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Fine Art blog on collecting, appraisals, quality & originality. With Alex Adelman of Masterworks Fine Art.

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Watermarks and Rembrandts

Tuesday, August 16th, 2011

When Masterworks Fine Art acquires an artwork, we undertake a program of research and identification. Old Masters prints, such as those by Rembrandt, require special attention because documentation can be limited, works often exist in multiple states, and posthumous prints made from plates still in existence are on the market.

When researching a Rembrandt impression, we consider the image and sheet size, the type of paper on which the work is printed, and the watermark (if there is one). We consult Nowell-Eusticke, the authoritative catalogue raisonné for the artist, compare our results against the volumes by Hind and White & Boon, and turn to the recently-published Watermarks in Rembrandt’s Prints by Ash & Fletcher. These books describe, in one way or another, differences large and small between each printing of a single plate.

Rembrandt experimented with the effects of printing on different kinds of paper, and is known to have used vellum, calfskin parchment, creamy handmade European papers, coarse “oatmeal” papers made from the dregs of the papermaking vat, and the thicker, softer “Japan” paper (Ash & Fletcher, 11).  Not all of these papers were made with watermarks or wire marks, as they are also known, but those that were can provide insight into the time frame in which a print was pulled.

As methodical studies of watermarks found in the graphic work of specific artists appear, the identification of these marks becomes increasingly valuable. It is a rare day when we uncover a full watermark on a newly acquired print. Finding even the tip of a crown or a partial cluster of grapes enables us to match that fragment to a documented watermark. If we can nail down what paper the work is on, we can at least be certain that the impression was not pulled before a certain date.

How does this relate to Rembrandt?

Say we determine that a certain watermark was produced in the early 18th century. A Rembrandt etching on that particular paper couldn’t possibly be a lifetime impression, given the artist’s death in 1669. Ash and Fletcher note: “Our research often revealed the use of the same paper in the same print or in prints produced within a few years of each other” (15). That being said, they continue, “Rembrandt may have purchased certain papers in quantity, saved them, and used them intermittently over the years” (Ibid). This passage underscores the difficulty Rembrandt scholars face in assigning prints an exact date. Though helpful, a paper’s dates of creation do not necessarily dictate the time frame for the printing of a specific state. A plate may have been etched one year and printed the next. It may also have been reprinted a decade later.

Information obtained through a watermark about a paper’s country of origin, dates of manufacture, and import history can narrow the time frame for an impression and authenticate the work. However, sometimes our search for a wire mark leaves us empty-handed, and we turn to determining the state of the print.

Investing in Art in a Smoke-and-Mirrors Financial Market

Friday, August 5th, 2011

The stock market is in marked decline and bonds are showing pitifully low returns. Interest rates are at a minimum, as low as .5% in some countries. Given that the sub-prime mortgage fiasco kicked off this recession in the first place, real estate has not been looking too attractive as a haven for liquid assets.

To be sure, the national spectacle that was the debt ceiling crisis did not help things. Ending just hours before the United States ran out of money to pay its bills, the problem has actually been delayed, not resolved. Fitch Ratings warned that though the debt ceiling agreement reached Congress represents a step in the right direction, the U.S. still lacks, “a credible plan to reduce the budget deficit to a level that would secure [its] AAA status over the medium-term.” The threat still remains that the country’s credit rating may take a dive, fueled by lenders’ concerns that $14 trillion in debt is unsustainable.

Those who had never imagined the United States might be unable to settle its accounts are perhaps imagining a similar scenario played out in their own personal finances. For the individual, it may not be an option to file away these concerns for a later date. In the face of such an unstable financial market, investing in tangible assets can be an answer. Precious metals such as gold and silver are proving to be safe investments, having risen 16% and 30% in value respectively in 2011 alone. In the United Kingdom, you can turn to the Wine Investment Fund, where annualized returns range between 8% and 20%. And then there is the Fine Art Fund Group, whose investors are currently enjoying returns above 25%.

Even if you can’t afford the Fund’s $250,000 base level investment, individuals can build l art collections with personal and monetary value. Though numbers are tumbling right and left, the art market is going strong. Christie’s closed its Paris Contemporary Art auction at over €8.4 million ($3.8 million) on May 31, 2011, and showed similar numbers between its two Impressionist and Modern Art sales just weeks earlier. The auction giant recently hosted an entire event dedicated to Picasso ceramics, where pieces sold between $800 and $134,000. Such an extraordinary price range underscores the accessibility of art for investors with all budgets.

