I have a friend who owns a Chagall. When I first learned this I was blown away. To have an authentic piece of work by a master in your house seemed unreal to me. My envy is tempered by knowing he doesn’t really like the piece. He doesn’t hate it but he’s not drawn to it in any significant way. It holds no meaning for him. I’m not even sure he has it hung on the wall. Why did he buy it? “It’s a good investment,” was his answer. I can’t really argue with him. Hopefully it will continue to increase in value and he will make a return. If the end of the world doesn’t happen and/or we don’t land permanently in an economic slump, I’m guessing he makes about 20%- 30%, which, after having looked at my latest RRSP statement, is really not a bad return. [I’m sure it’s obvious by now that I have absolutely no financial training whatsoever.] But until he sells it, he has a piece of art he doesn’t like AND in order to make a return he has to find someone to buy it.
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| Andy Warhol, 25 Cats Named Sam (Orange Cat), 1954, Off-set Litho, hand colored |
I recently had the opportunity buy a Warhol and struggled with the question of whether it was a good investment, while being simultaneously seduced by the idea of owning a Warhol, and not only a Warhol but something that he actually did by hand! (Somehow this made a big difference to me.) After some research it turns out that there are number of Warhols on the market right now, which I’m sure has everything to do with the current economic climate in the U.S. Good news if you’re buying. Inventory is up, which means there is more selection and more room for negotiation. Bad news if you’re selling. Really bad news if that was your retirement money.
I have a couple of pieces I call my “retirement pieces,” not actually because I think I will be able to retire off the proceeds (case in point: see above) but because I spent my money on them instead of investing them in my RRSP like I was supposed to. But I have an excellent excuse. I HAD to have them. And every time I sit and look at them I’m glad I bought them.
I didn’t end up buying the Warhol, because at the end of the day I didn’t really love the piece. When you rubbed off the glow of celebrity, the piece didn’t hold up for me. And I felt that tying up that much money in a piece you don’t really, really like is a gamble I’m not ready to take. There are too many pieces I would rather invest in. I would rather roll the dice on lesser known artists whose work I love. That way, in the end, even if they never increase in value, I’ve had the pleasure of looking at them over my life time. You’ll know me when you see me. I’ll be the one with the 10 cats and the shopping cart full of really awesome art.
