When buying and collecting art as investment it is important foremost that you like what you buy. Chances are that if you hate a painting, a potential buyer will also hate the painting.
Never buy just signature. The artwork must stand on its own merits irrespective of the artist’s reputation. The value of an artwork is indicative of numerous unique subjective considerations. A potential buyer looking to purchase a quality painting or artwork capable of obtaining strong capital growth should minimize their art collecting risk and be satisfied that the artwork lives up to or exceeds each subjective consideration.
The subjective factors are—
The status or standing of the artist. Is the artist on, or likely to one day be on, the secondary market?
Understand and differentiate between the creative periods within any artist’s life. Their productive output may indeed vary. Focus your attention on those strong artworks or themes from the artist’s best years.
The medium, condition, provenance and exhibition history must impress.
A painting’s subject matter must be neither offensive nor unpopular.
Whether a painting is signed or not.
Collectors must take into account the cyclical nature of the art market and the economy itself. Sell in a boom and buy in a bust.
Know the availability and value of other works by the same artist.
Collectors should know the final price settled upon and ensure there are no hidden costs such as buyers premiums which may distort the final cost.
Understand the vagaries of taste and fashion. An acquired work which delivers a good return on the purchase price usually exhibits universal themes and emotions. — Agencies
