WEBVTT - 5 things about investing in art

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<v Speaker 1>Investing is an art. But did you know that art

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<v Speaker 1>is also an investment and not just any investment but

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<v Speaker 1>a top performing passion investment of 2022 according to a

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<v Speaker 1>long running survey that tracks such things. So what are

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<v Speaker 1>the five things you need to know about investing in art?

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<v Speaker 1>I'm Jonathan Pearce from the Money Mind team and my

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<v Speaker 1>guest today, Guang Zang, founder of Art Agenda, an art

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<v Speaker 1>advisory that specializes in 20th century Asian art and Stephanie

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<v Speaker 1>Gee who's been collecting art for over two decades. She's

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<v Speaker 1>also a wealth manager for ultra high net worth clients. Now,

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<v Speaker 1>according to the annual night, Frank Luxury Investment Index, art

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<v Speaker 1>was the top performing luxury asset providing a return of 29%

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<v Speaker 1>last year.

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<v Speaker 1>That means it did a lot better than mainstream investments

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<v Speaker 1>like equities and gold. In 2022 we also recently had

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<v Speaker 1>Southeast Asia's biggest art fair here in Singapore. So guys

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<v Speaker 1>can we say the art world is back in business

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<v Speaker 1>after the pandemic? Stephanie,

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<v Speaker 2>the art market actually has been growing and we noticed

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<v Speaker 2>through a recent survey done by um Art Basel together

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<v Speaker 2>with U BS, right? They published a report which showed

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<v Speaker 2>that during COVID, right, actually spending on art has more

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<v Speaker 2>than doubled. So we're talking about the period from 2019

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<v Speaker 2>to 2020

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<v Speaker 2>two is growing as an interest in Singapore. We're seeing

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<v Speaker 2>more and more collectors typically as a country matures at

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<v Speaker 2>the beginning of uh collecting journey, people tend to support

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<v Speaker 2>artists in their own countries. But as they travel more

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<v Speaker 2>and they learn more and they get more exposed, right?

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<v Speaker 2>They start collecting artists from other countries. They expand beyond

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<v Speaker 2>just a painting or a culture and going to potentially

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<v Speaker 2>other mediums.

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<v Speaker 2>I see more and more people are gaining interest. I

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<v Speaker 2>can just see just from my own uh co-workers. They

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<v Speaker 2>are starting their art journey in art fairs such as

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<v Speaker 2>affordable art fairs. So there's a growing awareness that you

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<v Speaker 2>don't have to just have a wall that is done

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<v Speaker 2>by your ID. You can actually put a real piece

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<v Speaker 2>of work on the wall and that is a good

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<v Speaker 2>sign for art markets for years to come.

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<v Speaker 2>Art fairs and exhibitions which are traditionally a Barra meter

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<v Speaker 2>for market activities. The state of the market, these are

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<v Speaker 2>all back in full swing. The global art work calendar

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<v Speaker 2>in 2023 is looking as pack as pre pandemic times now.

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<v Speaker 2>But numbers haven't exactly dropped during the pandemic though, you know,

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<v Speaker 2>in person events like exhibition openings, option previews back then

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<v Speaker 2>during the

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<v Speaker 2>pandemic stop or they took place in very curtail formats.

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<v Speaker 2>I say numbers haven't dropped because really during the pandemic,

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<v Speaker 2>we saw still very passionate interest in acquiring art. People

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<v Speaker 2>were still collecting and we saw actually the onset of

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<v Speaker 2>people accepting to, to acquire over digital format online. And

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<v Speaker 2>I would say when it comes to traditional art forms,

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<v Speaker 2>things that in general one needs to see in person, right?

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<v Speaker 2>Art forms that are better appreciated in person, the hunger

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<v Speaker 2>and the desire to see this uh material hasn't really

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<v Speaker 2>subsided at all during the pandemic. I mean, art holds

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<v Speaker 2>up well, if anything has

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<v Speaker 2>has grown, is this kind of desire to see these

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<v Speaker 2>things physically and during the period of the pandemic, the

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<v Speaker 2>absence of encountering these physical art that was very real.

