Collecting Tips in the WSJ - Take 1

The Wall Street Journal ran an article on starting an art collection titled Your First Picasso by Brooks Barnes on Friday, April 4. If you missed the article or are not a subscriber to the WSJ (which means you can't access the article on-line), I have spelled out the highlights (and added a personal comment or two) here. These cliff notes will be posted in sections.

The goal of the article:

With the neophyte collector in mind -- and also more-experienced buyers who want to add cheaper works -- Weekend Journal went in search of strategies for finding less-expensive art with the best chance of increasing in value.

Here is their first of four recommended strategies for finding works at $5,000 or less:

1) Buy 20th-Century prints at auction or through private dealers. Last year, print sales at the big New York auction houses "totaled $31 million, a 35% increase over 2002." Recommended artists: only Picasso... no other artists were named, except as an example of price increase. Takashi Murakami prints sold for $2,800 in 2002 and $8,000 last March. If you didn't get one in 2002, his prints are now above the $5,000 limit they are writing about. They recommend buying Picasso prints from the late 60's or early 70's because prints in all other periods are over the $5,000 mark. My favorite tip: "Try to avoid [Picasso] works that are overly erotic; it keeps value down." Very funny. Recommended auction houses outside of New York and LA are Ivey-Selkirk in St. Louis and Skinner in Boston. They recommend you see a print in-person before buying it to assess condition (torn edges or frayed corners are no-no's); therefore buying a print on-line is not recommended.

I think this recommendation is best for the Investor Collector. (Actually, the whole article is geared towards this type of collector over any other. No talk of collecting out of passion for art in this article anywhere. Then again, it is the WSJ.) If you are looking to collect as an investment, this is the route for you. As you would research a stock, so should (and can) you research a print by most 20th Century artists before heading to an auction. There is a plethora of information available to you by checking out auction results at artnet.com or contacting the auction houses directly to request price lists. Some auction houses even post their recent auction prices on-line.

Comments

[Gary]

Not sure how I came to your site but I'm glad I did. My wife and I have started a collection with some art we acquired on a cruise. We had a relatively good experience and we picked up some pieces we really liked - Benfields, Tarkays, and a Dali.

I noticed from your email address that you're affiliated with the MixedGreens gallery and am wondering what you think of the art collecting via the cruise ship industry - specifically, Park West Galleries.

[Fraser Beach]

I reallly enjoy reading your site.

[Paige]

Gosh! Thanks guys!

Gary: I didn't know anything about Park West Gallery before your comment. I Googled them and discovered a few negative articles connecting them to art fraud. Is this what you are referring to? Sounds really ugly and awful. I hope you weren't personally affected.

[Zeke]

Howdy!

I'm not aware of Park West doing anything more than a very hard sell to a very captive audience, were the articles sort of like the articles (and subsequent judgment) about Christie's and Sotheby's engaging in fraudulent behavior? Or were the articles about a different sort of fraud?

To me, the first rule of collecting is to love the art, if you do that, then everything else can and will work out.

Play Ball!

[Paige]

I'd love to hear more from Gary on this because he sounded like he knew what he was talking about. I'm totally new to this information and this gallery. The "fraud" accounts may be a bitter collector spouting off with no credibility, but what I could find involved a Dali lithograph dispute. Dali prints had a rough go in the 80's. I'm lost here as to exactly what went down with Park West.

Gary... Help!

I'm with you on your first rule of collecting art. If you love it, buy it!

[Gary]

My experience with Park West was aboard a Royal Caribbean cruise ship, Grandeur of the Seas. It appears they "lease" space from the ship to conduct art auctions, perhaps four times, during the course of a seven day cruise. Their artists are varied - Peter Max to Salvador Dali and everything in between. Most pieces are less than $1,000 and there are a few that will command more than $10,000 - Rembrandt, Picasso, Dali, etc.

Late last year, we purchased several pieces from the shipboard auction and for the most part we have been very satisfied. There was one piece that was supposed to have been available but through some mixup with inventory, the piece was not. Through a comedy of errors, selection of a replacement piece was not nearly as a timely activity as we would have liked.

In the end, after their fiscal year end inventory (March '04) the found they had a copy of the piece we'd originally purchased. Problem was, the piece had appreciated more than 400% and our Park West contact was not anxious to give the piece to us at the price we'd paid. But he did, and the piece is now hanging at the end of our hallway.

