5/17/13

Skate's Art Market Research Tracks Trends

As a lowly, newbie collector, I am fascinated by the workings of the upper echelon art world--particularly in light of the record-setting auction that took place at Christie’s that took place a few days ago. A selection of 66 postwar and contemporary artworks by well-known  artists (such as Jackson Pollock, Roy Lichtenstein and Jean-Michel Basquiat) sold for a total of $495 million (Wow!).

One great source of information about how the top-level art market works is Skate’s Art Market Research. Established in 2004, the organization provides unbiased research to support art investment decisions. Skate’s goal is to develop information tools and services that can help shift the balance of power in the art investment world from intermediaries (such as dealers and auction houses) to art collectors, art investors and artists. Earlier this year, Skate’s published a two-part Annual Art Investment Report for 2012. Part 1 discussed the world’s top 5,000 most valuable artworks based on public auction prices. Part 2 addressed trends in the global “art industry,” which includes auction houses, dealerships, e-commerce platforms, art investment funds, art financial services, and publicly traded art industry companies.


Part 1: Top 5,000 Artworks

To understand trends in the premium segment of the art market, Skate’s evaluates year-to-year changes in the 5,000 most expensive art works that sell at auction worldwide. In December 2012, these top 5,000 artworks were worth $33.3 billion, up 9% from 2011.

The study also showed that fewer people are buying more expensive art and are focusing on established names.

According to the report, “While 2012 showed that buyers have devoted more substantial funds to art purchases, it also revealed that they have become more selective in terms of their choices. The overall number of top-value works selling has decreased, and buyers have been selecting artworks from a far smaller number of artists than they did in 2011. A clear illustration of this can be seen in the number of new artists appearing in the ranking; in 2012.” In 2012, only 38 new artists were represented among the top 5,000 artworks, compared to 81 in 2011.

Download the full report here:


Part 2: State of the Global Art Industry

In this report, Skate’s analysts conclude that art buyers are “the creative force behind the art industry and its operatives. It is buyers who are encouraging established players to expand overseas to tap markets where demand for art is growing. Buyers are pushing for the conversion of brick-and-mortar stores into online businesses that offer e-commerce solutions.”

Furthermore, they believe that the growing and increasingly diverse universe of art buyers “makes it literally impossible to create marketable art using old cliches of beauty, taste, and discovery of new ideas.”

The report points out that “Comtemporary art buyers are not only carefully selective when it comes to their art purchases, but they also requires high-level services to help them manage the works they acquire and abundant information to help them refine their ideas regarding art collecting.”

The report describes trends in auctions, events, and online sales, noting that the art trade is undergoing some major changes.

Overall, “Skate’s sees bright prospects for the art industry as entrepreneurs and innovators continue to tweak old models and invest in new business models to play on the increasing attractiveness of global arts to global consumers.”

Skate’s observes that the quest for new art collectors is making it difficult for many dealers to operate as local enterprises. Their analysts predict that “Those galleries that are undercapitalized, poor on risk management, and unable to grow their trade to meet the tastes of international buyers will eventually face a slow death. The successful gallery now must possess recurring access to third-party financing, the ability to operate internationally by attending multiple fairs and having points of presence in a few geographies, and a management team with a strong combination of artistic and commercial skills.”

But the report also acknowledges an influx of new faces to the art trade, including some who want to push “consumer-grade” art and serve as specialty retailers: “These developments may forever change the centuries-old tradition of art dealing based on selling to a privileged class.”

Download the full report here:


LINKS



5/10/13

Three Good Sites for Learning about Art

If galleries and art fairs seem intimidating, increase your confidence by learning more about art and building virtual collections online. Studying art online has become easy and enjoyable, thanks to sites such as Artsy, Google Art Project, and Artspace.

“It’s easy to practice choosing art, when you are browsing online from the privacy of your own home,” says Fleur Allen, director of the Interactive Arts gallery.

Here are three good sites for learning more about art, artists, and art collecting.


Artsy is an online platform for discovering and collecting art. On the Artsy site, you can see  more than 30,000 artworks by more than 6,000 artists from leading galleries, museums, private collections, foundations, and artists’ estates. Artsy has partnered with 400+ galleries and 100+ museums and foundations.