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<v Speaker 2>But now things have come back, the range of activities

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<v Speaker 2>has returned with the pandemic. People couldn't really travel. So

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<v Speaker 2>there was a more disposable income and more time at

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<v Speaker 2>hand because you get less distraction.

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<v Speaker 2>So the collectors actually had more time to look at

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<v Speaker 2>what art is out there and what's being produced. But

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<v Speaker 2>on the other hand, it has also handicap travel visits

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<v Speaker 2>to art fairs, art galleries or also practically non-existent, right?

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<v Speaker 2>So it's actually fuel the growth of online um buying

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<v Speaker 2>of art.

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<v Speaker 2>That's what we observed. Uh personally, I prefer to see

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<v Speaker 2>the art pieces. Unless I'm familiar with the artist, then

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<v Speaker 2>I'm comfortable to just buy from a catalog or a

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<v Speaker 2>PDF right? But most people still like to see art

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<v Speaker 2>in person. That's what um we've noticed also from a

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<v Speaker 2>lot of surveys that have been published on art.

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<v Speaker 1>Now, what kind of advice would the two of you

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<v Speaker 1>give to someone who is interested in collecting art? Where

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<v Speaker 1>should one begin

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<v Speaker 2>and the journey as an art collector? If you're just

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<v Speaker 2>starting out,

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<v Speaker 2>you need to do some research, right? Speak to people.

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<v Speaker 2>We have been collecting for a while and be mindful

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<v Speaker 2>that their taste may not be the same as yours visit.

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<v Speaker 2>Art galleries, go to museums, art fairs, expand your perspective

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<v Speaker 2>and look at more artworks before you commit. And just

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<v Speaker 2>keep in mind if you're buying a piece of art,

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<v Speaker 2>you have to love it, it might be worthless 10

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<v Speaker 2>years from now and that piece of work is still

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<v Speaker 2>in your house. So just do it out of fashion

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<v Speaker 2>rather than for financial consideration.

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<v Speaker 2>And if you're going to start your journey first, try

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<v Speaker 2>to understand yourself what appeals to you rather than what

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<v Speaker 2>appeals to your friends. I made that mistake myself and

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<v Speaker 2>I was influenced by more experienced collectors, but you grow

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<v Speaker 2>into your own with time consider also how much money

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<v Speaker 2>you're willing to spend

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<v Speaker 2>and assume that you're not going to get any return

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<v Speaker 2>aside from emotional returns, right? Art does not pay dividends.

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<v Speaker 2>So the dividend is your happiness when you see the

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<v Speaker 2>piece of artwork. So my advice is buy what you

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<v Speaker 2>love

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<v Speaker 2>and appeals to you. And a little tip here try

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<v Speaker 2>not to buy on impulse. I have now imposed a

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<v Speaker 2>little rule on myself and I see something I like.

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<v Speaker 2>I sleep on it for two days if I still

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<v Speaker 2>want it after two days. Ok, I can go and

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<v Speaker 2>seriously consider buying. I would say one should dive straight in,

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<v Speaker 2>you know,

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<v Speaker 2>set aside a certain small budget to be an active

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<v Speaker 2>player in the market, participate in it properly, buy, sell

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<v Speaker 2>and probably make some mistakes along the way. And all

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<v Speaker 2>of that's inevitable at times. The thing about art collecting

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<v Speaker 2>is that it is also about the cultivation of personal

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<v Speaker 2>taste and knowledge. And one lesser discussed aspect of art

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<v Speaker 2>collecting is how it brings about awareness of oneself.

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<v Speaker 2>And the best art collections can really reflect and align

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<v Speaker 2>one's uh beliefs and orientation

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<v Speaker 2>as strange or as old fashioned as it sounds. When

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<v Speaker 2>you think about art collecting, one should really begin from

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<v Speaker 2>within knowing what one wants, makes the process of looking

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<v Speaker 2>for art much more focused and more meaningful.

