Post: #1

First off - I realize the phrase "the art game" is terribly cliched and douchey - but at the same time it's incredibly fun to say.

I'm interested in investing at least as much in art on an annual basis as I do in boring Roth IRAs and (to some extent) to my 401k as well. What fun is that, aside from seeing your company match your contributions?

Art is tangible, it is swanky as hell, and it can be a caveat into an exciting, sexy world.

Is anybody on RooshV forum into art collecting, and if so would anybody be willing to walk me through how to get started? I'm hoping to research the hell out of things, take advantage of my regular trips to Chicago, and eventually plunk $5 - $10k into an original piece of art sometime in the next 6 months. I'd like it to be a very safe investment with little risk of having the value of the piece fall over the life of my ownership.

Post: #2

Sounds like you're getting into it for the wrong reasons. Investing in art is not compatible with low-risk investment. Especially at the level you're playing at. At that level most art is not a liquid asset. So it's risky because there won't be an efficient market for what you're buying. There is no art that only goes up in price. Except maybe at the very top.

I don't know much about the art scene in Chicago, but I'd recommend going to the fairs in New York, Frieze and Armory. Art Basel in Miami is a big party and a good excuse to get out there and have a good time.

Investing in art is only for people who are really into it, or people who are investing enough money that they can get trustworthy curators or gallerists who are really into it to advise them regularly.

At the level you're looking at, only buy art you like. That way, if you can't sell it or the value goes down at least you have something you like looking at in your house.

Before buying a piece do some diligence; what sort of track record does the artist have? Does the artist have momentum? Ask around. Who is representing the artist? What sort of track record do his galleries have? If you buy via a gallery, the gallery takes 50%; if possible get in touch with the artist and buy direct from him. Even if you do buy from a gallery try to establish a relationship with the artist. Knowing the artist may allow you to buy from them bypassing the galleries.

A friend of mine who is a small-time collector (invested maybe $10,000-20,000 / year every year for over a decade) lost all his art when his place burned down recently. It was all insured at the purchase price and some of the artists allowed him to buy new pieces from them at the original price, even if the price for their work had gone up since then. This was mostly because he had maintained good relationships with them or their galleries.

Study art and figure out what you like. Get a copy of The Story of Art by Gombrich. Read the Art Newspaper regularly. Read Art Review and Frieze Magazine.

Make friends with people in the art world who live and breathe this stuff. Bang a young curator or gallery girl. Study a lot before you make the leap. You really have to be into art to make contacts and spend time to find interesting deals, so only do it if you can get genuinely interested in art.

Otherwise it will be a drag and not a good long-term investment strategy. You could get lucky or could lose a lot of money. If you enjoy the ride and stick with it long term, gradually and thoughtfully build a good portfolio you'll get a lot of enjoyment and potentially some good financial gain out of it.

I say go for it. What investment is low risk anymore? At least invest in a hobby that brings you pleasure.

Post: #3

I would personally bid at estate sales at that level. Check out Julien's Auctions, they have online bidding and you can check out their catalogs, many of these celebrities who have died have decent art collections/memorabilia and you are more likely to score a decent deal doing this. You need to be targeting established artists, not emerging artists or original pieces of art because that that price point you're basically paying for something you can hang in your dwelling.

You do need to research what is hot and what is not at the current time though.

Post: #4

Collect art because you love it, not as an investment.