Collect for love, not for money.
That’s the advice art and auction industry professionals bestow upon investors considering a plunge into the world of art collecting.
“Essentially, it’s a love affair,” says Richard Francis, chief curator at Chicago’s Museum of Contemporary Art (MCA). “You have to be in love with a piece of art you want to buy; you can’t care about its resale value. And it’s a bit like buying anything: You need to research the field.”
Those are just two of the tips Francis and a panel of collectors, dealers and artists will be proferring to prospective and experienced collectors alike at an art-collecting seminar Sunday at the museum, 237 E. Ontario St. The free seminar (a precursor to the MCA’s 11th Benefit Art Auction, scheduled for Oct. 16 at Navy Pier) will be given at 2 and 4 p.m. Space is limited, and reservations can be made by phoning 312-280-5163.
“It is almost a why, what, where, when type of seminar,” explains Francis. “It will be conducted in a way that will allow people to ask such questions as, `How do I begin?,’ `Where do I go?’ and `Whom do I talk to?”‘
Knowing where to begin, what to look for, whom to turn to and what to buy can be daunting tasks for beginning art collectors. That’s why many in the industry agree that the most important thing would-be investors can do is become educated consumers who care about the aesthetic value, not the money-making potential, of the art they ultimately buy.
“There’s a difference between investors and collectors. Investors buy to make a buck and most buy on tips or because they know an artist’s name. It’s like when someone says, `Buy IBM,’ and an investor says, `Oh, I’ve heard of them, I’ll buy,”‘ says Gilbert Edelson, administrative vice president of the New York City-based Art Dealers Association of America.
“Collectors buy because they love and understand art. And it’s collectors, not investors, who make money.”
But Edelson and Gary Piattoni, director of specialty sales for Chicago’s Leslie Hindman Auctioneers, caution that artwork-even when bought for love-is not for low- to medium-risk investors hoping for hefty short-term returns.
“In general, those who’ve invested and speculated have lost money,” Edelson warns. “People think all art appreciates, but 98 percent of it made in a given year will decline in value-maybe even more.”
Echoes Piattoni: “Art isn’t like stocks or bonds, where every year you can increase the amount your investment is worth. . . . If an average person goes into an average gallery and buys a piece for $2,000 that a dealer paid $1,000 for, the collector won’t get that investment back for 10 to 20 years.”
That’s the bad news. The good news is that there are ways you can become a savvy art lover/collector.
– Learn about art by reading magazines, perusing catalogs and visiting museums and galleries.
“You should learn about art history, read art publications, subscribe to auction catalogs, go to museums, meet other collectors,” Edelson advises.
“If you’re looking at a Picasso, you should understand which period it is from, how highly regarded it is, and why. Develop your eye, develop your taste and develop your knowledge. When you can look at a piece of art and say, `That should sell for X number of dollars,’ you have the kind of knowledge you need to be an informed collector.”
Piattoni, too, recommends reading industry publications for information that will build your understanding of art, including Art & Antiques, Art & Auction, Artforum and Art in America. He also cites The New Group of the Museum of Contemporary Art-an organization founded a decade ago to explore contemporary art in Chicago via events that combine educational and social programs-as a valuable resource for information about art.
The New Group, according to MCA spokeswoman Maureen King, sponsors at least eight events every year-events that include an annual fall “bash/tent party,” visits to artists’ studios, and walking tours of the city’s gallery neighborhoods.
The $125-per-year, two-person membership also includes free admission to the MCA; two guest passes; a 15 percent discount on MCA store purchases; invitations to members-only openings; a 50 percent discount on courses that deal with specific aspects of art or specific movements and are offered by the MCA’s education department; a members-only calendar; and reciprocal membership at 29 national museums.
– Understand the differences between art you buy at galleries and art you buy at auctions. Piattoni explains that galleries sell at retail, auction houses at wholesale. And he stresses that there is a “big difference” between the two.
“What you’re getting at a gallery for your money is cleaned, framed and comes with a history of the art,” he states. “You also should be getting a guarantee of authenticity and information about the artist. You should expect and get a lot of service from a gallery.
“Auction houses,” he continues, “are for those who have done their homework and who know about the artist.”
King concurs. “At an auction, you only get a four- or five-word description (of the art in which you’re interested); at a gallery, you have gallery attendants who talk to and educate you.”
– Don’t buy artwork that needs a lot of work or has been extensively restored. Some types of restoration-relining, remounting and preserving, among them-do not lower a painting’s value. But Piattoni says artwork that has been burned or ripped could spell trouble for unknowledgeable or unsuspecting collectors.
– Seek out and purchase art only from reputable dealers. This is not always easy for beginning collectors, since no formal certification boards, regulatory agencies or organizations exist to verify dealers’ credentials. Yet informal ways do exist to locate honest, reliable dealers.
“Go to museums and meet other collectors. Once you know the field, you’ll know who the reliable dealers are,” Edelson explains. Likewise, Piattoni suggests at least a few visits to a given gallery before making the decision to purchase from a particular dealer.
– Don’t forgo art collecting just because you don’t have thousands of dollars or more to invest. “What a lot of people don’t realize is that they can buy a small, authentic 19th Century portrait oil painting at auction for between $200 and $300 and at retail for between $400 and $500. And they can purchase hand-painted early pieces or contemporary pieces of art for under $500,” Piattoni says. “Young, new artists in the gallery districts can be even less expensive.”