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<v Speaker 1>So, art collecting is a passion and it's deeply personal.

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<v Speaker 1>But can a hobby become something that can be monetized?

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<v Speaker 1>And how do you know when an artwork is something

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<v Speaker 1>worth investing in?

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<v Speaker 2>You need to do a lot of research, read, talk

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<v Speaker 2>to galleries, talk to art collectors, more seasoned art collectors,

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<v Speaker 2>talk to the art advisor. Now there's the growing market.

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<v Speaker 2>And there's a lot of art advisor that can give

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<v Speaker 2>you a more informed opinion on what they think may

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<v Speaker 2>be good in the future. But again, a gentle reminder, right,

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<v Speaker 2>art pieces are all unique. So even if your artists

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<v Speaker 2>price goes up in the auctions, it doesn't mean every

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<v Speaker 2>single art work done by the artist goes up in value.

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<v Speaker 2>It would be really about trying to get a complete

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<v Speaker 2>set of information about the work that one is uh

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<v Speaker 2>contemplating to acquire in any sort of circumstances where there

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<v Speaker 2>are pressure of time to make a decision, pressure from

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<v Speaker 2>the other end of the table to close a transaction.

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<v Speaker 2>Sometimes it doesn't allow you to acquire all the information

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<v Speaker 2>that's necessary.

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<v Speaker 2>So I would advise that one takes the time as

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<v Speaker 2>much as you can in the acquisition process. Because really

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<v Speaker 2>if you think about it, the only person who wants

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<v Speaker 2>you and needs you to hurry is the person across

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<v Speaker 2>the table selling something to you. But as a buyer,

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<v Speaker 2>as someone collecting,

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<v Speaker 2>you wanna equip yourself with a complete information and appreciate

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<v Speaker 2>all the complexities of, of the work of art, get

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<v Speaker 2>its context right before you acquire. And this way, the

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<v Speaker 2>enjoyment of the work is heightened, I would say

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<v Speaker 2>and yeah, I, I won't, you know, for instance, worry

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<v Speaker 2>about missing out any artwork because again, uh taking a

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<v Speaker 2>a larger perspective on things in the contemporary art world,

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<v Speaker 2>the amount of art that exists today will definitely be less,

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<v Speaker 2>less than the amount of art that exists tomorrow. In

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<v Speaker 2>the contemporary art world, art is being generated and produced

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<v Speaker 2>every day and there will always be choices.

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<v Speaker 2>So it is more important that we secure for ourselves,

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<v Speaker 2>that kind of space to be able to think holistically

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<v Speaker 2>about the acquisition of the world and make it a

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<v Speaker 2>much more of a considered exercise.

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<v Speaker 1>So here are some practical tips. If you're looking to

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<v Speaker 1>buy art, know what you want, do your research and

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<v Speaker 1>take your time, like any asset prices can go in

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<v Speaker 1>either direction. Just because a work of art by an

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<v Speaker 1>artist fetches a high price at one auction doesn't mean

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<v Speaker 1>that the price of all their works will go up

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<v Speaker 1>as well. Investing in art does come with risks. So

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<v Speaker 1>season collectors say you should start small and assume that

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<v Speaker 1>you only get emotional returns.

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<v Speaker 1>Now let's talk about those risks. You mentioned the need

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<v Speaker 1>to do your homework. But how easy is it to

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<v Speaker 1>get information about valuations? And how do you know what's

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<v Speaker 1>a reasonable price to pay for an artwork?

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<v Speaker 2>We often think about the art market uh and our

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<v Speaker 2>market information as essentially compilation and analysis of sales uh figures,

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<v Speaker 2>sales data.

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<v Speaker 2>It's not wrong to think about it that way. Uh

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<v Speaker 2>because obviously markets have to be defined uh by their size.