Whether you choose to fill your portfolio with Modern Masters such as Chagall, Miró, and Picasso, or contemporary favorites like Warhol, Yvaral, or Vasarely, you can’t go wrong.  Art is one of the few tangible assets that will simultaneously enrich your aesthetic life and ensure your financial wellbeing, over the long term.

Resources:
1. “U.S. Stocks Manage to Eke out a Gain.” New York Times. August 4, 2011.
2. “Gold, fine wine, art or under the bed: what’s the safest place for your cash?”Guardian UK. July 25, 2011.
3. Christie’s: Auction Results, May 2011.

London Calling

Friday, June 24th, 2011

Impressionist and Modern sales were held this week in London with strong results. Sotheby’s ended with $157,543,910 in sales and Christie’s ended at $227,111,142. The stars of both nights were artists we currently sell. Pablo Picasso’s “Couple le Baiser” went for $10,621,070 which is 18 times higher than its previously recorded auction in 1993. Meanwhile, Picasso’s “Homme a la Pipe et Nu Couche” sold for $7,800,591.  Lastly, Picasso’s “Jeune Fille Endormie” and “Femme Assise, Robe Bleue” respectively sold for $21,866,588 and $29,133,148.

Joan Miró’s abstraction “Femme a la Voix de Rossignol dans la Nuit” sold for $7,709,608 while Henri de Toulouse-Lautrec’s “La Liseuse” sold for $9,165,339. “l’Empire des Lumieres,”  by René Magritte went for $3,888,313 and Pierre-Auguste Renoir’s widely exhibited “La Source (Nu Allonge)” sold for $8,241,788.

European buyers have been dominating the sales, but U.S. buyers have made an impact as well. This only goes to show that art is a great investment at any price level, in any country. With the steady return of good sales, art is stronger than it has been in quite while.

Art Basel: Indications to Come?

Wednesday, June 15th, 2011

Art Basel is often described as the world’s top fair for modern and contemporary works and it opens June 15, 2011 with over 300 galleries displaying works for a combined total worth around $1.75 billion, according to specialist insurer Hiscox.

Art Basel features galleries from North America, Latin America, Europe, Asia and Africa. More than 2,500 artists, ranging from the great masters of Modern art to the latest generation of emerging stars, are represented in the show’s multiple sections. The exhibition includes the highest-quality paintings, sculptures, drawings, installations, photographs, video and editioned works. Last year, 62,500 people attended Art 41 Basel, including art collectors, art dealers, artists, curators and other art enthusiasts.

In the VIP preview that occurred June 14, 2011 there was well over millions of dollars of art sold. Even if one does not attend the fair or collect the artists represented by the galleries, the sales at the fair are excellent indicators of the market for both price and mood. Although the art market has yet to regain the giddy heights of the boom that preceded the 2009 slump, the million-dollar sales at Art Basel tell that the market is strong and worthy of investment.

Treating Art as Stock

Thursday, May 19th, 2011

There is an interesting topic taking hold in the art world that has people talking and it centers around the global trend of creating Art Investment Funds. These art funds allow for individuals to make long-term investments in a portfolio of valuable artworks. What this means is that an art investment company either
a) buys particular works of art upfront whose value they believe will rise and then allows individuals to invest in the created portfolio and then upon selling the works of art will get a return OR
b) lines up individuals who put money towards purchasing art for a portfolio as an investment on the assumption that the value will increase and then upon selling the works of art will get a return.
All in all, they aim to maximize the rate of return on works in their collection.

There are many different options available besides these two but they are the most popular, as London-based Fine Art Fund displays. Fine Art Fund was the first fund of its type to invest in art as a worldwide asset class, and continues to be the only one to do so on a major international scale. However their creation is gaining in popularity as can be seen with several companies in several different countries taking a similar approach to the art market.

In Brazil, Plural Capital is an investment firm based in Rio de Janeiro and São Paulo that has launched BGA Private Equity Investment Fund. This new art-fueled market venture is worth $24 million and the strategy is to buy contemporary works, mainly from Brazil, for three years, and then spend two years selling off the art it has purchased. Therefore it encourages private investors to use the contemporary art market as a financial instrument.

