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Business Making: Art Investment

Let us continue talking about art investment

Price estimation of art works and canvases:

For artists of the settled value, whose pictures are in a considerable quantity in the market turn and their market isn’t shaken from boom, the auction prices often remain in estimate borders. Experts in this case manage to predict precisely enough an actual market range and for buyers it is the useful and convenient information.

And here for roughly growing directions the estimate at times degenerates to nonsense. In the summer of 2005 has passed the French auction BLM especially remembered in this respect devoted to creativity by Mstislava Dobuzhinsky. At those auctions the works estimated in 3-4 thousand of euro and sold for 80-100 thousand euro.

What advantage can be taken from knowledge of an estimate? Indirectly bottom border of an estimated range allows assuming, for example, the reserve minimum possible price for the seller. Buyers present at a hall don’t know the reserve price; it is not public and is fixed in the contract between the seller and the auction house.

But buyers can assume reserve level approximately. So, for example, if the estimate is of 100-120 thousand dollars it is possible to assume that the reserve border is established approximately on 80 thousand dollars. It is not finally corrected, of course, and a guess, the empirical formula ?on 20 % more low?. Actually the reserve can be and 99 thousand.

But, let us assume, the empirical formula has worked. It means that if there is a desire to try to buy a thing for such price it is necessary to place the correspondence demand (for example, on a site) with the offer of 85 thousand dollars and to stake at a rate of 50 thousand dollars, most likely, senselessly. The price of such demand hardly will reach a reserve ? on it and the estimate hints.

What it is more favorable to buy: the modern art or antiques?

It is clear that usually in such cases under modern art we mean art of our days and antiques is that is more senior 50 years, that is framed approximately to second half of XX-th century. Having rejected some nuances, a question arises: in what artists it is more favorable to invest: in taken place art or young, little-known, promising? Operating with these concepts, it makes sense to think over it.

Investments into antiquarian painting (as now and in modernist post-war) are already enough well predicted. And in it is their advantage. On the party of the collector of an antiquarian investment collection are statistics of sales, history of the auction prices, the literature, catalogs-reason, exhibitions, and expositions of museums.

Value of the taken place artist for painting history is already defined, its creativity is studied, especially valuable successful periods, and the innovation has also received its estimation. The risks, of course, are presented. It is possible “not to guess” with authenticity, it is possible to overpay or make strong mistake in an estimation of investment potential, much that happens. But the risk to be enclosed in “baby’s dummy” practically is absent. Accents in creativity of the taken place “antiquarian” artist are already reliably placed. And demanded objectivity can achieve quite often only from height of the last decades, and here this condition is observed.

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