If we had to do it all over again, you bet - we had a great time at the auction and have been enjoying this quality art work for severl months.

[Thomas York]

A NEW kind of the "PYRAMID GAME"?

Are those "SERIOLITHOGRAPHS" ,(offset print reproductions, like any poster, or colour magazine)
"signed in plate" (a offset photo print of the artist sign), showing for sell in places as Ebay internet auctions webpages, with "Certificates of Authenticity" from Park West Gallery, in a variety of prices and sizes, in editions of 9500 pieces...(limited?..) are a valuable piece of Artwork?

For example: the Museums offer for sale in theirs art books stores, posters (open editions reproductions) with images of famous Artists hanged on the Museum walls, those products are sold as his, without any "Certificates of Authenticity" and or Appraisal value from the Museum.

When some Gallery, Auctioneer or Publisher give as a GIFT to the people, for their Artist's promotional purpose: posters or cards with photo printed images of Originals Artworks of the Artists, we suppose that the SIGN of the Artist we can see and recognize upon the image (work of art), as all the artists do on their works, they sign on their Original works.

So, I ask, for what purpose this Gallery PRINT another photo image of the Artist SIGN in the lower side of the paper frame, called: "SIGN IN PLATE" and add a "Certificate of Authenticity" and "Guarantee" the authorship of the original work of art ?

Authenticity and Guarantee of WHAT?...we suppose that when we receive or buy a "ORIGINAL WORK of ART" of an artist that his "provenance" can be "hesitant" or "doubtful", maybe we should ask for "Authenticity".

Those "SERIOLITHOGRAPHS", are SERIGRAPH? (Silk Screen print process )....are LITHOGRAPH?
("lithos" in Greek means: "Stone", print process),.. are "ENGRAVING",...are "ETCHING"...
or are nothing but a SIMPLE OFFSET PRINT as any COLOUR PAPER MAGAZINE, but printed in a more heavy paper, so, what you get there is a paper with a Printed PHOTOCOPY of a ORIGINAL artwork.

Of course everyone have the right to sell anything he has received as a gift.
If someone receive a gift with a "Certificates of Authenticity"....this gift or object start to be something with a suppose or certain value.

So, if we receive a printed paper of the edition of 9500 pieces we have here a MARKET, is not necessary that one person recieve all the 9500 pieces, but a uncertain number of people that go with those "gifts" and put them for SELL, is a MARKET!!

Suppose fellows, we have there outside 12 printed images in editions of 9500 per image, of five different Artists were "give as a gift", we have here 12 x 9500 = 114000 papers, suppose that they are sold only in
15 $usd.
We have in market: 1.710.000 $usd.....!!!!

If those Artists have a Agreement with the Gallery to FLOW the market with thousands and thousands of papers of a photo printed image of theirs artwork in such prices and quantities, so they are "SUICIDAL", because the buyers of their artwork will prefer to recieve a print of his artwork as a gift or pay for them such low prices, instead buy a Limited Edition of SERIGRAPHS in 300 or more percent more higger price.

The art market of those artists and their reputation will be damage in a short time and with the danger of almost impossible for them to sell a LIMITED EDITION of their artwork, so, more difficult will be for them to sell their Original works as, Oils, Acrylic or other mediums of a UNIQUE artwork: "ORIGINALS".

If the Publisher, Gallery, Auctioneer or Representative of those Artists, FLOW the MARKET by themselves with those SERIOLITHOGRAPHS in editions of 9500, so, they are "SUICIDAL" too, because they have FOR SELL in theirs collections, Limited editions of Serigraphs, a variety of printed work of art and Originals artworks too, so with those thousands and thousands of papers on Market in such low prices, they made a " COMPETITION" to themselves, we have here a contradiction.

If is not a crazy contradiction to their own interests, so WHAT IS THAT?, if not a underground MARKET that the Gallery by himself have create for his OWN PROFIT.

Questions:
We have here a millionaire FRAUD?
We have here a criminal use of poor Artists?
We have here a prostitution of Artists?
We have here a criminal STOLEN of Intellectual Rights?