Russia provides another example as to this sort of investment gaining popularity, but with a twist. One art investment firm, Atlanta Art, is valued at $4.7 million and just began trading last month. But it is Sobranie.Photoeffect valued at $467 million that is has a twist in their investment plan. What makes Sobranie.Photoeffect different is that instead of raising money from wealthy individuals to buy art, it has obtained its works from a group of anonymous Russian collectors. The plan for the fund is to sell five to 10 percent of its stock at auction every year, paying its final dividends after 15 years and then ceasing to exist. Sobranie.Photoeffect deals exclusively with photographs and holds over 290,000 original prints.

Russia and Brazil are not the only examples of art investment funds, but France and China offer different variations. In China, a financial corporation has gone public with China’s first openly traded art portfolio, on the Shenzhen Cultural Assets and Equity Exchange (SZCAEE). Issued by the Shenzhen Artvip Cultural Corporation, the art portfolio comprises 12 paintings by contemporary artist Yang Peijiang in the form of 1,000 shares, which sold out on the first day of trading, netting $354,480. As the artworks are traded by Artvip, which is managing the 12 works, profits are dispersed to shareholders. The Exchange itself is interesting as it was established in 2009 by the Chinese government, but functions as an alternative platform for the trading of a wide range of cultural assets — including artworks, luxury goods, and films — as part of the Chinese government’s attempt to commercialize, diversify, and regulate the public exchange of such cultural properties.

Meanwhile in France, the French company A&F Markets has come up with a venture called Art Exchange that will treat artworks as investment vehicles, opening them up to partial purchase by shareholders. The initiative has just launched with an offer of shares in two pieces, one by Sol LeWitt and the other by Francesco Vezzoli. Now 11,000 shares of LeWitt’s “Irregular Form” are available at $13 per share, for a total value of $142,000 and 13,500 shares of Vezzoli’s “The Premiere of a Play That Will Never Run” are also offered at the same rate, giving it a total price of $174,000.

What does an art investment fund do for you? Well it provides those who cannot afford to buy expensive works of art an avenue for reaping a profit off of the art, as well as provides new buyers with an “in” into the art world. In two of the examples listed above, shareholders are even able to have the piece on display in their home on a loan so to say. Thus, in addition to sharing the potential appreciation and profits of the artwork, the artwork is being admired and enjoyed as well.

Art Market Riding High

Monday, May 16th, 2011

Now, is the perfect time to invest in art. The international market is booming with great returns, and here at Masterworks we want you to get the best from your investment. That is why we are laying out the best buying markets right now so you know the worth of your investment.

Impressionist and Modern Art is holding steady in the art market. Several impressionist records were set this past week with Maurice Vlamincks Paysage de Banlieu selling for $22,482,500 (originally bought 17 years prior for $6,822,500) and Maximilien Luces’sNotre-Dame de Paris, that sold for $4,226,500. Pablo Picasso was a top seller with Les Femmes d’Alger, Version L going for $15,762,500, Homme au Mouton selling for $7,138,500, and Femmes Lisant (Deux Personages) selling for $21,362,500. All of these rare works are being offered at the perfect time for both old and new investors to enjoy.

Contemporary Turkish Art, generally sold in Dubai and London, is blossoming into the international art world as can be seen in the specialized sales held at major auction houses in April. In total, the sales in April 2011 generated $6.1m. The best results were Ömer Uluç and Erol Akyava’s painting End of Encounter, which brought in $741,000. The Whispering Wall II by Burhan Cahit Dogançay reached $375,000, and an untitled work by Orhon Mubin went for $326,000.  These results show that the Dubaian market, which is traditionally strong for Contemporary Turkish art, is now being outshined by the European segment of the market.

Contemporary Chinese Art is dominating the global art market. Many of the works are selling for quadruple of what they were estimated at. Total revenue from one auction was $46.68m. One of the highest selling contemporary artist’s is currently Zhang Xiaogang, whose Forever lasting Love (1988) sold for $9m. Only time will tell if the market continues to rise or fall, but as Chinese art buyers are actively collecting, the market looks to be a good investment.

