Thursday, August 29, 2002
Investing in Art |
Interview by Donna Guzik
If the wild ride on the markets is sending you in a tizzy, why not consider investing in artwork? Not only can it turn a profit with a few simple brushstrokes, but it's a lot more fun to have on your wall says Biddington's Inc. President Sharla Bailey Kidder
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"It's a lot like buying in the financial markets, you want to buy something that's on its way up and that hasn't peaked."
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Summary
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- Biddington's Inc. is an auction marketplace where outside sellers can offer pieces for sale on their website, Biddingtons.com.
- Most of their focus on contemporary art in order to offer up-and-coming artists exposure to the market.
- If you know what you like it is a good idea to ask an advisor what the best pieces and who the best artists of that genre are and they will help you find what fits your needs.
- If you are looking at artwork as an investment it is important that you buy something that is art, that has an edge to it and isn't simply decorative.
- If you buy properly, over time you could make roughly a 5% per-year return on your investment.
- Investing in art can be very similar to investing in the stock market.
- Buy work by an artist who has a good gallery track record and a decent resume.
- Pay attention to artists that are trendsetters and are growing as artists and in the context of the genre they are in.
- Much like investing in financials, you don't want to buy a piece of work at the peak.
- There are a few simple rules to keep in mind when investing in a piece of art.
- Buy items with paper trails and proper authenticity documentation.
- Buy items that you love, because if the work ends up depreciating in value, you'll have a piece on your wall that you enjoy.
- You don't have to have a lot of knowledge about art in order to invest in it, what you need is exposure and to have your homework done before you make a purchase.
- The longer you hold onto a piece of artwork, typically the bigger the return on your investment.
- However, if an artist is receiving a lot of attention but the work isn't very good, the piece could disintegrate in value substantially.
- So it is at times better to sell into hype and publicity, even on high-quality art in order to turn a profit.
- Invest sensibly, don't be a creature of fashion and try to anticipate the forward momentum.
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