Art Investments

Introduction to Investing in Contemporary Art in the Philippines: Falling in Love with Art

The previous articles’ advice on how to start investing in art used logic and reason, also known as the left brain. That probably meant don’t take chances and instead go with a tried-and-true investment. However, if you want artwork by a genuine, tried, and tested art master right now, you will have to pay for it. Works by artists who are still alive and at the pinnacle of their careers, or who are six feet underground and labeled a “master,” would command millions of dollars in the local or international market. Purchasing their art would not necessitate any kind of speculation. You pay a high price for them, confident that you will be able to sell their works for a higher price than you paid for them.

If you or your parents or grandparents purchased works by these artists when they were unknowns, consider yourself lucky. Now that these unknowns have achieved the status of crème de la crème, their works will undoubtedly command the highest auction prices. It took time, a lot of work on the artist’s part, many art exhibits, good PR and marketing, favorable art criticism, and some luck to rise from obscurity to fame. This period of time was required for the value of the artist’s name and the artwork to appreciate.

You have probably heard of artists who died as paupers and were unknown while they were alive. They could be such geniuses and art vanguards, but they had terrible marketing, terrible social skills, or mental health issues, and no or only a few buyers during their lifetime. This was Vincent van Gogh’s fate. Then there are artists who had such great talent, were press darlings, and had such effective public relations and marketing that they lived and died very wealthy. This was the case with Pablo Picasso. Then there are those who were actually very mediocre but developed a coterie of buyers during their lifetime due to aggressive marketing and rubbing elbows with rich matrons. These mediocre or tasteless but saleable artists, on the other hand, may live very comfortable lives but fade away in the annals of history or, worse, be lauded by art critics as horrible, insignificant, kitsch or tacky, and simply products of good PR.

Are you a “segurista,” a risk-averse person who prefers certainty in his or her decisions, particularly financial decisions and investments? Not to worry. Investing in art is not as bad as gambling. You do not lose your money or investment as a result of a transaction. You purchased an artwork for a specific price. The risk you take is whether your initial investment in this artwork will appreciate at an astronomical rate over time. “Art investing is very similar to buying stocks,” said Alex Soliven Timbol, an art investor and art collector with a finance background, during a recent conversation about art and buying works by artists. I adhere to the rule of five. One of the five items you purchase will perform admirably. Three will be fine. And one of them will be a lemon. This, I’ve discovered, also applies to purchasing art.” That is why the following tip is crucial.

1) Like what you purchase. Trust your instincts.

Assuming you did your homework, researched the art scene, and spoke with experts, they can tell you who the living masters are or whose works are currently selling well in the market, but none of them can truly predict which of these emerging artists and upstarts will be the future stars in the galaxy of art masters, art geniuses, and mediocre darlings of the press and moneyed collectors. There are indicators of talent, taste, initial ambition, and positive reviews from respected art critics, not just paid PR shills.

That is why it is critical to select and purchase an art work that you enjoy looking at and that you want to take home because this art work will keep you company for a long time. According to studies on people who buy art, most people keep what they buy for a long time or never sell it. “If it sparks joy in you, keep it,” says minimalism guru Mari Kondo. First and foremost, art is ephemeral and subjective in nature. If it’s love at first sight, if you can’t stop thinking about it, if you think it’s special, trust your instincts and snap it. You’d hate yourself forever if you returned and it was gone. You don’t want to look back and regret the one that got away.

2) Seriously consider investing in emerging artists.

Whether you have a big budget or not, works by famous living artists and deceased masters will cost you an arm and a leg. If you enjoy art and want to collect it but don’t think you have millions to spare, think again. Invest in emerging and young artists. Look for those who have a similar style to yours. Don’t just buy an art piece because the young or emerging artist is trendy and well-known in the art world. Purchase his or her work because you like it. Similar to land banking, you evaluate a real estate property in terms of location and signs of community growth so that the property you invest in has a higher chance of appreciation in the future.

There are several factors to consider when assessing the potential meteoric rise of an artist’s asteroid. Investigate this artist’s previous track record. If you come across work that you like, whether it is innovative, unique, or tasteful, remember that beauty is in the eyes of the beholder. Another collector might disagree. Perhaps there are more measurable indicators that can be used to predict success. Exhibiting in reputable galleries is a good sign. Winning awards or special grants is another sign of success. However, even if the artist of the piece you like has not won awards or exhibited in upscale galleries and premier art institutions, you should not be discouraged from purchasing art that you like, that amuses you, and that you would like to own and see every day for a very long time. Even if the value does not rise significantly, the investment would not be wasted because life is short and you spent your money on something you enjoyed that did not vanish into thin air like alcohol, drugs, and gambling tokens. You’d be better off buying an art piece that hasn’t appreciated much but can be resold in the art market than spending money on designer clothes that depreciated the moment you paid the cashier.

3) Enjoy your journey in collecting art and investing in art.

Trust in Shakespeare’s words of wisdom: “A thing of beauty is a joy forever.” Take in every moment and every piece of art that you add to your collection. Stop and smell the flowers while you’re buzzing around collecting money to buy the next piece of art you want. Chill. Have a good time. Kick off your shoes, relax with your favorite drink, gaze at the art you’ve purchased, and marvel at your wise decision to spend your money on the beauty that surrounds you.

This is the third and last installment of this series. We hope you have learned a thing or two about investing in contemporary art in the Philippines.

Written by Cherry Fulgar

For more information, contact Imahica Art at +63 917 894 5646, or email thegallery@imahica.art