Art Collectors and collecting art!

[Mona Youssef]

Hello dear Members,

I would like to share these thoughts with you and in particular art collectors.

It has been known that Art collectors collect art for the love of art and for future investment, whether sooner or later down the road. I, however, would forward the following questions to Art collectors:

1- Do Art collectors collect art at any time, as long as they love or find value in a particular piece of art, despite of economics circumstances!

2- Do economic situations affect the art market!?

3- Do art collectors make their research first, to know more about an artist’ history, before purchasing an artwork? Where and how!?

4- Do Art collectors collect artwork from only, known artists with awards and history, from artists who have the great potential to be known someday or from both!?

5- Where and how art collectors search to find their targeted artists?

6- How would art collectors know what is the reasonable price and what is not? In another words on which basis do they base their evaluation.

7- Recently, I have read about Art fair where some artworks were sold for millions of dollars while the world is facing recessions. Keeping in mind that those artists never sold previously, with even quarter of that price!

8- Is selling a lot of artwork is the only sign of an artist’s success!? If yes, how would you explain the sale of artwork with unheard and imaginary prices when those artists had never sold their work previously!?


I would appreciate receiving sincere responses and feedback. Discussion is open for all members as well.

Regards,

Mona Youssef
Fine artist
https://www.mona-gallery.com

[Oshilaja Hemsley]

Mona, this is such an interesting topic, and I hope we hear many views from art collectors, as art (even as an investment) is such an emotive ‘product’ and to my mind, there are so many layers, motives, and reasons for collecting. I used the word “layers” earlier, because the art market ranges from the high-rolling billion dollar stakes to lower, middle ranking investments from people and companies just starting out with a passion for some “treasure” that speaks volumes to them. With the high-rollers, these artists are usually dead, and I suspect this kind of market is manipulated like any other high-stakes game. This is why I love Damien Hirst. I think he’s a genius. To me, he’s constantly sending two fingers up to the Establishment, and getting paid highly for it. I have this image of him being the puppet maker and master in my head… he pulls the strings (media manipulation) and the Establishment (dealers and collectors) dance like they’ve never danced before.

I also think that where there are huge sums of money changing hands, there’s bound to be a certain amount of sleaze and underhandedness… it’s human nature, I guess, but that’s another article and forum. Among the middle-ranking investments, I think the motivations for collecting are very different, and sometimes, this market is driven by philanthropy and good work… rather like the ancient patronage system. (e.g. Outsider Art market).

You asked some serious questions, and I can only discuss them from my point of view. Yes, collectors do their research and they start with the professionals in the industry (art dealers, gallery owners, art historians, curators, etc.) What I would love to know, is why do so many “experts” on art-collecting constantly have to remind people to buy or collect what they love? Would any sane person spend huge sums of money on something they did not love? Does this mean that some collectors really do not care what the art is about, what the piece of work is communicating to them? Is it just about market value to some collectors? If this is the case, then “reasonable price” is a misnomer because the “price” is dictated by the market (forces).

I also believe that most collectors do need to know the history of the artists whose works they buy. It’s a perception of buying a piece of that artist’s life and being. They buy into the “story” of that artist, therefore the more they know, the more comfortable they feel about investing. (It’s a bit like buying a brand… e.g. when we buy a bottle of Coca-Cola, we buy into that “lifestyle” we perceive ourselves to be a part of.) Most collectors would also like to know that the artist is as committed to their art as much as that collector is committed to their investment. My art sells to a wide range of people (from students who make down-payments and monthly installments to CEOs who simply write the checks). ALL have this common question to me of “where are you with your art now?” It takes a lot of nurturing (on the part of the artist) to turn buyers into collectors.

Interestingly enough, I don’t believe that economic situations affect the market. In this so-called “credit crunch” (and all the other crunches we have had before), people still spend huge sums of money, art markets simply shift. Now everyone is looking to China or India. I’m making sweeping generalisations here, but you get the picture. People are remodelling their homes, instead of buying bigger or moving. People are buying tangibles like art instead of imaginary numbers on the index. In so-called dire times, people need to feel good about themselves, so they will spend money, but spend it on more tangible assets. Also interestingly enough, the level of creativity shifts up a gear in dire times, so we get more innovative music and art and theatre, etc.

