Many in retirement are travelling comfortably, with three key factors contributing to their happiness – good physical and mental health and enough money to enjoy life.
Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Taking the mystery out of buying and selling works of art
Many of us can appreciate a great work of art, but when it comes time to buying or selling a piece, it can be a terrifying experience. Art is typically not cheap, so if you want to make a hobby out of it (or even a small income), then you’re going to need to make sure you’re buying the right pieces at the right prices.
There are any number of books and even courses that you can take that can try to demystify the process, but here’s a simple, top-line guide to help you get started on what can be a very rewarding and interesting experience.
Understanding art valuation:
Let’s start with a simple definition: Art valuation is the process of determining the worth of a piece of art. This involves considering various factors such as the artist’s reputation, the artwork’s provenance, its condition and its historical significance.
There’s an awful lot that goes into that. So, at a top-level, here are some key elements to consider that will help you determine whether, at least, an artwork should be expensive of not.
• Artist’s reputation: The fame and recognition of the artist play a significant role in the value of the work. Established artists with a strong market presence typically command higher prices. Emerging artists, while potentially more affordable, can also be a good investment if their reputation grows.
• Provenance: This refers to the history of ownership of the artwork. A well-documented provenance can enhance the value of a piece as it provides authenticity and a traceable history. Provenance can include previous owners, exhibitions and any literature references. If you can’t trace any kind of history behind an artwork, be very wary of it.
• Condition: The physical state of the artwork is crucial. Damages, restorations and alterations can significantly affect its value. Always inspect the condition of a piece before buying.
• Historical significance: Artworks that have historical importance or are part of significant movements or periods tend to be more valuable. Understanding the context in which the artwork was created can provide insights into its value.
How to buy:
When buying art, it’s essential to do your homework. Start by learning about different artists, styles and periods. Visit galleries, museums and art fairs to get a sense of what appeals to you.
Reading art books and following art market trends can also be beneficial. Understand that you should spend several months doing this – while you might be tempted by an artwork before then, try to resist (unless it’s a piece of art that you’re buying out of personal interest, but even then, you’re going to want to ensure that you’re paying a fair price for it).
Determining how much you’re willing to spend is critical. Remember, buying art is not just a financial investment but also an emotional one. It’s important to buy pieces that you love and will enjoy living with.
Never be afraid to seek expert advice whether it be art advisers, gallery owners or auction house specialists. They can provide valuable insights and help you make informed decisions. Don’t hesitate to ask questions and seek second opinions.
It’s important to verify that the artwork is genuine. Request certificates of authenticity and provenance documentation – and always be wary of forgeries and reproductions.
Think about the long-term value of the piece. While some artworks may appreciate, others may not. This doesn’t need to be a guessing game and the “calculated guesses” that the best valuers make are typically accurate.
Finally, always buy for pleasure: Buy art that you will enjoy regardless of its future market value. Unless you’re looking to actively make a business out of buying and selling art then chances are that you’re mostly looking for something to hang in your own home. Make sure it fits in with the rest of your décor and that you like looking at it.
How to sell:
It always pays to get your artwork appraised by a qualified professional. This will give you an idea of its market value and help you set a realistic price. Understand, however, that ultimately art is a process of negotiation so you might not be able to find a buyer at your price.
It’s important to choose the right venue. Options include auction houses, galleries, online platforms and private sales. Each venue has its pros and cons, so choose one that aligns with your goals and the nature of the artwork.
Presentation is key. High-quality photographs and detailed descriptions can attract potential buyers. Highlight the artwork’s provenance, condition and any notable exhibitions or publications.
It pays dividends to negotiate with buyers. Understand the market value of your piece and be willing to discuss terms. It’s important to strike a balance between getting a fair price and making a sale.
Finally, understand the legalities such as copyright issues and export regulations. Ensure that all transactions are documented and legally binding.
As you get good at it, the art trade can be a rewarding experience, both financially and emotionally. Just remember, that the most important aspect of buying and selling art is to enjoy the process and the beauty that art brings into your life.
