By Samito Jalbuena
FIRST, there’s a hidden rule: There’s an unspoken agreement not to indulge in the kind of trashy talk that centers too much on money. Especially in the uppermost tiers of the art market, any dive into the subject of profit is generally frowned upon. For how can one justify turning into dollars and cents or pesos and centavos the purchase of art that was never meant for its re-exchange? In these halls, the custodianship of art is its own reward as these emblems go from mere product to gain more focus as symptoms of the civilization. The act of ownership becomes an insignia.
Art defines us. And that definition should not be equated with quantifiable monetary units. The use of qualifications, instead of quantifications, is much appreciated. Kudos especially goes to those who were born without the silver spoon in their mouth. The acquisition of works is a marque of harder work done to obtain the revolutionary leap that divides the social into class. When one has managed the leap forward, one gains entry into the upper tiers of the hierarchies of need. Yes, it also probably shows that one doesn’t indulge in what the snobbish may call the lower-class activities, and maybe, just maybe, the collector in question might also have an iota of taste.
Yet these old-school opinions are considered most archaic and will be out of place in today’s rushed markets where cash flow is king and the pace is set by continuous consumption and annual returns.
In Guy Debord, we see a mutation into the beginnings of this ecstatic search for the spectacle of consumption with religious worship geared toward a never-ending cycle of continuous shopping sprees. But enough of talk.
Let’s indulge in this baser means of calculation for the sake of the entrepreneurial mind. How does one make hordes of money through the art market?
BUY BEFORE THE BIG BANG
Buy the soul of the artist just before he lands a successful gallery show. Successful buyers look out for true quality or for the artist’s gift of tongue. There are several signs that set apart a real artist from cannon fodder. Investing in quality assures that even if the artist doesn’t make it in the short term, one has relics or commodities that can still be sold through one’s own promotion years later. The classic dictum of buy low, sell high applies in all instances.
Buying before the big bang entails diving into research and finding out who are the artists not yet represented by galleries, yet are starting to catch their attention and receive queries for representation. This is possible if one tracks the movements of younger artists and the galleries that are out to find fresh talent.
BUY THROUGH SUBSCRIPTION
In an Artnews.com story, Richard Polsky, the author of an upcoming book, titled I Sold Andy Warhol (Too Soon), offers one fine trick: Buy the program of the distinguished dealer. This means setting one’s eyes and wallets on tastemakers who are also gallerists. Polsky continues: “Imagine if you had bought one work from every show at the Daniel Weinberg Gallery in Los Angeles during the late 1980s. You would have ended up with a Robert Gober, a John Chamberlain, an Eric Fischl, and a Robert Ryman. Ingratiate yourself with a dealer who has picked winners in past eras, such as Paula Cooper, or more recently David Zwirner, James Cohan, Adam Baumgold and Zach Feuer, and watch your art portfolio soar.
BUY IN BULK
If one has access to redundant cash reserves, a great opportunity exists if one buys a known artist’s work in bulk. This is a tact honored by art-collecting societies who have the means to pool resources and “bargain shop” for entire art suites or the complete print run of a fresh plate direct from the artist’s print studio. Buying in bulk ensures a discount. The difference is potential profit still to be realized in future valuations or obtained after demand is created. High-quality art printers are also known to increase a print run’s price once their inventory is sold.
BUY DURING THE SALE PERIOD
Some artists or their artworks experience lulls or dry points in their careers. These may occur before, during or after one has made news.
As an example, Polsky advises to buy from an artist estate. These are bargain events that are managed by artist’s heirs to pay for immediate costs following an artist’s untimely passing away.
Other opportunities exist in collectors’ fire sales, dealers’ liquidation schemes, and art auctions for charity. Bargains can be usually found in these instances where the generation of fast cash to answer another need is top priority.
BUY THROUGH ORGANIZED DISCOUNTING
As mentioned earlier, art-collecting societies also hold a key to immediate price-point differences.
Buying in bulk may not be too realistic for a single buyer, but if said buyer gets others to join in the purchase, a bulk order and its logical discounting schemes may occur through negotiation.
BUY THROUGH TRUSTS AND OTHER LEGAL ENTITIES
It may be too late for the average buyer to acquire a canvas by Picasso. However, art funds, trusts and other legal entities may pool funds for that incredible investment. A wise advise is to follow the movements of today’s hottest fund managers and ascertain what funds are open to investment. Ascertain if their strategies are in tune with your acquisition beliefs.
Of course, there are other ways to make big bucks in today’s art market. Opening new sales channels and distribution points are also a big and sure bet.
Image credits: Brooklyn Art Space, Monica Arellano-Ongpin