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BA

BROOKMANS
ART

A GUIDE TO INVESTING IN ART

2016 COLLECTION

www.brookmansart.com

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BROOKMANS
ART
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TRACEY EMIN RACHEL WHITEREAD CHRIS OFILI GRAYSON
PERRY DAMIEN HURST BANKSY FIONA RAE GERHARD RICHTER
JOAN MIRO ANDY WARHOL LS LOWRY PIERRE TAL COAT
PAUL NASH PAUL KLEE JEFF KOONS WILLEM DE KOONING
GRAHAM SUTHERLAND ERIC RAVILIOUS ROLAND PENROSE
IAN DAVENPORT GARY HUME PETER BLAKE DAVID HOCKNEY
FRANCIS BACON STANLEY SPENCER LUCIAN FREUD MARK
GERTLER BRIDGET RILEY ERIC GILL CHRISTOPHER RICHARD
WYNNE NEVINSON PATRICK HERON JOHN PIPER PETER
DOIG EDWARD BURRA LEON KOSSOFF ROGER HILTON BEN
NICHOLSON GILBERT & GEORGE FRANK AUERBACH VICTOR
PASMORE EDUARDO PAOLOZZI RICHARD HAMILTON PABLO
PICASSO MARC CHAGALL GEORGES BRAQUE FERNAND
LEGER PIET MODRIAN MARK ROTHKO ROY LIECHTENSTEIN
RENE MAGRITTE LEE MILLER EDGAR DEGAS RAOUL DUFY
MAURICE DE VLAMINCK WILLIAM BOUGUEREAU RUFINO
TAMAYO ALEXANDER CALDER CHILDE HASSAM MARIE
LAURENCIN EDOUARD VUILLARD ROBERTO MATTA LOUIS
VALTAT ALFRED SISLEY JOHN SINGER SARGENT FERNANDO
BOTERO HENRI CARTIER-BRESSON ANSEL ADAMSMARGARET
BOURKE-WHITE ANDREAS GURSKY CINDY SHERMAN JEFF
WALL EDWARD STEICHEN DMITRY MEDVEDEV EDWARD
WESTON ALFRED STIEGLITZ RICHARD PRINCE RICHARD
AVEDON PETER LIK ROBERT MAPPLETHORPE ROBERT CAPA
CECIL BEATON HENRY RICHARD VAN DONGEN ARMAND
GUILLAUMIN ANDRE DERAIN WIFREDO LAM GUSTAVE
LOISEAU HENRI DE TOULOUSE-LAUTREC PAUL SIGNAC
JEAN DUBUFFET JOAQUIN TORRES-GARCIA JEAN DUFY
SALVADOR DALIARISTIDE MAILLOL ANDREW WYETHROBERT
RAUSCHENBERG BERTHE MORISOT JEAN-MICHEL BASQUIAT
WASSILY KANDINSKY JACKSON POLLOCK GEORGE GROSZ

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PAUL CEZANNE
INVESTING IN ART
THE BROOKMANS ART DIFFERENCE
ROY LICHTENSTEIN
EDVARD MUNCH
MEASURING THE MARKET
BREAKING THE LINK
GERHARD RITCHER
JEAN-MICHEL BASQUIAT
WHAT AND WHEN
PICKING WINNERS
ROY LICHTENSTEIN
ANDY WARHOL
BANKSY
DAMIEN HIRST
BUYING ART
JACKSON POLLOCK
SIGMAR POLKE
BUYING ART
BANKSY
LIMITED EDITION PRINTS
JEAN BAPTISTE CAMILLE COROT
BEWARE
SPECULATIVE INVESTMENT
BAMBI
SIX REASONS TO INVEST IN ART NOW

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BROOKMANS
ART

CONTENTS

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BROOKMANS
ART
The Card Players
Paul Cezanne
97 x 130 cm.
Oil on canvas.
The world’s most expensive painting.
Sold in 2011 for “over $250 million”
to Qatar’s royal family.

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BROOKMANS
ART

IN A RECENT SURVEY OF WEALTHY INDIVIDUALS, ALMOST 50% OF
“RESPONDENTS
OWN FINE ART AND, ON AVERAGE, ART MAKES UP NEARLY
4% OF THE AVERAGE HIGH NET WORTH INDIVIDUAL’S TOTAL WEALTH. ”
Barclays Wealth and Investment Management

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INVESTING IN ART

Paintings by Numbers

Opposite, there’s Cézanne’s The Card Players. Currently (2016) it’s the most expensive work of art ever sold.
market, the price record might well be broken.
The aim of this guide is to place art and investment side-by-side. We suggest how you can enjoy the
visual satisfaction of art ownership and the financial satisfaction of investment performance. It is our
opinion that whatever your level of art knowledge, buying art well offers the opportunity to build
wealth and enjoy involvement with today’s chapter in the centuries-long history of art and artists.
Our viewpoint: that there are three types of investment art, blue chip, emerging and developing.
• Blue chip the recent masters; think Picasso, Miro, Chagall, Lichtenstein, Warhol, etc.
• Developing younger artists emerging into the collectors’ spotlight;
one to mention in this context at the moment, Bambi.

who provide retail galleries with their inventories. By eliminating the overheads associated with a prime
international collecting community. When collectors want to dispose of a piece quickly and discreetly,
they often come to us.
described as an “investment of passion”. In our view, passion should come second as a reason to invest.
First should be an assessment of the performance potential of the asset. That’s what we address here.
First, though, over the page, we’ll give a brief overview of why – If you are planning to invest in art
– you should do it through Brookmans Art.