Sonia Delaunay: On the Rise

Thursday, May 12th, 2011

Sonia Delaunay was born in Ukraine in 1885 and was adopted by her affluent Jewish lawyer uncle Henri Terk in 1890. She had a privileged upbringing and traveled Europe widely to various museums and galleries. At the age of 18 she was sent to an art school in Germany and in 1905 decided to move to Paris.

Once in Paris, Sonia enrolled in the Académie de la Palette in Montparnasse. However she was not happy there and tended to spend more time in the galleries around Paris. Her own work during this time was influenced by artists such as Van Gogh, Matisse, Henri Rousseau and Gauguin. In 1908 she married German homosexual art gallery owner Wilhelm Uhde. It was during her time at Uhde’s gallery that she met and had an affair with Robert Delaunay.

Sonia and Wilheim Uhde divorced in 1910, and Sonia went on to marry Robert Delaunay and have a son named Charles. Sonia is quoted as saying about Robert, “In Robert Delaunay I found a poet. A poet who wrote not with words but with colors.”

The Delaunays are often credited with the creation of Orphic Cubism or Orphism. This is a form of Cubism that focused on pure abstraction and bright colors influenced by Fauvism and the dye chemist Eugène Chevreul.

Sonia, who made paintings, prints, books, textile and fashion designs, carpets, furniture, mosaics, and the odd movie set, is more often remembered as the wife of Robert Delaunay, but she is an established artist in her right, whose works today are gaining the respect of the art market.

Susan Brown, who co-curated “Color Moves: Art and Fashion by Sonia Delaunay,” on view through June 5 at the Cooper-Hewitt, National Design Museum, in New York, notes that a critical reappraisal is in the offing. “It’s my impression that she’s going to fare better in the long haul. Particularly in the past 10 years or so, there’s been a lot of focus on her work.”This can be seen in the six auction records for Sonia that were set this past year, with prices outpacing estimates.

“The demand is escalating along with prices, and the number of collectors who seek her works is also rising,” says Thaddée Poliakoff, owner of Le Coin des Arts gallery, in Paris. Sonia’s high stands at €4.1 million ($3.9 million) from a 2002 auction of the 1915-16 canvas “Marché au Minho.”

Another opportunity for collectors are Sonia’s works on paper. Prices are relatively low for her prints and gouaches, which can be purchased from our Delaunay collection. It is “Pochoirs” that command the highest prices, due to rarity. According to Tudor Davies, head of prints for Christie’s Americas, “her etchings tend to be valued more highly than her lithographs, no doubt because they provide a better sense of surface.” He advises collectors to “look at the strength of the composition and the use of color and contrast. Simply put, you want the image to be as strong visually as possible when it is on the wall.”

Information was obtained from Artist Dossier: Sonia Delaunay – ARTINFO.com

Joan Miró: A Creative Life

Monday, May 9th, 2011

To most art lovers, a painting by Joan Miró is immediately recognizable. It displays botanical, geometric or abstract lines or shapes floating against celestial blue, sandy yellow or earth brown backgrounds. It also probably exudes a mystical yet reassuring dreamy quality. However interestingly enough, his personality was nothing like his work.

Miró was a highly disciplined hard working man. He spoke little and looked like the perfect bourgeois. He was orderly, reliable and punctilious. He was astonishingly versatile, willing to try almost anything. Nothing of him had any touch of a free spirited bohemian that he seemed to exhibit in his works.

In 1927, when Miró was 34 he was already a successful artist but he had a restless temperament and lived in provoking times. Surrealism, he discovered, had limitations. He was ready for a radical change in art, but he realized that he would have to create it himself. With his famous words, “I want to assassinate painting,” Miró did just that.  He took the elements out of art and stuck to the essentials. Whether he used a limited color palate or sparse geometric designs or different material he deified the essence of painting being on a canvas.

”I personally don’t know where we are heading,” Miró told a Spanish journalist in 1931. ”The only thing that’s clear to me is that I intend to destroy, destroy everything that exists in painting. I have utter contempt for painting. The only thing that interests me is the spirit itself, and I only use the customary artists’ tools — brushes, canvas and paint — in order to get the best effects. I’m only interested in anonymous art, the kind that springs from the collective unconscious.”

