"Photography has the capacity to provide images.... that are both works of art and moments in history" Cornell Capa
"Photography has the capacity to provide images.... that are both works of art and moments in history" Cornell Capa
ECO A: Brilliant Images Carved Into Leaves http://ff.im/-f6F14
In times like these, with a plunging Dow Jones and a real estate market dropping in value, people often look for new alternatives of places to invest their money. Many persuasive voices will try and convince investors that art is a great investment. The art market is huge, with a variety of media types (from traditional painting to video installation) and global in nature (the latest hot spots for contemporary art are the studios of Beijing and Shanghai).
"A Fool's Game"
The art market surely seems like it would be a great investment for these troubled times, but is it? The art market is also crowded with smooth talkers, salesmen and women whose passion for the subject can make Wall Street types look like amateurs. Yet, in the words of Paul Johnson, eminent British historian and son of an art dealer, "that's dangerous advice." Says Johnson, "Much of my life I've spent visiting art collections the world over, buying drawings and paintings and writing about art. But I think investing in art to make money is a fool's game."
For investment purposes, the art market is wildly unpredictable, with trends that are only sometimes linked to quality. Then ask yourself: Who is the final arbiter of art quality?
Should this deter you from buying art? No. If you love art, read up on the subject, visit artist studios, galleries, and museum collections. Then buy it because you want to possess a certain work of art, because you want to enjoy it at home, or because you simply can't live without it.
Don't collect art to make money. It's unlikely you will, and frequently investors who purchase art solely for its financial reward have a painful, anxiety-producing experience when it's time to cash in on their investment.
Great Collectors
Despite this warning, there have been a number of notable business leaders who have successfully bought art, and seen it rise in value astronomically. Their collections frequently can be seen in museums (on loan or as donations). One outstanding example of such a collector is Henry Clay Frick (1849-1919).
Frick was an outstanding businessman, who made his money from steel, but more specifically from his knowledge of coke, a form of coal used to power his plants. During his lifetime, Frick knew more about coke than any other businessman around and used this knowledge to his advantage. In 1892, Frick fought and won one of the most bitterly violent labor disputes in US history. He went on to become a titan on the order of JP Morgan, John D. Rockefeller, and Andrew Mellon.
Above all, Frick loved art and he amassed a superb collection in his Manhattan residence (he eventually left both his mansion and the art collection to the City of New York, as well as a significant endowment to keep it running). Today, the Frick Collection is one of the most impressive in the world. Virtually every work in the collection is a masterpiece. There are Holbein portraits, Turner landscapes, a Vermeer, a self-portrait by Rembrandt, landscapes by Constable, and an outstanding biblical painting by the Venetian Renaissance master, Bellini.
How did Frick accomplish this? More to the point, was there any connection between Frick's astute business ability and ruthlessness and his unique success as a collector? Clearly, the answer is yes. Frick used his knowledge of art (much in the way he had used his understanding of coke in making steel) to create a collection that few collectors could rival.
Perhaps the greatest collector throughout history was King Charles I of England. Although he was not known for his intellect and eventually fell from power, as his country dissolved into civil war, he had a wonderful eye for paintings of the highest caliber. While his stubbornness and unwillingness to admit he was wrong or seek a middle ground in politics led to his self-destruction, it is perhaps this same obstinacy that made him an unparalleled collector of genius.
Similarly, one can look to the Medici Family of the Renaissance, whose rule was characterized by an obstinacy and ruthlessness found in King Charles I and Frick. Yet this is also why Florence today has become the center of the finest artwork found anywhere in the world. Today the Uffizi, the Pitti, and the Bargello Palaces of Florence house an unparalleled collection of the best artwork on earth.
These same traits of determination and ruthlessness characterized the reign of Pope Julius II under whom Michelangelo and Raphael flourished, leaving a lasting mark on the Vatican's art collection.
Common Thread for Successful Art Investment
In recounting the lives of these great collectors and their outstanding art, it is clear that they all share some common characteristics: a deep knowledge of their subject, a good understanding of what makes a superior work of art, an understanding of which art would withstand the test of time, and a personal sense of attachment to the art they collected.
Although many of these collections truly deserve the label "priceless," none of this art was collected for the sake of an investment or as a business decision. It was the love of art that fueled the collecting. The money they amassed enabled these wealthy patrons to buy art, and not the other way around. The contemporary investor would be wise to follow in their footsteps.