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THE DIFFERENCE

BROOKMANS
ART

“WHETHER DRIVEN BY PERSONAL ENJOYMENT OR PURE FINANCIAL
RETURN, HIGH NET WORTH INDIVIDUALS CONTINUE TO BE DRAWN TO ART
AS AN INVESTMENT.”
Royal Bank of Canada/CapGemini Wealth Report, 2013

Reduced overheads
There are many places to buy art. In comparision to Brookmans, most have an overwhelming disadvantage.
They are high overhead operations. They recover their costs from the buyer or seller (or both) in steep
mark-ups or high transaction fees – called buyer and seller premiums by the auction houses.
There are also Art Funds, the unit trusts of the art world, an – as yet –unproven concept. They also have
overheads which they recover from entry, exit and annual management fees, whether or not the price of the
art in the fund has appreciated. When funds dispose of art, they take a percentage of the uplift. 20% is not
uncommon, according to the Financial Times.
Naturally Brookmans also has overheads but ours are smaller.
Our sales contract

market price adjudicated, if required, by market experts.

of an advisor’s, broker’s or fund manager’s commission.

Brookmans

A low cost exit route
If you, as an individual, want to dispose of a work through one of the auction houses, they will charge you a
premium (a commission) on the hammer price. You may also be charged for photography, marketing and
catalogue production. In most cases VAT will be added to these costs. The end result? You end up with a lot
less than you expected from the hammer price.
This can be as high as 25% for lower priced (less than £50,000) lots, and 12% when the sale price exceeds
premium of £222,500 plus value added tax.
If we agree that you’ll realise the best price by going through auction (it does happen) we have the
leverage to persuade the auction houses to reduce their premiums considerably. More normally, we’ll be
able to resell the work to another of our clients – a cost-free route apart from our uplift commission,
described above.
In summary, with Brookmans you can buy at better prices, and sell at reduced costs. When you make a
return on an art investment, we feel it’s important that you keep as much of it as possible.

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BROOKMANS
ART

Still Life with Cash Box
Roy Lichtenstein
178 x 138 cm.
Oil and magna on canvas.
In May 2009 Still Life with Cash Box sold at Christie’s New York
for $1,986,500. In May 2012 it sold at Phillps de Pury, New York
for $3,442,500. A 73% return in three years.

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BROOKMANS
ART
The Scream
Edvard Munch
91 x 73.5cm.
Oil, tempera and pastel on cardboard.
The most expensive painting sold at auction.
Sotheby’s, New York, 2012 for $119.9 million
to New York financier Leon Black.

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Tracking sales
Our starting point is the Mei Moses World All Art Index. Widely respected as the best overview of performance
sales of works of art to provide ‘then and now’ price comparisons. Currently the index has more than 34,000
price pairs. Taking 1987 as a start point, by 2012 it had shown a 372% increase. In comparison, the FTSE100
rose by 344% over the same period.

BROOKMANS
ART

MEASURING THE MARKET

500
450
400
350

MM

300

FTSE100

250

SP500

200

Gold

150

UKHPI*

100
50
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Art has to be viewed as a mid to long-term investment. There have been years when the market has moved
negatively. Most recently the ‘credit crunch’ of 2007/2008 caused a 22% drop in the index (recovered by
2010). The collapse of the Japanese Yen in the early 1990s resulted a 30% drop that took ten years to
recover. Time for some optimism: in the ‘90s the art market had far fewer players of whom the Japanese
were a large proportion. Today, the market is far more global and consensus opinion is that problems in a
One measure of the depth of today’s market, much expanded by BRIC and other emerging economies, is
the number of registered bidders at major auction houses. Christie’s reports that buyer registrations for art
sales are up 53% compared to ten years earlier.
Another way of judging the popularity of the art market is its overall size. The European Fine Art Foundation
estimated 2015’s global art market to be worth about $63 billion. This is based on auction data and an
estimate of gallery and private sales. 20 years ago the market was worth $10 billion.
The reason for its increasing popularity? It has been suggested by Deloitte’s that “… the current socioby investing in products they did not understand and are turning back to things that are closer to their heart
We could also mention that having a recognised work by a famous artist hanging on the wall is a better

*UK House Price Index

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BROOKMANS
ART

BREAKING THE LINK
Risk-reducer

market indices, bond valuations, property prices, precious metals and exchange rates. Art can rise when
other markets are falling, fall when other prices are rising. At times it can rise more steeply, or fall less
precipitously. From the investor’s point-of-view art acts as a risk-reducer in a well-structured portfolio.
Investment bank, J P Morgan, found that volatility (standard deviation of annual returns) of art has been
lower than commodities, US and international equities over the last 25 years. Art tends to move in slow,
long-term cycles. The bank concluded that looking at risk-adjusted performance (returns divided by
standard deviation) over the last 25-years, the Mei Moses All Art Index outpaced the S&P500.
Diversity

the same with art. There are many types of art, and many periods when it was produced. There are major,
minor and unknown artists – think blue chip, small cap and unlisted in stock market terms. There is also
an element of fashion, especially in contemporary art. This year’s hot artist might be unsung in the next
decade. Someone now neglected can emerge into the limelight.
The desire for top tier art, where collectors compete with a rapidly growing number of museums and
exhibition galleries worldwide, continues to outstrip supply. That’s not surprising given that in all sectors
except contemporary, production ceased long ago. Once you move beyond the landmark works that every
deep-pocketed institution or collector competes for, there’s still potential to add high-performance art to
an investment portfolio, as the example of Gerhard Richter, opposite, demonstrates.

