art - it determines the price of painting. The growth of this index is ahead of the S & P 500 index - the most important index of the US stock market. The profitability of investments in works of art is also indicated by the newly created Artnet AG index, which tracks the prices of the works of 50 contemporary artists. Investments in paintings by such contemporary artists as Andy Warhol or Damien Hirst as part of the Artnet AG index, were more profitable than investments in stocks from the Standard & Poor's 500 Index, the last decade.
In addition to the fact that galleries and art in general are developed in these countries, auctions are also very developed. After all, auction houses sell paintings for millions of dollars. All this makes a comprehensive base for working in the art world. And there are many directions in it. Each direction is a separate business. These are artists, their agents and agencies, experts, galleries, publishing houses, auction houses (which also have a rich history), presentations and exhibitions, buyers and investors ... All this is shrouded in media and advertising. In fact, it's a huge industry and you can make money on it.
Before investing money in a picture, it is necessary to spend time studying this market, to speak with at least a few experts and knowledgeable people. Learn as much as possible information about the author to better determine his prospects. To make money from investing in paintings, you need to learn the art from the market. Determine what pictures are becoming more expensive with time, what direction and style will be relevant and in 5-10-20 years (although it is not rare that the paintings become more expensive in 2-4 times in a year). It is also better to orient yourself in these issues on foreign markets to extract greater benefits.