Investment Trends

Photographs are the New Collectors Art

Large photographs have become more and more prevalent in recent years as focal points in modern homes. The buzz started several years ago and the movement is gaining incredible momentum because of the lower initial investment required.

Quality film photographs can be had for hundreds of thousands of dollars, as opposed to the millions required to access the top end of the market created by the 20th-century Masters. It’s important to note this emerging trend does not include digital photographs.

In “Color and Design Trends: 2011,” Sharone Einhorn predicted, “Large-scale photography, especially of the natural world,” is an up-and-coming trend to watch.

In February 2006, Sotheby’s achieved the highest-ever single-photograph sale price in history, selling Edward Steichen’s ”The Pond-Moonlight” for $2,928,000. Also in that sale, two portraits of Georgia O’Keeffe by Alfred Stieglitz cracked the million-dollar mark: ”Hands,” at $1,472,000, and ”Nude,” at $1,360,000.” Since this time, Cindy Sherman’s ”Untitled #96″ (1981)” sold for over $3.8M.

According to Emotional Assets Management and Research group, ”Photography…has been growing in both popularity and value in recent years. New York is by far the largest photography market. When photography dedicated auctions from the top auction houses of Christie’s and Sotheby’s are compared, New York has 85% market share, with London and Paris trailing far behind with 10% and 5% respectively.”

Film photographs featured above: Richard Avedon’s “Dovima with Elephants” (1955), $1,151,976, purchased in November 2010, Christie’s Paris auction; Peter Lik’s “One” (2010), $1,000,000, purchased in December 2010, Anonymous Collector; Cindy Sherman’s ”Untitled #96″ (1981)” purchased for over $3.8M.

The Swiss Broadcasting Corporation (SBC) says, “Warhol used Polaroids in the 1970s in the creation of his giant silk-screened portraits, but now they are seen as artworks in their own right.”

Photo Books are Hot on the Collectors List too

The collectors who buy XXL (extra large format also known as SUMO) limited edition books early on will have, in addition to a rare and exceptional book, the added benefit of seeing their asset appreciate. XXL books have been known to have their value tripled, quadrupled, or even quintupled and even more within a short period of time. Examples include Helmut Newton’s SUMO, whose market value went from $1,500 in 1999 to $15,000 today, and Peter Beard’s Art Edition, which went from $1,800 to $7,000 within two years, and Jeff Koons’s Art Edition, which shot up from $1,000 to $4,000 within a few months and today is listed at at $15,000 on the Taschen website.

Essential Tips for the Art of Collecting

Art collecting isn’t a new concept, and Rembrandt and Van Gogh are as sure investments as gold bars, but the works of the old masters are scarce and costly. That being said, art can be one of the most enjoyable ways to invest, as you can derive day-to-day pleasure from it. But of course, the ultimate goal is to enjoy it for a while before selling it for a profit, and making sure you invest in pieces that will go up in value can be a daunting endeavour.

Because the art world is not regulated in the same fashion as other investment circles, research can be just as important as an aesthetic appreciation for the pieces themselves. However, the same principles do apply:

Buy early when prices are still relatively low to maximize your profits.
Emerging artists who are on the way up in the echelons of the art world are the best place to put your cash if you wish to make a wise investment that will pay dividends in the long run.
Since you’re investing in the artist as much as the piece, look for one who is at least five years out of art school, as less than 5% of grads continue to produce meaningfully after this point. Your investment goal is to select an artist who displays commitment, originality and longevity — all are key factors contributing to the career of a successful artist.
Always buy signed pieces with a clear provenance in order to ensure a good value on the resale market.
Buy from artists you’ve never heard of and sell when you start to see their names in print. If an artist is already being hyped and is mentioned everywhere, you’ve likely already missed the boat.
Keep in mind the cardinal rule: You have to love the piece. The two reasons for this are simple:

Art investments are long-term; you have to expect to hold on to something for at least 10 years.

If you don’t like it, chances are no one else will either, and your chances of getting a great price will be significantly lower.