Growth in art – Romanian painter Adrian Ghenie increases 16 fold

Artists all over the world are discussing the secret of success. Adrian Ghenie is a living proof that it is possible to make money from painting, while others are struggeling to sustain their daily life. In 15 years, the values of Adrian Ghenie’s paintings are increased 16 fold. And he is just in the beginning of his fourties, born 1977.  Sometimes, it is discussed that he might be overrated, which happened to Pablo Picasso in his lifetime as well. Nevertheless Adrian Ghenie continues his way to his place in art history, as one of the fastest emerging artists. The dream came true the previous taxi-driver who emigrated to Vienna is nowadays a millionaire just from painting.

The story began at the art-university of the Transilvanian city of Cluj-Napoca, which is actually well known amongst art-connoisseurs for its “School of Cluj”, which started becoming famous after Ghenie appeared on the international art-stage. “He came together with the right people in a time when the line of the School of Cluj had been uncovered”,  states Ion Sbrciu, Director of the Art University. He opened the doors for a lot of Romanian painters, and he directed the awareness of an international audience to the high quality painting from Romania. The art schools in Timisoara, Iasi, Oradea and in Bucharest are teaching art in a long forgotten technic of academic figurative painting, which is uncovered again, which is as well an effort of Ghenie. Therefore it is more than expected, that Romanian President Klaus Iohannis has awarded him in February 2019 “For Merit in Knight Rank”.

Romanian artists of the next generation are in line to follow. Oana Ionel,  Radu Rodideal and Albert Sofian are gaining more and more international awareness, since they had been invited by Rolls Royce Motorcars Munich to expose their works on social events of the noble car brand. Contemporary Romanian art is free of the prejudice, that they are technical brilliant and don’t know what to do with their phantasy. Either academic realistic or lyrical abstract, Romanian artists are on their way to the top.

Adrian Ghenie earns now, as he says, more money than he needs. Therefore he wants to bring money back to the society. He is co-founder of the art-center “Fabrica de pensule” in Cluj, where the old brush factory had been transformed into an art space, with studios, galleries and meeting places. Here is as well the Romanian branch of his Gallery “Plan B’, which he established together with his friend Mihai Pop.  As Adrian Ghenie went to Berlin, he had been not good enough for the established galleries to accept his portfolio. After several rejections, he decided to establish his own gallery. In that time Ghenie had been proud, if he could sell a work with 7.000 Euro, afterwards he found the same works on Sotheby’s with hundred-thousands of Pounds

It had been a long way, Ghenie ran in a short time. Most of all, he and his friends understood the rules of the game very quickly. They understood to make the right contacts and to move strategically smart. They had been driven by the inner power to continue.  He jumped over the magic line of 1 Mio Euro, because he publishes only 10 – 15 works per year. The waiting list is long, and the prices are still increasing.

 “How Adi did it?”It will remain a mythos with legends and fairytales. Maybe the investors who became rich with contemporary art from Romania understand.

Art-Investment – stabilize your wealth esthetically

 

On their last meeting on 07th  March 2019 European Central Bank decided to sustain the low-interest-policy, at least until end of the year. Experts are sure it will continue much longer, because it is a tool for many states to handle their interest-duties in order to finance their deficits. It is not insight that economies like US, UK, Japan or Euro-Zone will change this policy. The only way to sustain family wealth is to invest in real assets like real estate, gold and art. ERGO art-insurance director Julia Ries compared the German Stock Exchange Index DAX and the Art index with 50 world leading artists over last ten years. The Art-index is winning in terms of profit, as she states on ERGO website in autumn 2018.

Art-Investment can be as well a profitable investment, which benefits from increasing values of artists, especially upcoming and emerging artists. Investors might hesitate, because art is always linked to personal taste and appreciation. It appears strange to invest into something you might even don’t like. Art-Investment-funds might be an alternative, because they are disconnected from the ownership of a certain work, or from a disliked artist.

But how to identify the artists to set on? Not everyone who is unknown today might be the new Picasso tomorrow. Art-advisors and consultants are getting more important to find the new talents. And galleries have to get more courageous, not only to offer what their exhisting clients are asking for today, as well they should dare to recommend new artists.

 

“With all technical possibilities we have nowadays, it seems that the most difficult is still to identify the emerging artists. It looks like they are hiding” (Gunther Sachs, 1932 – 2011).

 

Recently, it seems that there is no clear trend in art, where to set on. Too much tendencies are parallel. This fact makes it more difficult to scout the stars from tomorrow. Still it is not a mistake to buy classic modern art, especially from French artists. They guarantee a certain stability on the market. But taking a look on contemporary art-fairs shows, that painting in extraordinary quality of technic is highly demanded, especially European art.

