Terminology To Know For Art Investing

You may already be familiar with the concept if investing, be it stock market, mutual funds, money, bonds or otherwise. However art investing requires knowledge of not only finance but art as well.

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Whether you're in an art gallery, an auction house or investing among individuals, there is terminology that will benefit you to know. By educating yourself in the terminology associated with art money, you will avoid making the mistakes that could cost you thousands, even millions of dollars.

Because a great deal of art investing may take place in an auction-style atmosphere. It is a good idea to know the basic terms that are associated with auctions. An auction is a public sale in which people bid against one another as the price increases, culminating in one bidder backing down and the other winning the sale. This is often a very exciting method for art investing, particularly live auctions. A

n auction item will be listed either with a reserve or without a reserve. A reserve is the lowest amount the seller will accept for the item. This affects you in art investing because it is often an indication of the value of the piece and the seller's desire to sell it. A high reserve might indicate that the seller would like to sell it but doesn't particularly need to. If they get the reserve or higher, that is good for them, but they won't be upset if it doesn't sell. Conversely, a low reserve could indicate a desperate seller. Perhaps this is not a good item to include in your art investing if the current owner is anxious to sell.

Art investing will often require you to know some basic terminology associated with different art methods and materials. For example, it would be beneficial to know the difference between an Artist's Proof and an Editor's Proof. Suppose you are looking at two seemingly identical prints, one is market A.P. and the other is marked E.P. How would you decide which one will better suit your art investing portfolio if you didn't familiarize yourself with the terminology?

Artist's Proof were, at one time test proofs made by the artist during the creative process. However, in more recent times, an A.P. is usually a custom print. A certain amount, for example 5% over the total print amount is printed for the artist's personal use. An A.P. could make an extremely valuable addition to an art investing portfolio, as it is a piece that originally belonged to the artist himself. Similar to an A.P., and Editor's Proof or E.P. is a print or group of prints that is reserved for the editor that assisted the artist in the printing process.

Another important term to know with regard to art investing is a cancelled plate. A cancelled plate is created when the printing run is completed. The plate that is used for the prints is permanently defaced as a safeguard that the plate will not be resurrected for future editions. A cancellation impression is taken as a visual guarantee of the cancelled plate. This is important in art investing for multiple reasons. First, when investing in a limited edition print, you will want evidence of the cancelled plate. This will protect your investment because you know there will be no recreations. Additionally, the cancelled plate print or the defaced plate itself could prove quite valuable in your art investing ventures.

One particularly important item to know about an look for in art money is the artist's mark. The mark serves as a kind of logo for the artist that appears on prints rather than a signature. Another use of the term may refer to a collector's mark, which shows the identity of the work's previous owner. Because art investing can often be just as much about the history of the piece as it is the piece itself, a collector's mark could add value to the print. This is particularly true if the previous owner is famous or well known.

Though there are many other terms associated with art investing, don't allow yourself to be overwhelmed. There are books, websites and experts available to help you discover it all. Just remember to make educated decisions in art investing. That is all you can do; the rest is up to chance!