Collecting Art vs Investing in Art: 

Often during group exhibits, someone will ask me if I consider the works of a certain artist to have good investment potential. My answer is this:

Investing in art is not really an investment in the artist, but rather, it is an investment in the collector. It is an investment in the sanctity of his or her own daily life. If you walk through an exhibit and a work of art moves you deeply, take that good feeling home with you and make it a part of your everyday life. Let it be there in your home waiting to greet you in the morning and at the end of each hard day's work. Let it be there in your home waiting to cater to your aesthetic needs as you relax, entertain, commune with your family and so on.

As an artist, I can only profit "once" from each work of art I create and sell; but the collector who loves the work enough to take it home, they will profit everyday throughout their lifetime. And even afterward, the work will continue to serve as a family heirloom, providing the same aesthetic or sentimental pleasure for their children and grandchildren, etc. A work of art, unlike anything else, will provide the same consistent level of ethereal pleasure, each and every time you pass it in your home. Not just once or twice, but for as long as you own it.

Regularly, I hear stories from people who regretted not purchasing a work when they had the best chance of acquiring it. They chose to postpone their purchase in hopes that the artist's prices would go down. While this may be a clever approach to investing in traditional stocks, it is often not a shrewd approach to acquiring the work of an artist who is in peak demand. When artists are widely admired and their works are in great demand, there is no logical direction for the price to go -- except up. Unlike a traditional company, an artist has no manufacturing entity. When demand increases for original works, the artist can not merely flip a switch to increase production of his or her commodity. No matter how long the waiting list becomes, the artist is only physically capable of producing a finite number of works. Therefore, as the demand for their works go up, the longer the waiting list becomes for that finite number of works and the less chance you have of acquiring their work at any price; let alone, a reduced one.

Unknown to many people, art can usually be purchased from a gallery using the same kind of payment arrangements that allow most people to acquire other things that are not readily affordable, such as cars or electronics. Most people can afford an original work of art, but many, not knowing this will buy a large signed-print by an artist and end up paying more for the framing then they could have for a small original by the same artist. It is always a good idea to ask the artist about all possible ways of acquiring their work. But in making your decision to purchase art, always let your love for the work be the guide to your investment.  This will insure that the return on your investment will always be at least 100%; and with some artists, it will grow exponentially in dollar value as well.

Sincerely,

Debra Hand