To make it easy for collectors to find specific types of works online, Artsy initiated The Art Genome Project. Like an art-focused search engine, the Art Genome Project enables you to explore art by style, subject matter, medium, technique, or region.



For example, when you hit the term “collage,” you will see a definition for collage (“a two-dimensional work created from an assemblage of different materials”) and more than 1,200 examples of collages by various artists. Choose “sort by year” and you will see how collage styles have evolved from 1913 until the present.

The Art Genome Project can be used either for self-guided learning or to discover works for sale. More than 10,000 of the works on Artsy are available for sale, with prices ranging from under $1,000 to more than $1 million. You can use Artsy to contact the seller directly, or discuss questions about the work with an Artsy specialist.

The Artsy blog features easy-to-read posts about artists, their projects, and various exhibitions.


Thanks to Google high-resolution imaging technologies and expertise from collection curators, you can study 30,000 works of art from over 150 collections in our 40 nations. You can examine works at brushstroke-level detail, take virtual tours of museums around the world, and build world-class virtual collections without spending a dime. 



Some of the art institutions you can “visit” online include: The Art Institute of Chicago, the Auckland Art Gallery, the Acropolis Museum, the George Eastman House, and Cooper-Hewitt National Design Museum, the Museum of Russian Icons, the J. Paul Getty Museum, the Hong Kong Museum of Art, the Israel Museum, the Museum of Modern Art (MoMA), the National Portrait Gallery, and the Tate Britain.



Expertly narrated videos, audio guides, and viewing notes make it easy for you to learn more about the paintings, drawings, sculptures, historic artifacts, and photographs in the museum collections.

Using Google’s online tools, you can create and share virtual art collections that would be impossible to match in real life.


Artspace is a digital marketplace for fine art and design. The site offers limited editions and original works from rising stars to the most recognized artists. For beginning collectors, they have a page of artworks starting at $100.



Part of the Artspace mission is “to help collectors and aspiring collectors discover, learn about and collect fine art.” In keeping with their role of online “art advisor,” they publish dozens of feature articles and interviews with artists, advisors, and collectors.

For example, their “Art 101” page contains a variety of useful features such as:


As you spend more time studying art online, you will become less anxious about asking “dumb” questions when you view art in person. Most experts agree that viewing art online can be fun, but it is no substitute for experiencing art in the size and form the artist intended.  

LINKS




4/24/13

Learn from Reflections of Renowned Collector


While it’s important to anticipate how technology might change the art market in the future, it is useful to learn how top collectors got started in the past.

On the National Gallery of Art’s website, you can read a fascinating personal essay (“Reminisces and Reflections on Collecting”) in which collector Raymond Horowitz explains how he and his wife Margaret got their start in the 1960s. Although Raymond and Margaret Horowitz are both now deceased, they are widely recognized for their superb collection of paintings, pastels, watercolors, and drawings created by American artists in the late nineteenth and early twentieth centuries. They were among the first collectors to dedicate themselves to American impressionism.

In the essay, Horowitz talked about why art collecting can be a life-enhancing experience. He reminds us that all collectors start somewhere, and it’s important to buy what you love, regardless of what others may think of your taste.

Raymond Horowitz said that although he always had an interest in art, he never set out to become a collector. In the late 1950s, a close friend who was a collector of nineteenth and twentieth century American representational painting gave him a French drawing as a birthday present. To reciprocate, he gave his friend an American drawing as a Christmas present.  As the gift exchange continued, Horowitz and his wife scouted galleries specializing in American art and read a lot on the subject. Having become immersed in the subject, they decided to buy some inexpensive works on paper in 1960. Horowitz called it “more of a lark than anything serious.”

Although they had not yet embraced the idea of becoming collectors, they continued to visit galleries regularly. One day in 1961, they bought a painting “that had immediate and irresistible appeal.”

By 1962, they had acquired more than 20 diverse works in various mediums: “It was only at that time, when we could be more analytical about our acquisitions that we came to the realization that we were greatly attracted to lyrical, representational, but non-academic painting; painting that expressed a definite sensibility ad certain moods and feelings – warmth, tenderness, intimacy, optimism.” They noticed that there was a certain cohesion and unity in their choices.