Or is it a NEW kind of the "PYRAMID GAME"?........or what is thi

[mike]

okay check it out.... i am an artist.. i have a masters in art... my parents went on one of those" carnival " cruise scams or whatnot..they went to the art auctions and bought a whole bunch of dali prints..i am a printmaking major just to let you guys know... this whole dali thing is a real catch 22. the park west guys basically have a whole crapload of uncertified prints that they probably bought a long time ago... and they are unloading it on champagne filled naive people just trying to get some sort of investment. art dealers are like used car salesmen.. and that is really sad. printmaking is a beautiful and valid artform..atleast in a traditional sense. a lithograph that has been printed from a stone or even a metal plate.. or a woodblock print with 4 or more colors is really hard to finish, muchless..if properly done a great investment.. especially if it was done while that artist was in school or it was a first edition.. probably no more than 300 prints if you are lucky.. if its a copper etching type of print look for an edition of around 50..copper gets worse as its ran under a press.. its a soft metal, and the dark lines are likely to get faded after even 10 pressings...but this is artist standard.. usually the first 10 prints of any image are generally the best.. after 10..it sucks...my parents took me on the carnival cruise and i wanted to puke.. they are some real bastards...look.. if you want a dali original..its not going to happen... if its a dali print..its second best.. if you really want to make money from art you have to go to your nearest local art dealer and find the painting or whatever it is that is original from someone that is unknown..the unknown artist is the one that will make you money.. when you buy a print you are making someone else rich.. not you...its a gamble anyways.. so just buy art from the ones in your area... its all about local history.. and the artists in your local area are the purest reflections of the things going on where you are..i wish more people understood.

[Alex]

I just went on a Royal Caribbean cruise and bought a few Schluss' and Perez's along with some other less expensive art. Have to admit, am a bit concerned with all the postings on the art being fraudulent or fake. Is Park West a reputable gallery from which to buy?

[Jeff]

I just finished another Carnival Cruise and enjoyed the "art" auction once again. I have no intention of bidding,mind you. I guess Im just one of those people who enjoy a good train wreck every now and then ( figure of speech). Since I know nothing of art,maybe I shouldnt comment, but I did not just fall off a turnip truck either. For any interested in buying at the auction, you must ask youself a few questions like I did. 1. If that rembrandt is really worth 200k, why do you have it hanging on the 5th floor with out proper security? Couldnt someone steal it? 2. during the auction , two people raised there hands to bid. Instaed of letting the high bidder win, the auctioneer slammed the gavel and promptly announced that both bidders had "won" Hmm wonder why?3. It may not seem important to you but if Im going to pay 6-8k for some art, you would think that the people at the auction would handle the merchandis a little mor carefully. They man handle the art like a crate of stawberries. And the frames on this auction were really beat up. Not exactly a good presentation of the property. About all Im really sure of is that a good frame and matting can cost about 4 to $500. Spending anymore than that is a real gamble in my opinion. But if youre into that, go for it.

[JC]

Park West is a scam indeed. I am in the art business and I sell legeitimate Salvador Dali woodcut etchings on my website. They typically sell for $400 and the better ones for as much as $1400. Park west sells the same exact woodcuts for 5 times the price on drunk cruise ship goers who dont know any better. Not to mention their prints are uncertafied dali works (they have warhouses full of questionable prints) Please check the prices on my website and then call park west and ask them how much they want for the same print! I can even offer Dali's Hand Signature on a print for far less then they will give you a regular print. Just goes to show you what a big corp can get away with.

[Bill]

I purchased a Dali from Park West Gallery as an investment while on a cruise ship. I made this investment based on the authorship of the piece and the announcements about the same and their Park West appraised values made during the auction on board that ship. I decided to get them reappraised. Based on the new appraisals I have found that I, like many others, was misled and lied to at the auction and in the appraisals. One is a Salvador Dali worth $17,000 according to Park West Gallery, but paid $11,000. On seeking an updated appraisal I was told that the pieces were “questionable” by the local art dealers. Bernard Ewell, a recognized expert in the field of Dali’s works and appraiser of a Salvador Dali Museum, refused to appraise the piece, stating that the Park West Gallery pieces are only of value to Park West Gallery. The appraisal of these works was represented as being from Bernard Ewell, a certified appraiser, when in fact they are from the owner of the gallery, Albert Scaglione. Sotheby’s stated that the piece would not be suitable for sale because it would not reach their consignment minimum of $5000”. I was induced to purchase these items by the over-priced appraisal which was not performed by a disinterested 3rd party. This is especially egregious in light of the fact that I paid extra money at time of purchase for this “service”. Park West appraisals were misleading and incorrect. February 8, 2001 USA today articles warn of the practices of these shipboard auctions and the expert Mr. Ewell is quoted as saying “This is not a serious art auction, not an investment opportunity”. A court case (Erickson vs. PWG, 2000) and several individuals have pressed and won refunds on grounds of deceptive practices and inflated prices when dealing with Park West Gallery. I feel pretty stupid! Park West hides amongst legal structures and international waters' law, that Park West Gallery misrepresents the value of artwork in its cruise auctions and that this misrepresentation is deliberate and knowing. I just want to return these pieces and get my money back! This is a scam that has been going on for years. Americans taking advantage of Americans…it’s pretty sad.