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<v Speaker 2>But when it comes to the art market, there's a

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<v Speaker 2>lot of transaction that's being handled privately. And to be

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<v Speaker 2>perfectly clear evaluation is rather difficult to obtain in a

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<v Speaker 2>less than entirely transparent art market. The value of an

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<v Speaker 2>artwork is really determined very much by comparison with sales

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<v Speaker 2>figures that exist. But

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<v Speaker 2>when it comes to the market with a lot of

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<v Speaker 2>transactions being done privately, this kind of data is often

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<v Speaker 2>times not so accessible and sometimes not entirely reliable as well,

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<v Speaker 2>even if one obtains them. So it's important to, to

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<v Speaker 2>be talking to people in the know and be prepared

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<v Speaker 2>at times to pay a little and to go out

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<v Speaker 2>of your way to get impartial research information,

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<v Speaker 2>other types of assets, invest or investment vehicles, the traditional

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<v Speaker 2>stocks and bonds, right? There is a market, there's an exchange.

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<v Speaker 2>So it is transparent. Art is not so transparent because

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<v Speaker 2>there are many sales channels you can buy directly from

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<v Speaker 2>the artists, the art galleries, there's a primary market you

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<v Speaker 2>can buy from secondary markets through auctions or uh other channels.

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<v Speaker 2>And there's no published index to say this particular artist's

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<v Speaker 2>work is at what price right now? Because every single

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<v Speaker 2>work is unique as a store of value. I find

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<v Speaker 2>it more as an emotional value than financial value. If

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<v Speaker 2>you buy a piece of art and the value goes

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<v Speaker 2>up double 10 years down the road, you congratulate yourself

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<v Speaker 2>for having made a good investment.

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<v Speaker 2>But to me, it's more an emotional journey,

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<v Speaker 1>other than the cost of acquisition. Just like many other assets.

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<v Speaker 1>There is the cost of ongoing maintenance as well. How

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<v Speaker 1>would you advise prospective collectors to prepare for

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<v Speaker 2>this? A lot of categories of art and related categories

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<v Speaker 2>like design, collectables. What really sets these assets

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<v Speaker 2>apart from other investment class or different assets class would

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<v Speaker 2>be the physicality of the object? When we think about

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<v Speaker 2>something physical, we do need to think about maintenance and

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<v Speaker 2>good upkeeping of these physical things. The first thing is

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<v Speaker 2>really being aware that it is physical and that we

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<v Speaker 2>need to therefore maintain it.

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<v Speaker 2>And when we think about maintenance of an art work,

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<v Speaker 2>I would think of it in the same way that

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<v Speaker 2>we think of our physical bodies, we take care of

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<v Speaker 2>ourselves with exercise. Some people with health supplements, we go

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<v Speaker 2>for our checkups at the doctors and as funny as sounds,

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<v Speaker 2>it's really the same with, with artworks. Occasionally you want

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<v Speaker 2>to get your galleries or your dealer or friend who's

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<v Speaker 2>knowledgeable about the art

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<v Speaker 2>to come and have a look at it. In my

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<v Speaker 2>course of work, I discover a lot of cases where

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<v Speaker 2>an artwork is hanging there on the wall. People do

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<v Speaker 2>take it for granted because it becomes part of something familiar.

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<v Speaker 2>But things can happen in a very low key insidious

0:12:58.520 --> 0:13:01.500
<v Speaker 2>way to an artwork just hung on the wall. If

0:13:01.510 --> 0:13:04.140
<v Speaker 2>one doesn't take notice and take care and artwork can

0:13:04.150 --> 0:13:08.250
<v Speaker 2>suffer irreparable damage. In the worst case scenario, if it

0:13:08.260 --> 0:13:09.309
<v Speaker 2>isn't taken good

0:13:09.380 --> 0:13:12.950
<v Speaker 2>care of, for instance, more is a big issue in

0:13:12.960 --> 0:13:16.830
<v Speaker 2>our part of the world. With the relatively higher humidity

0:13:16.840 --> 0:13:20.330
<v Speaker 2>in the environments that we display our art. Sometimes the

0:13:20.340 --> 0:13:23.770
<v Speaker 2>most intelligent of my clients and they are generous as well.

