By DARLA MCCAMMON
Lakeland Art Association
This week we will continue with our discussion about how art can be a part of your investment portfolio and may often provide some generous returns.
Be persistent. Thoroughly investigate art in the fund you are considering. For example, some new millennial artists like Parker Ito, or David Ostrowski, or Hugh Scott-Douglas are rising stars but will their work endure? Will it come to equal the value of, say, a Mark Rothko?
The art fund managers can offer you their evaluation projections, but in the end, it is your money at risk. Stay on top by checking into what others say. The Wall Street Journal frequently has articles on art investing. Two other good places to check would be anything written by Alexander Forbes or Clare McAndrew.
You don’t need to live in New York City. According to Clare McAndrew an expert in art finance, “80 percent of sales over $10 million are occurring in New York, a city which continues to dominate the global art market.” So yes, art business is booming in New York but you can buy or sell there and live anywhere.
There are favorable tax terms in the U.S. where we have not implemented the European Artist Resale Right regulations which have stifled sales in Europe and abroad.
Invest in Art Funds. Philip Hoffman the founder of the Fine Art Fund Group told those attending the annual Artfi conference in Berlin, that “interest in the securitized side of the art investment field continues to expand at a rapid pace.”
His group manages assets that are valued at over $500 million and is in the process of closing out its latest, $200 million fund. This group is reportedly purchasing around $4 million in art per week and getting positive returns on these investments.
Art exchanges are another level that is not yet readily available but have future prospects. Keep your eyes open for these opportunities.
A battle continues to be waged in creating more transparency in market values of art work. Typically, it is very difficult to obtain true market values when working with the dealers and agents representing various artists. An argument was made in this conference that this needs to be fixed in order to prevent interference by the government in establishing true market values.
Upcoming and Current Events:
Ann Peperak exhibit at Warsaw City Hall through mid-December.
Art informational presentation with slides by Darla McCammon on artist Mark Rothko at 7 p.m. Oct. 27. Free admission.
Refreshments. Lakeland Art Association gallery located in Pierceton on Main Street.
Christmas Boutique opens Nov. 29 at LAA gallery in Pierceton
Manchester Main Street progressive dinner Saturday, Dec. 6, in North Manchester.
For more information on topics in this column, please contact Darla McCammon at [email protected]