The fundamentals of art collecting are not difficult to master. Obviously, the average person is not financially able to go on a shopping spree for Rembrandts, Fragonards, Gauguins or other paintings that—when and if available—run into the hundreds of thousands or even millions of dollars.
But even the individual who has only a very few hundred dollars to spend can buy good works of art—objects that are of high quality and that will retain or increase their value.
What to buy? This depends on two factors. The first is the individual’s taste—and, if he is to buy wisely, it must be assumed that he has fairly good taste. The second factor is the individual’s wallet. Whatever the price range he can afford, the art collector must always strive to buy the best he can within that range. One good item is worth a dozen—or even a hundred—bad ones.
On the one hand, the collector must always remember that artistic value does not necessarily follow the value set by the market place, or vice versa. On the other hand, a collector can appreciate art and revel in its beauty, yet he is entirely justified in wanting to invest his money wisely. It is just as foolish to throw good money away on bad art as it is to throw good money away on anything bad—and only a fool would knowingly overpay for whatever he buys.
Then, to determine whether one really likes a work of art enough to buy it, there is no better rule-of-thumb test than that provided by the classic question he should ask himself: “Can I live with it?” The individual who owns a piece—be it a painting, marble bust, French Renaissance escritoire or whatever—will have to look at it often and long. If he believes an object he contemplates buying will continue to please him over a period of time, then—all other things being equal—he should buy it. If not, he should look for something else. “I buy the things I like—and like the things I buy,” is the true collector’s guiding philosophy.
Once he has made his purchase, it is up to the individual to decide what he wants to do with it. He has two choices: He can hold it until there is a rise in its market value, sell it and pocket his profit. Or he can keep what he has bought and enjoy it, holding onto it no matter how high the market value goes. If he does this, he can be satisfied that he has invested wisely, for he owns something that has lasting artistic value and pays him regular dividends in pleasure even while it unobtrusively continues to increase in monetary value. Either way, buying fine art can be the finest and most satisfying of all investments.
* Source: How to Be Rich by J. Paul Getty