“How can one determine that the art-piece they have invested in will appreciate in value in the future?” That’s the common question asked by many art collectors. The secret lies in understanding the basic principles of economics of supply and demand, as the same principles also apply in the art market.
If an artist over-produces or re-produces a certain art-form or piece, the value of their works plummets, due to an over-supply on the market. While an artist who produces limited art-works will witness the price of their works rising, as they will be more art collectors chasing few art pieces. As an art collector one should be wary of just purchasing art-forms from vendors or mass markets as most of these pieces are poor imitations of master artists, and most importantly these pieces would have been overproduced. In the long run these pieces will not appreciate in value, rather they end up being cheap ornamental objects. Only a person with a general understanding of art and a trained eye will be able to tell the difference.
If one was to ask why a Maybach costs more than a Mazda, they should ask themselves this simple question.”How many Maybachs do you see on the road compared to Mazda’s?” Well the answer is quite simple, not to many. Even those in the remotest parts of the world have seen a Mazda, while most people have only seen a Maybach in magazines. This example highlights that any product that is produced in limited quantities is expensive. At the end of the day a wealthy art collector wishes to possess art-works that they can state, belongs to them only. With this insight one can understand why art-works of artists who have passed away tend to be more valuable, the fact is art markets respond to the principles of economics, taking into consideration that once an artist passes away they will eventually be a limited number of their works on the market being chased by numerous art collectors.
That trend is now changing as artists have become more sophisticated and now have a general understanding of markets forces. Today one can find living artists such as Damien Hirst,Jasper Johns,Bruce Nauman, Jeff Koon and Cy Twombly ,whose artworks fetch eight figure prices. The secret why these artists’ works are so valuable, is the fact that they produce limited amounts of art-works that are much sought after by art collectors. Taking general economics into consideration, most shrewd investors would rather invest in art-works of artists, who are disciplined in the amount of art-works they produce, than to spend their time speculating with commodities and activities that demand regular attention and maintenance. In a nut shell, it all boils down to exclusivity .Any art-piece that the eventual art collector acquires will eventually see its price appreciate as the result of the art piece being exclusive to them.
At www.takuragallery.com the artists whose works we showcase are first screened to make sure that they posses discipline and a true artistic expression. Personally I have educated the artists on the need to produce few art pieces, and to spend more time on artistic > creativity in order to enhance value of their art-work. So how can one the determine if the pieces they have invested in will appreciate in value? Firstly look for name artists or in a case of a new up-coming artist, look for those associated with a gallery that promotes name artists.Find artists who don’t mass produce and lastly look for artists who are always take their artistic creativity to the next level.
Anthony Smith
February 5, 2012
True “collectors” buy WHAT THEY LIKE, not what will necessarily give them a financial return.
Many true collectors get their “return” from the joy the artwork gives to them and if, over time, they get a financial benefit, really it doesn’t concern them as they would not consider selling anyway.
Historically, many artists have reproduced their own works for clients, and this includes the greats. It was not unusual in Renaissance times for an artist to do more than one painting in either a larger or smaller format for a client or clients. Certainly, in Victorian times too, well respected artists would often do multiple images of the same painting to satisfy demands placed upon them by their clients. This has certainly not affected the artists values.
The modern trend of limited edition prints belies the idea that multiple images of the same image depreciates the image and the work of the artist.
If an artist produces say 10 works in his/her lifetime, if they are not artistically important, their rarity is not a factor in their value.
If an artist who is known for quality, innovation, technical brilliance or invention produces thousands of images, these are not depreciated due to the “availablity” but in fact such availablity can place the images into many more collections and thus the images become more sought after.
Originality is the key. Is the artwork original? Does it show creativity? Does it show new thought or artistic process? Does it show technical brilliance?
The truth is Picasso, one of the greats if not the greatest artist of the 20th century, produced thousands and thousands of artworks, yet no-one can say his prices are devalued because of this.
Maybach or Mazda is really of little comparison or relevance to the question of “value” in art.
These are motor vehicles, by definition mass produced but to differing luxury and engineering levels. It is the cost of the “ingredients” in one that makes it more expensive than the other…..and clever marketing !
Whether the values of artworks by deceased artists are higher than those of living artists is debatable and would need a separate blog to discuss in depth, but one could name thousands of deceased artists whose works are valued less than living artists.
In regard to the artists you have mentioned, particularly Koons and Hirst, certainly they do produce editions, multiples of the same image.
The fact is that value is multi-faceted. If one talks exclusively about value being financial, then it is the creativity displayed by the artist that creates that value, not the idea of a limited number of works produced. As an example, if an artist produced 10 brilliant paintings in their lifetime and no-one knew about them, would they have value? If the same artist produced hundreds of images and people were aware of them, then they would have value.
Rarity is one thing. Talent, creativity, originality and technical ability are far more important in determining value…..on all levels.
http://www.asart.com
Salimata Diop
February 5, 2012
This is most interesting.
I have written a master thesis about this exact question: how can a collector turn his personal taste into a legitimate reference for others, and can a collector influence the art market?
I’d be glad to send it to you if you’re interested.
Anthony Smith
February 5, 2012
Dear Sallmata,
I’d be very interested to read your thesis.
Regards
Anthony
http://www.asart.com
Exhibitors
February 5, 2012
Hi Anthony
I have invited Salimata to send us a copy of her thesis with a view to publishing on the AAD Blog.
Best wishes,
E
Anthony Smith
February 6, 2012
Many thanks Exhibitors.
Appreciated.
Regards
Anthony
http://www.asart.com
Harlan Sadberry
March 13, 2012
I find this article of particular interest because it strikes a harmonious chord with my desire to not mass produce, to not look at the external demands of the market, and to follow the inspiration suggested by the previous paintings. It may be a very small world I live in but it is real and all-consuming to me.
Much appreciation for the humanity here,
Harlan