Is selling a lot of artworks the only sign of an artist’s success? I believe “success” is a concept very similar to happiness… it is VERY individual and every artist’s journey is VERY different. So every artist needs to work out for himself or herself why he or she is on this journey, and what’s the reason for the work. You wrote of artists who have never sold before, then suddenly selling their works for “unheard of and imaginary prices”. I am questioning that because there is always more to the surface of this kind of story. You just might find that these artists are what I call 20-year-old overnight successes (i.e they have been working away behind the scenes for over twenty years or more… steadily and diligently), and suddenly they are thrust into the limelight through the professionals in the establishment (art business and media). Of course I could be wrong on this point, but usually there is a reason for everything. And when it comes to the press and PR, questions go buzzing round my head like bees ;-), who is writing this piece of news, and what is their intention or agenda?

Bless you, Mona, for raising so many pertinent points.
This makes for lively discussion indeed, and I'd love to hear others' point of view and insights.
Oh.
http://artid.com/theartofoh

[Mona Youssef]

Thank you, Oshilaja, for participating in this discussion and I am glad that you’ve found it interesting. Your comments are more than valuable and will definitely, inform many artists in different ways. Sharing your experiences and knowledge is very much appreciated and thank you for your time.

I could not agree more and would like to add that there is a different between art lovers, art collectors and art dealers and even art investors. An art lover, I believe is the who falls in love with an artwork, by all means, wishes to have it immediately, if he/she can afford the price, regardless of knowing enough about the artist or not. Art dealers need to associate / research so much with/about an artist, for long term project which is art investment and future values. As for art collectors, are between art lovers and partially art collectors. When they love a piece of art but want to make sure that is worth what they pay for.

In general, people who buy artwork want to have it with the most effective price. That is why artists start mostly, with an amazing price. If an unknown artist asks for a one million dollar, the chances are extremely, slim, unless was represented by an expert gallery or cleaver representative. But if that artist happened to be a potential Picasso and starts with $ 2,000-3,000, the chances are wider that, one day, he /she might sell something for one million dollar.

Today most galleries / art dealers provide contracts for their artists to purchase his / her artwork. Also, if this work remains longer than some years, galleries force the artist to pay the conservation and restoration costs instead of rewriting a new contract.

Other art dealers offer two choices to artists:
1- Purchase the artwork from an artist, then they might store it for a while or have in mind a buyer already, to whom they might sale it for double or much more than the original priced offered to the artist.
2- Draw an agreement with the artist to divide the sale price 50%50 when the art dealer sales the artwork with whatever price will be sold for!!

Art galleries have different policies:
1- Charge the artist exhibition fee and a low percentage of the sale price as low as between 25%-30%. More than that will too much.
2- Artist pays for renting a space, in a gallery, for the length of time artwork is displayed, and pays between, 25% - 35%, from the sale price, to the Gallery’s owner.
3- Gallery displays the artwork or sales it and keeps, between 50% - 60%, from the sale price.
4- Gallery pays the artist what he /she asks for, within the reasonable price, in the gallery’s opinion. Then the Gallery sales the artwork, for unknown price to the artist. In some of the cases I met, the artist has no right to know who his/her collectors are which I disagree totally.

It is very important for artists to know enough about whether art gallery, art dealer, or art lover. If those parties, take the time to investigate about an artist, how far more important is for the artist to investigate about them and know who is purchasing their artwork and why. Artists you are the sole owner of your artwork works, you are the creators of your hard labor. Please do not get instantly excited when someone offer you a price. Build your own contracts stating all the conditioned and terms for you are the employer and not the employee. If you need assistance regarding the contracts, please ask me or I might write another article about this too.

I wish you all the best

Mona