ART INVESTMENT:

When does a work of art have Investment Potential?

Buying art can be a truly enjoyable and rewarding pastime but it is always wise to carefully consider what you are purchasing to make sure your initial financial outlay is protected and outlined below are few key factors to consider when choosing a work to join your collection.

If you’ve been looking at art for a while, you may already have an artist in your sights whose work you wish to purchase, or maybe you’ve seen something in a gallery or coming up in an auction which really appeals. Before you commit to buying, take a step back and do some research about the artist and the work. Do a bit of reading on the internet, talk to the professionals such as the gallery or auction house staff where the work is being sold, and check out the public collections such as Auckland Art Gallery online to see what holdings they have of the artist.

From this, you will be able to ascertain the period or subject matter created by the artist which is considered iconic and the most desirable as these are the works you should try to concentrate on acquiring. Don Binney’s ‘bird paintings’ from the 1960s are considered the pinnacle of his career even though he painted many other landscapes and birds over a thirty year period. Grahame Sydney’s Otago landscapes are highly sought after and command much higher prices than his portraits and figurative works and Peter Peryer’s photographs of his wife Erica from the 1970s consistently achieve more than his landscape views. An iconic subject is like a safety net for the artwork, as these works are the ‘tried and true’ examples, they may have been ground breaking when they were painted, or have become significant later in the context of the artist’s career or have always had great commercial appeal.

Often these great examples appear at the start of the artist’s ‘mid-career’ once the artist had been practising for 15-20 years and have become confident in themselves and their artistic practise. Iconic works may reference an earlier series of the artist’s work but are treated in a revolutionary way. Colin McCahon’s ‘Elias’ series from 1959 relates to his earlier religious paintings from the 1940s but are solely text painted on canvas rather than containing a figurative element. Sometimes, revolutionary painting can come at the end of an artist’s career, in the case of Frances Hodgkins who spent from 1890-1920 painting very pretty but recognisable watercolours of scenes in France and Holland but gradually became more abstract in style and by the 1930s was painting bold, dynamic landscapes which were totally nonrepresentational. For many people, these works are considered tough paintings, difficult to enjoy compared with her earlier works but for collectors who have spent time looking and learning about Hodgkins, these are some of their favourites, because they show her evolution as an artist.

Scale is also important when considering investment potential in an artist. A generously proportioned work will always command a higher price than a small work of the same series or subject matter, although this does not always hold true with very large works as there is a smaller pool of buyers who are able to accommodate such a piece in their home. Ralph Hotere is an artist who painted across all sizes and mediums. Some of his largest works are the Song Cycle banners which measure over 3 metres high and need a wall or double-height space to be displayed. In the past, these works have been quite difficult to sell compared to his smaller works.

Another important factor to consider is if the artist is in the collections of public institutions such as Auckland Art Gallery or Te Papa or has had exhibitions at local or national non-commercial institutions such as The Dowse or City Gallery in Wellington or The Suter in Nelson. Inclusion in these collections and exhibiting in these locations shows that the artist is achieving critical acclaim from art curators and the artists’s work has been considered significant within the story of New Zealand art history. If the galleries are purchasing certain works by an artist or a period or style, this is another ‘tick of approval’ and can often signify that the artist is worth collecting. In recent years, Auckland Art Gallery has been purchasing examples of Maori Modernism, works which have been created by artists such as Arnold Wilson, Para Matchitt and Selwyn Muru from the 1950s and 1960s and this has corresponded with an uptick in the prices for these artists at auction. Information about collection content is easily accessible online through the gallery websites so it’s easy to do a quick search and check what examples are included in the collections of these important institutions.

When speaking with clients who ask our purchasing advice at Art Valuations NZ we will always advise the client to buy the best example of the artist’s work that they can afford. Whether it’s $2,000, $20,000 or $200,000 there is always something in every price bracket that is worth buying if it’s a great example. Although the initial outlay may feel expensive, especially if it was more than you wanted to spend, if you have done your research and followed the collecting guidelines, it’s worth spending the extra in the long run, to acquire a strong example.

For more informaton contact :

Sophie Coupland | 022 510 8766

Briar Williams | 027 345 6765

Art Valuations NZ

info@artvaluationsnz.com