Chinese Art

8.787

Old Masters

8.787

7.675

Impressionist and Modern
Contemporary Art

5.621

5.907

5.816

6.217

6.641

3.967

CAGR 14.9 %
2.394

2.820

2.875

1.267 1.275 1.519 1.396

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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BROOKMANS
ART

Abstract Painting, 1992
Gerhard Richter
250 x 250 cm.
Oil on canvas.
Gerhard Richter’s work is a prime example of investment grade art.
His prices have steadily increased, and his repeat sales have recently
averaged close to 40% annual returns.

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BROOKMANS
ART
Dustheads
Jean-Michel Basquiat
183 x 213 cm.
Acrylic, oilstick, spray enamel and metallic paint on canvas.
A windfall for the vendor. Dustheads was estimated to sell at
between $25-35 million at Christie’s, New York, May 2013.
Instead, it realised $48,843,750.

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BROOKMANS
ART

“STUDIES SHOW THAT ART CAN OFFER LONG-TERM RETURN POTENTIAL
THAT IS UNCORRELATED WITH OTHER ASSET CLASSES.”
Kyle Sommer, J P Morgan

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WHAT AND WHEN

Acquisition
If you’re looking for investment-grade art what should you acquire? Obviously, you can only buy what’s
on the market. Largely, that means modern and contemporary art: modern, from about 1850 – 1950;
contemporary – from the 1950s onwards*. That’s what is widely available. Work from other eras – Mediaeval,
Renaissance, Romantic, Impressionist, Post Impressionist – comes to market less frequently and, if it has
real merit, is hard fought over.
*Few art historians agree on exact dates for any era, and there is considerable overlap at the boundaries.

and Modern sales dropped slightly. The auction house reports that its recent contemporary art sales have
attracted a 52% increase in new clients, mostly bidding on works estimated at $150,000 or less. That’s a
reliable sign that contemporary art is attracting broad-based support rather than just money-no-object
billionaires, and bodes well for its continuing success.
If you decide to invest in earlier art there are opportunities, although the chance of acquiring an old master
by the master himself are limited. There is a considerable volume of work traded as “school of”, “studio
of” or “follower of” master painters. Rembrandt is an example. Aspiring artists would pay to learn at his
took commission on the sale of work: a piece ‘approved’ by Rembrandt – even if from an unknown hand
– would sell for more than the same work with no endorsement. An example of “school of” work is ‘Portrait
Of A Bearded Man, In A Fur-Trimmed Coat And An Oriental Hat, Holding A Walking Stick’ by a follower of
Rembrandt, which sold at Christie’s London in 2012 for $39,950, against the high estimate of $15,000.
There are other art investment possibilities. Although they don’t command the prices of paintings,
photography is collected and has appreciated in price. 16 images have achieved $1 million plus prices, with
the most expensive yet being Andreas Gursky’s Rhein II. Made in 1990, it realised $4.3 million – against the
high estimate of $3.5 million – when auctioned by Christie’s New York in 2011. It’s one of six from this series.
Four of the others hang in major public galleries, including New York’s Museum of Modern Art and the Tate
Modern, London.
Limited edition prints also attract investment interest and for many are the ideal entry point to
art investment. We discuss limited edition prints on page 27 of this brochure.

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PICKING WINNERS

BROOKMANS
ART

PAPER WEALTH IS SEEN TO BE MORE RISKY, INVESTORS
“IN TIMES WHENARE
DRAWN TO REAL, TANGIBLE ASSETS. ”
Vikram Mansharamani, Lecturer, Yale University

Selection

Selecting winning art, like choosing winning stocks or horses, is not easy. In the past, the art business advised
people to “buy what you like”. That goes back to ‘investments of passion’, which we believe is the wrong way
to approach art investment. You need to be more analytical before purchasing a art piece, generally we would
suggest to follow the tips described below
• Buy artists with a track record of good price performance. This can be judged from auction prices, which are
always reported.
• Buy the best piece you can afford of an artist’s work. Minor works are unlikely to perform as well as
major ones because they will less sought after.
• Avoid buying an artist where there seems more hype than talent. There are bubbles in artist popularity
driven by agents and gallery owners. Wait to see whether an artist’s popularity will last.
• Look for work by artists that have a real following. Check who collects their work, in which galleries it
hangs, in which exhibitions they have been included, in which publications they are cited. The bigger
the collector, the gallery or the publication, the more likely the artist has staying power.
• Look for works that have interesting provenance. One that has been exhibited, won prizes or been
owned by a respected collector has added cachet, and value.
• If buying at auction, buy work that meets or beats its high estimate. It’s an indicator that there is
too overpriced for investment purposes. Be wary of getting involved in bidding wars.
• Look for artists who are ‘brands’ in their own right; artists like Andy Warhol, Damien Hirst, Banksy
appeal outside of the traditional collector’s markets.
Above all, buy with your head, not your heart.

