Hope and Greed are seldom friends to the successful investor. Fear, on the other hand, could save your portfolio from plunging into abysmal depths.
So rather than obsessing with How to Make Money in Art, we should try injecting some reverse psychology into our stable of investment methodologies instead.
Richard Polsky (through whom I found my calling), author of I bought Andy Warhol (2003) and the forthcoming I Sold Andy Warhol (too soon), offers 9 Ways to Lose Money in the Art Market:
1. Buy a mediocre painting instead of a great print.
2. Let the auction houses talk down your reserve.
* Reserve Price is the minimum price a seller is willing to accept for the artwork.
3. Accept a mere 10% discount from a gallery.
4. Buy with your ears rather than with your eyes.
5. Buy an atypical work.
6. Buy a work from a blue-chip gallery without being properly introduced.
7. Buy a work by an artist who’s “in play”.
8. Buy a work right after an artist has died.
9. Buy works of unusually large scale.
- Never buy a painting that you can’t lift – Paul Kanter (late L.A dealer)
Visit artnet.com for the full text
thangdynasty is a work-in-progress maintained by an accidental equity trader whose brief foray into the world of investments turned out… not so brief.
Although unmotivated by the senseless pursuit of money in and for itself, she remains sadistically intrigued by the complex anatomy stealthily at work behind the whole spectrum of Markets – Fine Art, Financial, Fish and Fools.
A budding art collector and supporter of emerging artists, she slogs to prevent collateral damage to her bank account resulting from occasional manic art buying sprees.