Writing this article, I have in mind two collectors whom when I discovered them I started to admire as I agree with their view on art collecting. The one is Glenn Fuhrman who while studying finances ended up taking more art classes, and when he started collecting his philosophy was to start collecting early established artists so in case, he needed to sell to have more opportunities. The other is the couple Barbara and Morton Mandel who said in an interview: “We were very careful about our purchases. We decided to make the investment not as an investment from which we expect a financial return but as an investment from which we might get a life return. And that is exactly what happened”.
Ultimately, talking with art gallerists I observed that many of them when they advise their customers guide them to think that the creation of an art collection must be only a financial investment, trying to sell them the most expensive of the expensive and at the end of the day is not also a right choice if you want to create a collection only with financial purpose. I think this is not the best practice to adopt.
To be clear I am pro creating a collection only like a financial investment but as I wrote in the article “Tips on art collecting” it is better to learn a bit about art and try to enjoy the process of creating your collection and have some preferences and knowledge. So, no one can sell you just to sell you.
In any case, a collection as a financial investment brings benefits on a series of parts of the art world and when we talk about contemporary art the most important is beneficial for the artists.
So, I decided to write this article…. (If you are interested in considering an art collection as an investment, and not just collecting for passion) Everything is right and everything is accepted.
As a professional and as a person, I choose the neutral and objective path, so I will share with you my approach to art collecting and the only rule that I keep in mind when it comes to starting or expanding a contemporary art collection: PURCHASE ART STRATEGICALLY!
What do I mean by that?
Purchase starting from your preferences and with young emergent artists who can create the basic corpus of your collection and can keep low the budget you need to dedicate for this purpose. Then you can add more established artists and dedicate an increased budget that can add financial value too.
Building a valuable art collection means balancing passion and investment. It means having a collection both aesthetically pleasing and with financial potential. If you have the budget for something bigger, it means that your financial investment is stable and in case you want to sell your collection the value is more than decent.
It is significant though to consider that it is not easy to sell art, and selling does not mean you will find a buyer. But this is to talk to another article.
To sum up…
Focus while starting:
- Invest in Potential: Allocate a portion of your budget to acquire works by young, promising artists. Their careers may flourish, increasing the value of your collection, and if not, they give you the corpus of your collection.
- Follow Your Preference: While financial gain is important, choose pieces that resonate with you too. Art enriches your life beyond market trends.
Strategic Diversification:
- Invest in the Established: Once your collection has a foundation, allocate a bigger portion of your budget to acquire works by established artists with proven track records, higher prices, and requests in the market. They will increase the value of the corpus artists in your collection.
Purchase art strategically → Combine market trends with your preferences → This method will add qualitative value, aesthetic pleasure, and knowledge to your life, and will offer a greater resale potential while enhancing the overall value of your collection.
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