Investment Opportunity
Are you looking for an investment that shows promising prospect in this turbulent market? Patronage is both a traditional method of contributing to the arts, and in today's market, a wise investment. It's a win-win situation, providing the patron with a growing collection of increasingly valuable work and allowing the artist, with the surety of a stable income, to spend more time painting and promoting themselves, in turn increasing the rate at which the investment grows.
Why invest in art?
The benefits of art as investment are twofold: apart from the obvious financial gain in reselling artwork over time, there is also the emotional dividend to be considered, both from the joy of owning and displaying unique pieces of original artwork, and the knowledge that you have made a significant cultural contribution by supporting an upcoming artist. Looking at a portfolio of stocks and shares can't give quite the same feeling! In some countries, donating artwork that you have owned for over a year to a college, foundation or charity is tax deductible - based on the appraised fair market value, which will in many cases be significantly higher than the amount paid for the work.
Experts agree that art can be a wise investment, especially during periods of uncertainty in property and the stock market:
According to Hislops 2003 Price Guide, individual artists have chalked up price increases of up to 700% in 1997-2002.
According to Karl Schweizer, head of art banking at Swiss bank UBS, there may be some truth in the rule that art booms when the stock market wobbles.
Contemporary art has gone up in value by 55 per cent in the last 12 months alone, according to a study of auction sales from around the world conducted by Hiscox.
Recent research by Barclays Capital and The Economist indicates that art has out-performed both equities and property over both short and long periods of time - demonstrating that art has emerged as a viable asset class. The art market offers attractive and significant opportunities to well advised investors. This is a market which investors and wealth managers cannot afford to ignore.
While few people can afford to buy a Picasso, a Van Gogh, or even a Damien Hurst, buying into art by a new artist can offer even better returns in percentage terms - prices increase most steeply as an artist makes a name for themselves.
So what do I get for my money?
As a patron you will be entitled to a significant discount on original works of art. A payment of £1000 per month will give you one very large painting (size A0, or 84x119cm/33x47in), or alternatively a larger number of smaller paintings, exact numbers dependent on size and complexity of work. This represents a 50% discount on normal prices, and can be commissioned work produced to your specifications, artist's choice, or a combination, so not only do you have the opportunity to own a unique piece of artwork available nowhere else, but it can also be customised to suit you and your home or business.
You will also receive regular updates, invitations to any gallery openings and the opportunity to meet the artist.
Freeze prices: Another advantage of becoming a patron is that, just for you, the artist will commit to a set price list for the duration of your contract. While prices for other clients may rise, yours will remain fixed, meaning that your discount becomes even more significant over time.
No Gallery Fees: Also, in buying direct from the artist, you will not be paying the additional 40% fee charged by most galleries on top of the artist's price, thus saving you even more. Your potential gains could be recouped now, not just in the future.
There is a further 5% discount offered if 6 months are paid in advance, and 10% discount for 12 months paid in advance.
Syndicates are welcome, if you are a group looking to invest smaller amounts over time, please find contact details below.
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These links contain reviews of Art as an investment, from various sources.
Credit Suisse Article
(Click 'yes' to the question about living in switzerland to read the article)
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If you are interested in learning more, or want to begin investing, please email MaxineGreenFineArts@gmail.com
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