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BROOKMANS
ART

Woman with Flowered Hat
Roy Lichtenstein
127 x 102 cm.
Magna on canvas.
Bought by jeweller Laurence Graff for $56.1 million at auction, Christie’s
New York, May 2013. The sale was made after a Lichtenstein retrospective exhibition had
shown in Chicago and Washington. At the time of the sale the exhibition, including this work,
was showing in the Tate Modern, London, before moving to the Pompidou Centre, Paris.

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BROOKMANS
ART
Turquoise Marilyn
Andy Warhol
102 x 102 cm.
Silk screen inks and acrylic paint on canvas.
In May 2007 Turquoise Marilyn, one of Warhol’s many portraits of Marilyn Monroe,
was purchased by art collector Stephen A. Cohen in a private sale via the
Gagosian Gallerey for a price believed to be $80 million.
The record for a
Warhol is believed to be the private sale of Eight Elvises, for $100 million.

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NOBODY IN IT!’ WHICH SOLD AT CHRISTIE’S IN NOVEMBER, MAKING GAINS IN
EXCESS OF $40M FOR ITS SELLER, WHO BOUGHT IT FOR $2M IN 1988. ANDY
WARHOL’S DOLLAR SIGN ALSO MADE BIG RETURNS WHEN IT SOLD FOR
TWICE ITS ESTIMATE AT $698,500 IN 2011, HAVING BEEN BOUGHT FOR $27,000
23 YEARS EARLIER.



BROOKMANS
ART

THERE WERE RECORD AUCTIONS FOR PAINTINGS SUCH
“ASELSEWHERE,
ROY LICHTENSTEIN’S ‘I CAN SEE THE WHOLE ROOM ... AND THERE’S

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ANDY WARHOL

Financial Times, January 8, 2012
Controversial

Andy Warhol, 1928 – 1987, was born in Pittsburgh, Pennsylvania. America’s most famous 20th century artist,
he studied commercial art in Pittsburgh before moving to New York and a career in magazine illustration
and advertising. During the 1950s, he began to work outside of illustration and slowly built a reputation
as a sometimes-controversial artist. He held exhibitions at smaller New York and West Coast galleries,
introducing works that have since become icons – dollar bills, Campbell’s soup cans and Coca-Cola bottles
as well images of celebrities like Marilyn Monroe, Elvis Presley, Marlon Brando and Elizabeth Taylor.
In the 1970s he became less radical and more entrepreneurial spending much of his time canvassing new,
rich patrons for portrait commissions — including the Shah of Iran, Mick Jagger, Liza Minnelli, John Lennon
of work traded in the market. 2013, year-to-date, Warhol has been the top-selling artist in the world’s sales
rooms, with over $585 million of work sold, compared with $558 million for Pablo Picasso. No other artist
has yet passed the $200 million barrier.

Warhol at Auction
Between May and August 2013, over 200 works by Andy Warhol were sold at open auction. The highest price
paid was $38,245,000 for Four Marilyns.
On average, Warhol’s works sold at 115% of high estimate, implying that despite ample supply, there is still
a continuing healthy demand.

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BANKSY

BROOKMANS
ART

THE BUYER OF PETER DOIG’S PAINTING ‘THE ARCHITECT’S HOME IN
“THE
RAVINE’ AT AUCTION IN 2002 FOR £314,650 COULD BE FORGIVEN
FOR FEELING SMUG. ON WEDNESDAY NIGHT THE PAINTING SOLD AT
CHRISTIE’S FOR £7.7M.

” Daily Telegraph, February 18, 2013
Anonymity

been born in 1973 to a respectable Bristol, UK, family he is known for his work rather than his personality.
work, stencils and spray paint. He claims he was converted to stenciling as a quick-getaway technique
when hiding from police under a truck, where he noticed its stencilled serial number.
His stencils feature striking and humorous images, often with anti-war, anti-capitalist or anti-establishment
slogans. Subjects frequently include rats, apes, policemen, bombs, soldiers and children. His prowess as a
street artist drew the attention of the mainstream art business and in 2002 he had a small exhibition in the
33. Gallery, Los Angeles. His work began appearing at auction, where it attracted bids well over the high
estimates, and sold to celebrity collectors such as Christina Aguilera. Another sign of his ‘respectability’ – he
contributed a work ‘Protect From All Elements’ to a charity sale organised by Leonardo de Caprio. The high
estimate was $100,000. It sold for $315,000.

Banksy at Auction
During the 12 months September 2012 to August 2013, 97 pieces by Banksy were sold at auction.
The highest price paid was $617,286 for ‘Think Tank’.
On average, Banksy’s works sold at 116% of high estimate, implying that demand exceeds supply.
This is more so with his original paintings, which sold at 143% of high estimate, as opposed to his prints
that sold at 108%.

