The Sunday Edit: ART as an Investment, Part 2
Girl with A Balloon, Banksy, 2006/Sotheby's
*ART = Personal property, including but not limited to fine art, decorative art, décor, collectibles, jewelry, coins, wine, vehicles.
Last week’s post dipped its toes into the ART asset class. Buy. Hold. Enjoy. Sell. Repeat. In this way, one can justify not only investing in winners, but the losers, as well. “I like it” goes a long way to comforting one during a down market and a recession in general. ART comforts like a favorite blankie…or maybe I mean a favorite Banksy.
Jean-Michel Basquiat, Untitled, 1982/Phillips
Many HNWIs want a safe haven and a reasonable financial venture, and not just in blue-chip works at ridiculous prices. Emerging and mid-career artists are popular, as well. The gallerists selling those latter artists are particularly interested in placing these works with influencers in order to enhance careers.
Installation view, Hauser & Wirth at Art Basel 2022, Louise Bourgeois, Spider, 1966/Artnet
Artnet reported on these June Art Basel sales (which are sales reported by the gallerists, not necessarily reflective of discounts to buyers).
1. Louise Bourgeois, Spider, 1996, listed at $40M
2. Joan Mitchell, Bergerie, 1960-61, listed at $16.5M
3. Milton Avery, Bikini Bather, 1962, listed at $2.5M
4. Park Seo-Bo, Ecriture No.140416, 2014, listed around $460K
5. Yee I-Lann, Tikar/Meja, 2022, listed in the region of $200K
6. Zineb Sedira, Dreams Have No Titles #1, 2022, listed at $83K
7. Pelagie Gbaguidi, De-Fossilization of the Look, Dialogue With Madonna Del Parto, 2018, Listed around $3000.
2017 Château Lafite Rothschild
During the recently endured Homebody Stage, there’s been an increase in antiques and vintage-sourced décor and furniture at a variety of price points. According to Mercari, Americans spent more than $17B on pre-owned “stuff” last year.
There was a time when antiquers thought “there’s only so much driving around one can do” seeking treasures. Today, “there’s only so much scrolling one can do.” Since there’s fewer brick-and-mortar shops around, it’s the auction bidders that are paying “retail” now.
Rarity is, by definition, hard to find, competitive and expensive. Like the underground drug and gun markets, the ART market is often opaque. More than half of all transactions are private. Experienced buyers achieve their goals with the help of their dealer or ART advisor. Should an item of interest be located, a deeper dive is required. Authenticity confirmation, condition reports and shipping quotes are necessary.
1964 Aston Martin DB5 Photograph from "Goldfinger" Movie/eBay
If a 1964 Aston Martin DB5 is your dream car (like it was for James Bond), the automobile appraiser/advisor will probably know who owns it, when they’ll be ready to sell and for how much. Luxe Digital claims its sky-high price has grown an estimated 790 times since it first arrived on the market. The more time passes, the bigger the entrance promises to be. Is now the time? HotCars reports prices of $600k or up to $1.5M, depending on critical authenticity and condition reports. Though technically mass-produced they are rare. A new 2022 DBS starts at $320K. In my humble opinion, get the convertible, which starts at $340K.
Writing Desk in Solid Ash Wood Molteni & C by Gio Ponti/1stDibs
Mass-marketed or limited-edition items can be much less pricey. On 1stDibs, Gio Ponti Writing Tables or Desks are offered at $2 - $60K, a wide swing that deserves a deep dive. A ranking sheet can be helpful in determining value. Compare size, medium, age, manufacturer, and condition. What financial roller coaster will such furnishings ride? Do you ride in the front or the back?
Let me know what ART you’d like to learn more about. Buy. Hold. Enjoy. Sell. Repeat.
-Authored by Lynn Magnusson, President + Heather Zises, Marketing Director
Know. Like. Trust.