By the end of his long life, Miró had executed paintings and sculptures that prefigured Abstract Expressionism, Pop art, Color Field painting, process art, appropriation, and even conceptualism. Ultimately he succeeded in his goal of “assassinating painting”, and left us with a canvas of brilliant colors combined with simplified forms that allow us to embrace our inner child.

Matisse and Picasso: A Respectful Rivalry

Wednesday, May 4th, 2011

Competition. Rivalry. Respect. Admiration. Bandit. All of these words were once used by both Pablo Picasso and Henri Matisse in recognition of one and other. In Matisse and Picasso: The Story of their Rivalry and Friendship by Jack Flam, their tumultuous relationship is examined and brilliantly told.

Picasso was the first modern celebrity artist, unapologetic for his crass behavior, while Matisse lived in contrast, a reserved man shielding his life from the public view. They mocked each other in their respective works, yet revered each other for their talents. Matisse ”left me his odalisques,” Picasso famously declared after Matisse died, and then, in ”Women of Algiers,” Picasso returned these odalisques to their original source, Delacroix. He was expressing what Françoise Gilot, the painter and Picasso’s lover, called a kinship based on the common ”understanding of the same artists and the same principles.”

Both of the artists had a restless, self-confident, combative intelligence. As can be seen in the cross comparison of their careers and from the respect and admiration adorned from their art, they were strong contemporaries whose fame seemed to rise and fall in contrast to one and other. By the end, Picasso was strapping canvases onto the roof of his car and driving them over to show an elderly Matisse. ”Everything considered, there is only Matisse,” Picasso said. ”Only one person has the right to criticize me,” Matisse responded.

Picasso once said that in order to grasp 20th-century art, you ought to see ”side by side everything Matisse and I were doing.” This rivalry and friendship seemed to bring out the best in both artists. Thus, us lovers of the art world, are fortunate that they co-existed because without the personality or presence of one or the other, who knows what sort of influences would have driven them, and what masterpieces we would have lost out on.

The Women That Inspire

Monday, April 18th, 2011

Artists have been moved for centuries by the beauty, grace, and body of the female. Their model, lover, or wife acted not only as their muse, but also as their collaborator. From influencing the subject matter to assisting in the creation process and production, women were at the center of the famous artists lives.

Take Claude Monet and his first wife Camille Monet. Camille was his model before she became his wife and inspired some of his most famous works, Woman with a Parasol and Woman in the Green Dress. Pablo Picasso’s use of his lover’s in his art is unquestionable, therefore, it isn’t surprising to find them in his brilliant masterpieces, such as Dora Maar in Guernica. In more recent memory, the way Christo and Claes Oldenburg have latterly given their project-manager wives equal billing.

Such passion and respect have created wonderful masterpieces that tell stories of love, betrayal, sadness, hope, and desire. Without the influence of such women, who knows what would have inspired these artists to create.

Tips for Buying Fine Art

Thursday, October 28th, 2010

With a rapidly changing economy it has become increasingly evident that many people are turning to different kinds of tangible assets as a hedge against both inflation and recession. In my 35 years of experience collecting, buying, and selling original works of fine art, I have found the art market to be far more stable and yield far more consistent returns than any other tangible financial instrument that I know of. It comes down to a general belief that it’s all about collecting “names”, or artists whose careers and reputations have long been established and are not going to fade with the advance of time.

The guide presented below is generally intended for customers who are buying original works of fine art and spending between $10,000 and $250,000. In general, my first piece of advice is to buy well-established, famous-named artists; Old Masters (e.g. Rembrandt, Dürer) and Modern Masters (e.g. Chagall, Picasso, Miro, Matisse, Braque) are certainly sure bets. On the Contemporary side, artists like Calder, Vasarely, and Yvaral are great artists to collect, enjoy, and invest in. (I would include works by Warhol in this list, but his market has become so over-heated that I have some concerns about the sustainability of the doubling and tripling of prices that have occurred on an annual basis over the past 4 or 5 years.)

Buy / Acquire only original works of fine art

Differentiating originals from reproductions can be difficult especially when the artistic media used to create an artist’s work has changed so dramatically over the years. An original etching, lithograph, serigraph, and aquatint for example, are easy to differentiate because they do not show a dot matrix (classically associated with reproductions of original works of art).

