27th Jan 2009
Recession Proof Art Investing
Gold, jewels and two dimensional and smaller three dimensional works of fine art (such as paintings, prints and drawings or Faberge eggs) remain the three sure and secure investments. Once owned they are not subject to taxes or much upkeep and usually can be easily transported.
History has proven that gold, jewels and fine art are easily traded in times of economic or political difficulty.
Art by great artists on paper has not decreased in value anywhere near other valuable papers such as money, stocks and bonds. The international art market means that good art investments, whether of brilliant emerging artists or well known ones, can be bought and sold using whatever currency is a better value. Currently many artists and dealers who show and trade internationally are insisting on being paid in Euros. Some of these artists are American, while others are Europeans who shy away from receiving a fluctuating and weak dollar.
Art Can be One of the Best Recession Proof Investments
While gold and jewels will retain or increase in worth with the economy they will not skyrocket in value. Not many people can afford to collect van Goghs and other blue chip artists, however there are drawings and prints by established masters that are affordable. However, just like the gold and jewels they will retain their value better than other investments but may not increase in worth dramatically.
Art by emerging artists or recognized living Contemporary artists who are making obvious contributions to art that may inspire other artists and future generations. Just making beautiful traditional art or doing what others are doing—what’s in vogue – does not signal a great artist whose work will grow in statute and price.
The Lesson of Southampton Hospital
The only hospital in the Hamptons is in Southampton . Emerging and poor artists have a long history of trading their work for services. Although most of the artists who traded work for medical help never became famous, some did. So by the beginning of the Millennium the corridors of Southampton hospital rivaled the Parrish Art Museum , about a mile away. Walking through the corridors was like trip down a who’s who in the Hamptons art world, which included well recognized artists. When the Southampton hospital suffered a financial crisis reportedly brought on by mismanagement long after it began trading with artists one of its major assets was that art. It was sold and helped the hospital regain its fiscal footing.
For a few years inexpensive prints replaced the beloved art, but little by little the art of the newer Hamptons artists of today is appearing again on the walls.
The Dentist of ArtReview’s 100
Every year ArtReview has published a list of 100 most important people in the international Contemporary Art world. For several years a British dentist Adrian Mullish regularly appeared on the list due to his collection, which is highly valued. The collection includes many now recognized British artists, including Damian Hirst and Tracy Emin. It was obtained by trading services to emerging impoverished such as Damien Hirst and Tracy Enim.
Using the Internet
The Internet is leveling the playing field for all collectors. The hottest newest artists whose idea will change the history of art can all be found on the Internet if they are located in a place where there is a connection to the web. Creative, innovative people are early adopters.
Just as investors can research stocks, commodities and other investment vehicles, art and artists can be researched over the Internet. Artists and galleries have independent sites, and can also be found on art sites, as can art news and even art auctions and offerings.
Trading and collecting the work of emerging or established living artists remains savvy even during a recession. The trick is to find the artists whose work is truly innovative and may inspire subsequent generations of artists and viewers. Those are the artists whose work will endure. Discover and collect an artist early and the investment will best or at least equal gold or jewelry or any really hot tip.
Great idea… and beyond that, when the world is crumbling down around us, art can be a wonderful reminder of the inherent beauty of the world.
When hyperinflation hits, art will be a wise investment. For now, people will and probably should hold off.
Great post, Judy!
I sent this page to my friends as well
The only true recession proof investment is in your self and the rest of the people!
I understand the totally logical sentiment here and perhaps money is what is necessary to preserve art for generations to come, but putting a price on art means you are adding a filter to the art, a filter that the artist perhaps never intended.
Vincent Van Gogh would be horrified to learn that people spent such huge sums of money on his paintings while other people went hungry or couldn’t afford a doctor.
Vincent van Gogh was fired from his post as a missionary because he spent so much time with the poor, gave them so much, including his own clothes, so as the group’s minister he was reportedly going around in tatters.
However, I think he would have been pleased at the success of his work, but would have prootested for a percentage of investor’s earnings to go to the poor and charity.
Van Gogh came from a family that had members who were art dealers, and he had worked in London for the family concern. Money flowing from art was well known to him. He was disturbed that his own work was not appreciated or selling.
I’ll need to send this entry over to my Husband to read! I collect art, for many reasons, and have yet to regret something I purchased.
Of course, beyond anything, it gives me great joy to see it on my walls, but it comforting to know I’m investing in my future, and that of my children as well.
Rebecca
gr8 resrch bro?
I think we are also seeing some signs of recovery from the Economic Recession. Of course, we have no idea of how long it will take to completely recover, but some say it’s going to be longer than for the other recessions in decades. I also scanned an article yesterday that said business owners need a new set of tactics to do well during recovery.
interesting take on the subject, count me as a new subscriber!
Very good article. I have an artist friend who is trying to find her niche and really could use a mentor.
It takes time to find oneself in life.I marvel at how much is expected of art grads. they have learned to make art — but to make good or even great art one must learn about life.
Investing is my way of earning money both online and offiline, right now i am into venture capital.”`;
Awesome info. I’ve gotta express that it’s been really interesting watching investing recommendations sway in the last couple years. What do you think about it?
I think that art is proving to be one of the best possible investments.
Finding an emerging artist who is founding a new theory of art and buying original works at the beginning of the career of a Johns, a Warhol, a Judd — or to go back a while to A Monet or Pissarro, for instance, is the BEST investment a person can make.
investing will always be a part of get rich programs, sometimes you need to be a risk taker to succeed.’:`