Buyers' Information Page

Buying for Investment or Pleasure
Part 1

Kim Dommer, Ph.D. DD

So you have found several pieces of artwork you like and are now considering whether to purchase as an investment, for the pleasure of enjoying art, or both. There are several points to consider.

Purchasing as an Investment (Living Artists)

What makes a piece of art an investment among living artists? Which living artists are good investments? If these questions have come to your mind then this article may give you insight into forming your own opinion toward that ultimate decision of the perfect piece of art for you.

Let's say the pieces of art you are considering are from three different living artists. Enchanted SouthWest Artists posts biographies of all your professional artists and those from other classes who choose to post, along with optional artist statements. Reading these is a great place to start in gaining your insight into the artists of interest to you. If you are at an art show or gallery, you may often speak with the artists themselves at the reception or opening. Artist bios are also usually available from the gallery or the artist.

As you look through the bios of these artists you will find that some have been extensively trained, while others pride themselves on being self taught. Neither may be any indication of talent or potential.

You may also find that certain artists have shown their works as part of group exhibits, as with an artist organization, while others have done solo shows. Among those solo exhibitors you may find some artists showing in small community galleries and museums while others have shown in major metropolitan galleries or museums and in juried shows. As you look closer at these shows you may find some artists have received publicity reviews or awards for their shows while others have not.

By looking at the gestalt it will become more and more clear to you that certain artists have succeeded where others have not.

As with any field of study, smaller communities will shed public light on the talent of that community, while major metropolitan exhibitors have a greater capacity to be choosy and show only the best that come their way. Look for the reviews and publicity and awards as a result of those shows to determine which artists are rising in the public ranks.

Another thing to watch for is if the gallery continues to show some of the artist's work after the solo exhibit. Often times a gallery divides its floor and wall space to have a section displaying the solo exhibits and a section exhibiting works due to public demand. Most galleries have a clause in their contract that prohibits an artist from exhibiting within a certain mile-radius of the gallery, so don't be surprised if you do not see that artist's work in other nearby galleries or within the city limits. So an artist exhibiting in a Santa Fe gallery may not have another exhibit in the city, but you may find the artist on display in Taos or Albuquerque.

Keep in mind that some galleries only take on a certain number of artists. And some galleries are operated by the very artist or artists on display.

Value of Work

The next thing you could look for if you have been following a particular artist's career is the value of the artist's work. Has the work appreciated, depreciated, or stayed steady over the last few years?

Most artists at the onset of their careers will start selling at prices barely enough to cover their supplies (so they can buy more supplies). The "paying-one's-dues" stage. As their talent develops over time, the pieces selling for $25 - $50 when they began might sell for $250 - $500 a decade later. If artists continue their careers; developing their trade; getting recognition, reviews and quality exhibit spaces, it becomes obvious that they are learning the ropes of the business and growing into the field. Two decades later their pieces could possibly sell for $2,500 - $5,000.

If artists continue further in their careers, if those recognitions, reviews, awards, and even more choice shows continue to grow as part of their portfolio, it is conceivable that their work could sell for $10,000 - $50,000 or more as the result of a half-decade of work.

But as an investing buyer, how would you determine which artists will rise to such levels?

There are all types of artists out there. Weekend artists that paint for the pleasure of it. Hobby artists trying to supplement their incomes. Semi-professionals trying to move up into the professional ranks. Professional artists that are competing for the major shows and exhibition spots through the jurors of those major metropolitan galleries and museum walls.

But regardless of which stage an artist is at in his or her career there are some telltale signs that would determine whether or not a particular artist will have a shot at that greatness. Let me give an example from my own art career.