The challenge today is that many contemporary artists use mass media for reproducing images like off-set lithography, collotypes, and Giclée to reproduce their works. However, this does not necessarily mean that these works are not original works of fine art. The following conditions are necessary in order to be considered original works of fine art:

  1. Hand-signed & Numbered: Works must be hand-signed by the artist and numbered in limited editions.As an example of this, the vast majority of Warhol prints – while among the most collected in the world – are all photo-mechanically reproduced and are not classically considered original serigraphs or lithographs. But because this is the only way Warhol worked, these pieces are considered original works, even though they technically are not. We understand this is a confusing distinction to make and I am happy to be contacted on a piece-by-piece basis to explain the level of involvement by the artist with each work.
  2. Catalogue Raisonné Information & Documentation: Be sure that the print corresponds to the printed documentation in a catalogue raisonné of the artist’s, publisher’s, or printer’s work. Artists did not make an original work in 3 different sizes, for example; only 1 size of an original work is typically produced. A good, thorough catalogue raisonné will tell you the technique of manufacture, size of image, size of the printed sheet, and the edition size.There is a minor caviot to this: some areas of printmaking are not documented properly or thoroughly and mistakes can be found in those catalogues that do exist. This is relatively rare and can be explained in other ways.
  3. Lifetime Impressions vs. Re-Strikes: A print produced during an artist’s lifetime will have certain qualities and characteristics that are documented in the artist’s catalogue raisonnés. Re-strikes, later impressions, or posthumous works fall in another category. These works are usually printed from original plates. However, the artist did not authorize their creation. They may have been authorized by the artist’s estate but their value is diminished over that of an original work pulled under the artist’s direction and supervision during his lifetime. Both are collectable, but the values will vary greatly.
  4. Certificates of Authenticity (COAs): Certificates for graphic works are in general, worth the paper they are printed on; they are only as good as the company who issues them. Having said that, certain COAs are better than others and they should only contain factual information, verifiable by outside sources.

For older works of art, much of this information remains unknown, especially prior to 1900. In those circumstances, you do your best to answer the questions as truthfully and faithfully as possible. Unique works of art (as opposed to original prints) frequently come with COAs by the designated member(s) of an artist’s family who have the moral right to authenticate a work of art.

For example, if you were buying a Picasso unique work, the only people who have the authority to authenticate those works, are Maya Picasso and Claude Picasso (appointed by the French government). If the work of art was by Marc Chagall, the Comité Chagall is THE only entity that can authenticate a unique original work by Chagall. The problem for those dealing in graphic works is that most experts will not authenticate them (they only deal with unique originals).

Please find the following excerpt on COA requirements as stated by the State of California Civil Code 1744 (as of 2003):

  1. The name of the artist
  2. Information about any artist’s signature appearing on the multiple, such as whether the artist signed it personally or whether it was stamped by the artist’s estate, or by some other source.
  3. A description of the medium or process used in producing the multiple such as etching, engraving, lithographic, serigraphic, Giclee or a particular method or material used in any photographic developing processes.
  4. A statement about any photomechanical, photographic, or surmoulage (for sculpture) process used to create a multiple of an image produced in a different medium, for a purpose other than the creation of the multiple being described, and a statement of the respective mediums.
  5. If a photomechanical, photographic or surmoulage process was used, and the multiple is not signed, a statement about whether the artist authorized or approved in writing creation of the multiple or the edition.
  6. Information about whether the artist was deceased at the time the master was made which produced the multiple.
  7. Information about whether it is a “posthumous” multiple, that is, where the master was created during the life of the artist but the multiple was produced after the artist’s death.
  8. If it is a second or later edition of multiples made from a master that produced a prior limited edition, or if the master for this edition was made from a print or master that was made from a prior multiple, this shall be stated. In addition, the total number of multiples, including proofs, of all other editions produced from that master must be stated.
  9. The year, or approximate year, the multiple was produced shall be stated, if the multiple was created after 1949. For multiples produced prior to 1950, the certificate must state the year, approximate year or period when the master was made and when that particular multiple was produced.
  10. Information about whether the edition is being offered as a limited edition, and if so: (i) the authorized maximum number of signed or numbered impressions or both, in the edition; (ii) the authorized maximum number of unsigned or unnumbered impressions, or both, in the edition; (iii) the authorized maximum number of artist’s, publisher’s or other proofs, if any, outside of the regular edition; and (iv) the total size of the edition.
  11. Whether or not the master has been destroyed, effaced, altered, defaced, or canceled after the current edition. If for example the master screens have been destroyed, then the atelier cannot make any additional images more of that image.
  12. If the multiple is part of a limited edition that was printed after January 1, 1983, that statement of the size of the limited edition also constitutes an express warranty that no additional multiples of the same image, including proofs, have been produced in this or in any other limited edition.

