BR Club brushes up on details of art market

Why is it a good idea to invest in art? What should one consider before making an investment in the local art market? How can you know what return to expect? Participants in the second BR Club event organized by Business Review last week had the opportunity of putting themselves firmly in the picture on these topics and others.

As well as being the preferred passion investment of many, since it is the type of alternative asset with the highest potential to gain value, art investments also preserve their worth in times of economic downturn. Specialists consider the field suitable for those looking at diversifying their investment portfolio, and it is a tangible asset that can provide a hedge against inflation. These generic arguments in favor of investing in art have obviously persuaded increasing numbers of buyers, as Artmark puts the local market at EUR 8.3 million in 2010, up EUR 3.7 million on 2009. Interest is evenly split between collectors and investors, according to a talk given at the BR event by Manuela Plapcianu, CEO of Artmark auction house. With demand growing from those looking variously for multifunctional investments, profitability, ornamental objects, aesthetic satisfaction and social prestige, the range of works available is expanding slightly but naturally limited in the case of heritage art.

Overall, the annual yield of the Romanian art market for the last 15 years (1995 to 2010) has been 36 percent, according to Artmark data. Last year the figure was 40 percent. But how does a buyer start their research? An Index of the Romanian Art Market has been available since 2009. Devised by Artmark, the index is a book listing the average annual yields and market quotations of more than 1,000 Romanian artists, both contemporary and Old Masters. The index monitors and processes every public sale through art auctions in Romania in the past 16 years, and offers annual quotations, annual turnover plus medium annual performance of the entire period in which an artist’s work is available on the market, as well as the evolution of the market value of Romanian artists. Another instrument available is the Art Significant Indices, featuring weekly quotations of 100 best known Romanian artists.

The top local auction sales in 2009 were Camil Resu’s Aise, which sold for EUR 160,000, and Marcel Iancu’s Port, which went for EUR 130,000. Of this year’s 10 best selling paintings, the top four places are taken by Nicolae Grigorescu works. Tarancuta odihnindu-se (Peasant Woman Resting) grossed EUR 270,000; Carciuma la Rucar (Pub in Rucar) was auctioned for EUR 230,00; La marginea padurii (At the Edge of the Forest) went for EUR 200,000; while Pastorita (The Shepherd Woman) netted EUR 175,000.

The BR Club series of events are designed to bring to the attention of its members the perspective, experience, and vision of local and foreign experts on key topics of the business, social and artistic environment.