Art by David Jester, Palm Springs
By Jim Bruner, UBS Financial Advisor
As most Coachella Valley residents know, there is no lack of artists, art galleries, or museums in Greater Palm Springs and the surrounding areas. Many artists have taken up residence here and some residents have taken up art! Art display and collection is not just a business, it is a passionate investment for many who love art and hope to pass it on to their heirs.
UBS is co-publisher of the annual Art Basel and UBS Global Art Market Report. The most recent report, published in Spring 2023, showed the US art market is experiencing one of the most robust recoveries of all the major global markets. From a pandemic-induced low in 2020, sales bounced back in 2021, increasing by just over one third in value to $28.0 billion. Growth continued in 2022 with a further increase of 8% year-on-year to $30.2 billion, its highest level to date. This was driven by a major uplift at the high end of the auction sector, along with more moderate but positive growth in dealer sales. The US retained its premier position in the global ranks, with its share of sales by value increasing by 2% year-on-year to 45%.
UBS has a long history of supporting contemporary art and artists, and the company is a passionate collector and sponsor of art as well. It sponsors both Art Basel in Europe and Art San Diego, which recently completed its exhibition, November 3-5 at the San Diego Convention Center, where two artists from the local area, Gideon Cohn and Ryan Franklin, participated.
The UBS Art Collection is considered one of the most important corporate art collections in the world with over 30,000 artworks by some of the most influential artists of our time, a practice driven by the company’s long-held belief that art provides inspiration, while encouraging the innovative thinking that has shaped UBS’s corporate culture. The local office in Indian Wells displays contemporary artworks as well.
Many residents of Coachella Valley love art and have a passion for collecting it. Others might like to collect but are unsure how to start. Perhaps one of them is you! Following are just a few points to consider, based on advice by Mary Rozell, the Global Head of UBS’s art collection, when you decide you might like to begin collecting art for investment or legacy.
- Consider your budget and financial plan, as well as your passion – Art collecting is deeply personal, a reflection of oneself. While collecting is a project of the heart that can pay emotional dividends and enrich lives, it should only be undertaken when it doesn’t adversely impact your financial safety in retirement. Consider your financial situation first, including:
a. Immediate needs: enough to cover 3–4 years’ worth of expenses and to weather uncertainty.
b. Longer-term objectives, including higher healthcare and long-term care costs.
c. Legacy that you might leave to children, grandchildren, charities – this is where your art collection may come in.
- Do your research – The best way to start acquiring art is by learning as much as you can about it. Go to galleries and museums; check out art fairs and exhibits; review art online. Visual appeal is only one part of the plan; also find out about the artist’s intention. What is the meaning behind the art? How and when was it produced? In this manner, you’ll not only learn what you really like, but also if it is priced appropriately.
- Identify the market trends – By following the art market, attending fairs, and visiting galleries, it becomes easier to identify trends in dominant themes, styles, or media. However, in buying art, following trends is not necessarily a good idea, unless you love the work. Collectors should take a long-term outlook, pay attention to what might come next, and buy work that they personally find compelling. Consider your own interests, whether that be Old Masters or young emerging artists. Remember that some accomplished female artists may have been overlooked by the market historically, which could present an opportunity.
- Assess pricing objectively – Look at auction results and compare prices for comparable pieces or artworks by artists of the same stature. By paying attention to pricing over weeks, months or even years, collectors can get a good sense of the market and where it’s going. Don’t be afraid to negotiate.
- Once purchased, store your artwork properly – Storage of art depends on several factors, including the work’s size, medium, inherent nature of materials that compose it, and geographical location. Although you may wish to display it, choose a safe, dry place with limited light exposure, adequate security, and little vulnerability to outside elements.
- Consider your legacy – Before making a sizable, long-term commitment, understand that it can be quite an undertaking and rather costly to maintain and manage an art collection, so it is wise to familiarize yourself with all the aspects involved. When considering how you will pass on this collection – to heirs, museums, or charities – think about how it might be best appreciated and cared for. Then discuss it with your heirs to help minimize conflict.
Remember, it is always best to have a plan focused on your personal and family objectives. Most art that appreciates significantly is not bought for investment purposes but rather out of love for the artwork itself.
Art Shown By burgeoning Palm Springs Artist David Jester
Jim Bruner is a financial advisor with UBS Financial Services Inc., a subsidiary of UBS Group AG. Member FINRA/SIPC in the Indian Wells, California office and a member of Aligned Wealth Partners. Aligned Wealth Partners has built a comprehensive wealth management business/team serving select professionals, entrepreneurs, retirees and their families. With financial planning at its core, the team recognizes that every client has a unique set of circumstances and aspirations and employs a detailed discovery process that enables them to develop customized strategies specific to the client’s needs. Jim lives with his wife, Kelly, in Bermuda Dunes, and enjoys outdoor activities, including off-roading and boating.