[Dave]

I just returned from a Royal Caribbean cruise. I bought 6 pieces from Thomas Kinkade. I had priced these prior to going and saved 50 - 60% off land prices. If you DO spend 10K of more and DON'T know what your doing, then buyer beware. If Park West was as fraudelent as some of your are saying, there would be so many complaints to the cruise lines. But there isn't. The only people who complain are "artists" or Park Wests competitors. You buy art because you love it. If it appreciates....great!

[Stephen]

Just want to let everyone know that the value of seriolithoghraphs purchased while on RC's The Mariner Of the Seas from Park West Galleries-15 months ago have not appreciated as informed while on the cruise. We have sent back $8,000 worth to Park west and are demanding total refund for framing shipping and appraisals that were supplied by the owner of the company- who has no appraising credentials. Buyer beware- Cruise auctions are a scam.

[Patsy McDonald]

I have a Lincoln and Dalivison in platinum bass relief as well as several prints. Do you know of a buyer for these?

[Tim]

I'm saddened to see those who support Park West and/or their sales tactics. Since when are patent lies about a product acceptable? Especially when they cannot be verified. With every expensive piece of artwort, the auctioneer would state "I just got off the internet and this is the lowest price". Of course, his price was 2 or more times the price I found once I landed. How does a civilized society function and prosper when this behavior is accepted? Buyer beware? These are not flea markets.

[Jordan Hillin]

Hey my name is Jordan Hillin and I went on the Carnival Pride about a month ago. From the sound of it we made a bad mistake on going to that art auction. Is all this true about Park West screwing people and if so the what should I do with the art that I purchased. I bought a Peter Max that I was told apprased at 4,700 and I just saw the same on on E-bay for 1,000 I mean seriously did I get screwed by the cuise ship and what should I do about it. I also bought three Thomas Kincades that are supposably worth 800-900 dollars a peice What do I do?

[Bruno Trani]

I bought 5 pieces of art from ParkWest.
The first 2 received were what i wanted, then they wrote and stated that they were out of one piece "Summer breeze ll" by
I. Tarkay. All the pictures should be
Serigraph,sign and numbered in pencil, they are not.They are only signed.
One is seriolithograph.
Is my next step to contact an attorney?

[Jonathan Papkin]

Dear Readers:

I am not an art expert, but I can offer some insight, after having purchased some seriolithographs:

I think much of the value is on the custom framework they provide.

I purchased a limited edition seriolithograph that cost about $550 with framing, matting etc.

The cost is my area for similar framing for anything in that size is at least $400. I have framed at least tenpieces of artwork over the years, at various framing companies, so I know what I am talking about.

So, I have very nice artwork that is framed quite well. Will it appreciate? I don't know. Can I sell it for more than I paid? Maybe yes, maybe no.

I saw onboard a Laker's jersey, signed by Kareem Abdul Jabbar jersey, in a shadow box for around $800. The shadow box alone would be $500-600. Can you get a jersey from Kareem signed for $50? I don't think so. I would have bought it, but I hate the Lakers!!

[Suzanne Roth]

I have been reading the comments above regarding cruise ship auctions. While I can not comment on the authenticity of the various art work(s) in question purchased through these auctions, there are several resources available to determine not only the authenticity but also the fair market value of the art you are questioning.

For instance: Peter Max has a websie that is quite informative on the various types of art he continues to produce to date, along with the prices for he still sells various works of his.

If you need to authenticate the signature of the artist (any of the artists mentioned), have an appraisal done-it is well worth the small price to pay for your peace of mind. An appraisal is also good to have for insurance purposes, as well. Keep your appraisal in a safe deposit box or fire proof safe at home.

Keep these rules of thumb in mind: Have the appraisal done by a Certified Art Appraiser, and two, Never accept an appraisal by someone that offers to purchase the art he or she is appraising.

There are rules (USPAP) that all appraisers must abide by....

Sincerely,
Suzanne