City & Shore Magazine |

Art and Soul: Five tips for beginning art investors

Looking for an alternative asset for investment? If you’re thinking beyond stocks, bonds and real estate and would like to diversify your portfolio to add collectibles other than wine or precious metals, have you considered art? It’s likely that your walls are already adorned with artwork you purchased because you love it. What about changing your perspective and buying for investment instead? After all, between internationally known art festivals and local galleries, South Florida offers a literal palette of pieces sure to please any art aficionado. But how to get started?

Think long term. “Art isn’t a get-rich-quick scheme,” says Bill Rau, the owner of M.S. Rau, an art, antique and jewelry gallery https://rauantiques.com. “Some pieces may appreciate quickly, but most require time – sometimes decades – to realize their full potential. Patience is essential.” That’s a good reason to buy pieces you love, since they may be hanging on your walls for a long time. Plus, there’s always a chance that despite your best efforts, something you purchase may not appreciate in value.

Keep an open mind. Rather than focusing on one particular artist, Michel Witmer, an entrepreneur and art collector in Palm Beach, recommends that beginning investors look for pieces that are undervalued. “Go where the opportunities are,” he says. “You don’t know what might come up at an auction or fair that’s a really good buy.” He said that right now, the Old Master market has declined in value a bit, presenting opportunities to investors. Rau also suggests that beginners consider works by established artists or pieces from significant movements like Impressionism or Modernism, which are less risky and have a strong market presence. Emerging artists can offer potential, he says, but they come with greater risk.

Educate yourself. Before spending any money, study art and art history. You can either sign up for a formal course or just spend time in museums. “Immerse yourself in the world of art,” Rau says. “Study its history, key movements and the work of significant artists. Understanding authentication, provenance and what drives values is critical.” Local museums, such as the Norton Museum of Art in West Palm Beach, offer lectures by curators and other educational events https://www.norton.org/.

Buy safely. Be cautious where you purchase art. Find a reputable gallery or established auction house to help ensure that the piece you’re buying is authentic, or work with an expert you can trust. Witmer suggests asking for a condition report for purchases you’re considering because many paintings have been restored. “If you don’t have experience, it would be common to pay top dollar for something that has a lot of restoration and never know it,” he says. “Years later, if you go to sell it, that’s when you’d find out it’s worth a fraction of what you paid because it’s mostly the work of a restorer.”

Witmer also suggests that new collectors purchase at fairs held by The European Fine Art Foundation in New York City and Maastricht, Netherlands https://www.tefaf.com/, because of the foundation’s strict vetting procedures that help ensure that works on display are not only authentic but also not stolen, missing or looted.

Establish a budget. It’s easy to fall in love with art and to spend more than you intended, so it’s wise to create a budget and stick to it. You can start small and focus on building your knowledge of art – and confidence – with smaller purchases before making bigger commitments.

Most importantly, always buy what you love. “While the potential for appreciation is important, the joy and connection you feel toward a piece should be your guiding light,” Rau says. “Art should inspire and bring you happiness – its value extends beyond financial gain.”