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BROOKMANS
ART

Street Art
Banksy
182 x 157 cm.
Spray paint.
Classic Banksy, demonstrating his mastery of Street Art. A graffiti painting shows a council worker
washing away a pre-historic cave painting. Banksy has made the move from the street to the
gallery. His most expensive work sold at auction in the last year (2012-2013) was ‘Think Tank’.
It raised $617,286 at Sotheby’s London, February 2013. Previously it had sold at
Bonham’s London, April 2008 for $308,146.

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BROOKMANS
ART
For The Love Of God
Damien Hirst
17 x 13 x 19 cm.
Platinum, diamonds, human teeth.
Damien Hirst’s most expensive work. It consists of aplatinum cast of
a human skull, encrusted with 8,601 diamonds.Costing £14 million
to produce, the work was displayed at theWhite CubeGallery, London
in 2007with an asking price of £50 million.

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BROOKMANS
ART

AS A STORE OF VALUE, ART HAS SHOWN TO BE AN EFFECTIVE HEDGE
“AGAINST
RISING PRICES WHEN INFLATION IS HIGH.”
Kyle Sommer, J P Morgan

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DAMIEN HIRST

Born Bristol, UK in 1965 and raised in Leeds, Hirst studied art at the Jacob Kramer College in Leeds and
that was visited by Nicholas Serota (Director, Tate Gallery), Norman Rosenthal (Exhibitions Secretary,
Royal Academy), and Charles Saatchi (Director of the UK’s then-largest advertising agency and notable
contemporary art collector). In 1990 he, and others, curated ‘warehouse’ shows in a disused South London
biscuit factory.

is quoted as saying “I can’t wait to get into a position to make really bad art and get away with it”. In 1991,
formaldehyde, which Saatchi bought for £50,000. In 2004 Saatchi sold it to Steven Cohen for an undisclosed
amount, rumoured to be $12 million. He has continued courting controversy – Hirst makes waves as well as
art. He is reputed to be Britain’s richest artist (£215 million in the 2010 Sunday Times Rich List).

Hirst at Auction
During the 12 months September 2012 to August 2013, 137 pieces by Damien Hirst were sold at auction.
The highest price paid was $3,022,723 for ‘Away From The Flock’.
On average, Hirst’s works sold at 102% of their high estimate, implying that demand and supply are
in good balance.

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BROOKMANS
ART

BUYING ART
LIKE ANY INVESTMENT, HOWEVER, ART INVESTING CAN BE CONSIDERABLY
“MORE
COMPLICATED. AS A RESULT, MANY INVESTORS WHO WISH TO

INCLUDE ART IN A PORTFOLIO WOULD NATURALLY GRAVITATE TOWARDS
CHOOSING AN EXPERT TO PICK IT FOR THEM.



Jenny Lowe, Financial Times

Investment Art
Usually when investing into equities, you would normally use a broker or invest directly using a platform,
withart it can come from a range of sources. Before we describe these channels lets remind you, that at
Brookmans Art, we offer a range of high potential modern and contemporary art for sale. Talk to us about
what is available as the inventory can change from week to week, we can also let you know what is
expected to come in.
Galleries
Major cities, especially national or regional capitals, have a wide range of commercial galleries. Big-ticket
investment art is the specialty of a just a few, though. In London these include Gagosian, Hauser & Wirth,
Victoria Miro and White Cube. A day spent exploring a city’s major commercial (rather than public) galleries
provides a good grounding in what is available and price levels. Be aware, though, that you are unlikely to

Again, taking London as an example, these tend to congregate in an area. Walk the streets of St James’ and
you’ll pass twenty or more such galleries. One might specialise in English landscapes, another in marine
art, yet another in the Scottish colourists. If you decide to buy from a gallery, bear in mind that it is a retailer,
and will be taking a considerable mark-up on the sum the artist or previous owner will receive.

Art Fairs

than for investment. Big-ticket fairs, like Art Basel, Art Basel Hong Kong, Art Basel Miami, The Frieze (London
and New York) and The Armory Show (New York) bring together the world’s leading contemporary galleries.
They also create a buying bubble, so it’s tempting to acquire work there without due consideration of its
investment merit. It might be sensible to leave your chequebook at home and use fairs to learn about the
artists and works that are making waves and have investment potential.

Auction Houses
Auction houses, like Sotheby’s, Christie’s, Phillip’s and Bonham’s process about half the sales of high-end
art. They hold regular sales especially in the spring and autumn. Almost exclusively they sell pre-owned
compare this with the estimates, and reach a price performance judgment. As with shares though, past
performance is no guide to future value.

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BROOKMANS
ART

Number 5, 1948
Jackson Pollock
244 x 122 cm.
Oil and other paints on canvas.
Believed to be the second most expensive private sale yet, Number 5, 1948
changed hands for a rumoured $140 million. There may be bigger
private deals that have not made it into the public domain.

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BROOKMANS
ART
Flight, Black-Gold-Red
Sigmar Polke
300 x 400 cm.
Mixed media with silkscreen inks on polyester fabric.
Polke is a name unfamiliar to many, yet his work ‘Nackte’ sold for $2,358, 982
at Sotheby’s London, June 2013. It previously sold at Phillip’s London, June 2007 for $1,289,375.
Other recent repeat sales by Polke have shown an average annual return of over 20%.

