Investing in Native American Art

What makes a piece of art worth so much money?

So, you want to be an art collector? For a beginner, it can be an intimidating concept. Do you need to be a millionaire? Have a degree in art history? Possess impeccable taste?

None of the above. Art collectors come from all economic classes. Some are trained art scholars, while others teach themselves by reading and visiting galleries or museums. What they share is the desire to make an investment in something that will give them joy and aesthetic pleasure.

Still, art lovers might now consider stepping up their hobby a bit - with an eye on economic as well as aesthetic value. But for people who truly love art, and have some extra money, collecting may be one more way to diversify their holdings.

What determines the price of a piece of art?

Prices have been rising at a phenomenal rate at every major art auction since the 1950s.

Such tremendous growth in the participation of art collecting and dealing today has brought an increasing fascination with the art market and the way it works. Collectors vary from the young enthusiast who ventures $100 for a painting by an unknown artist, to the deep pocket connoisseur who pays millions for a work by a great master like Van Gogh. There are more people collecting art now than at any other period in history, and they are collecting from a wider spectrum of artists and mediums.

For the first time ever, a living artist can make a good living. Yet relatively few people, even among collectors, know why art has become such big business. Both buyers and sellers continue to ask themselves: "what is this work of art worth?"

Values in the art market have never been clearly defined. A market for art exists simply because most people take natural pleasure in possessing beautiful things. Beginners should concentrate on their own likes and dislikes as opposed to value potential.

When you start collecting art, you should not think about the investment potential in it. Buy it because you like it. The reason you collect art is because you love it, you understand it, and it's going to enhance your life.

Fine art is becoming more and more a part of the public psyche. There are art galleries and art stores, books on art, magazine devoted to every facet of the subject, newspapers with art sections and now, even a cable TV station. The overall demand for artwork is booming.

Another factor on the demand side of the art market is the influence of the schools of investment in vogue at a given time. Those watching the financial transactions of the wealthy follow art investment trends, adding to the demand for works by particular artists.

On the supply side, the supply of fine artwork is absolutely limited. With notable exceptions like Native American art, investment-quality artwork generally implies a dead artist. As more of this limited supply is purchased, there is progressively less available for sale. So, the remaining demand must be satisfied out of this limited and now-decreased supply.

It looks like the perfect investment: An increasing demand coupled with an absolutely limited supply. Now, add to that the prosperity of the 1990’s and you will begin to understand the attraction of the art market.

Collecting art for the purpose of investment must be carefully considered. Art is a long-term investment, and can be a hedge against inflation, but you must understand that most appreciation occurs over time. It is very important to like the art you buy since you will probably have it for a significant period of time.

Art investment is often cloaked by a veil of secrecy. It is a very personal process based more on human emotion than on any predictable formula.

In the end, the investor-collector comes back to a subjective assessment of quality. As beauty lies in the eye of the beholder, so lies value in the mind of the buyer

As portfolios plummet, uncertainty increases, and paper wealth vanishes overnight, some investors may be longing for assets they can touch.

Like a fine diamond, a wonderful painting or a carefully crafted piece of pottery now gives its owner the added security that its value won't soar or crash with the NASDAQ index.

Conclusion:

Investing in works of art

	Art investment used to be reserved only for super-rich patrons
	One only needs look at recent auction results to realize that art investment can bring outstanding appreciation rewards
	In is now easier for the savvy limited budget investor to play the art-acquisition-game
	Art is one of the few investments that you can hang on your wall and literally enjoy watching your investment grow in value

Why invest in Guthrie art?

	The Guthries have a proven track record for sales of their art
	The appreciation of Native American art has surpassed even the bull stock market over the last few years.
	Paintings that were selling for a few hundred dollars not long ago are now commanding four figure prices
	The artists have a solid background and the best of credentials in the field of Native American art.
	A patient and steady marketing process has established the Guthrie name in the forefront of the Indian art world.
	Prices for Guthrie art is now the lowest you will ever be presented with
	As the demand for Guthrie art increases, so will the values increase
	Creating art is a passion and the Guthries strive for perfection with each work.
	Since each piece is done by hand or reproduced in a limited number the market will not be flooded.

The Basics of Buying Art
Author: Cindi R. Maciolek

This book offers beginners the simple and honest A, B, C's of developing a collection of contemporary art. With integrity and insight, it answers many questions about the often mysterious world of art as well as the business of art. In simple to read language, it arms readers with the right knowledge to avoid the pitfalls, while maintaining an enthusiasm that viewing and acquiring art have to offer.