To the uninitiated the prospect of buying fine art for investment can be as daunting as being asked to paint the Sistine Chapel or construct St Paul’s Cathedral out of match sticks. A glimpse of the plush interiors of the major auction houses or trip to one of central London's sometimes intimidating galleries can give the casual visitor second thoughts about purchasing a piece of art. Alternatively the individual might be unsure about the value or authenticity of the painting or drawing they are proposing to buy, but press ahead with the transaction anyway on the principle that they may not know much about art, but they know what they like. And the gallery assistant has gone to all this trouble and seems to know what they’re talking about, so it would be churlish to pull out now.
The best way to make the subjective practice of buying a piece of fine art is to be as objective as possible. In other words, to ensure that you get what you pay for, it is worthwhile learning a bit more about how the art market works and gathering as much information about the particular artist or style or period that you are interested in as you can. There are two principle ways of doing this. You can research the artist’s output and historical significance in art books and exhibition catalogues or read reviews by local and national art critics, and you can look through the sales records available in most major public libraries and art galleries to determine how much their work goes for.
A natural place to start researching price would be with the seller of the piece you are interested in. Judge whether the artist has a track record of selling works of art similar to the piece you like for amounts comparable to what you’re being asked to pay. A reputable dealer should have this information on file and be willing to discuss it with you; any reluctance to do so suggests that they have something to hide either about the piece or the amount they are asking for it. As an additional measure, it is worth reviewing the artist’s general sales history over the past five years to determine that their price has remained consistent, paying particular attention to the average price fetched.
Once you have established the price that the artist sells for, the research you have done about their life and output should give you an indication of the significance, and relative value, of the piece you are interested in. Is the piece a typical or atypical example of the artist’s output? Is it from the artist’s mature period or an early work which indicates how the artist’s mature style evolved (bear in mind that the majority of an artist’s earliest pieces are usually in museums or private hands, so invariably sell for a higher than usual price when they come onto the market)? Does it have any special significance in the artist’s life or interesting stories associated with it? Has it ever been discussed in print by experts or the artist themselves?
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