Page 440 - index

Galleries and collectors who follow the performance
of African-American art point out that even during

economic slowdowns prices of artwork have held up well
in the marketplace. We have even reported record prices
at our annual Philadelphia International Art Expo art

auction. Te stock market is organized so that people
can track the performance of their investments. Te
art industry is loosely organized and unregulated. Te
value placed on art can be very subjective. Trough the
centuries, art has proven to be an attractive investment.

With new appreciation and increased visibility, African-
American art has become a valuable commodity.

Te contemporary African-American art market has

a two-tier transaction structure. Te primary art market
supplies itself through replaceable new artwork. Simply
put, artists and publishers supply art galleries and Pas de Deux, serigraph by William Tolliver
dealers with new and recent artwork. Te second tier Published in 1994 for $750
NOW: $13,000
(secondary market) has a network of dealers, artists,
the long run, art may outperform or equal many other
collectors, auction houses, art galleries and others that
investments. When we say be careful in our choices, we
have originals and sold-out editions. Tis is a recycling
realize that though original art by the masters and well-
process where originals and sold-out editions are ofered
established artists may perform at a higher yield, such
for resale by owners, estates and institutions.
works are relatively scarce and not everyone can own
On a personal level, our African-American art has or aford one. But keep in mind that as prices of older
outperformed many conservative investments over the pieces soar beyond the reach of most buyers, the long
years. We recognize that investing in African-American and afuent coattails of this art boom will provide many

art is an alternative investment. opportunities for contemporary paintings, serigraphs,
lithographs, photographs and sculptures.
In considering African-American art as an investment, Te Wall, ofset lithograph by Benjamin Britt
Published in 1988 for $100
think long-term. Cashing in on your investment might Tere are other benefts of owning African-American NOW: $1800
be 10 to 15 years down the road. art. Purchasing art can be fun and enjoyable and can
serve as a social function.
Art does not generate income. Except for the
occasional lease or rent of art to a museum or traveling If investment is one of your reasons for collecting art,
exhibition, there are few revenue streams available. remember to look for quality. Quality can be found in

Non-believers will tell you that art is not a traditional the work of established artists yet we caution investors
fnancial asset given that it does not provide earnings over to be aware of and open to emerging artists.
a period of time. In addition there are insurance costs,
Great things always begin with quality.
storage (hanging) considerations and high transactions
fees associated with re-selling the asset. But if we are
careful in our choices, do our homework and look at

440 441