A well-curated personal art collection is an investment that will give you tangible current enjoyment while building long term financial wealth. Whether you favor European paintings of the 17th century or contemporary works by emerging artists, the key to building a valuable art collection is knowledge of the art market and how it works.
The fine art market is strong.
The European Fine Art Foundation’s Art Market recently reported that the 2014 global art market reached a total of more than $56.5 billion. That is an increase of 7 percent over 2013, and the highest level ever recorded. Though past performance is no guarantee of future profitability, the current market for fine art is still bullish and appears to present opportunities for investors.
Art investing isn’t only for millionaires.
While you might read headlines about rare European paintings selling for tens, or even hundreds, of millions of dollars, the majority of the fine art market transactions are more accessible to a broader base of potential investors. Only 0.5 percent of the category is located above $1 million, so even novice investors can find a price point to enter the market.
The U.S. is a primary purchase locale, even for European paintings.
In comparison to other major art markets, the United States has more favorable taxation terms. Because artwork is a portable asset, high-quality European paintings and other international works are brought to the U.S. because of more favorable sales conditions. While New York City continues to dominate the global art market across the upper end of the price spectrum, Los Angeles is quickly becoming another international center for the sale and acquisition of fine art.
Successful investors know how to balance emotions with economics.
One of the most important things to remember when you buy art is that you should actually like the piece. As with most investments, fine art takes time to appreciate in value, and most art buyers will live with their purchases for the long-term. Art is significantly different from other investments in that it doesn’t pay monetary dividends during ownership, but does deliver “returns’ in the form of personal enjoyment and social capital. Similarly, collecting as a passion is also different than collecting as an investment. When passion for an individual work or a specific artist impedes financial analysis of price in relation to true market value, the investment is likely to go from potential profitability to almost certain loss.
Value can be hard to define.
The art market can be capricious, but there are certain common factors that can impact the value of a piece. The regard given the artist is obviously important. European paintings by the Dutch masters and the Impressionists, as well as more contemporary works by the inventors of modern art such as Warhol and Picasso are going to be treasured.
Value is not only imparted by the name of the artists, but also by quality of the individual work. This can be tricky, because it requires an understanding and knowledge of the artist’s oeuvre. Successful art investors often develop a relationship with a knowledgeable and trustworthy art gallery to advise them in this regard.
The rarity of a work also defines its value. This is obvious in the sector of original works, such as European paintings by great artists of the past such as Rembrandt and Renoir, but also comes into play in the market for lithographs and reproductions. A low run of limited edition prints is more valuable than a mass produced image, and a lower-numbered print in the series can also mean better value.
Top quality art in the upper 20% of the market is always valuable because it functions under the same equation as most profitable investments: minimal supply with maximum demand. Even in down markets, works in the upper 20% usually have the most value with the highest level of appreciation.
Taking a risk on unfamiliar artists can return big rewards.
Amateur buyers tend to fall into the trap of building their collection on fads in the art market. They gravitate towards artists who have already made a name for themselves and towards art trends and movements that are the current rage. Unfortunately, this approach typically results in paying maximum price for minimum quality or value due to a saturated market.
Strategic collectors will watch as an artist gains status and his or her works command higher prices, and position their purchases ahead of the price and popularity curve. Successful art collectors often maintain a relationship with a knowledgeable fine art gallery that helps them identify rising artists and developing trends in the fine art world to stay ahead of the curve. Focusing on an artist or movement at the very beginning of the market attention is a great strategy for purchasing art at a minimum price before the historical importance of the work has emerged. Consider that the great European paintings of Monet, Toulouse-Lautrec, and even Van Gogh received little to no recognition during their lifetimes.
Before you invest your money, invest your time in learning about art.
Information is power, and it will make you a better investor. Take time to research artists whose work catches your eye. Frequently visit fine art galleries in your area to develop a feel for their style, expertise, and favored genres. Discuss your investment goals with a gallery art advisor. A gallery known for its expertise in European paintings, for example, is likely to have contacts throughout the country, and even the world, with access to hard to find works that would augment your collection.
Get advice from an art expert.
Investing in art is more complicated than most people realize. There are many variables and nuances to buying art that don’t come into play with other investment vehicles, and they are often factors with which even investors who are experienced in other sectors are unfamiliar. Specific advice from a trusted art advisor is important to increase your likelihood of success.
Protect your investment.
Once you decide to purchase a piece, it is important to protect your investment. Insuring the artwork is relatively inexpensive compared to other collectibles, and typical homeowner policies are insufficient. Look for a company that specializes or has significant experience in the type of art you own. A high-quality company may want to conduct a home review to ensure that you won’t be hanging fine European paintings over a working wood fireplace (because of soot) or exposed to direct sunlight (to protect against fading).
Proper museum-quality framing and conservation will help protect the value of your investment artwork. You may also want to periodically have a certified appraisal performed to assess the value of the piece and confirm that your insurance policy reflects it.
Galerie Michael helps investors build museum-quality collections.
Developing an art collection with a potential for long-term profitable return requires a mixture of passion for art and investment knowledge. This is why it is so helpful for art investors to maintain a relationship with a knowledgeable fine art gallery that helps them build art collections that meet their wants and needs.
