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What connects an art collection with a box full of chocolates?

2024-11-26
Sławek Stawarczyk
What connects an art collection with a box full of chocolates? There are legends about how much money you can make from collecting art. Is it true? The answer is simple, in a way. Firstly, the negative information. The liquidity of works of art is questionable. This is not money that is quickly recovered. I monetize a collection entrusted to me for sale for about a year, sometimes even longer. I would like to point out that I do this energetically, using all available sales channels. Secondly, high margins eat up large profits along the way. The truth is that art usually outpaces inflation at least a little, counting the average price of, say, several dozen paintings in a collection. However, this is not a rule and does not apply to every painting. There are some that gain a lot, there are some that even lose... However, let's assume that this average outpaces inflation by 7%. This is a real amount. Despite this, there are costs along the way: the auction house commission, the dealer, if they are doing it on our behalf, and transport costs, often also, for example, certificates and similar costs. This makes up a minimum of 20% of the price of the work of art, often reaching even higher values. This means that selling a work before the 5-year period usually makes absolutely no sense. There are exceptions, such as Karl Schmidt Rottluff and other representatives of German art of the last ten years, who gain a sky-high 100% or more within five years. However, if we really want to earn money from the collection, we have to give it added value. A well-planned and implemented collection can become a closed whole, worth much more. When a collector knows what he is doing, has basic, not necessarily sophisticated, but solid knowledge, or a good advisor, he is able to create a whole in such a way that it, this collection, becomes a closed whole interesting as a whole. This can increase its value spectacularly by several dozen percent from the very beginning. A complete set of works of art that are a ready exhibition can translate into income. Just like chocolate pralines, which in a chocolate box gain the value of a golden cellulose box. The creators of these boxes become masters in themselves, creating great value. It is not without significance that such a set of works can be rented and actively travel around the world, also generating income. So you don't have to earn directly from the value of the work, but from its comparison with others in the collection. For this, you need knowledge, or an advisor, but it is difficult to earn without knowing the subject of income, I guess in any field.

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