There are many upcoming and emerging artists with high rates in development, which sold once their works with 5.000 – 7.000 Euro to find them later on auction-houses rated with 120.000 Euro and more. High-Quality artist-scouts are checking not only the artistic potential but as well the personal capability of performance. This includes the questions, if the artists understand the rules of success, how disciplined the artists can work and if they could handle it psychologically, to break through to the top. Some galleries offer even coaching programs for artists they want to promote.

Well organized art-advisors will check as well the resell-possibilities of the artworks. The market develops its mechanism of stabilizing wealth and increasing, just when more collectors are interested on a certain artist, and if the gallery has access to them.

Provided this points are checked, an art-investment can be very profitable, especially into good trained Middle- and Eastern European artists. Especially the Romanian art-scene from the academies in Cluj, Timisoara and Bucharest offers surprising possibilities. The former Taxi-Driver Adrian Ghenie who is traded now with more than 3 Mio Euro is just one example. Especially for smaller budgets it can be profitable to invest in art. It can start with a range of 1.500 – 5.000 Euro per piece. Quiet often we see an increase of the artist-quotation in a range from 3.000 – 8.000 Euro. They are on the jumping board to enter over 10.000 Euro, than it starts to roll easier to develop the quote.

Since 2008 the low-interest-policy in the Western world is going on. Since approximately 10 years, art is booming. If you bring nowadays money to the bank for seven years and receive 1,5 % interest, in reality you lost money, because of the depreciation of the money. If you invest strategically into art, you will win. At least you will esthetic into your property.

"Overjoyed"

 

 

Radu Rodideal, Bucharest based artist, his work "overjoyed" which had been exposed at Rolls-Royce Motorcars Munich art exhibition January 2019, is for sale, 150 x 100 cm, oil on canvas, 2018
recommended for artinvestors and collectors appreciating promissing upcoming artists, Details at kunsthaus7B@gmail.com

With art against crisis

With art against crisis

It is possible to avoid the next economic crisis with a simple trick in reorganizing the portfolio of your collection-property. Invest more in art, especially on a level below 12.000 Euro. Here are the highest chances for increasing the values on a mid-term range, independent from political and global economic situations.

Critics of art-investments cheered, as in 2015 the complete art-market decreased with 10 % and another 23 % in 2016. It had been a good time to buy art as an investment, because in 2017 already it increased in total with 40 % and brought new records in gallery sales, auctions and art-fairs.

Investors trust again in the art-world. In 2015 had been the auction record 180 Mio. USD. In May 2018 the Rockefeller Art Collection had been sold at an auction at Christie’s in New York with 684,4 Mio USD.

Thierry Ehrmann writes in his „artprice annual report 2018“, that the unexpected growth of the art-market in 2017 and 2018 had been because of the positive economic development in both, the western world and China. New York and Beijing are the most important places in art-industry. In US, UK and China together, 81 % of the art-market by value is happening. The negative development in the US economy as well as the consolidation of the growth in China since nine months did not arrive on the art market yet. But it has to be taken in considering, that the forecasted economical consolidation, might arrive in the art world as well. The warnings of institutions like the European Union Commission as well as the European Central Bank are serious.

Art-investors are still busy with occasions to obtain works of influential artists. The big names are required, artists who are excellent branded like Pablo Picasso, Jeff Koones or Gerhard Richter still in favor.

But more and more are searching for alternatives, because the art-blue-chips are depending on the international finance-markets. Collecting art can be a passion. Especially private collectors are in danger to react too emotional. It seems that the art-world is following other rules, or maybe more rules, because art is a very diverse sector, and the real value is just existing in the one who wants to buy.

Aside on blue-chips, institutional collectors like museums, are interested on diaspora collections, like African Art in France, Afro-American art in US but as well Eastern European Art is still emerging. Emerging artists contribute, that the art-market can be more stable and secure for investors. The risk is smaller because you can spread it on more shoulders, and the dynamic in values can be higher, because of the life age of the artists and psychological factors like ambition. The value of your portfolio can grow with the career of the artist. It is possible to develop an ambitious Romanian painter of 35 years from 2.000 up to 20.000 Euro. Buying 10 of his works in the right time can be a reasonable investment. Now is the right time to buy young and emerging artists. 

But here the success is – as like almost everywhere – the result of efforts. All three parties, artist, gallerist and collector should discuss together a strategy to develop the market appearance and price-index. Nowadays, in order to avoid financial disasters, the old slogan comes back: “collecting means developing”. Anyway, planned and controlled development can be the best strategy to prevent from impacts of crisis.