0:13:23.780 --> 0:13:25.770
<v Speaker 2>They would ask me out for lunch or dinner at

0:13:25.780 --> 0:13:28.580
<v Speaker 2>their place. I play the role of a doctor for them.

0:13:28.609 --> 0:13:32.010
<v Speaker 2>I just have a quick look at the artworks. If

0:13:32.020 --> 0:13:34.429
<v Speaker 2>anything is up with them, we can get it addressed

0:13:34.440 --> 0:13:35.489
<v Speaker 2>as soon as possible

0:13:36.000 --> 0:13:39.869
<v Speaker 2>to new collectors who are looking to venture into the

0:13:39.880 --> 0:13:43.010
<v Speaker 2>art market. Just remember, there's a lot of costs involved.

0:13:43.020 --> 0:13:46.330
<v Speaker 2>We're talking about not just actually buying the artwork, the

0:13:46.340 --> 0:13:49.150
<v Speaker 2>storage and if you're buying from a different country, you

0:13:49.159 --> 0:13:52.409
<v Speaker 2>have to insure the shipping, you got to maintain your artwork.

0:13:52.419 --> 0:13:55.099
<v Speaker 2>If you're buying works on paper, they can get moldy

0:13:55.109 --> 0:13:59.489
<v Speaker 2>in our climate, even sculptures. If it's bronze, depends on

0:13:59.500 --> 0:14:03.109
<v Speaker 2>whether it's treated or not, right. It might also change color,

0:14:03.119 --> 0:14:05.630
<v Speaker 2>the material might change colors might fade.

0:14:05.869 --> 0:14:09.799
<v Speaker 2>So there's actually a lot of risks involved. So when

0:14:09.809 --> 0:14:12.979
<v Speaker 2>you go in, go in with your eyes open and

0:14:12.989 --> 0:14:15.580
<v Speaker 2>buy what you like and what you love. You never

0:14:15.590 --> 0:14:16.630
<v Speaker 2>can go wrong there.

0:14:17.140 --> 0:14:19.679
<v Speaker 2>I once bought a piece of artwork from a secondary

0:14:19.690 --> 0:14:23.179
<v Speaker 2>market to an auction in Hong Kong that you happily

0:14:23.190 --> 0:14:24.789
<v Speaker 2>bid for the piece. You think that's what you're paying

0:14:24.799 --> 0:14:26.989
<v Speaker 2>for but you still have to pay your buyers commission

0:14:27.000 --> 0:14:30.150
<v Speaker 2>to the auction house, right? That can easily be um

0:14:30.159 --> 0:14:33.960
<v Speaker 2>30 35% these days, right? On top of that, you

0:14:33.969 --> 0:14:37.190
<v Speaker 2>still have to pay for your shipping, your insurance, the

0:14:37.200 --> 0:14:37.650
<v Speaker 2>creating

0:14:37.905 --> 0:14:40.914
<v Speaker 2>and the G S T when everything arrives in Singapore.

0:14:41.135 --> 0:14:43.835
<v Speaker 2>So when it arrives in Singapore, you still have to

0:14:43.844 --> 0:14:47.155
<v Speaker 2>arrange for somebody to come to your home, to arrange

0:14:47.164 --> 0:14:49.224
<v Speaker 2>art piece, to hang it on the wall. If it's

0:14:49.234 --> 0:14:52.515
<v Speaker 2>a sculpture, you have to pay someone to make a custom,

0:14:52.525 --> 0:14:55.695
<v Speaker 2>make a pedestal for you. So all those costs adds up,

0:14:55.705 --> 0:15:01.155
<v Speaker 2>which I think sometimes people underestimate the cost of refurbishing

0:15:01.164 --> 0:15:04.284
<v Speaker 2>could be in the hundreds of thousands depending on the

0:15:04.294 --> 0:15:06.575
<v Speaker 2>artwork and how big the piece is.