Pricing

Pricing is, on a retail basis, based on a gallery’s overhead costs, including its location, sales commissions, etc.; frequently pricing will entail a 50%-100% mark-up. I advise collectors to inquire about galleries’ pricing methods what factors go into the pricing of their inventory. That question alone, if it goes unanswered in a satisfactory manner, should give you an indication of the establishment’s legitimacy and customer service. (As an aside, if you think you can find an original hand-signed work by a prominent artist like Chagall or Picasso for less than $5,000 you are probably buying a fake or a reproduction with a photo-mechanical signature. There’s no such thing has an authentic, hand-signed Chagall for $399.99. However, there can be major price variations where an original Chagall might be $10,000 in one gallery and $25,000 in another – all this varies based on the information provided above.)

Signatures

How do you know an artist really hand-signed a work? The artist’s birth/date dates should be listed on any COA so that you know the real Pablo Picasso (born 1881; died 1973) really signed it, as opposed to a Pablo Picasso in Chicago, IL who is still alive. It is important that the artist’s dates be present to make this distinction very clear.

For major artists, there are frequently comparative catalogues and signature registries where you can find comparable signatures to help gain confidence that the artist truly signed the work. This information should also be contained in the catalogue raisonné, the best of which should tell you if there are unsigned impressions and if so, how many.

Proactive Research & Due Diligence

Do your best to educate yourself about an artist’s work. Speak to the gallery owner directly and ask these questions to make sure you feel confident about your acquisition. A professional dealer will allow for returns, exchanges, and guarantee the work of art’s authenticity for the lifetime of your ownership of that work. Find a good glossary of terminology to research and understand precisely the terms that are involved in the description of the artist’s work. (Masterworks Fine Art, Inc. offers an abbreviated glossary of art terms.)

Quality in a Work of Art

Original works of fine art are hand-made. Because of this, there is variation in the quality of impression. Due to the ravages of time, there are variations in color saturation and condition. A print that has a tear across the middle of it is clearly going to be worth less than a print with full margins and in flawless condition. Brilliant, crisp impressions will sell more successfully than dull, worn impressions. The price ranges can be enormous; for example, an early impression of a Rembrandt print might be priced at $100,000. A later, poorer impression could be $7,000. What makes the difference is a good, strong knowledge of connoisseurship and connoisseurship criteria.

Connoisseurship

This is a critical aspect in acquiring any work of art. Connoisseurship has to do with the assessment and understanding of quality in an original work of fine art. Connoisseurship will always determine the work with the greatest value – which will be the most iconic image by a specific artist. Connoisseurship in a work of art will vary from artist to artist. With Chagall, for example, it has to do with solely the amount of color saturation and Chagall-like imagery. With Picasso, in contrast, connoisseurship will depend on the graphic qualities of the image and the brilliancy with which he is able to convey a message in a relatively small number of strokes.

I often reference and artwork’s “curb effect,” or its ability to pulls you in from across the room, allowing you to distinctly tell who the work has been created by. A Picasso that looks like a geometric work of art by Vasarely is not ever going to be as desirable or collectable as a Picasso of a mother holding a child from the Blue Period. In other words, historically, the most collectable and valuable works of art by major artists, are works that scream they are works by those artists.

Some brief thoughts about art and the current market

Friday, February 13th, 2009

Most Impressionist and Modern Art sales in early February 2009 proved that art prices and its market remain strong. And, in a time of crisis, records can still be broken. Great works, strong images, and iconic works attested to be the most desirable and attained the highest results. In February 2009, this Edgar Degas sculpture sold well over its estimate at 13.3 million pounds, as well Joan Miro’s 4-foot 9-inch tall surrealist abstract, “Femmes et Oiseaux dans la Nuit”, on the same day.

