The Australian art market is going through dramatic growth. As stated on www.artequity.com.au the turnover of Australian art auction 2004 totaled $86.3 million, a rise of $60.2 million since 1994. Of this figure, $12 million was Aboriginal art, six times more than traded in 1997.
There are several drawbacks associated with any investment type, not the least being a phobia to enter into a particular market. Art throws up a myriad of questions because people have little knowledge of what constitutes good art and a better investment.
How do you make a selection that will improve your collection as well as your investment portfolio? Do you require a good eye for detail, or is there a science behind choosing a successful investment piece? The art market is dynamic and there are many facets, including contemporary, classic and Aboriginal – like all art forms it is evolutionary, evoking time, space, social history, politics and life in general. Currently there has been a significant shift away from earlier, classic styles into retro and pop art.
Pop goes the artist
Dennis Ropar is a full time painter of contemporary art. Since 2002, his paintings have featured in many exhibitions and he ha recently opened his own gallery, Pop Shop Gallery, located in the Melbourne CBD.
Ropar is led by the pop culture phenomenon, made famous by US artists Andy Warhol, Tom Wesselmann, Roy Lichtenstein and James Rosenquist. However pop Art originated in England in 1953, and was rejuvenated in 1958. The aim of Pop Art is to focus attention on the common occurrences of everyday life.
He began collecting contemporary art as a hobby when he was just 16. This soon became an obsession when he began to understand how art can increase in value. “For me it is definitely when a piece that you’ve invested in has increased dramatically in value, but you still can’t bring yourself to sell it. Is it one of the ironies attached to art investment.”
Ropar has built quite a reputation for himself with his latest celebration of Pop Art, the vibrantly colourful painting Wonderland. Due to the ever-increasing popularity of his unique body of work, some of his pieces have fetched around $10,000 with some pundits expecting prices to climb above and beyond that.
If you are considering entering the art investment market, Ropar says you should do your homework. If you want to collect art for capital benefit, the artist offers art investment seminars at Pop Shop every Monday this includes appearances from consultants. www.popshopgallery.com.au
“It is important to research the artist’s history, their consistency in performance, price structure in both primary and secondary market and the collection they are part of,” says Ropar. “Art is very subjective,” he continues, “never allow anyone to tell you what you can or can’t love. Similar to other investments you can hire the services of an art consultant who has spent time carefully considering the trends of the art market.”
Investing in contemporary art should no longer be daunting. Instead, it should be an exciting step for investors because they’re given a chance to discover an artists before others do. The advantage is that you can purchase at an affordable price before the piece becomes expensive.
The right investment
Art collectors like lawyer Julian Stephens tend to purchase art from Australian Art Resources and AXIA Art Located in Sydney and Melbourne.
Julian has always had an interest in art, and is well known for his prized collection having purchased some prized pieces at affordable prices. These include: John Olsen oil Pilbara Burning; John Olsen oil Clarendon and the 1961 Brett Whiteley Minage from his first exhibition in London (1961). Julian has had the ability to spot artists early in their career and follow them through and he has been able to marry his eye for a good artist with his ability to pick a good investment. It is a collaboration between wise and emotion.
Like property or shares, if artwork is purchased wisely (and early) its value will increase and provide compelling results. Art can maintain its diversity and value in the face of declining property markets and share scares. It also provides beautiful additions to a home in spite of any other mainstream market cycle.
"You should hire a consultant who has spent time considering market trends."
There is valuable information available from websites like www.aasd.com.au showing the status of the art market with accurate statistics. One interesting statistic is the growth in value of indigenous art. This source shows that in the last few years the returns on indigenous art is 34% compared to 11% for non-indigenous art.
For those researching works on new and upcoming artists information can be obtained from major auction houses like Christies, Deutscher-Menzies and Sothebys. These houses tend to run courses on art investment and promote and sell artwork by new artists.
The Australian art market is going through dramatic growth. As stated on www.artequity.com.au the turnover of Australian art auction 2004 totaled $86.3 million, a rise of $60.2 million since 1994. Of this figure, $12 million was Aboriginal art, six times more than traded in 1997.
Aboriginal Art
“Aboriginal art is often the preferred investor’s choice because it is cultural art,” says Alexis Hesseen, owner of Original & Authentic Aboriginal Art Gallery at two locations in Melbourne and Sydney. The ancient language expressed in aboriginal art speaks for itself. “The paintings are historical records of inherited stories that were only first put to canvas in 1971 or much later for other Tribes and particular artists.”
Hesseen has been involved in Aboriginal art for the past 20 years. Her attraction to this art has become an addiction. “When I first saw an Aboriginal painting in 1985, I was filled with fascination. It was such an emotional experience and I realized these painting were world class.”
Hesseen is amongst the first gallery directors to pursue Aboriginal Art and has been in this business for 20 years. She has found that most investors have a range of Aboriginal artist in their portfolio, including Walangkura Napananagka (born 1946), Makinti Napananka (born 1930), Naata Nungurrayi (born 1932), Jack Britten (1925-2002), and Kubbtji (born 1930).
The highest price paid for Aboriginal art is work by Rover Thomas that sold for $778,750 for All That Big Rain Coming From Topside. Many Aboriginal artist achieve regular high auction results between $40,000 to $250,000 including Jack Britten (82,750), Makinti Napanangka ($60,000) and Naata Nungurrayi ($153,250).
Original and authentic Aboriginal art galleries provide free art and culture lectures that provide the necessary information to buy investment art. www.authaboriginalart.com.au
Investor Choice
We have only covered two art investment vehicles here, but you can see that the rewards are worth the outlay, particularly if you believe in an artist early on in their career.
Which brings us back to the question, ‘should you buy with your heart or your head?’ Art is emotive. To truly appreciate an artist’s work you need to understand the dynamics of a piece and you need to be moved by it. Combine this with the ability to detect who is making waves on the art scene and you should have yourself something with a great deal of value. To reiterate Ropar’s point, art is subjective so choose something you would like to hang on your wall, but choose wisely.
The Aboriginal and Contemporary art markets are open to anyone and most art collectors who invest in this particular artwork find these painting aesthetically pleasing. Whether you’re buying into a well-known artist or into a new and undiscovered one, there are many hidden treasures.