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| Insurance Policy For Art |
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insuring art
royal queensland art society president
You will want to consider these additional tips when it comes to investing your money. If you buy art with the hope of selling it, you may be disappointed quickly. In each of these situations, the art is now something that is better known even though that quality is something that has happened very quickly. You want to know about this person and why they are worth investing in to you, personally. You purchase it for 0. |
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| Insuring Art |
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Chapter 2: Art: How Is It Valued?
Art is traded just as stocks are traded, bonds are traded or any other commodity is. It is bought and sold based on its value through various markets. And, like most other commodities the one element that helps to motivate its sale and value increases and decreases, is the pressures from these markets. Yet, there are many other factors to consider here too.
Supply And Demand
The largest one of these is the law of supply and demand. Going back to high school economics class, you know that supply and demand is the way that most products are priced. When there are many items, such as plenty of corn, the value of the corn is lower because there is enough for everyone. But, when the corn becomes scarce, and others really want it, then the value of the corn increases.
In turn, art that is plentiful and easily found is less valuable than harder to find, rare pieces. What's more, how much people want that art will also affect the value of it, no matter how much is available.
The key here is to purchase a piece of art when it is plentiful, hang on to it long enough and hope and wait until it becomes in demand and therefore very valuable. That's the law of supply and demand.
This is actually the most common way that art changes hands in terms of value. For example, a collection of pieces from a semi unknown artist go on the market. You like the pieces so you decide to choose a very nice photograph that was done. It appeals to you. You purchase it for 0.
Later, that collection has sold out because others thought that the art was beautiful too. Now, although others are looking for the art, they can't find it and the laws of supply and demand kick in increasing the amount of money that you can get for the photograph if you sold it.
This can often happen in a matter of hours, increasing the value of your artwork quickly and easily. Yet, that is not the way that it always happens and just happening to find a collection that will sell that well so quickly is something that experience art collectors are able to do.
Aesthetics
In art investing, the value of a piece of art is often dictated by its aesthetic benefit. It should look amazing of course! Yet, with this also comes uniqueness and something in the piece that somehow appeals to those that are seeing it for the first time.
As you can imagine, this type of quality in valuing art is something that is strictly subjective and therefore can be problematic for the person that is looking to invest in art just for the dollar value it has.
The best tip that can be given here in developing your strategy for investing in art is to follow your own tastes and likes. There is a good chance that what you love is going to appeal to others. Hence, this is one reason we tell you that you need to invest in art that you truly love beyond any other aspect of it.
Authenticity
The authenticity of art is one of the key factors in determining the value of it. Art that is proven to be original and proven to be done by a specific artist is worth more than art that is unproven, of course. Yet, there are many pieces that this information can not be shown on but is assumed. Still others have no way of being authenticated and that can often mean that it is difficult to know if the value of the piece is valued lower because of it.
Anyone that is actually investing in art should make sure that his or her piece is authenticated by a trusted dealer, one that is well known and respectable. Anything less than this, or any piece of art that does not have authentication may not be worth anywhere near what you think it should.
Condition
The condition of the piece makes a great deal of difference in the value of the piece. There is no doubt that a beautiful, high quality and in great condition piece from the 1500's was to be found, that would be an amazingly valued piece of art. On the other hand, a poorly taken care of piece form the same time may be worth much less. Yet, this second piece may still be worth something for its age.
There is no doubt that having the condition of the art is important before you actually invest in it. It often takes time to determine what that condition is, though. If you see the piece in person you are able to see the basic condition of it, to allow you to make a decision.
If you will be purchasing the piece blindly, or without seeing it in person, then it is almost necessary for you to be sure that the piece is authenticated and appraised for its value before you purchase it. Having a local professional that you have chosen look at the piece can help with this.
In terms of value, the highest the quality of the condition of the piece is, the more valuable it is. In addition to this, the older it is in the better quality is another indicator of the value that the piece will have for you.
Rarity
Imagine purchasing a home that is from two centuries ago and discovering a secret passage that you later find out hides an amazing piece by a well known artist that is so far unknown. IF proven authentic, this piece could sell for a very high price, of course. While there is no likely to be a passage that offers these good things to us, there is still a lot of art treasure to be found.
In fact, every year there are stories about people just venturing into a garage sale and finding a rare piece of art. This could easily be you!
What is important to remember about the rarity of the art is what makes it rare. Has the artist died? Has the piece of art been known to be in existence but just not known where it is? Perhaps it is an unknown piece of work altogether. All of these are possibilities that increase the value of the art work that you find and invest in.
You always want to invest in art that is rare, no matter from a new artist that you love or from an older one. In fact, when artists that are known die, the value of their art increases substantially especially when they are decently known because there will be no more pieces.
Provenance
Provenance or the lineage of the piece of art is another key ingredient in the value that the art has. Lineage refers to the people that have owned the piece of art before you. Let's say that you find for auction of piece of art that was owned by an Ex President, or some other important figure. Just because it was owned, or even liked, by this famous figure, the value of the art can be increased because of this information.
Let's say that you find a piece of art that was the most important piece to an ex President. Perhaps it hung in his office while he was serving or even in his childhood home long before. These things increase the value of the piece of art.
This information nearly always needs to be authenticated by a professional before you should invest in it. The fact is that there is no way to know for sure that the piece is actually something that was owned by someone like this unless there is paperwork to back it up.
As you can see, there are many factors that play a role in the value of the art that you are considering purchasing. Each is an important factor for you to consider.
Mind Arts Narada Dunlap
The fact is that when it comes to investing in art, you need to pay attention to the artist, the person behind the work.
Brisbane Art Galleries
When considering students today for your art investment you should find out if they took the Grand Tour in their education and if and when they acquired their MFA. In addition, your appraiser should address other professionals for their opinions until a value can be agreed upon. These locations are known for their love of art and there are many great artists that come here to be discovered. Just like any type of investment, it is key to have an investment strategy in place to help you. Determine what you enjoy and what interests you. This is their way of "selling" the art and the artist to you, after all.
What are the sales numbers for the artist's work?
Like any other investment, you need to know what value is out there in terms of dollars and cents. For example, an artist with an MFA or Master of Fine Art degree is likely to have art that is valued higher than that of art valued by someone without such a degree. While art can jump in value quickly, it can also stay the same.
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