The lessons are clear: art continues to be a sound investment, and one should continue collect works as I have always argued. The best of art lifts the spirits, hearts, and minds of those who view them. Great art takes the viewer to new places and experiences, allowing the viewer to be moved in both mind and spirit. Art has always been an investment in two areas: firstly, the heart and soul; secondly, an economic one that weathers the test of time better than most all other tangibles.

Buying Art in Times of Economic Uncertainty

Wednesday, January 21st, 2009

By Irma Adelman, Berkeley School of Agricultural Economics

By Irma Adelman, Distinguished Fellow, American Economic Association

We are living in an era of great uncertainty coupled with major structural change.  The structural change affects not only the US economy but also its demographic structure, its technology, its communication system and its global economic relations. In addition, we are in the middle of two wars, locking us into substantial military and economic assistance expenditures.  Furthermore, the political system has become dysfunctional and the economy paralyzed.  No wonder economic growth has become stagnant and unemployment rampant.

Along demographic lines, we are experiencing an increase in the fraction of population of retirement age that is not compensated by an increase in people of working-age.  In addition, there has been a rise in life-expectancy.  The net result is that a greater share of GNP must be devoted to maintaining retirees and providing them with health-care. Also, a larger share of the work-force must be imported and we must graduate into a post-industrial age.

Technical change has had many different ramifications.  Production has become more high- education intensive. The speed of the communication-system has become instant from virtually all points of the globe. It has therefore become possible to decentralize production globally, while maintaining managerial and technical control  in the US with a consequent  globalization of production in what are nominally US-firms coupled with  a 24-hour production cycle. And the transmission of news across the globe has become essentially instant, accelerating economic, financial and political reactions to events happening anywhere in the world.

Personal investment strategies need to adjust to take the current economic outlook into account. During periods of stagflation stocks usually decline. Bonds yield very low nominal returns. In fact, bonds currently yield negative real returns when one factors in present rates of inflation. Financial assets are therefore unattractive as well as unusually risky. This leaves real assets, and, in the short run, foreign currency.

Among real assets, the traditional major form of investment in housing and real estate holdings is unattractive, since their prices are declining precipitously, and there seems to be no end in sight. Indeed, this, together with the collateralization of mortgages and the evolution of derivatives is the basic cause of the current US financial crisis.

So, currently, the best form in which to hold savings is in tangible assets other than housing. These include, but are not limited to, precious metals, natural resources and art.

Art has exhibited a number of trends. During the past several decades, art has escalated in value. In fact, on the average, rates of returns from art have exceeded those from stocks. The biggest price increases have been for contemporary art, followed by impressionist and modern art, and by old masters.

The major names, with long established museum credentials, have withstood the test of time best and yielded the greatest price increases. Buying a nice work by an unknown artist is like going to the gambling tables in Vegas: you never know what will happen in the long run. In contrast, works by known artists of great repute have yielded the largest returns. Picasso, Chagall, Miro, Calder, Warhol, and Vasarely are just a few artists whose works come to mind.

The major names, with long established museum credentials, have withstood the test of time best and yielded the greatest price increases. Buying a nice work by an unknown artist is like going to the gambling tables in Vegas: you never know what will happen in the long run. In contrast, works by known artists of great repute have yielded the largest returns. Picasso, Chagall, Miro, Calder, Warhol, and Vasarely are just a few artists whose works come to mind.

Lastly, on a personal note, art, of course, has another advantage. Art is inspirational, and is the tangible commodity that not only increases in value but also gives visual pleasure and stimulation.

Irma Adelman, FRSA
Thomas Forsyth Hunt Chair
Professor Emerita,
University of California, Berkeley School of Agricultural Economics
Fellow, Econometric Society

Fellow, American Academy of Arts and Sciences

Fellow, the Royal Society for the Encouragement of Arts, Manufactures & Commerce

Fellow, American Agricultural Economics Association

Order of Bronze Tower, Government of South Korea, 1971

Vice President, American Economic Association, 1979-80

Women’s Hall of Fame, University of California at Berkeley, 1994

Distinguished Fellow, American Economic Association, 2004

Laurea ad Honorem in Economia Politica, Universita Di Parma, Italy 2005


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