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Art lovers do not have to be super-rich to invest in exciting works. If you are smart you can buy original pieces at bargain prices and perhaps find that you have backed the next Damien Hirst or Tracey Emin. One of the biggest investment winners in the past decade has been contemporary art, with values soaring fourfold, according to Art Market Research.
One of the best places to pick up original art is at the end-of-degree art college sales held in the early summer at the start of an artist’s career. Top colleges include the Royal College of Art in Kensington, west London, where David Hockney and Tracey Emin studied, and the Central Saint Martins College of Art & Design in central London.
Catherine Lennkh of the Royal College of Art says: ‘Art fairs are a great way to get in on the ground floor before an artist becomes truly famous – and too expensive. You should wear your art proudly in a prominent spot in your home. If you love it, you’ve already made a great investment, but if it rises in value then all the better.’
Love it: Show off what you buy, says Catherine Lennkh of the Royal College of Art
Hirst graduated from Goldsmiths, University of London, in 1988 and within a couple of years had been discovered by Charles Saatchi. By 1993 Saatchi was buying a Hirst shark in formaldehyde for £50,000. The work sold in 2004 for $8million, though another shark had to be used because of decay.
With art, it is usually the creative skill you are buying. As an investor you are making a bet that someone will be prepared to pay more for this talent in the future. But investors should be aware that just like a stock market selection, luck as well as skill is required.
Before buying, an appreciation and understanding of what makes good art is vital and this means fully exploring what kind of art you love.
Learn about the work of artists you are considering, look at backgrounds and varying styles, plus how much their previous pieces have sold for and where. Reading art books, visiting public galleries and seeking advice is all part of this process. It is also a good idea to brave the art gallery cliques of London to get advice and learn about trends. If possible, try to get invited to opening nights for exhibitions. However, be aware that the best stuff often gets snapped up before the sales catalogues are sent out.
Auction houses can also throw up gems. Attending an auction without bidding is free – and a great way to learn. Auctioneers such as Christie’s, Bonhams and Sotheby’s often have experts on hand who will give valuable advice for free.
Jaw dropping: Damien Hirst’s shark was sold for $8million
Alexandra Buxton of Christie’s in South Kensington, west London, says: ‘You really don’t need to be super rich to bid for fine art and pieces typically sell for about £1,000. Go along and enjoy the experience before bidding, but remember to visit the auction rooms a few days before to look at the pieces for sale.
‘Talk to staff and ask to handle any paintings of interest, making sure that you look behind them to ensure they are in good condition. But remember that above all the experience must be fun and only bid for pieces that really speak to you.’
Alexandra suggests that after a few visits you may be ready to bid, but it is important to set yourself a maximum price to avoid getting carried away.
Another place to look for art purchases are regular local art fairs, which are often advertised in arts magazines. Outfits such as The Affordable Art Fair regularly hold sales in London offering relatively cheap original paintings – costing anything from £50 to £3,000.
Most art investors buy paintings for the long term, typically more than ten years, but prices can move rapidly in the market, requiring an ever-watchful eye.
To make money, artwork values need to keep ahead of inflation and more than cover the cost of insuring the art.
Investors should also be aware that when they come to sell, the work may be subject to capital gains tax, which kicks in at gains above £10,100 for the current tax year.
- Contact: Royal College of Art, call 020 7590 4444, website rca.ac.uk; Central Saint Martins College of Art & Design, call 020 7514 7022, csm.arts.ac.uk; Affordable Art Fair, call 020 8246 4848, affordableartfair.com; Christie’s, call 020 7930 6074, website christies.com
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