$330 million<\/a> at the Sotheby auction in New York. The same auction sold an 18 karat gold toilet for nearly $17 million. <\/p>\nWho is buying this art?<\/p>\n
\u201cSomeone very, very wealthy,\u201d Anita Heriot, president of the Fine Art Group, told BNN Bloomberg. <\/p>\n
Part of Heriot\u2019s job is advising clients on how to invest in art. She says it can be great for diversifying anyone\u2019s portfolio if done correctly. <\/p>\n
\u201cYou can park your money there. It can sit there. It doesn\u2019t fluctuate the way we see stocks fluctuate,\u201d said Heriot. <\/p>\n
She says clients should not exceed more than four per cent of their overall portfolio in art. <\/p>\n
\u201cIf someone\u2019s spending over $200 million in an artwork, note that that means their true wealth is tremendously higher,\u201d said Heriot.<\/p>\n
Clients should also think about a return on investment by referencing the nine categories of analysis art experts use to determine value which look at style, context and psychological impact. <\/p>\n
Heriot said just like blue chip stocks, blue chip art is known for being reputable and stable. Paintings of Monet, Picasso or Basquiat fill that bill because the artists were catalysts of change. <\/p>\n
Acquiring those pieces is a solid investment, she said.<\/p>\n
\u201cWill it grow exponentially? No, but it will hold its value,\u201d said Heriot warning that even those artists can have some \u201cbad\u201d paintings to invest in. <\/p>\n
She also warns about investing in contemporary artists, which has been an increasing trend in the last decade with large galleries betting on living artists.<\/p>\n
\u201cThey\u2019re risky acquisitions,\u201d said Heriot. <\/p>\n
\u201cWhat we see is a lot of flipping of these artworks. They spike high, they go low, and a few of them hold their value over time,\u201d said Heriot, calling those investments penny stocks. <\/p>\n
She warns that it is important to remove emotion when bidding.<\/p>\n
\u201cYou can have passion, but you really do need to have a non-emotional, unemotional side to that process, and that\u2019s why it\u2019s important to work with someone who knows what they\u2019re doing,\u201d said Heriot. <\/p>\n
Art sales can be unpredictable. She points to the early 2000s when the stock market crashed and art acquisition jumped up drastically with buyers from Asia, Latin America and the Middle East.<\/p>\n
\u201cWhat we\u2019ve seen over the last 20 years is a real entrance in the marketplace of ultra, ultra high net worth clients that are really interested in acquiring these works for a variety of different reasons\u2014 everything from showing kind of nonverbal ways of communicating power,” said Heriot.”<\/p>\n
\u201cYou walk into a house and you see a Klimt, you\u2019re gonna go, \u2018there\u2019s something important going on.\u2019\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Anita Heriot, president of The Fine Art Group, joins BNN Bloomberg to discuss the pitfalls of art investment…\n","protected":false},"author":2,"featured_media":321622,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[76,354,355,49,48,356,75],"class_list":["post-321621","post","type-post","status-publish","format-standard","has-post-thumbnail","category-arts-and-design","tag-arts","tag-arts-and-design","tag-artsanddesign","tag-ca","tag-canada","tag-design","tag-entertainment"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/321621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=321621"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/321621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/321622"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=321621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=321621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=321621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}