08/02/2004
Keep these issues in mind when considering investment-quality art:
The worst time to buy a piece of art is immediately
after a highly trumpeted sale, especially of a work in the same category.
“Record prices catch people’s attention and make them more excited,” says Janine
Racanelli, a wealth advisor at JP Morgan. “Serious collectors will think
very hard about the timing of their purchases and be very
strategic.”Transaction and holding costs over a 30-year period may run as much as 25 percent of the price we pay for an artwork at auction.
Insurance costs run approximately $1 to $1.50 a year for every $1,000 of market value.
Seek the counsel of a reputable advisor, preferably someone who will work on a fee basis. Always check references.
Employ a curator to catalog acquisitions, and seek occasions to exhibit, buy and sell.
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