Collecting Art with an Eye Towards Value

This piece was adapted from an article written by partner Judy Nelson for the catalogue of Historic Fort Worth’s 2012 Preservation is the Art of the City art exhibit and sale. The sale benefits both participating local artists and the preservation projects of Historic Fort Worth, Inc.


  The ultra-rich have problems with their art. They can’t just go to an art fair or gallery, browse around, pick out something that will look good over the sofa, bring it home and enjoy it. No, they must constantly monitor the financial performances of the artists in their collection. For instance, I recently learned that in June a 1981 painting by the artist Jean-Michel Basquiat sold for a little more than $20 million, nearly 40% higher than the $14.6 million price it fetched in May 2007.

 This is important news to wealthy art collectors. It could be vital to their portfolios. I, on the other hand, rarely consider how the market is trending in regards to the artist who painted that rooster in my living room. Investment or financial value is only one factor that I consider in buying art. I also look at aesthetic values and take into account my emotional response to a potential purchase. “Is this a good investment?” becomes “Is this a good value?” Finding good value when you buy art includes remembering a few basic facts, some of which are listed below. It’s not a complete list of Collecting Do’s and Don’ts, but if you remember them as you grow your art collection, you’ll have few regrets.

1. Most artwork does not appreciate in value. A painting will lose about half of its resale value as soon as it leaves the gallery, much like a car loses value the minute you drive it off the lot. However, a painting does not need tune-ups and probably will not be recalled. If you buy a painting for $2,000 that you absolutely love – that is YOU and all you aspire to be - and you keep it for 20 years, it will cost you $.27 per day. That’s $.27 for aesthetic pleasure, interior design and maybe even spiritual enlightenment. In terms of enriching our environments and our lives, art is a solid investment.

2. Art is subject to fashion. Remember those paintings and prints of howling coyotes from New Mexico? Remember shoulder pads? If you hoarded either of these items with you will be holding on to them for a while longer, because tastes have changed. Which is not to say that coyotes in shoulder pads will not be in demand in the future. Art, like the stock market, is cyclical. You must buy what you love with the full knowledge that you have probably been influenced in your choice by what’s popular – and available - today.

3. Just because you recognize the artist’s name does not mean that you should buy a work by them. Please try to avoid prints by Salvador Dali, Picasso and Marc Chagall. Forgeries of their work are common. Also, there can have been more than one printing of a particular image, in different sizes or on different paper, either during or after the artist’s lifetime, so it is hard to know what you are getting. Even if the prints are authentic, they are usually overpriced, and a “Certificate of Authenticity” can be a worthless guarantee. Works by such well-known artists as Peter Max, Erte, LeRoy Neiman and Thomas Kinkade are also often overpriced, especially when they are for sale in galleries in upscale malls and resorts. As an alternative, consider looking for an original print, numbered and signed by the artist. If you see something like “1/25” written on a piece, you know that you are looking at a print of some kind, and that the artist made 25 (or so) of these prints to sell.

  4. Be careful about buying art on a cruise ship. This is another area where you can really overpay, especially after several glasses of free champagne.

   5. Limited Edition prints, even those signed by the artist, rarely appreciate in value. Don’t believe the hype that you read on eBay. I have appraised hundreds of these, and most are later resold for far less than they originally cost.

  6. Giclée is a fancy, made-up word for an inkjet print that is not an original work of art. That is all. Do not be intimidated by the pronunciation, the accent mark, or anyone trying to sell you one. (For the record, the “G” is soft – as in “Zhee-clay”- with the accent on the second syllable.) And if an artist can make one inkjet print, he can theoretically make a thousand, so you are NOT buying an original, one-of-a-kind work of art, even if they say that the number is limited.

7. Trust your taste, but always be open to what is new or out of your comfort zone. For my birthday this year, my son gave me a print by a contemporary artist. The subject matter and the style were edgy and different from what I generally respond to. I would not have bought this work on my own, but it is now hanging in my home, and challenges me every day when I look at it.

   8. Buy over the Internet with care. While the World Wide Web has made it possible for us to view a mind-numbing number of artworks, looking at a work on a screen will not give you a sense of such aspects as scale or texture. The color in the image on the screen may not be true; condition can be poor.

   Your best bet is to see a piece in person, or work with a reputable dealer who will let you return the work if it does not meet your expectations. Finally, remember that the word value can mean more than just monetary worth. It may also refer to other qualities that can enhance our daily lives, and this enrichment is what collecting art is all about.