Although “American impressionism” is a commonly recognized today, Horowitz notes that there was very little interest in it when they started their collection. He said it was considered unfashionable: “In fact, we were ridiculed as ‘square’ by most of our chums who had an interest in art.” As collectors, they deliberately set out to find examples of turn-of-the-twentieth-century American paintings that looked less dismal than those they saw in many auction houses and art galleries.

When they decided to focus on their collection, the Horowitzes started taking collecting and the connoisseurship seriously: “We constantly talked to other collectors, art historians, museum curators, and dealers, trying to learn as much as possible. We traveled to museums, large and small, to look at works we had seen in reproduction, and we read everything that remotely bordered on our field.”

“The Horowitz Collection” first got public attention in 1966, when the curator of American art at the Metropolitan Museum agreed to briefly store some of their paintings while they were moving from one apartment to another. Another curator at the museum came across the paintings and asked to include some of them in the museum’s summer loan show.

 As Margaret and Ray Horowitz became more knowledgeable and focused collectors, they recognized some mistakes in their purchases. So they weeded out their collection through trades, donations, exchanges, and sales.

Continuous refinement is a part of the collecting process, said Horowitz, who likens a collection to a living organism: “If you stop collecting, the collection becomes a lifeless thing, merely decoration on the walls.”

For art lovers who might hesitate to narrow the focus of their collecting, Raymond Horowitz said: “The fact that one collects in a narrow field does not mean that one’s field of vision must be narrow. Indeed the opposite is true. The passion for discovery is heightened and concentrated, and the search to see behind the curtain becomes more intense. Collecting, looking, and reading become an adventure in innovation, in seeing things in new ways, and refreshing your ideas about life – and this is what art is all about.”
  
I encourage novice collectors to read the full essay on the National Gallery of Art website. Adapted from a talk Horowitz delivered at an art conference, the essay provides context for a lot of the advice you will read in educational publications for new collectors.

LINKS



4/18/13

Gallery Owner Advises New Collectors to Buy the Best You Can Afford


Rebekah Jacob owns the Rebekah Jacob Gallery in Charleston, South Carolina. She represents an international group of emerging and established artists who create paintings, works on paper, photographs, and video. The gallery focuses on modern art and photography of the American South and offers appraisal services to individual and corporate collectors for resale, insurance, estate, bankruptcy, and equitable-distribution purposes.

Jacob works with numerous clients who are building collections around the Civil Rights Movement and/or the African American. She enjoys getting to know her clients well enough to help them choose art they will love.

Rebekah also actively encourages and supports new collectors, whether they are young art enthusiasts or people from around the world who are buying homes in Southern cities such as Charleston and New Orleans.

She says young collectors like the flexible price points of unique, high-quality photographs and other works on paper She believes photography is popular among new collectors because cameras and technology are such a big part of our lives. New collectors also tend to start with works on paper because they can afford to buy more than one piece.

When I asked her about the wisdom of “investing” in art, she said art can be viewed as an investment option, but only if collectors buy smartly, at fair market values, and are patient during the resale process once an official appraisal has been levied.

She points out that many high net-worth individuals have no intention of selling the art they buy. When they fall in love with certain pieces of art, they will either keep it in the family and/or gift it to a museum to make it accessible to art scholars and the public.

If you do want art that might appreciate over time, here are a few suggestions from Rebekah Jacob:

  • Find a reputable dealer and work closely with him/her over time.
  • Buy the best art work you can afford. Look at the artist’s credentials: publications, exhibitions, gallery representation, and collector base. The more dense the resume of the artist, often, the more solid the investment.
  • Realize that fine art is not like gold or another currency. Art is not a commodity in which units can be liquidated quickly. You may have to wait months or even years to find a buyer.
  • Keep in mind that art is susceptible to fashion. What may be “hot” today may not be as appealing next year.
  • Allocate some of your budget for ongoing expenses related to displaying, preserving, and insuring the art. Stocks and bonds do not need maintenance, but art may require conservation framing, proper lighting and climate control, and specialized storage.
  • Watch inflated markets and retail prices. Get a fair deal. Find a dealer qualified to appraise art.
  • Be aware that buying and selling art can be expensive, especially if you buy too high. Some auction houses and dealers take as much as 30 percent commission, which can affect your resale value. When art trades hands often, it does not add to the financial value of the piece.
Jerry Siegel, Revival Tent, archival pigment print, 16 x 20 inches, signed and editioned


Just in time for the Spoleto Festival of the arts in Charleston May 24 to June 9, the Rebekah Jacob Gallery will present an exhibition entitled "Somewhere in the South: a Celebration of Southern Photographers."

