Ever since I began evaluating artworks for clients in the United States two decades ago, I have frequently been approached by consumers seeking to ascertain the worth of an artwork they purchased in a gallery 20-30 years ago. Frequently, they experienced disappointment when I informed them of the current monetary worth of their artwork. Occasionally, the current worth amounts to only one-third of the original purchase price from three decades ago.
Is investing in fine art an unprofitable venture? Undoubtedly, it is a highly lucrative financial endeavor as long as one adheres to fundamental principles. If you are looking to make a significant investment in artists such as Picasso, Chagall, Warhol, and others, it is advisable to steer clear of galleries. Galleries typically incur high operational expenses. - rental of a prestigious location typically located in a high-end area, -staff members required to ensure the operational functionality of the gallery- affiliated with groups such as Artnet.com, among others An art gallery proprietor who allocates funds towards acquiring a painting or supporting an artist is uncertain about the timing and profitability of their investment. In some cases, their investment may remain stagnant indefinitely. Similarly, when an artist displays work in the gallery, the gallery owner typically takes a 50% commission from the sale price of a painting. However, the gallery owner also incurs expenses for exhibition catalogs, vernissage events, radio advertisements, and magazine articles. Ultimately, it is the buyer who has the financial responsibility for the gallery owner. This is one of the reasons why artwork purchased in a gallery is seldom a profitable investment in the short term.
For emerging artists, galleries and auction houses such as Arcadia Sales Christie's and Discovery Auctions from several prominent auction houses like Doyle NY, LAMA, and Los Angeles are highly appealing venues for purchasing artwork.
In the future, galleries will become obsolete, similar to how little stores vanished to accommodate large chains of warehouses. The primary fine art brokers no longer maintain a physical gallery, instead conducting their operations from their own residential properties such as houses, lofts, or condos.
What are the reasons for the wisdom in purchasing from them? You will not incur the expenses often associated with gallery ownership, such as employee salaries, costly space rentals, and expensive advertising in prestigious magazines like Architectural Digest (which charges $10,000.00 per page), Art News, Rob Report, and others. Undoubtedly, it is imperative that you place your trust in your broker. A reputable broker would consistently provide comprehensive paperwork for an artwork, which includes the certificate of authenticity issued by the single recognized expert for that specific artist, and one that has been recently obtained. An expert's recognition may fluctuate, since they may be acknowledged at one point but challenged at another, leading to other experts assuming authority. The certificate of authenticity must be issued within the past 6 months. In addition to the certificate, the broker will furnish you with comprehensive documentation regarding the artwork. This documentation will encompass details about the artwork's origin, the artist's bibliography, references to previous auction sales and private sales, mentions in the "catalogue raisonne," and an assessment of the artwork's fair market value.
An excellent broker
- has a minimum of 10-15 years of expertise in the fine art industry,
The individual possesses a fine art degree.
A broker will provide evidence of his work and will acquaint you with his clients.
In the realm of real estate, there is a common misconception that being a broker in the fine art industry is a simple task, resulting in the emergence of brokers worldwide who are eager to earn quick profits. Exemplary brokers possess a high level of discretion, a crucial attribute for a fine art broker.
A Picasso artwork can be acquired for a price of 10 million dollars through a broker, but the identical painting would cost a minimum of 15 million dollars in a gallery. Additionally, it is important to note that auction houses impose premium fees when selling a Picasso. They exhibit variability, but consistently possess a high price point. They impose high prices on the customer as well. They receive a % from the buyer and also from the seller going up sometimes to 30% from each side...
An excellent broker will present you with multiple options based on the specific type of fine art you possess. © Gerard Van Weyenbergh
I love the idea of investing in art, especially when it feels like it could be a great financial move in the future. For anyone serious about it, I’d recommend checking out these contemporary paintings for sale from Bernabò Home Gallery. They specialize in modern and contemporary art, and their collection features major artists who have long-term investment potential. Plus, owning a piece from a renowned artist is always a great conversation starter.