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A CÉZANNE WILL NEVER HAVE A VALUE OF ZERO AND NOR, FOR THAT
“MATTER,
WILL A WARHOL, GERHARD RICHTER OR SIGMAR POLKE. THE
LIST OF ENDURING ARTISTS FOR WHOM THERE WILL ALWAYS BE A NICHE
MARKET GROWS WITH EVERY PASSING WEEK.



BROOKMANS
ART

BUYING ART

Jim Grant, Grant’s Interest Rate Observer

Buying at Auction
The major advantage of buying at auction is that the auctioneer has done much background work for you;
the catalogue will give provenance details, previous owners – where known, where the work has been
exhibited and publications in which it has featured. The major disadvantages?
• You’ll be competing with others, so you have no clear idea beforehand what the price will be. Do your
research, set an upper limit, and stick to it.
• As well as the hammer price, you’ll pay a buyer’s premium. On smaller sales this can be 25%.
you may also be asked to pay VAT
or sales tax on the hammer price and the buyer’s premium.
• Your purchase price is public. While it’s possible to remain anonymous as a bidder, the price at which
the work sold will be publically reported. This doesn’t suit all purchasers.
If you’d like to acquire at auction, attend a few sales beforehand just as a spectator. Then you’ll be familiar
with the atmosphere, the process and the terminology when your turn comes. And, apart from the learning
process, it’s good entertainment!
Private Sales
Just as there are buyers who prefer the discretion of not buying in public, so there are sellers, too.
The private sales route provides discretion for both sides of a transaction. Discretion is not the only
advantage. A private sale can be organised far more quickly than an auction, which is scheduled months
in advance to allow catalogues to be researched and marketing to take place. If vendors need the money
now, a private sale is ideal. Then there’s an established price – which might be negotiable downwards, not
upwards as in an auction.
The disadvantage of a private sale for the vendor is that it doesn’t ensure that every interested purchaser
knows the work is on the market. The consultants, galleries, and auction houses* that broker private deals
pride themselves in knowing who might buy, but with positive growth in the numbers of high-end art
buyers, do they really know everybody?
At Brookmans Art, we’re in the private sale market. Our sale s teams have extensive contacts outside of the
s can’t.
* Most galleries have a private sale arm but recently auction houses have moved strongly into the market.
Private sales now account for about 10% of revenues at both Christie’s and Sotheby’s.

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Love Is In The Air
Banksy
50 x 70 cm.
Silk Screen.
Limited edition prints offer the opportunity to aqquire
work from famous artists for a four figure sums.

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YOUNGER INVESTORS ARE MORE WILLING TO ADOPT HIGHER-RISK
“STRATEGIES
AND THAT MAKES THEM WELL SUITED TO SEEK FINANCIAL
RETURN FROM COLLECTIBLES AS PART OF A DIVERSIFIED PORTFOLIO. ”
Rachel Pownall, Adjunct Associate Professor, Tilburg School of Economics and Management.

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LIMITED EDITION PRINTS

Entering the market
For those interested in investing in art, but without the funds or the inclination to commit large sums,
Original limited edition prints can be a good investment vehicle providing you research carefully and follow
certain criteria. Most artists produced limited edition prints at some stage in their careers. It means there
of the leading contemporary artists sell a far larger portion of their work as limited editions, compared with
originals. A case in point is Picasso, probably the most famous of the modern artists. Amazingly 61% of all
sales of his work are prints/multiples while 30% are ceramics, 7% drawings and only 2% are paintings!
Limited edition prints use processes like woodcuts, etchings, engravings, lithographs and collagraphs to
reproduce an image. An essential factor is the degree of involvement by the artist in making plates and
printing. For a print to be considered ‘original’ it should have been produced from a surface like a copper
plate or a woodblock worked on by the artist.
Another important factor in the determining the value of a print is the size of the edition. Look for an edition
of less than 100, although for well-known contemporary artists like Tracey Emin or Banksy then larger
editions may be a good investment. You also need to be sure that after production was completed the
plates were destroyed, so that no further prints can be made.
Make sure that the print was produced by a reputable and well-known print maker, that each work has a
of a fraction, with the print’s number shown over the edition size – thus 7/25 is print 7 from a 25 print
print maker.
At Brookmans Art, we have access to a wide variety of original limited editions from some of today’s most
exciting artists, as well as past masters. Contact us to check current and upcoming stock and prices.

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Woman with a Pearl Necklace
Jean Baptiste Camille Corot
70 x 55 cm.
Oil on canvas.
Reputed to be the most forged painter ever, in 1990 Time magazine
reported: “It used to be said that Corot painted only 800 pictures
in his lifetime; of which 4,000 ended up in U.S. collections.”

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GLOBAL ART MARKET HAS CONTINUED ITS GROWTH, DESPITE GLOBAL
“THE
UNCERTAINITY, INCREASING THE FOCUS ON ART AS AN ASSET CLASS.. ”
Deloitte/ArtTactic Art and Finance Report, 2015.