Galerie Michael is an essential resource for beginning – or expanding – an exceptional fine art investment collection. Combining an outstanding reputation, historical scholarship, curatorial prestige, and dedication to our clientele, we create the foremost experience in the acquisition of fine art. In addition to offering works by a range of historically significant artists, we also pride ourselves on concentrating on the upper 25% of each artist’s oeuvre – a focus that demonstrates our commitment to artistic discernment and excellence.
Our prestigious reputation speaks for itself, both at home and abroad.
Galerie Michael is a unique fine art gallery located on the famous Rodeo Drive in Beverly Hills. We have cultivated a reputation of exceptional prestige both locally and internationally. Founded in 1978, the gallery has acted as a reputable source of fine art for nearly 40 years, and is a respected member of the Fine Art Dealers Association (FADA). Through a demonstrated commitment to artistic discernment and excellence we have earned the privilege of working cooperatively in partnerships and collaborations with such prominent institutions as the J. Paul Getty Museum, LACMA, and the Norton Simon Museum in Los Angeles, as well as the Musée de l’École de Barbizon in France, the museum of the rural village where Troyon and other Barbizon school artists created their European paintings.
In an increasingly global art market, there is little room for insularity. While many art dealers in Los Angeles boast casual connections abroad, Galerie Michael has cultivated a strong and substantiated international presence. For collectors who wish to build a fine art collection that is truly timeless and commands respect internationally, selecting a dealer with commensurate goals is of the utmost importance.
Galerie Michael offers a critical link between artists and collectors.
In addition to offering a high standard of curatorial knowledge and expertise, an art gallery or dealer should act as a liaison between the artist and the collector. Many art dealers in Los Angeles cannot offer these connections, often because of the dealer’s lack of experience or consistency. Galerie Michael provides an excellent example of connection to the artist. Having established relationships with the representatives and families of some of the world’s most historically significant artists (including Picasso, Cezanne, Pissarro, and Renoir), Galerie Michael brings individuals into the intimate world of fine art collection with unparalleled distinction. Currently, Galerie Michael exclusively represents and exhibits the works of Alexandre Renoir, great grandson of Impressionist Pierre Auguste Renoir.
We are committed to sharing our curatorial scholarship with our clients.
Unlike many galleries, we at Galerie Michael pride ourselves on providing our clients access to the highest level of artistic knowledge and curatorial research. In addition to orchestrating tours and lectures locally and internationally, our calendar of events includes art talks with world-renowned art historians, scholars, and critics in an effort to promote art education. We are dedicated to offering our clientele informed guidance on four centuries of exquisite original artwork, and our friendly staff is always available to answer any inquiries. This in-depth insight equips collectors with valuable information to aid them in making investment decisions.
We work with collectors and investors to build them museum quality collections, one work at a time”.
For more than 30 years, Galerie Michael takes a long term view on working with collectors and investors. We have an unparalleled client base of close to 7,500 collectors, many of whom have been collecting with us for three decades.
An important aspect of Galerie Michael’s ongoing success is that customers are treated as business partners with full access to Galerie Michael’s planning, market expertise, curatorial knowledge, and staff of fine art scholars. Collections built focus on artwork in the upper 25% of the artists’ oeuvre, emphasizing rarity, historic importance, ground-breaking innovations, demand, ultimate sale-ability, potential appreciation and artistic insight. All collections are cataloged by the gallery’s in-house curatorial department and come with a Galerie Michael Certificate of Authenticity.
Galerie Michael is a leader in 17th to 20th Century European paintings.
Galerie Michael is known internationally for its leading edge in 17th to 20th Century master works, mounting over eighteen annual exhibitions, including Barbizon and the Journey to Impressionism, Picasso and the Artist’s Muse, Rembrandt: A Comparative View and Renoir and the Impressionists. Exhibits are accompanied by catalogues with essays written by scholars and critics who support the gallery’s philosophy of acquiring fine art through ongoing education.
We provide a comprehensive array of services to secure and protect value for investors and collectors.
Galerie Michael offers a full range of services to aid art collectors and investors, including:
– Certification of Authenticity
– Complementary certified appraisals for insurance, estate, donation or tax purposes
– Curatorial research
– Complete painting and paper conservation
– Custom museum quality framing
– Professional packaging and world-wide shipping
– Two year exchange privilege on works purchased from the gallery
– Gallery-owned artwork
– Personal art consultant to advise and assist clients with acquisitions
– Commitment to building museum quality collections
– Access to a million dollar art library
– Saturday VIP lectures by world renowned art historians and critics
– Worldwide contacts to search to find specific works
– Close relationships with Master Artists Families
– International respect with worldwide references
– Museum curated traveling exhibitions worldwide
– Membership in the Fine Art Dealers Association
– Location on famous Rodeo Drive in Beverly Hills for over 30 years
– VIP entrance and private viewings
Galerie Michael’s long-term commitment to collector ethics, access to fine art, education and art collecting along with its prestigious membership in the Fine Art Dealers Association (FADA), has established us as one of the most highly regarded, successful galleries in the United States and worldwide.
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