By Toni Case

Parlaying a love of art into a solid investment has never been easy for art enthusiasts in Australia, but times could be changing. Fashionable blue chip artists such as Brett Whiteley, John Brack and Frederick Williams today spear through the million-dollar mark at auction with minimal fanfare – whereas a few years ago those price levels where hit news.

“There is a change in the way Australians view themselves culturally,” says Art Director Ralph Hobbs at Art Equity. “There was a time when we would put a poster on the wall and spend more money on the frame than the poster. Now people are more inclined to put an original artwork on the wall at whatever level they can afford,” he says. “It’s definitely a shift.”

The internet has also impacted the art market in Australia. Active buyers from Singapore or London can research an artist, view images online and purchase from their desktop – increasing turnover and liquidity in the market. At the same time investors can use internet sites such as the Art Sales Digest to analyse auction sales prices and volumes, and predict trends. Indeed, as the availability of market data and liquidity improves, the art market begins to assume more of the characteristics of a true investment market, rather than an esoteric hobby.

Getting started in art will require at least $10,000 and the time to build your confidence and knowledge of available artists, galleries and dealers. For $10,000, you’ll be largely limited to buying the higher-risk category of artists, known as emerging artists. The second rung up the price and status ladder is the mid-career artist, finally arriving at the blue chip artist.

The structure of an art investment portfolio has many similarities to a share or managed fund portfolio. Riskier emerging artists, although more affordable, require a bigger commitment to the investment. It could take thirty years for the artist to shine.

The hallmarks of an blossoming emerging artist, according to Hobbs, are sell-out shows in reputable galleries, a commitment to building their profile both in Australia and overseas, and the production of a yearly body of work that sustains the market. However, he stresses that emerging artists are always a “bit of a bet.”