|Art investing for novices|
|News - Alternative Investments|
|Monday, 26 November 2012 14:28|
Fitzrovia-based Gallery DIFFERENT has started an art club designed to help inexperienced buyers benefit from the returns on investment available in the contemporary art market.
The art club offers exclusivity to invited members with the opportunity to tap into expert insights on artists and the value of their works, provide inside knowledge on trends and a secondary market for works.
Karina Phillips, co-owner and director of Gallery DIFFERENT, said: “The art club market seems to be divided into two types: clubs which demand very high entry stakes and purchase works as a collective or those that are run more as social clubs.
“The DIFFERENT Art Buyers’ Club will be run as a collective but members will individually own the art they purchase. They will be advised on the comparative investment value of various artists and likely future performance in order to better assess risk.
“As with all investments the value can go down as well as up. However typically the act of buying and supporting an artist will actively influence the performance of the owned art.
“The DIFFERENT Art Buyers’ Club provides a way for wealth managers to assist their clients to diversify their portfolios.”
Prospective club members will be invited to attend club evenings where the gallery will present artworks and detailed portfolios from a diverse selection of artists who will have been chosen with investment potential in mind.
This could include rising stars as well as 20th century masters and works costing in the range of £2,000 to £100,000 and beyond.
Membership of the club is attained when the member makes an acquisition.
The member will own that work and have control over it and can opt either to take delivery of the work, or to leave it to be managed by the gallery.
There will also be events such as talks from art and financial experts, artist demonstrations and regular newsletters.
Phillips added: “We are aware that wealth managers and independent financial advisers may be asked for advice by clients interested in investing in the art market which has proved highly lucrative.
“While you should always buy what you like, having an inside track can guide better decisions. One of our key objectives is to overcome the knowledge barrier and enable wealth managers to offer art investments to their art loving clients with a clearer idea of risk and potential. Referral fees will be payable when a referred client makes an acquisition.”
The inaugural meeting of the DIFFERENT Art Buyers’ Club is to be held at the end of November.
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