It is said that one of the best investments in a time of economic uncertainty is art. It is, and it requires knowledge, taste, courage and a certain approach.
First, it is strange to think of buying art in order to make money from it. If the work does not appeal to your soul, it has no value; and if it does, you would not want to sell it.
Let us look at a few of the most successful investors of the 20th century, Allan Funt, Luis Ferré, and Andrew Lloyd Webber.
In 1963, Luis A. Ferré was buying art for the Museo de Arte in Ponce in Puerto Rico, which he had founded. On a stop in a gallery in Amsterdam, he found Flaming June abandoned in a corner. The owner said no one was interested in the painting because it was considered too old-fashioned for the time. But he added that if Ferré was interested in it, that he could have it for $10,000. A year or two before, on auction, it failed to sell for today’s equivalent of $840. Today it is (literally) priceless.
Andrew Lloyd-Webber has played the piano and sung songs with Mr Ferre’s art dealer, Carlos Conde. The composer quoted as saying “I write music to buy art”, even offered Pounds 6 million for Flaming June in 1996. His offer wasn’t the only one, but they were all turned down. A story has it that he was offered a blank cheque by one keen buyer, and solemnly tore it up.
The secret is this. When Ferré saw the painting, he fell in love with it. His son relates that he had sleepless nights until his payment went through.
So, sadly, did Andrew Lloyd Webber. That same year of 1963, when he was 15, Webber first saw Flaming June in a Polish framing shop. The price was £50, which the youngster did not have.
Allan Funt’s story is similar. In 1965 the creator of Candid Camera was in London looking for a picture for his New York apartment. An art dealer asked Funt if he wanted to see a “picture by the worst painter who ever lived,” and the curious Funt, who held a B.A. in Fine Arts from Cornell University, was introduced to his first Lawrence Alma-Tadema, which he purchased on the spot.
The way I heard it, the price was £21, and when Funt queried this, the dealer told him that this was the price of the frame. Apparently at the time students at the London art schools enjoyed painting Pop Art images over these big frames (created by Alma Tadema himself). He asked the dealer to send him any works by the artist at an agreed price and by 1973 he owned 35 Alma Tademas. Sadly for this love story, he lost them all when his accountant robbed him in the eighties.
The most recent price for an Alma Tadema was $35,922,500 (2010).
The point is this. Buy only what you love. In fact buy that which you would never sell. That way you are making a brilliant investment for your children and your grand-children.











