Transport? Ownership costs? Storage? Questions? We can help.
Naturally there are certain costs involved in owning a piece or portfolio of art. However the common misconception is that this cost will so heavily eat into your profit margins, that making a worthwhile rate of interest will be hard. This is simply not true. Here at Global Art Platform we do everything we can to reduce these costs from start to finish. Whether it be from the way we source our art, to the way we try to cut the sale cost of the piece in some cases down to £0, excluding our commission on exit meaning the investor receives as much of the profit from this market as is possible.
The largest costs incurred in owning a piece are generally:
We have detailed in individual pages our process for each of these and how Global Art Platform can help you save as much as possible.
Another factor to think about, especially if you are taking personal receipt of the piece itself is insurance. In most cases the piece can be added to a standard home insurance policy, in the event this is not available for whatever reason we do have some additional information on companies that may take on your piece.
By working this way we create client satisfaction that we believe bodes well for future business.
Transporting Fine Art
The transportation of art is when it is at its most vulnerable and susceptible to damage and corners should not be cut in order to try and save money, as the resulting costs of having to repair damaged art are invariably much more expensive.
We use specialist couriers to ensure the piece is delivered to you or the warehouse as safely as possible.
Global Art Platform can offer advice on transportation and protection of the piece should you have to move it from the initial point of delivery.
Transport costs are something we advise to not try to save on. The transit of the art is when it is most vulnerable and susceptible to damage so to save a few pounds on the packaging could cost you much more in the long run if the piece is to be damaged and need repairing at a later date.
Condition is imperative when looking for a piece for either aesthetic or capital gain.
The condition of the work can dramatically alter the monetary value of the piece in question both positively and adversely.
Here are some examples of how works are examined, valued and what is looked for:
- Is the contrast, grading and colour consistent and correct?
- Is there any visible signs of fading?
- Are the works front and back both clean and unscratched?
- Is there any evidence of moisture/water damage?
- Are there any bubbling or cracks in the piece?
- Is the work framed?
Here at Global Art Platform we only deal in pieces that are in “mint” or “excellent” condition and ready for resale.
An auction house is where two or more people are present either physically or via other channels (such as telephone or representative) battle for some of the finest works coming on the market.
The auction houses also act as a heartbeat for the market as with each successful sale it further instils interest and demand in this asset class. For those already involved, these events create an enormous amount of fun as well as a financial capital boost. The auctions can take you through a range of emotions from witnessing records being broken, the elation of your piece reaching higher than expected.
For those who are not quite as familiar with the above we have created a handy glossary of terms to explain how these exciting contests work.
Auctioneer – The master of ceremonies. This is the individual with great charisma and presence who will conduct the sale of each lot. They use all their range of skills to wheedle remarkable prices from even the most reluctant bidder. Their tool of choice is called a “gavel”, a hammer shaped object usually made from wood with which a knocking noise is made to signify the ending sale price of any given lot.
Lot – This is a term used for the piece of work being sold in a particular one round of bidding.
Estimate – This is an auction house’s educated guess at what they believe the work will fetch. Usually given in a bracket based system with a high and low estimate. Eg. £12,000-£15,000. This is an expert’s opinion in which they believe the work will fall between. However it is certainly not uncommon for the lot to go far above even the high estimate predicted.
Reserve – A reserve is a predetermined value. This means that the piece will not be sold if it does not reach a price beyond the predetermined amount.
Hammer Price – This is the price of the winning bid at the time the gavel comes down to knock, but does not include the buyer’s premium.
Buyer’s Premium – This is a surcharge that the auction house adds to the price of each sale. Generally between 10-20% of the hammer price, depending on the house and the total price of the piece being sold.
Selling Art Privately
Sometimes it may be a more financially viable option to sell the piece privately.
We believe this is one of the best ways of reaching maximum returns as it incurs little to no costs.
On occasions we can source private buyers if they have an interest in your specific piece both nationally and internationally.
A vast number of art sales are done through private means, this is due to cost staying low and also not all our clients like to sell through public means as they prefer to keep the affair private.
Global Art Platform are so confident in the acquisition of our pieces for the desired effect (increasing in value) that we reserve the right of first refusal if you find a private buyer, as we may believe there is still good growth to be made from the piece and that you may have been offered an undervalued amount for the piece in question.