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I have enjoyed selling investment quality art since 2006. One of the first things I learned was to diversify financial holdings into a broad range of financial asset classes such as fine art, stocks, bonds, gold, real estate and savings. Over the last four years, many of my clients have discovered the enjoyment of collecting fine art and have seen their works appreciate substantially in value. During the last four turndowns in the market, investment quality art values changed but continued to rise. Since 1998 the values of the marquee Modern Masters have risen as follows: Alexander Calder 161%, Joan. Miro 131%, David Alfaro Siqueiros 118%, Sam. Francis 78%, Pablo. Picasso 76%, Henri Matisse 100%, and Marc. Chagall 68%. On November 6, 2009 auction at Christie’s in New York the bidding was enthusiastic for a work by Salvador Dalí entitled Nu dans la plaine de Rosas , selling for $3.5 million. The surrealist master's artwork ranks now on third position among Dalí's records. Since the last auction at Christie's, London , in June 2002 the value of this piece has increased by 2.8 million. The next day Sotheby’s set a new record for a Dali paper work when his highly accomplished mixed technique Girafe en feu (1937) substantially overshot its low estimate and sold for $1.6 million. These recent sales will also cause increase to the value of his other work in such as graphics, sculpture and jewelry. According to Artprice “Even with less cash in the market art revenue growth rates before the crisis were enormous: between July 2002 and June 2003, Contemporary Art generated a total auction revenue of 75.4 million; between July 2007 and June 2008 the figure was 900 million! Thus the revenue total of 570 million recorded for the period July 2008/June 2009 still represented an increase of 87% compared with the volume of business contracted in 2005/2006.” © Artprice, The World Leader in Art Market Information. Art has an emotional appeal obtained from seeing it everyday. Most people do not know art values have longevity and historical positive results when tough economics have returned. It is an asset you can pass onto to your heirs or donate to museums. The 1995 Tax Act allows you to donate to any IRS-approved charity works of art at their fair market value, not at their cost basis. This Act allows you to deduct the charitable gift’s fair market value on your return without being subject to the alternative minimum tax. Many investors have doubled, tripled and amassed a fortune by diversifying and investing in art. Eli Broad the insurance and housing maven, hedge fund tycoon Steven Cohen, Norman Braman, a Florida car kingpin and former owner of the NFL Philadelphia Eagles, and Billionaire prizefight producers Frank and Lorenzo Fertitta are the beneficiaries of increased wealth by investing in art. New investors have expanded their portfolios by buying and selling art. There has always been a demand for art. The values continue to rise because the supply for the Modern Masters is limited. Most of the artists have passed away. Foreign billionaires, flush with cash from exporting are continuing to snap up original paintings, lithographs, etchings, sculptures and other mediums done by the Modern Masters. Demand comes from the United States, Europe, Asia, India, China and South America. Investing in art is also for the novice investors and collectors. There is a price point and affordable level in the works by Dali, Picasso, Miro, Chagall, Francisco Zuniga and many others. As the demand continues to increase, less quality art will be available and the prices will continue to rise. Many people collect because of their desire to have art by an artists that is related to them by nationality, culture, geographically, or religion. Art has historical significance and the stories or themes in art has intrigue. Francisco Zuniga, David Alfaro Sequiros, Rufino Tomayo and other Latin American artists depicted their views of everyday life in their art. Dali and Chagall each did a body of work dedicated to Jean de La Fontaine, the most famous French fabulist who published Aesop’s Fables. Chagall also did over 200 Bible stories during his time and depicted his village in Bisvek and his love of Paris. Picasso was influenced by the changing times, the catastrophic war in Europe, and expressed his love or disdain for his wives and mistress’s in art. Calder, Karel Appel, Miro, Chagall, Picasso and Dali all did bodies of work depicting their love of the circus. Whether growing up in Europe at the turn of the century or living in Paris during WWI or WWII, the circus was a place they looked to for glimmer of happiness. It is always a good time to invest in art. Buy from a reputable dealer, buy the best piece of art you can afford, buy with a money-back guarantee. RSR Ltd. offers all of this. Please feel free to call and discuss any work of art from the website with questions values or what’s behind the story of the art. It is my passion and honor to continue to learn about the artists, their messages. Robbin Lee Sources |
