How to make big returns in art!!
If your plan is to build up an art collection in order to make big returns, then forget about it. Unless you are a multi-millionaire (in which case you are probably in the daft world of nonsense where you will believe your own hype) and the prices of artwork are, quite frankly, utterly ridiculous.
If you are a mere mortal however, and you have a family home and want to enjoy artwork in whatever shape or form then you can enjoy this, as well as seeing this as an investment which could provide a return over a period of time, without expecting to make huge returns. You may have seen artwork by artists that you want to purchase which you could view as an asset that you can love hanging on the wall (and for others around you when they come into your home that they can enjoy) whilst not necessarily making huge returns.
That is not saying however that there are not huge returns to be made within art, but it is important that when embarking on a journey of growing an art collection that the main focus is not about making huge sums of money. None of us of course want to lose money. By way of example, some people who have got a bit of cash will think nothing of walking out and buying a £50,000 car and driving it off the forecourt thereby losing £10,000 immediately. Therefore, if they think that the honest appraisal of having artwork to enjoy rather than making huge volumes of money is wrong, then so be it, they can go off and buy their cars and lose lots of money on them.
In a previous article, I mentioned I had been offered a piece of art which had a value of £15,000 in 2017. Realistically this will probably be if the artist continues in the way that he has. Bearing in mind the particular piece that it is, it will be worth, most likely, a six-figure sum i
n the next 5 to 10 years. This would be a fantastic return but, like any form of investment, you have got to be sensible and only commit to what you can afford and, consider how risky you want to play the art market.
This particular piece would have been a 100% investment. Yes – I love the artist and I also love the piece but it would have been an entirely investment-based decision and to me, that is not right with art or what I want to achieve from growing and expanding the art collection and my investment in my art collection.
Invest in the art you enjoy
There are many artists, all of whom produce brilliant work. Some do well and some stay producing artwork on a daily basis earning a few quid for themselves and, quite frankly, some do only earn a few quid for themselves. There is one local artist, Stebbins, who produces unusual and different local scenes of the West Country and in particular, the Plymouth area. Whilst they are fantastic, they are not quite everyone’s cup of tea, the amount of detail involved and the amount of time it takes him to produce the artwork that he does equates to around £6 per hour for him!
Sadly, whilst I really love the artwork, as an investment it is not a good one because he can only produce a certain number of pieces. Whilst you would equate that sometimes to an improved value on certain types of investment, for example if it takes longer or is a better quality for instance, then the value would be higher and you would appreciate more, in artwork that is not necessarily the case.
You are looking more at the subject matter, the vision of the artist and the type of style that they are employing. If it is incredibly niche and the audience is not there, for instance if there are local scenes or someone employs an artist for a specific sort of commission then that is just relevant for the person requesting the commission and the value can stay stagnant.