Unveiling the canvas: Art investment for beginners

Before making any investment, take the time to understand the art market by familiarising yourself with different art forms, artists and art history

by NURUL SUHAIDI

ART has always been a creative means of self-expression, but beyond its aesthetic and emotional value, art also has monetary value and can be treated as an alternative investment with endless appreciation potential.

Whether you are drawn to the vibrancy of paintings, the depth of sculptures or the artistry of photography or installations, art holds a wide canvas for every investor to explore and diversify their portfolios.

For the beginners in art investment, there are many ways to start and participate. Embarking on an art investment journey requires thoughtful consideration and research. Before making any investment, take the time to understand the art market by familiarising yourself with different art forms, artists and art history. Invest in books, attend exhibitions and engage in conversations with art experts and collectors.

Every art investor must start somewhere, and understanding how to construct an art portfolio is the essential first step to potential capital appreciation.

A portfolio can help viewers understand the artists, their strengths and skills and the pieces of art that most exemplify one’s style.

Unlike other assets, art is something that not only can increase in value but can bring delight to its owner, hence investing in an art piece that resonates with your style can make the journey more enjoyable.

For beginners, it is also essential to build a relationship with curators, artists, gallery team or auction houses given their important role in facilitating the sale of high-value artworks and providing exclusive information, views and behind-the-scenes offerings.

Honing your aesthetic appreciation and connecting with artists and collectors through auctions and gallery visits can enhance a journey of this evolving landscape.

When managed thoughtfully with other assets, art investments can contribute to a well-rounded and diversified investment strategy.

Polenn says in terms of market stability, established artists with a proven track record of high prices tend to maintain their consistent value

Growing Market

Henry Butcher Art Auctioneers director Sim Polenn said art investment is a form of safe investment alternative and participations can enhance their intellectual significance, cultural status and aesthetic appreciation and allow themselves to appreciate the beauty of art and the simplicity of life.

“The art industry is a small niche market; it is all about reputation, rapport, professionalism and trust.

“It is important to maintain a high standard of integrity, always looking for long-term relationships and professionalism at their best. This will distinguish us from others,” he told The Malaysian Reserve (TMR).

Although Malaysian art values are still very low compared to other countries, Polenn noticed that the recent years have been positive and the best time to buy, and he sees it remain encouraging for 2024.

“It is a growing market in Malaysia where we observe the collec- tors’ pool is growing, with clients around 45 to 55 years old buying aggressively.

“There is also a small bunch of young rich people around 35 to 45 years old who have made their fortunes venturing into art investment,” he said.

However, before purchasing or investing, Polenn advised collectors to consider crucial aspects like buying from reputable and trusted sources and avoid buying fake works or conflicted pieces.

Given that art value is often tied to its aesthetic appeal, stories, preservation and recognition, the market dynamics of art investing can be complex and unique compared to traditional financial markets.

In this regard, Polenn said in terms of market stability, established artists with a proven track record of high prices tend to maintain their consistent value as art collectors, galleries and institutions often gravitate toward them.

“The art market is influenced by a distinct set of factors that contribute to the value of an artwork, including its rarity, limited supply and scarcity in relation to supply and demand economics,” Polenn added.

Additionally, a strong collector base consisting of prominent figures who collect an artist’s works can significantly influence the market, along with the artist’s profile, solo and group shows, awards, museum showcases and educational background. “It is always good to be open-minded and expose oneself to different types of art. Visit auctions and exhibitions more frequently and interact with other collectors.

“It is always good to buy from auctions as the starting bids are always lower than the market value,” he told TMR.

Despite that, Polenn said in Malaysia, there is still much room for potential growth in terms of monetary values and infrastructures.

“Different art infrastructures need to be perfected; national art institutions need to organise better and impactful exhibitions that gain international attention and recognition via intensive marketing campaigns and more,” Polenn said.

As a self-taught abstract sculptor, Nadiah has always believed that pushing the boundaries of one’s skills is integral to artistic growth

Beyond Financial Returns

Meanwhile, abstract sculptor Nadiah Yan, described her artistic journey as a continual exploration of self-expression which rooted from a passion for the fusion of art and architecture.

She believed that art investment goes beyond just financial returns. Unconstrained by monetary value, art investment represents a dynamic interplay between an artist’s ongoing growth, mastery of skills, and the profound impact of the artist’s work on society.

Nadiah, whose real name is Nurnadiah Mohd Shafian, said it is also a process of supporting the artist’s journey, contributing to the cultural tapestry and finding personal meaning in the pieces. “As a self-taught abstract sculptor, I have always believed that pushing the boundaries of one’s skills is integral to artistic growth.

“Diversifying my techniques and experimenting with non-tratraditional mediums have been key elements of my artistic evolution,” she told TMR.