The exhibition will run from May 21 to July 6, and feature works by Southern photographers such as William Christenberry, Jerry Siegel, Eliot Dudik, Kathleen Robbins, Richard Sexton, Anne Rowland, and Keliy Anderson-Staley.

Eliot Dudik, Carew Rice Painting, Road Ends in Water Series, archival pigment print, 24 x 19 inches


To give emerging artists some exposure, Jacob reserved five spots in the exhibition for works discovered through an open call for submissions of photography and video art.

LINKS

3/5/13

Tips for Viewing a Painting

Everyone is qualified to appraise art. That was a key theme during a seminar for beginning art collectors presented by art consultant Doug Eisele of the Eisele Gallery of Fine Art in Cincinnati, Ohio. He pointed out that “You don’t need to be a musician to understand good music. And you don’t need to be an athlete to understand what’s required to perform in a game.”

Eisele urged beginning collectors to allow plenty of time to view and study the art: “Give each painting a few moments to do its thing. Some paintings are intriguing in very subtle ways that you may not notice the first time you look at them.”

Once you have gotten an overall look at the painting, he said “Don’t worry about figuring out what the artist was trying to say. Think more about what the art says to you.”

Eisele believes that art should appeal to your senses and grab your eye in some way: “That doesn’t mean it has to be beautiful, but it must grab your eye. A work might grab your eye through its subject matter, an interesting color, its combination of objects, its realistic appearance, or other factors. But a large part of the appeal of art is emotional. Some artists go out of their way to inspire strong reactions, ranging from awe and lust to anger and disgust.”

As you study a painting, think about:
  •  What emotions do you feel in the presence of the painting?
  • If your feelings are positive, why are they positive?
  • What is it about the painting that makes you happy or upsets you?
“Take time to examine your emotions in the presence of the painting,” said Eisele. “In my mind, good art can be a matter of execution and skills, but great art touches the mind, heart, and soul of the viewer.” Whether you are looking at the painting for the first time or the hundredth time, it should stir your soul.

As you study more paintings over time, you will begin to recognize the different ways that artists use elements such as balance, composition, and light to move the viewer. You may also see how symbols are used to communicate ideas. The more paintings you study, the more you will be able to discern which ones seem better than others.

“There are no hard and fast rules about what makes a piece of art great, mediocre, or bad,” said Eisele. “At lot of great art was once considered immature and forgettable.”

He advised seminar attendees to “Buy art because you like it, understand it, and it will enhance your life in some way.”

The Eisele Gallery of Fine Art  specializes in original paintings by noted 18th, 19th and 20th century American and European artists as well as contemporary works by local and regional living artists.

LINKS


2/28/13

Art Fair in San Diego Offers Collectors a Virtual Viewing Room


For my Creatives at Work blog, I am always on the lookout for news about new ways for artists to exhibit and sell their work. In the process, I often discover resources that can help educate collectors as well.

For example, last year I published a news item about the virtual viewing room being planned to extend the reach of a four-day contemporary art fair in San Diego. Since then, I contacted the fair’s director Ann Berchtold to ask a few follow-up questions about the fair’s resources for collectors.  I have published her responses below (after the introduction about the fair and viewing room).   
    
About the Fair and the Viewing Room

Founded in 2009, Art San Diego (ASD) is a four-day art fair that features San Diego’s most talented artists alongside the world’s leading contemporary art galleries. The event attracts both national and international attendees and was designed as a catalyst to promote the collecting of investment-grade art.

When the Art San Diego contemporary art fair returns to Balboa Park for its fifth edition November 7-10, 2013, it will offer a unique digital experience -- a virtual viewing room called ARTSD ONLINE.  Their partner in establishing this virtual viewing room is Collectrium, a company that is focused on revolutionizing the art world by creating a global platform for managing, discovering, sharing, and trading art and high-end collectibles.