0:15:06.900 --> 0:15:09.590
<v Speaker 2>And also even the simple thing when you buy a painting,

0:15:09.599 --> 0:15:11.950
<v Speaker 2>sometimes it comes without a frame, you got to frame

0:15:11.960 --> 0:15:12.349
<v Speaker 2>it up.

0:15:12.659 --> 0:15:14.669
<v Speaker 2>Then you have to consider, do you want to frame

0:15:14.679 --> 0:15:18.099
<v Speaker 2>it with, you know, museum quality frames? Make sure there's,

0:15:18.109 --> 0:15:21.729
<v Speaker 2>there's no air in there is vacuum type of framing.

0:15:21.849 --> 0:15:24.309
<v Speaker 2>And then do you want to put your air conditioner on,

0:15:24.320 --> 0:15:27.580
<v Speaker 2>on the 24 7? Personally, I find oil paintings probably

0:15:27.590 --> 0:15:30.469
<v Speaker 2>the easiest or acrylic. You don't really have to do much,

0:15:30.479 --> 0:15:34.359
<v Speaker 2>you just hang it there, but paperworks, unfortunately not so

0:15:34.369 --> 0:15:35.489
<v Speaker 2>good for our climate.

0:15:35.780 --> 0:15:38.979
<v Speaker 1>Now, we've been talking about the upkeep cost of physical

0:15:38.989 --> 0:15:40.890
<v Speaker 1>works of art, but of course, the

0:15:40.965 --> 0:15:43.835
<v Speaker 1>if not all art works are now physical. Can you

0:15:43.844 --> 0:15:47.054
<v Speaker 1>tell us a bit about art in the digital realm? Yes,

0:15:47.065 --> 0:15:50.664
<v Speaker 2>we are really increasingly living out our lives in the

0:15:50.674 --> 0:15:54.474
<v Speaker 2>digital sphere. A great deal of uh art that's emerging

0:15:54.484 --> 0:15:58.815
<v Speaker 2>as a digital uh elements to the N F T.

0:15:58.825 --> 0:16:02.655
<v Speaker 2>Art has been a very big new category to emerge

0:16:02.664 --> 0:16:05.895
<v Speaker 2>in the past past uh few years. Uh And it's

0:16:05.905 --> 0:16:09.195
<v Speaker 2>essentially a 21st century phenomenon

0:16:09.669 --> 0:16:13.140
<v Speaker 2>in the world of art collecting has spawned a whole

0:16:13.150 --> 0:16:16.309
<v Speaker 2>new category because it ties in very well with our

0:16:16.320 --> 0:16:21.380
<v Speaker 2>increasingly mobile digital lives. Yeah, so not all art books

0:16:21.390 --> 0:16:26.219
<v Speaker 2>are indeed uh physical um but by and large uh

0:16:26.369 --> 0:16:30.330
<v Speaker 2>whatever is classical, doesn't really go out of fashion. So

0:16:30.434 --> 0:16:34.744
<v Speaker 2>your in that sense, your typical pictures, uh flat art

0:16:34.755 --> 0:16:37.364
<v Speaker 2>on the wall that always has a place at the

0:16:37.375 --> 0:16:39.344
<v Speaker 2>end of the day, I do think a great deal

0:16:39.354 --> 0:16:42.905
<v Speaker 2>of people still think of art collecting in the most

0:16:42.914 --> 0:16:47.625
<v Speaker 2>conventional way, keeping physical works. But and then it requires

0:16:47.635 --> 0:16:51.224
<v Speaker 2>as we've talked about earlier, that kind of physical maintenance,

0:16:51.650 --> 0:16:55.099
<v Speaker 2>the old money still tend to prefer the masters. But

0:16:55.109 --> 0:17:00.919
<v Speaker 2>increasingly collectors are supporting contemporary artists in particular living artists

0:17:00.929 --> 0:17:03.940
<v Speaker 2>because it's a reflection of the times we're in and

0:17:03.950 --> 0:17:07.060
<v Speaker 2>also reflects the culture, political landscape.

