Several pieces sold by Bonhams over the course of the last few years have been record-breaking, from Fragonard’s The Portrait of François-Henri d’Harcourt, which sold for £17.1 million, to the rare Buddhist (377 BC – 1017 AD) Indian carved stone temple step, selling for £553,250 – a world record for a temple step of this kind. The beautiful 1,000 year old pre-Hindu stone step is one of only six examples known to date from this period, making this discovery the seventh. “The past few years have seen a series of records broken in Bonhams salerooms round the world, from London to Los Angeles,” Julian Roup (Bonhams’ Director of Press and Marketing) revealed. “This comes on top of the successful launch of the company’s new headquarters in New Bond Street, London.”
Up-and-coming artists are good investment-wise, according to the Saatchi Gallery’s Chief Curator Rebecca Wilson. “Works by emerging artists have the potential for increasing in value and leading to future gains,” she reveals. “They are also much more affordable than bigger name artists, and much easier to access.” She recommends investing in pieces by artists including Golnaz Afraz, Vivien Zhang and Hossam Dirar. For those who like their photography rather than paintings, Zena Holloway is making a bit of a splash in more ways than one. The underwater photographer has already been featured in publications such as the Financial Times, but she’s also worked with Faberge, Nike….and Kylie Minogue.
Co-founder of Arts Co, Sigrid Kirk, meanwhile, thinks the works to invest in are those by mid-career artists, such as Phyllida Barlow. “These people have years of solid work behind them,” Kirk says. Another growing trend on the art scene is Outsider Art. “Outsider Art has grown and grown – that is, art by untrained artists,” Kirk reveals. “There are numerous examples of it, but it’s not made for financial gain, it’s by people who just have to make it – it’s an outward manifestation of something internal. They raise the question of ‘what is art?’ because people think the intent has to be to make art, which is not the case with Outsider Art. But Outsider Art pieces are becoming quite collectible. Henry Darger and Morton Bartlett are two particular examples.”
If you find a piece you like – no matter how off the wall – consider it an investment well worth making. “You should always buy what you like, as there is no guaranteed return,” says Kirk. “But if you’re going to invest in art, you’re not just investing money, you’re also investing into your home and your family – art in your home is enriching! Go to galleries and meet some artists, and get a feel for what you like. People seem to like content-rich material, of which art is a good example. Art is a luxury – it signifies something handmade and original and authentic.” She has some further advice for new buyers to the art world. “If you don’t know what you’re looking for, you can hire someone. Art consultants can help you invest your money into art, they can help someone building or expanding a collection, or they can take you on a tour to help you get a feel for what you like.” She adds, “If you learn as you go, you’ll find yourself moving away from ‘safe’ pieces to more challenging works.” That, surely, is one of the joys of investing and owning artworks – to appreciate it by continually discovering the layers and meanings imbued within. There is clearly beauty in investment.
Of course, the art collection then becomes a valuable investment in and of itself. For many collectors, however, it can also become a constraint. What started out as a fun activity that stretches the imagination, also stretches the finances. Collectors are faced with having to sell favourite pieces just to be in a position to bid on an upcoming artwork. If they succeed, they have gained a new item but – with some remorse – had to lose a previously desired item. The smart collector now partners with a secured lender such as Unbolted. They have a few pieces independently valued by Unbolted, who provide an indicative loan offer. When the collector needs additional liquidity, they place the item with Unbolted, who ensures the artwork is stored in the proper environment to maintain its value, before providing an immediate short term loan.
Investing in art is not just about choosing the right art but also having in place a strategy to unlock the cash in the collection to fund its growth.
