February 2010

Some of us are galloping through life without a retirement plan, refusing to use portions of paychecks to invest in the random multinational corporations that lurk behind 401Ks. While any friendly neighborhood stockbroker will wince at such wealth-defying choices, there might be a more aesthetic, less capitalistic way to invest for the future—collecting art.

Art investments over the last 50 years, according to the Mei Moses Art Index, have gained a compound annual return of 8.9 percent—almost equal to the 9.4 percent return on equities. This report also states that “the most recent ten and five year compound annual returns for art . . . substantially exceed the returns of stocks.”

Beyond that, most stock investments send your money someplace else. Buying the work of local artists offers an opportunity to invest locally. Ready to start? Here are some guidelines for starting your own art collection:

1. Buy What You Like: A perk of art collecting is that you get to live with your investment, so make sure it is something you want to see everyday. You don’t need an art degree to know what qualifies as good art. Look for pieces that touch your soul or create meaning for you. If you find a painting or sculpture that moves you, chances are that others—not everybody—will experience a similar connection.

While it is great to invest in the art you like, it is still important to have a plan. “If you are trying to grow a collection,” says Dr. Karin Larkin, Curator of Visual Art at the Sangre de Cristo Arts Center, “you should have some sort of plan so that your collection is cohesive, coherent and complete.”

2. Buy from Emerging Artists: Just like purchasing stock, when buying art, it is wise to buy low and sell high. Emerging artists offer more affordable artwork that has the potential to appreciate in value.

How might you determine the difference between an emerging artist and a dud? Larkin recommends doing some research: “Southwest Art and other art publications often post ‘emerging artists to watch.’”

She also recommends looking at an artist’s resume, and talking to curators or gallery attendants about the work. She suggests asking questions: “Are they exhibiting in a variety of places? Are they actively getting their work out to be seen?” And, she adds, “You will sometimes see a flurry of activity surrounding an artist who is about to take off.”

For example, local artist Jason Dunks beautifully creates delicate insects from glass. He has an impressive resume, as he has studied under Vittorio Costantini, a Venetian glass maestro, and at the famed Washington-based Pilchuck School of Glass. In the past year, he was accepted into the Pismo Fine Art Glass galleries and his prices have nearly tripled. Art lovers who purchased his pieces last year made a good investment, and his work may continue to grow in value.

3. Get the Most for Your Money: As with any investment, a lower cost creates a higher potential return. Here are some insider tricks on getting original art for less:

Look for sales and discounts. For example: Museum members often get discounts on art purchases. This is true for the Sangre de Cristo Arts Center, as well as places like the Museum of Modern Art in New York and the Denver Art Museum.

Take advantage of silent auctions. Pueblo is overflowing with silent auction opportunities. This is a great chance to buy original, local artwork for very little cost. (This article’s author purchased an original oil painting in a gilded frame at a silent auction for only $40!)

Bartering is a great way to collect art, as many artists are very open to the concept. For example, Mary Oreskovich and Richard Warner of Hopscotch Bakery traded a lifetime supply of Mary O. cookies for one of Richard Hansen’s award-winning stone sculptures. (Warner adds that he loves “trading culinary art for stone art!”) And, well-loved local potters Kate and Shane Jarrett have bartered their beautifully functional art pieces for dental work, preschool tuition and video game systems.

Made nearly obsolete with the increase of credit card use, layaway is still an option when buying from most local artists. This is a perfect option when you don’t have a large chunk of cash all at once.

Kindly ask for art when loved ones want a wish list for birthdays, anniversaries or Christmas. It is important to be very specific about what you like and to share artists’ contact information if you have it.

4. Take Care of Your Investment: Your art investment will only be valuable if you protect it. You can protect your investment with insurance, but there really is no way to replace an original piece of art. You also need to protect your art on a daily basis from damage caused by sunshine, dust, children, pets, smoke, etc. Larkin recommends, “using archival matting and UV-protected glass.

Keep sensitive items such as fabric, watercolor, works on paper and photographs out of direct sunlight.” Artists are often knowledgeable about the best ways to protect their specific medium. If you can’t connect with the artist, “there are books on conservation for different types of materials that can help you care for your growing collection,” adds Larkin.

5. Keep Good Records: If you plan on creating a wealth-generating art collection, it is important to keep good records, including: artist, year purchased, creation date and where piece was purchased. If you are purchasing art from another collector, antique shop or garage sale, ask for any records or information about the art piece. If an art piece gains significant value, it may be important to have its provenance—a historic record of the work.

Art collecting is a happy investment. It is good for your soul, great for artists, looks nice in your home, and can pay off in the future. Get started today!