Vancouver has the Vancouver Art Gallery, Bill Reid Gallery, Vancouver Contemporary Art Gallery, and numerous art studios and galleries all around town. Periodically we have events like the Vancouver East Cultural Crawl, where artists open their studios to the public and we can meet the artists and enjoy their work. So far as art goes, even if Vancouver is not quite London or New York, we are quite lucky.
Everyone dreams of stumbling across an immensely valuable artist’s work in their attic or at a rummage sale, and it might be more probable than winning the 6/49, or at least more so than PowerBall. But what if you want to buy some art of your own? If you are thoughtful and do good research, art can be as good, or better, an investment as standard blue chip stocks. And, while stocks are not exactly gorgeous to look at, the right art can really enhance your home or office.
In order to aid potential art investors, Chali-Rosso Gallery offered an evening soiree, with the theme “The secret in inve$ting in art”. First, attendees were invited to peruse the lovely collection of limited edition works of European masters such as Picasso, Dali, Matisse, Chagall, Miro, Renoir, and others (the gallery has over 500 pieces of art). I can’t think of any other gallery in Vancouver which focuses so much on these established Masters.
Besides the framed works, there were some lovely sculptures. We had some nibbles and wine while perusing the art, and then settled down to hear the speakers.
Peter Szeto, of the Peter Szeto Investment Group, is a financial advisor. He focused on the performance of fine art in the market over the past few decades. In short, based on several fine art indices (like the Mei Moses Fine Art Index), art has outperformed stocks, and is somewhat less volatile. Of course, art is not without risk, and it is illiquid, meaning not instantly salable (unlike, say, Apple stock). Szeto clearly stated he is not himself an artist, nor does he feel himself qualified to speak on the artistic side of things, but he did provide the numbers to demonstrate art is a reasonable choice to include in your investment portfolio. Significantly, considering supply and demand, when there is great demand for an artist who is dead with no more discoverable works, the price will surely go up.
(Peter Szeto in front of some great art. Photo credit John Gurcharan Nijjar)
Andrew Fisher, founder of Fisher Fine Art and International Fine Art Acquisitions, has been in the art business since the 1970s, and has a specialty in the work of 19th-century and 20th-century masters. His expert advice is highly sought by art dealers, and he finds himself unable to actually retire. Fisher pointed out that although he comes to art with a different perspective than Szeto, they essentially arrive at the same conclusions: art can be a good investment, and it has many positives that go beyond the strictly financial.
(Andrew Fisher explaining Warhol’s genius. Photo credit John Gurcharan Nijjar)
If you are interested in current contemporary artists who are not well-known, and possibly on an upswing of popularity, your purchases are more risky, but also potentially more rewarding. Fisher emphasized the importance of learning the market thoroughly if you want to buy cutting-edge art. I am sure there are many Warhol contemporaries who wish they had been a bit more prescient.
Given the importance of Chinese investors in the local economy, the speakers had Mandarin translators. I definitely feel like I am missing out by not knowing Mandarin, so maybe now is the time to start learning! Westerners know about Sotheby’s and Christie’s as well-known art auction houses, but what about Poly Culture, which is China’s largest auction house? I enjoyed this Financial Post article about Poly Culture (but note it’s almost 2 years old).
Still unconvinced about the importance of art as an investment? Consider this statement by Larry Fink, chief executive at BlackRock, the world’s biggest investor with $4.6 trillion. “The two greatest stores of wealth internationally today is contemporary art….. and I don’t mean that as a joke, I mean that as a serious asset class,” said Fink. “And two, the other store of wealth today is apartments in Manhattan, apartments in Vancouver, in London.” (Quoted by Bloomberg.)
Once the lectures had concluded, we were treated to some door prizes. My friend won a ticket to Miss Asian Vancouver beauty pageant. Here’s event hostess Alice Zhou with a prize bag:
(Photo credit John Gurcharan Nijjar)
And here’s a photo of many of the people who made the evening possible:
(A good-looking group, I must say. Photo credit John Gurcharan Nijjar)
The Chali-Rosso Gallery is open to visitors and potential purchasers, and I have no doubt they will work with you to help you make an art investment choice that works for you. Despite the value of the art on the display, it is a friendly and approachable gallery. Visitors are welcome, and group tours are offered (art students and seniors are among those who have taken these tours).