Acquiring Art

Loving a Work of Art

According to statistics, where a special link has been created between a viewer and a work of art, the viewer/buyer will love his/her acquisition for more than 20 years.

The First Value of a Work of Art

The principal intrinsic value of a work of art is, essentially, its uniqueness. There is only one individual in the whole world who will possess it.

The Second Value of a Work of Art

Original works of art, as paintings and sculptures, improve our quality of life by embellishing our surroundings, be it our residence or our office.

The Value of an Artist

Any real artist, worthy of the name, will rarely reproduce his/her own work; even if the subject matter recurs, the emotion or general idea will be different from work to work. The work of art remains a unique object.

Fluctuations of the Art Market

One should know that, in general, the art market fluctuates less than other markets and that there is a tendency for steady growth in the value of art.

The Buyer, the Investor and the Collector

The Buyer buys for the pleasure of living with an original artwork. He can also plan as an Investor by acquiring a work of quality made by a renowned artist.

The Investor buys now with the idea of making a profit later. He will buy either a work of quality made by an emerging artist who has an interesting background and résumé or he will buy a name (for the same reason).

The Collector buys usually many pieces by one artist he cherishes or by different artists he/she likes. He will buy for the love of beauty or pure passion. His purchases can be investments, but most of all, he loves art and artists.

Fiscal Advantages

The Government of Canada allows all Canadian companies or enterprises a 10 % exemption of the market value price paid for any Canadian work of art made by Canadian artists for the fiscal year of the acquisition. An additional 20 % of the residue is allowed as redemption expense in the following fiscal years.

For example, an individual purchases, through his company or enterprise, a $2,000 painting by a Canadian artist. The company or enterprise can claim a $200 deduction for this acquisition within the year the purchase is made. The following fiscal year an additional $360 (20% of $2000 minus 10%) will be allowed as a redemption expense and so on in the following years.

What David Rockefeller said...

As financial adviser of the family, David Rockefeller once replied to a shareholder that was afraid of all the purchases of works of art:

"Those investments cost us $500,000 and are now valued at more than $3,000,000. Would you happen to know any other investment that would have been as prosperous?"

What one of our clients/collectors, Mr. Z., said...

"A good original painting is like a good wine: the more it ages the more value it gains; there lies its precious bonus."

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