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From: wmartin@brl-tgr.ARPA (Will Martin )
Newsgroups: net.invest
Subject: Re: Art as an Investment.
Message-ID: <5244@brl-tgr.ARPA>
Date: Fri, 12-Oct-84 15:52:06 EDT
Article-I.D.: brl-tgr.5244
Posted: Fri Oct 12 15:52:06 1984
Date-Received: Sat, 13-Oct-84 08:50:49 EDT
References: <371@felix.UUCP>
Organization: Ballistics Research Lab
Lines: 55

A good article. It inspires some questions:

About buying current "unknowns" which might or might not become famous
and their works much more valuable in the future: The kind of advice about
this I have usually seen is to "buy what you like, and enjoy it for what
it is"; if it happens to be worth many times what you paid for it 20 or
40 years down the line, that's nice. If it isn't worth more than you paid
for it after that time, so what? -- You've enjoyed having it, so it has
repaid your cost in that fashion (same as buying any other toy or
amusement). 

What I am wondering about, though, is how to determine what to pay and
where to buy this "unknown" currently-produced art. If you live in
New York, I suppose there are hundreds of galleries and individuals
selling art on the sidewalk. Your problem then is picking gems from dross.
But, outside of such a center of artistic activity, what approach would
you recommend? I would hesitate from buying from what galleries there are;
you will have to pay the owner's markup, which will reduce the investment
potential (and might eliminate it entirely); this leaves locating the
artists and buying directly from them. What methods would you suggest
in doing this, and how would you determine a "fair" price to pay?

Are arts/crafts fairs worthwhile, or are the things you find there on
a level inappropriate to what would be considered "real" art? What
about buying students' work, if there are universities or colleges
in your area with art departments (do the schools sponsor some sort of
sales procedures)? I suppose a wealthy patron finds all sorts of opportunities
to buy art works, but what about the average person who would like to
get the most for a few hundred dollars' investment?

Determining prices for art is pretty much black magic, it seems. For 
recognized artists, auctions with institutional bidders determine the
multi-million-dollar and suchlike high-range prices we read of. But
what about buying from the artist directly, when there is no international
reputation or fame to artificially inflate the value? Should such art be 
bought on a "time and materials" basis, without regard to paying for the
"artistic inspiration" (which is what might eventually make the piece
valuable as an investment!)? If the artist is trying to make a living
from the practice of his/her art, they have to charge enough to cover
their time and costs, of course, just like an auto mechanic or plumber;
but are they entitled to more because they put some of their soul into
their product? 

I admit I don't know much about this; that's why I'm asking. I know I
find it hard to accept paying what is to me a large sum of money for
a decorative object (harder than I find paying the same amount for
hifi equipment or guns or other toys). Maybe this means that I will
never have the attitude that will enable me to buy art, as an investment
or for its own sake. And maybe this attitude is common enough that
this is the reason we normally cosider art collecting to be reserved
for the really rich.

Will Martin

USENET: seismo!brl-bmd!wmartin     or   ARPA/MILNET: wmartin@almsa-1.ARPA