Through the virtual viewing room, collectors will be able to browse works by over 60 ASD exhibitors and purchase directly from the dealers. The site will also include a list of resources for new collectors. 

“The fair provides not only a vibrant forum to purchase great works but also the opportunity to meet and forge relationships with gallery dealers and artists that match the sensibility of the collector,” explained Ann Berchtold, founder and director of Art San Diego. “This new online forum provides an ideal mechanism to maintain and continue to build on those relationships, and a vehicle to introduce new works throughout the year not previously shown.”

“Art San Diego attracts savvy collectors from around the world with art works from elite galleries and unparalleled creative programming. Now patrons will be able to access Art San Diego and its exhibiting galleries anytime, from anywhere in the world!" said Boris Pevzner, president and founder of Collectrium. "Having worked with Art San Diego to produce their iPhone and iPad apps, we are pleased to expand our partnership by introducing the new Art San Diego Virtual Viewing Room.”

The theme of Art San Diego 2013 is [COLLIDE].  Exhibits will explore various types of creative intersections (cross-disciplinary, cross-national, art and film, rural and urban) and how they manifest in both visual and social settings.

Questions for Ann Berchtold

What is your Collectors Resource Group? Is it an online advisory group? Or is it a group that holds face-to-face meetings?

AB: The Art San Diego Collector Resources Group (CRG) includes numerous art-service professionals who are able to assist collectors on questions about everything from insurance and appraisals to framing and shipping. We provide contact information through our website, and CRG members are at the Collector Concierge desk at the fair and at events such as our “Art Collectors Breakfast.” Each year, we produce a series of talks about collecting, and members of the CRG are included in those panel discussions.

In your news release, you say that Art San Diego acts as a catalyst “to encourage and promote the collecting of investment-grade art.” How do you define “investment-grade” art?

AB: We encourage the collecting of all art, but for “investment-grade” art we work to provide resources (such as the CRG) to those who are interested in collecting works for long-term financial benefit, or as part of an investment portfolio.

Experts would define “investment-grade” art as art that is authentic, with a proven provenance and history of exhibition. The artist should be well-known on an international level, with work that has been included in museums or important private collections. The work should have an established track record at auctions, and most importantly have a strong allure to the buyer.

I recently read an e-book by Brad Wajnman entitled: “Picture Perfect Profits: The Definitive Guide to Buying and Investing in Art.” He categorizes “art collectors” into three groups:

  • art collectors place a higher value on the art itself, rather than the profit potential.
  • art investors are willing to invest at least $10,000 in art that might appreciate over a long period of time (at least five to ten years).
  • art speculators are like stock speculators and are intent on banking short-terms gains from selling art. 
Would you agree with these categories?

AB: I think that is a good, broad summary. I think very few people would elect to call themselves “art investors.” The art market is so speculative – it is never a sure thing at the lower price points. You have to either invest large amounts on “proven” masters –or love what you are buying in the hopes that everyone else will, too.

What types of collectors could benefit from the resources that will be posted in your Virtual Viewing Room?

AB:
At Art San Diego, we create a forum for both buying art, and expanding your experience and education as a collector. The goal with Art SD Online is to continue this experience past the four-day physical life of the fair into a virtual world that continues year round.

The site will feature monthly exhibitions that include select works from our participating exhibitors. We will also include articles about collecting, and news about things that are happening in the art world. Hopefully, over time, this site will become an educational resource for new collectors and a resource for collectors who want to follow a particular gallery they may have met at the fair.

LINKS




BOOK



2/26/13

A Fresh Take on Buying Art Photography

Peter Johnson is the long-time art collector who created the online photography gallery Captured Global (capturedglobal.com). For beginning to emerging collectors, Captured Global sells intelligent, culturally relevant, collectible work by acclaimed photographers working across all genres of photography.

As a gallery owner, Johnson is challenging the multiple size, multiple price, multiple edition model used by other sellers of fine photography. Each photograph is offered only in the size originally envisioned by the artist. And edition sizes are not limited in an attempt to arbitrarily create “value.”

For my recent article on art collecting, I asked Peter to tell me more about Captured Global.

Tell me more about Captured Global's approach to selling art photography.