0:17:07.380 --> 0:17:11.089
<v Speaker 2>So contemporary art tends to be more of the focus

0:17:11.099 --> 0:17:15.469
<v Speaker 2>these days rather than traditional old masters. Younger collectors are

0:17:15.479 --> 0:17:20.229
<v Speaker 2>also looking at contemporary art, younger collectors, some of my clients, Children. Yes.

0:17:20.239 --> 0:17:22.609
<v Speaker 2>Uh You know, we all know who the old masters are,

0:17:22.619 --> 0:17:24.399
<v Speaker 2>but they are not interested in that. They are the

0:17:24.410 --> 0:17:27.609
<v Speaker 2>ones that will go to contemporary art fairs. So the

0:17:27.619 --> 0:17:30.510
<v Speaker 2>Arts Street is a contemporary art fair. Collectors also like

0:17:30.520 --> 0:17:32.640
<v Speaker 2>to get to know the artist and you journey with

0:17:32.650 --> 0:17:35.819
<v Speaker 2>them as they get older and move on to different mediums.

0:17:35.829 --> 0:17:36.599
<v Speaker 2>So yeah,

0:17:36.765 --> 0:17:39.625
<v Speaker 2>younger collectors tend to prefer contemporary artists.

0:17:39.925 --> 0:17:42.964
<v Speaker 1>So how do you identify a good investment piece?

0:17:42.974 --> 0:17:45.994
<v Speaker 2>A few years ago, I did my masters and my

0:17:46.005 --> 0:17:49.665
<v Speaker 2>thesis was whether contemporary art is a good investment. And

0:17:49.675 --> 0:17:54.255
<v Speaker 2>that's my personal thesis. And my conclusion in short was

0:17:54.265 --> 0:17:56.675
<v Speaker 2>to go into an art and viewing it as an

0:17:56.685 --> 0:18:00.314
<v Speaker 2>investment is very high risk. And unless you have a

0:18:00.324 --> 0:18:03.285
<v Speaker 2>lot of resources at your disposal, I really would not

0:18:03.295 --> 0:18:06.074
<v Speaker 2>advise looking at it as, as an investment,

0:18:06.359 --> 0:18:09.010
<v Speaker 2>looking at past records. I think the easiest the most

0:18:09.020 --> 0:18:13.589
<v Speaker 2>accessible medium for collectors in general will be paintings that's

0:18:13.599 --> 0:18:15.589
<v Speaker 2>still traditional. You go to museums, you still see a

0:18:15.599 --> 0:18:19.209
<v Speaker 2>lot of paintings, sculptures is another traditional medium which is

0:18:19.219 --> 0:18:23.379
<v Speaker 2>still highly collectable and digital art is something that I

0:18:23.390 --> 0:18:26.800
<v Speaker 2>find very interesting, but I haven't ventured personally, but that

0:18:26.810 --> 0:18:30.750
<v Speaker 2>is also growing in importance. So one reference

0:18:30.954 --> 0:18:34.155
<v Speaker 2>financial collectors could look at is what's happening in the

0:18:34.165 --> 0:18:36.824
<v Speaker 2>secondary market and what are the art pieces that are

0:18:36.834 --> 0:18:40.905
<v Speaker 2>exchanging hands and setting a benchmark there? I think that's

0:18:40.915 --> 0:18:42.594
<v Speaker 2>the best you can get in the art world to

0:18:42.604 --> 0:18:45.925
<v Speaker 2>look at secondary prices. I would really turn the question

0:18:45.935 --> 0:18:50.574
<v Speaker 2>around and think of a good investment piece as an

0:18:50.584 --> 0:18:55.464
<v Speaker 2>artwork that fits along with one's determined direct

0:18:55.910 --> 0:18:59.438
<v Speaker 2>in collecting art. We do talk about art collecting as

0:18:59.449 --> 0:19:03.469
<v Speaker 2>a kind of discovery of oneself and the collection as

0:19:03.479 --> 0:19:08.670
<v Speaker 2>a reflection of your beliefs, your philosophy, many times, conventionally,

0:19:08.680 --> 0:19:13.050
<v Speaker 2>people think of art collecting as trophy gathering, the most

0:19:13.060 --> 0:19:17.060
<v Speaker 2>desirable things of the present, what other people are collecting.

