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From: craig@felix.UUCP (Craig Hockenberry)
Newsgroups: net.invest
Subject: Art as an Investment.
Message-ID: <371@felix.UUCP>
Date: Thu, 27-Sep-84 23:03:58 EDT
Article-I.D.: felix.371
Posted: Thu Sep 27 23:03:58 1984
Date-Received: Mon, 1-Oct-84 04:30:38 EDT
Organization: FileNet Corp., Costa Mesa, Ca.
Lines: 73

Investing in art is just like any other kind of investment. In order to
make it pay off, you have to know what you are dealing with. I don't
claim to be an expert in the art market, but I have followed it for
several years and have fairly good idea of what makes it work. Also, I
have done some work as and artist and am familiar with the techniques/terms
used in the art world.

Here is some advice:

  --  Be wary of anything with Salvador Dali's name on it. There are quite
      a few bogus prints on the market these days. These prints were produced
      by other artists in the "Dali style" with the artists permission. There
      are rumors that Dali has pre-signed sheets of printing paper, allowing
      printers to reproduce "signed by the artist" prints at will. Dali's
      recent sickness (he is bedridden), has added to this speculation with
      all the "newly offered prints". Personally, I wouldn't even consider
      a new Dali print because of market saturation and questionable quality.

  --  The best return on investment comes from a work produced by an
      "unknown" artist that suddenly comes into favor with the art world.
      As an example, many of the works of the abstract expressionists produced 
      during the early part of this century, are now selling for millions 
      at Christies. When these works were new, the artist's could not sell
      them because they were too much a change for the art market of their
      day. Obviously, the risks for this type of investment are usually quite 
      high, and take many years to mature. I would not suggest this type of 
      investment to a novice collector.

  --  A reasonable return on investment can usually be had with art that is
      neither "brand new" or "over-saturated". There are many artist's with
      strong followings in the art market. The pop artist's of the sixties
      are a good example. Lately, many of these artist's have been
      experimenting with different techniques and styles. A couple of
      examples are Robert Raushenberg's recent works in photography and
      Kenneth Nolands work with sculptured paper pulp. Both of these artists
      are well represented in all the major museums with their early works,
      but not with their recent diversions. I think is safe to assume that
      newer works would offer a good return on investment in a few years. I
      would recommend this type of investment to someone with a willingness 
      to study art. 

Also, there are a few key things to consider when buying prints:

  --  How large is the edition?  All prints should have some indication of
      the size of the print edition. The larger the edition, the less the
      individual piece is worth. For example, if you saw a 23/150 in the
      lower right-hand corner of a print, you would know that there were
      149 others just like it, and that you were looking at the 23rd one
      printed. I like to stay away from editions larger than 200 because
      of the dilution involved.

  --  What kind of edition is it?  Some artists allow the printer to sell
      proofs. Proofs are what the printer uses for quality control. They
      can be identified by markings like A.P. (Artist Proof) or E.A. (Edition
      Artiste). There are many others (which I can't remember at the moment),
      so if you see some marking on the bottom (or back) of the print, ask
      the seller to identify it. Proof's are generally not a good investment
      because of their "un-original" nature.

  --  Do you like the print?  As far as I'm concerned, there are two reasons
      for collecting art. One is for enjoyment. It is really stupid to buy
      a print that you don't enjoy looking at. Aesthetics should not be left
      out of the purchase decision.

This message is already getting too long, so I'll stop. If you have any
questions about the art market, I will try to answer them (or post if of
general interest). Don't expect an answer too soon, I will be out of town
for a few weeks and very busy when I get back.

	-ch

Craig Hockenberry -- FileNet Corp. -- ..!ucbvax!trwrb!felix!craig