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BEWARE

Deception
As Corot’s example opposite shows, not everything in the art world is what it seems. Forgery – creating
and selling works of art falsely attributed to other more famous artists – has a long and deceitful history.
It has happened for millennia. Roman sculptors copied Greek work: did the contemporary buyers know
that they were not genuine?
Amongst students, copying a work of a master was not only part of the learning process but was considered
a tribute, not a forgery. Many painters had workshops where apprentices studied painting and sculpting by
copying the techniques, work and style of their masters. Some of these works have later been erroneously
or deliberately attributed to the master, not the student.
interest in antiquities increased their value and made them worth counterfeiting. This extended to living
and recently deceased artists. Durer’s printmaking style, for example, made him easy to imitate and a
cunningly added signature increased the value of counterfeits considerably.
In the 20th century artists like Dalí, Picasso, Klee, Warhol, Pollock and Rothko became easy targets for
forgers. Such work usually enters the collecting chain through galleries that fail to thoroughly check the
If you’re investing in art then it’s vital that you know what you‘re buying. Older works will have a record of
will often accompany contemporary and modern work. If not, there will some other paper trail that attests
to their originality.
At Brookmans Art

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SPECULATIVE INVESTMENT
THE DOW JONES INDUSTRIAL AVERAGE STOCK INDEX CLIMBED BY AN
“AVERAGE
OF LITTLE MORE THAN 1% A YEAR FROM 2001 TO THE END OF
2012. PRICES FOR ARTWORKS AUCTIONED IN NEW YORK DURING THE SAME
PERIOD ROSE BY MORE THAN 5% A YEAR.



The Economist

Price Performance
At Brookmans Art we know there’s money to be made by investing in art. The question is “What art will make
money?” Our mainstream advice is to go for ‘blue chip’ work, where there is a proven market, where price
performance has been positive and where demand is ahead of supply.
structure of your investment portfolio. If you were putting money into equities, you might allocate funds
between stock types; defensives, recoveries, emerging markets, blue chips, small caps, IPOs, takeover
targets, special situations, dividend earners.
Same with art, There is a role for part of a portfolio to be more speculative; work from new artists with potential.
and later sold it for $12 million. That’s an impressive return on investment.
Can you replicate that? You can go around the art colleges’ graduate shows and pick artists you think
have potential – not merely for the quality of their work but also for their ambition and their commercial
awareness. For the price of one ‘solid’ piece from a blue chip name, you could buy dozens of works from
new artists – the equivalent of investing in penny shares. If just one of your choices becomes a star, even a

We monitor the up-and-coming market closely. We do the shows so that you don’t have to and we visit
the fringe galleries. When we spot unknowns with the potential to become big names, we’ll bring them
to your attention.
At Brookmans there’s one young artist we currently like, not only for her work but for her entrepreneurship.
Bambi (opposite) is personable, well-represented and very market-aware. Just like Hirst, just like Emin, just
like Warhol. We’re not saying she is going to be big, but we are saying she could be. And, at the moment,

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Diamonds are a Girl’s Best Friend
Bambi
60 x 33 cm.
Spray paint and glitter on metal
Promoted as the female Banksy, this is the first work to sell at auction
from Bambi. Sold at Christie’s London in September 2012 it went under
the hammer at £11,250 compared with its high estimate of £2,000.

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SIX REASONS TO INVEST IN ART NOW

BROOKMANS
ART
AS PRICES SMASH RECORDS IN THE AUCTION ROOM AND INVESTORS
“SCOUR
THE GLOBE FOR A SAFE PLACE TO RIDE OUT THE ECONOMIC

STORM OF HIGH INFLATION AND SOVEREIGN DEFAULT, THERE IS GROWING
MOMENTUM BEHIND THE ‘ART AS AN INVESTMENT’ SCHOOL OF THOUGHT.
Investor’s Chronicle



1. A growing market
Over a million people worldwide now consider themselves serious art collectors. In 1980 the number
was just 10,000. That’s evidence of the growing global market that now exists for art with new, serious,
deep-pocketed collectors coming from Russia, China and the Middle East. And it’s not just individuals.
High-end contemporary art galleries and museums are the must-have sign of maturity for any city with
ambitions. New museums are opening every year, and each absorbs hundred of works.

2. Soaring values

54% appreciation in value.

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3. ‘Contemporary’ is art’s boom sector
Artnews reported that 87% of the world’s 200 leading art buyers own contemporary pieces.

4. Limited quantity
Contemporary art is the only collectible art still being produced. The majority of masters of pre-21st century
values for great work keep on growing.

China is now the world’s second largest market for art and antiques according to a study by the European
Fine Art Foundation. It reveals that China’s share of global art and antique sales was 25% in 2012, with the
USA leading with 33% of acquisitions. The UK remains third, with 23% of purchases.

6. Return on investment
Skate’s Art Market Research tracks the annualised return on investment for repeat sales. Here are its top ten
returns to date.
Artist

Work

Last sold at $

Annualised ROI

Isamu Noguchi

Undine (Nadja)

3,700,000

190.20%

Auguste Rodin

Le Penseur

10,500,000

189.33%

Yue Minjun

Gweong-Gweong

6,154,480

147.16%

JMW Turner

The Lake of Thun, Switzerland

1,613,904

133.38%

Frans Hals I

Portrait of Willem van Heythuysen

12,433,341

114.25%

Gerhard Richter

Abstraktes Bild

5,500,000

101.97%

Alberto Giacometti

Bust

2,766,96

97.59%

Fu Baoshi

Lady in solitude

1,932,217

93.82%

Francis Bacon

Three Studies for Self-Portrait

25,000,000

86.29%

Zao Wou-Ki

2.11.59

4,648,096

65.80%

It’s worth noting that three of the top ten performers are Chinese, and that the overall leader,
Isamu Noguchi, is Japanese.
At Brookmans Art we can see no evidence that the brakes are going on this market anytime soon. Contact us to
talk about how you can invest in art today.

