...wait at least five years before considering a resale. A five-year period sees incredible changes on the world stage, and the art market fluctuates even more.
CHRISTIE'S auction of the late W.R. Burge collection in Sydney last Monday had the contemporary art market all fired up.
Local interest in an exceptional range of Australian works was fuelled by American and European bidders keen on internationally significant paintings and sculpture, including important works by Lucio Fontana, Robert Klippel and Ralph Balson.
The final count is not in, but it was estimated to total $2-4 million and may well be higher.
Christie's noted the strong pre-sale interest of Australian museums, which rarely have the opportunity to buy works that could perform well overseas. Most vendors prefer to capitalise on the easy transfer of artworks around the world's capital cities through the biggest multinational auction houses.
William Burge began his substantial collection in the late 1960s and early 1970s, fascinated by the colourful and vibrant art emerging in Australia at that time.
As a young lawyer, Burge directed his earnings towards a highly focused collection of contemporary art, creating a time capsule of sorts, representing most emerging local artists of the era. As his collection grew, Burge observed international trends and included representative works from artists such as Italian modernist Lucio Fontana, Joan Miro, Phillip Martin and John Hoyland.
Burge's first purchase was a John Olsen painting, which proved to be the catalyst to a new aspect of Burge's life.
Roger McIlroy of Christie's says: ``He became fascinated by the abstraction and colour he observed in the burgeoning Sydney art scene of the 1970s. Soon he was engrossed every Saturday in the world of galleries, the endless study of art and long discussions with and about artists. Many artists like Robert Klippel and Rosemary Madigan not only benefited from Burge's patronage but became steadfast friends.''
Key artists of the era are represented in the collection. Emerging artists' works are usually affordable but there's no telling how well they'll perform financially. Short term, there's rarely any investment performance at all, and it can take 10 years before resale is a possibility. In some cases, investment returns are not delivered until after the artist's death, and that's probably too long for most investment portfolios.. Likewise, it takes real focus to plan an investment portfolio of contemporary art for the benefit of your own estate. Burge demonstrated real skill at that.
Sometimes, a young artist can become fashionable without having produced much work at all, with consequent steep gallery prices. Usually, these are tempered by a plateau and then price dips before any real market longevity.
Most investment advisers will suggest waiting until an artist proves themselves with significant sales to big galleries or collections before investing heavily in untried works. Ultimately, this is safe advice, but probably won't result in big long-term profits. Watching local trends and how they reflect overseas moves, as Burge did, is a better bet if you're prepared to risk some capital on a long-term investment.
The other usual advice, which goes for antiques and collectables as well, is to wait at least five years before considering a resale. A five-year period sees incredible changes on the world stage, and the art market fluctuates even more.
The quick acceptance of Aboriginal dot art in New York, all in the space of one season about 10 years ago, illustrates this. A bit of apt marketing in the right place at the right time saw prices soar sky high in a market used to big-ticket art. Six months earlier, the works would have found little acceptance in most American cities. An investment rolldown period of 10 to 15 years provides a better chance of weathering market fluctuations, and lets items appear fresh to the market. Works that are offered too regularly can suffer badly from market fatigue, and they risk gaining a reputation for somehow being unwanted.
Christie's highlighted the rare opportunity the Burge collection offered buyers. The works had mainly been purchased when the artists were young and emerging. Some had been bought directly from the artists, giving the best possible provenance.
Others had been acquired through galleries and dealers but little had arrived since the early 1990s, meaning almost every piece was as fresh as a daisy. For those wishing to emulate Burge and his collection, look out for the affordable art fairs in Sydney and Melbourne. Now known as Art Sydney and Art Melbourne, the fairs showcase Australia's most promising new artists in an annual exhibition of contemporary art, and were established four years ago in Sydney. The events have been extraordinarily successful, attracting artists and work from all over Australia, and sales of more than $4 million each year.
It's a great place to look and learn, and to meet dealers and established artists as well.
Highlights of the Burge collection
* Lucio Fontana (Italian, 1899-1968) Concetto Spaziale (1961) $300,000-400,000
* Robert Klippel (1920-2000) Opus 361 (Eighteen Miniature Constructions) (1979) $250,000-350,000
* Robert Klippel (1920-2000) Opus 300 (1972-74) $70,000-90,000
* Ralph Balson (1890-1964) Constructive Painting (1941) $60,000-80,000
* John Olsen (Born 1928) The Kettle Boils (1968) $60,000-80,000
* Ian Fairweather (1891-1974) The Dance (circa 1957) $50,000-80,000
* Arthur Boyd (1920-1999) Kafka's Metamorphosis (1948) $30,000-50,000
For sale results see www.christies.com
Caption: Art of Australia: Clockwise from left, Rosemary Madigan, Ian Fairweather, John Olsen, Ralph Balson, Clement Meadmore, and Tony Tuckson Pictures: Christie's
Column: Collectables
Wealth
Section: FINANCE
Type: Feature