PJ: Our goal is to create the "go to" portal for extraordinary photography at a great price, to inspire a new generation of collector, and to help propel the careers of our artists. We currently offer the work of photographers from around the world. Some show exclusively with us while others may have other work represented elsewhere. The size and price of each image we offer however, is exclusive. 

I dig deep to find intelligent and culturally relevant work worthy of private and public collections.


Captured Global: Simon Vahala, Tourists, Alhambra, Spain, 40 x 40 in. 


You'll find the work of young emerging photographers side by side with established masters whose work is found in private and public collections around the world including SFMOMA, The Getty Museum, the Scottish Museum and National Gallery in Prague among others. At Captured Global, the images, the artists and the story are our centerpiece and we deliver great value for nearly anyone's pocketbook.

Are you a photographer yourself?

PJ: Yes, I'm a photographer who aspires to the level of talent of those we represent!

Photographs are telling of our time and the vernacular in which our photographers interpret the world is incredibly rich, diverse, compelling and exciting.

One reason interest in art photography is so high is because it is the only art form created by millions of people every day. All around the world, people are capturing, manipulating and sharing images instantaneously.

Now that everyone is a photographer, our job is to advance the art of collecting by sharing the work of our artists in ways that are fresh, exciting and culturally relevant. 

What kind of feedback have you been getting from photographers and collectors since the site was launched?

PJ: Since our approach is a bit contrary to the status quo, it's been an enlightening conversation with both photographers and collectors.

For many artists, it's difficult to break into the gallery scene, so we present a very intriguing option to the typically higher priced, limited editions that galleries establish in an effort to create and control demand. For the one photographer picked up by a gallery, there are hundreds of others producing extraordinary, collectible images.

Do most photographers support open editions?

PJ: Yes, because they want as many people as possible to enjoy their work. And it's interesting, because as a collector, I have never thought "Oh, I love that piece because it's one of only five in the world." Let alone 50, 100, 250, 500, 1000 or even more, which some editions are! When you think about it, it shouldn't matter how many prints are in circulation, because you should be buying work because you love it and will enjoy it every day.

While limited editions were created as a means to establish urgency and "future value," the strategy only works if the edition sells out and returns as a resale on the secondary market. But take a look around at gallery sites on the web and you'll find limited editions all over the place, of images dating back 10, 20, 30 years - and they're still not sold out! 

In fact many famous photographers like Ansel Adams, Henri Cartier-Bresson and Julius Shulman offered images as open editions, many of which holding tremendous monetary value today. 

As a collector, would you be more motivated to buy a one-of-a-kind print?

PJ: Not necessarily. If it's a one of a kind that I love and can afford, then sure I would consider buying it. At Captured Global, we're all about getting as many images as possible into the hands of as many collectors as possible. It's a win-win for both artists and collectors. When you buy an open edition, you have no idea how many prints of that image are actually in circulation - it could be five or 5,000. But that should have have no bearing on "future value" because it's highly unlikely that prints priced between $50 and $1,500 are going to come onto the secondary market anyway, regardless of how many are out there.

What comes with the purchase of an open edition, potentially with many other collectors, is the knowledge that you're really helping an artist grow their business. 

And that's good. Volume sales at say $350 as an open edition is much more sensible than few, if any, sales at say $1,500 as a limited edition that may never sell out - a scenario that happens more often than a gallery may like to admit. This certainly doesn't help the artist.

That said, nothing replaces the relationship between artists working at the very highest levels and their top-tier galleries. They establish the benchmarks in the marketplace and cater to a clientele more inclined toward "investment" purchases.




Captured Global: Norbert Hayo, Charles Baudelaire, 20 x 24 inches

It is with great pleasure that we've been given the opportunity to work with such talented artists, whose belief in our unconventional approach to the value of photography as a collectible art form, has together, made us agents of change.on sizes are not limited in an attempt to arbitrarily create “value.”

What does the future hold for Captured Global?

PJ: While Captured Global is an online experience, so to is our commitment to bringing the Captured Live! experience to cities around the world, propelling the art of photography in a connected world. We will be integrating technology as a complement to viewing original photographs in person. 

As the world becomes more dependent on connectivity, we never want to lose site of the innate value of the printed image.

LINK

Captured Global

RELATED POST

Good Advice from a Long-Time Collector