Collecting art has long been viewed as an elitist hobby for the rich and famous.
Collecting art has long been viewed as an elitist hobby for the rich and famous.
But that’s beginning to change, as economic prosperity in Western Australia provides additional cash flow for working Australians who have already done well in property and shares.
Galleries are noticing an increase in the number of people interested in art, as cashed-up individuals look for new places to funnel their boom-created cash.
However, the galleries are quick to point out that, just like property and shares, every art purchase does not necessarily go up in price.
A piece of art may be good to look at but it can also be worthless.
“People are spending big amounts of money on art that is not a good investment and it is because they are not getting good advice,” Turner Galleries manager and curator Alison Archer said.
Perth Galleries managing director Norah Ohrt agrees.
“They are paying very big amounts but there is little re-sale value,” she said.
But picking a good piece of art can pay off handsomely.
Prices for art can skyrocket just like shares in mining companies or a property by the coast.
Take for example a work by 92-year-old artist James Gleeson, whose exhibition of new works is launching the opening of United Galleries in Northbridge on June 20.
Joining the exhibition is his painting The Wheel Has Come Full Circle, measuring 133 centimetres by 178cm.
It is on sale for $75,000.
The same piece sold for $13,000 in 1992 and $29,900 in 2002.
The local galleries reckon that getting a worthwhile art collection does not necessarily require tens of thousands of dollars.
Doug Sheerer has operated Galerie Dusseldorf with his wife, Magda, for the past 30 years and said it was a myth that it cost a lot of money to buy art.
“You can buy something at our gallery for $330 at the moment,” Mr Sheerer said.
In particular, exhibitions featuring up-and-coming artists can be one of the cheapest ways to enter the market.
It’s a bit like buying a share in an initial public offering, getting in early can pay dividends if demand rises for that stock, or artist, rises in the future.
Perth Galleries hosts an annual exhibition called New Works New Faces, which allows art lovers to buy relatively inexpensive pieces of art from what the gallery thinks will be the next big things in the art world.
It’s a much more speculative investment, just like buying stocks in small-cap companies rather than blue-chip stock.
Ms Ohrt said many of the artists featured in the exhibition later sold works to major galleries, which pushes the value of an artist’s work up because their profile is increased and demand for their work rises among the art community.
“A lot of artists have gone on to do very well,” she said.
Helen Smith exhibited at a New Works New Faces exhibition several years ago and her work has since been purchased by the National Gallery of Australia and the Art Gallery of Western Australia.
Another new face, Geraldton-born artists Britt Salt, recently held an exhibition in Sydney.
“Her works sold exceptionally well,” Ms Ohrt said.
United Galleries has a similar program, called Unwrapped.
Its first Perth exhibition will take place in July and will feature Western Australian artist David Spencer along with peers from across Australia who have been selected as most likely to be “future stars’’.
Turner Galleries offer an Art Angels program, where members pay $1,100 towards funding of an art-in-residence program.
The artist produces three pieces of work for each member.
The number of art angels has grown from 26 when the program was established in 2001 to 41.
Picking a winner
Gallery owners said prospective buyers need to do their research, which includes looking at an artist’s CV.
“You wouldn’t spend $40,000 on shares without looking at the history of the company or its prospects,” Ms Archer said.
“You wouldn’t spend $300,000 buying property without researching the area, and yet I go to art auctions and see people buying things that are not a good long-term investment.”
She said that, if a major gallery had collected an artist’s work, it was an indication that the work had value.
“If an artist is young and their work hasn’t appeared in a public collection then it is very speculative so you would generally not pay a lot of money for that,” Ms Archer said.
“If an artist is in their 50s or 60s and their work hasn’t been collected, then why not?”
Another tip given by gallery directors is to find out whether the gallery is part of the Association of WA Art Galleries or the Australian Commercial Galleries Association.
“It guarantees that they deal ethically with their artist and the advice that is given is genuine,” Ms Ohrt says.
However, there are restrictions to the membership, includes the amount of time the gallery has been open, which can mean some good operators are not currently members.
Mr Sheerer advises people to visit as many galleries as possible, and to familiarise themselves with various artists.
“It’s important to build up product knowledge, exhibitions are free to go to,” he said.
Gallery owners also recommend finding out what an artwork last sold for, which can be found in art auction records or through annual compilations including the Australian Art Sales Digest.
Ms Archer added that another source of good information was the Art Gallery of Western Australia’s annual report.
“You can look at what they spent their money on,” Ms Archer said.