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This document has been issued and approved by Brookmans Art. While information in this document has been obtained from sources
thought to be dependable, we do not guarantee or affirm its accuracy, and such information may be deficient or condensed. This
document does not represent an offer, request or solicitation to buy or sell art and is not proposed to be the sole foundation for any
assessment of the art market or any other instrument. All valuations, estimates and suggestions included in this document comprise our
judgement as of the date of the document and may be subject to change without notice. This document is not a personal
recommendation and you should consider whether you can rely upon any opinion or statement contained in this document without
seeking further advice tailored for your own circumstances. This document is private and is proposed solely for the addressee(s). If you are
not an addressee, or have received this document in error, please notify the sender instantly, delete it from your computer (if sent
electronically) and do not copy, disclose or otherwise act upon any part of this documents or its attachments. It may not be reproduced
or disclosed (in whole or in part) to any other person without our prior written permission. Laws and/or regulations in certain countries
may restrict the manner of distribution of this document and persons who come into possession of this document are required to inform
themselves of and observe such restrictions. We or our partners may have acted upon or have made use of material in this document prior
to its publication. You should seek advice concerning any impact this investment may have on your personal tax position from your own
tax adviser. You have sole responsibility for the management of your tax and legal associations including making any applicable filings
and payments and complying with any applicable laws and regulations. We have not and will not provide you with tax or legal advice and
recommend that you obtain your own independent tax and legal advice tailored to your individual situation.
Brookmans Art is the trading name of G H Services International Limited.
All transactions through Brookmans Art are through G H Services International Limited registered in England and Wales.
Registered No.09868342 Registered office: 20-22 Wenlock Road, London, N1 7GU

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TRACEY EMIN RACHEL WHITEREAD CHRIS OFILI GRAYSON
PERRY DAMIEN HURST BANKSY FIONA RAE GERHARD RICHTER
JOAN MIRO ANDY WARHOL LS LOWRY PIERRE TAL COAT
PAUL NASH PAUL KLEE JEFF KOONS WILLEM DE KOONING
GRAHAM SUTHERLAND ERIC RAVILIOUS ROLAND PENROSE
IAN DAVENPORT GARY HUME PETER BLAKE DAVID HOCKNEY
FRANCIS BACON STANLEY SPENCER LUCIAN FREUD MARK
GERTLER BRIDGET RILEY ERIC GILL CHRISTOPHER RICHARD
WYNNE NEVINSON PATRICK HERON JOHN PIPER PETER
DOIG EDWARD BURRA LEON KOSSOFF ROGER HILTON BEN
NICHOLSON GILBERT & GEORGE FRANK AUERBACH VICTOR
PASMORE EDUARDO PAOLOZZI RICHARD HAMILTON PABLO
PICASSO MARC CHAGALL GEORGES BRAQUE FERNAND
LEGER PIET MODRIAN MARK ROTHKO ROY LIECHTENSTEIN
RENE MAGRITTE LEE MILLER EDGAR DEGAS RAOUL DUFY
MAURICE DE VLAMINCK WILLIAM BOUGUEREAU RUFINO
TAMAYO ALEXANDER CALDER CHILDE HASSAM MARIE
LAURENCIN EDOUARD VUILLARD ROBERTO MATTA LOUIS
VALTAT ALFRED SISLEY JOHN SINGER SARGENT FERNANDO
BOTERO HENRI CARTIER-BRESSON ANSEL ADAMSMARGARET
BOURKE-WHITE ANDREAS GURSKY CINDY SHERMAN JEFF
WALL EDWARD STEICHEN DMITRY MEDVEDEV EDWARD
WESTON ALFRED STIEGLITZ RICHARD PRINCE RICHARD
AVEDON PETER LIK ROBERT MAPPLETHORPE ROBERT CAPA
CECIL BEATON HENRY RICHARD VAN DONGEN ARMAND
GUILLAUMIN ANDRE DERAIN WIFREDO LAM GUSTAVE
LOISEAU HENRI DE TOULOUSE-LAUTREC PAUL SIGNAC
JEAN DUBUFFET JOAQUIN TORRES-GARCIA JEAN DUFY
SALVADOR DALIARISTIDE MAILLOL ANDREW WYETHROBERT
RAUSCHENBERG BERTHE MORISOT JEAN-MICHEL BASQUIAT
WASSILY KANDINSKY JACKSON POLLOCK GEORGE GROSZ

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BROOKMANS
ART

20-22 Wenlock Road
London
N1 7GU
020 7856 0127
www.brookmansart.com
info@brookmansart.com

Brookmans art is a trading name of G H Services International, a company registered
in England and wales. Company number 09868342


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