0:19:17.069 --> 0:19:20.060
<v Speaker 2>We may want to acquire the same, but it

0:19:20.145 --> 0:19:25.314
<v Speaker 2>can be quite risky sometimes because trophies and the value

0:19:25.464 --> 0:19:29.254
<v Speaker 2>that people scribe to these trophies do change over time,

0:19:29.265 --> 0:19:32.895
<v Speaker 2>maybe not in the short term, but definitely categories rise

0:19:32.905 --> 0:19:37.974
<v Speaker 2>in popularity and they wane in popularity. So a very

0:19:37.984 --> 0:19:41.425
<v Speaker 2>sought after artwork from perhaps half a century ago, it

0:19:41.435 --> 0:19:44.974
<v Speaker 2>might not have value that it was yesterday today. It

0:19:44.984 --> 0:19:46.614
<v Speaker 2>might be more, it might be less.

0:19:46.859 --> 0:19:50.420
<v Speaker 2>So when we think about investing, we are thinking about

0:19:50.430 --> 0:19:55.630
<v Speaker 2>alignment with our own beliefs. Art collecting is a nearly

0:19:55.640 --> 0:19:58.760
<v Speaker 2>as creative and exercise as you know, the art that

0:19:58.770 --> 0:20:02.829
<v Speaker 2>one collects. You can pin a lot of different agendas

0:20:02.839 --> 0:20:05.889
<v Speaker 2>onto art collecting. Do you maybe you know want to

0:20:05.900 --> 0:20:10.599
<v Speaker 2>collect and support uh emerging young artists from your generation?

0:20:10.630 --> 0:20:12.810
<v Speaker 2>A lot of people do, do you have a

0:20:12.905 --> 0:20:17.135
<v Speaker 2>particular cost? A lot of art reflects a certain political cause?

0:20:17.145 --> 0:20:21.034
<v Speaker 2>Certain social cost is really very fulfilling to collect in

0:20:21.045 --> 0:20:25.295
<v Speaker 2>this way when an art collection bears a certain attitude

0:20:25.305 --> 0:20:29.625
<v Speaker 2>or reflect certain ideas. And it's very tight. The overall

0:20:29.635 --> 0:20:33.944
<v Speaker 2>value of the collection can can enhance the art historical

0:20:33.954 --> 0:20:38.895
<v Speaker 2>and probably financial value of single respective works in the collection.

0:20:39.699 --> 0:20:42.209
<v Speaker 1>So we've been talking about the five things you need

0:20:42.219 --> 0:20:46.069
<v Speaker 1>to know about investing in art. As with all other investments,

0:20:46.079 --> 0:20:49.099
<v Speaker 1>you need to do your research before committing your cash.

0:20:49.219 --> 0:20:52.630
<v Speaker 1>This is especially important as market information about art is

0:20:52.640 --> 0:20:57.319
<v Speaker 1>not always accessible or transparent. So start small commit to

0:20:57.329 --> 0:20:59.859
<v Speaker 1>a budget and take your time to make your decision

0:21:00.449 --> 0:21:05.409
<v Speaker 1>for physical artworks, don't underestimate the cost of installation and maintenance.

0:21:06.180 --> 0:21:09.520
<v Speaker 1>And while prices can go up, our experts say the

0:21:09.530 --> 0:21:13.589
<v Speaker 1>priority should be an emotional rather than a financial return.

0:21:14.119 --> 0:21:17.339
<v Speaker 1>I've been speaking to Wan Zang, founder of art agenda

0:21:17.349 --> 0:21:21.170
<v Speaker 1>and veteran art collector Stephanie G catch Money Mind on

0:21:21.180 --> 0:21:23.790
<v Speaker 1>C N A and online at me, watch C N

0:21:23.800 --> 0:21:25.760
<v Speaker 1>A dot Asia and youtube.