For her, collecting art also comes with amazing perks. Besides having your own mini gallery, art adds a spark to conversations, and allows you to be part of an art-loving community. It also provides you with the inside scoop directly from the artist, helping you learn the stories behind each masterpiece.

“Imagine sharing a connection through the same artist’s collection. It is like being part of a big art story where each collector adds their unique touch. The camaraderie among collectors makes the art even more special. “Collecting art also goes beyond generations and it is even a good move for building family wealth. Your art collection becomes a story that gets passed down through time,” she said.

Putting importance on quality in every stroke, colour and concept, Nadiah aims to increase the value of her art so it can become good investment over time, through putting a careful pricing strategy and finding a balance between work quality and its potential to gain value.

“Lately, I have been focusing on how art fits into investment portfolios since I dedicated myself full-time to this world,” she said.

Some of Nadiah’s pieces, like “Faith”, have turned out to be great investments.

It started as a three-digit price at 90cm x 90cm in early 2023, and now, at the end of the year, it is in the four digits for a smaller 50cm x 50cm size.

As much as the passion fuels each artist, Nadiah believed that curators also act as an important bridge, to guide collectors on making smart purchase decisions, including keeping an eye on what is happening in the art world, new emerging artists, changing styles and exciting art movements.

“They also offer collectors chances to get limited editions, early releases or exclusive art pieces.

“They even set up private viewings and special events, giving collectors a personal and close connection to the art they might want to buy,” she added.

Also taking inspiration from a profound admiration for architectural marvels and design aesthetics, Nadiah said each artist has a unique path that makes each piece more meaningful.

While keeping her artistic style consistent and showing tremendous skill improvement, she hoped to bring more joy and positivity to collectors.

Beyond just the arts, she so far received awards and recognition which are the evidence of her dedication toward her craft and an assurance for potential investors.

“Ultimately, investing in art is a personal decision. If you are thinking about investing, I encourage you to look into the stories behind each piece.

“The inspirations and motivations add meaning to the artwork, making it a richer experience for collectors,” Nadiah said.

Sim focuses primarily on collecting contemporary local arts by emerging artists as he believes that young artists need a commercial breakthrough

Supporting Emerging Artists

Investment banker and avid collector Bingley Sim, who initially bought paintings as a different asset portfolio, said his perspectives now have widened as he cultivated a deep passion and love for painting since 2018.

His art collection journey began with the first painting purchase, an abstract work by Chong Choon Woon, entitled “Modern Shanghai” (2005), on April 4, 2005, at Town House Gallery.

Ever since, he has been collecting a wide range of art with great depth.

Sim focuses primarily on collecting contemporary local arts by emerging artists as he believed that young artists need a commercial breakthrough, support and guidance from the community, especially among the collectors.

“To do that, not only do I need to know the artist well, but I also have to keep close track of the artist’s development in terms of career, ideas, attitude to life and most importantly, the artist’s determination and abilities to reach each of the milestones,” he added.

Among his collections are displayed in his own art space called the “RuMa Collection” while many artworks also have been borrowed for exhibitions by the National Art Gallery and Bank Negara Malaysia Museum and Art Gallery.

Sim said market and awareness are growing, especially with many auction houses and new galleries popping up, exposing the public to art demand.

“What has also become more apparent are the online and virtual art exhibitions. They are becoming a norm. It makes complete sense for galleries to embrace online marketing as the reach would be much wider,” he told TMR.

Being a seasoned art collector with over 20 years of experience, Sim with two other members founded One Piece Club Malaysia (OPCM) to cultivate the appreciation of contemporary art by encouraging prospective collectors to buy their first piece of artwork.

It can be daunting to start, but for new investors and collectors, they should start by visiting art galleries, exhibitions and auctions, as well as doing research and engaging with the senior collectors to gain insights on valuable art pieces.

“Besides collecting emerging artists’ works, I also visit as many graduate shows as possible. There are many emerging artists which I am tracking and observing closely — it is a process and a lifelong journey,” he added.

Although Malaysia has good talent and support, Sim said a more vibrant art scene needs good infrastructure, robust ecosystem and more initiatives like The Cultural Economy Development Agency (Cendana).

“Compared to our neighbouring countries, I would say we have enviable standards, talents and ideas.

“Malaysia is lucky as we are multiracial and multicultural; as such we do not run short of ideas,” he said.

Hoping to bridge the gap in the scene, Sim also encouraged more participation among aspiring art collectors, investors and artists in OPCM events to learn about art, expand their works and make purchase.

Overall, an art investment portfolio is not only about financial gain but also about the unique blend of personal enjoyment, cultural enrichment and legacy-building opportunities.