3 Things Every Private Collector Should Know
We talked with a private art collector and he shared the three critical things every collector should know in order to preserve and increase the value of their assets
We got the inside scoop from a seasoned European private collector, sharing his expertise, garnered from years of collecting art and collectibles internationally. In this multi part series, we’ll share everything he taught us about collecting, including preserving the value in your assets, what to be wary of and tips / tricks to growing a collection.
In this article, we’re focusing on his three pieces of advice every private collector should do to retain and grow value in their collection.
1. Catalogue everything
Keeping records of your assets is the first and most critical step to take when building up your collection. He says “ the best advice I was given by the person who restores my paintings told me— you need to catalogue everything so you record everything, so you don’t lose the provenance history.” In order to catalogue everything correctly, you need keep thorough records of all documents associated with the item. Here’s what should be documented:
- Where you bought it
- How much you paid
- Any documents that went with it, i.e. auction catalogue from the sale, certificates of authenticity, etc
The 2019 ArtTactic and Hiscox Online Art Trade Report reports that “Provenance tracking and ownership-registry remains the most relevant user-case for blockchain in the art market”. Documenting the provenance of your items on the Codex Registry ensures that you’re not only keeping diligent records of your assets, but that you’re doing it in the industry’s most secure and contemporary way. As the collector explained, with a documented history you can accurately assess the value of your items so that when you go to sell them, you know what their worth is.
2. Collections are more valuable than individual lots
“Collections as a whole have more value as a whole than as individual lots*”. When thinking about ways to maximize the value in your art and collectibles, think about building up your items into a collection. Collectors and investors alike buy items knowing (or hoping) they will increase in value over time. But he suggests that items in a collection are worth more as whole than any individual item.
Be thoughtful in the items you collect and how they may work altogether. The collector advises “there must be some logic to a collection” therefore adding to the value overall. And as he explains in the next point, a collection is better to exhibit to the public.
Manage your entire collection on Codex and apply here to be a Featured Collection for additional perks.
*A “lot” is the term used for an item sold in an auction
3. Exhibiting
Getting your collection exhibited in an institution is the final dimension to increasing the value of your collectibles. The collector tells us that if you catalogue things you can get them exhibited (noticing a theme?) “Once you have your works documented, you can have them exhibited. That adds to their value tremendously. You increase the documentation about it; you make them more famous and by doing that you increase the value of your assets.” The more storied the provenance of your items are, the richer in history they become, thus making them more valuable.
Not only does exhibiting your collection boost its overall prominence, but each time your works are exhibited you gain more access to professionals and experts who can give you advice on your collection. The collector explains “if you catalogue your collection you can get advice on re-balancing your collection. Exchange and communicate and have people tell you ‘we think this is really good’ or ‘we think this is really bad’ and you can reassess.” This might mean that may advise some pieces that are worth getting rid of, that may be fakes or questionable in authenticity. Each time your items are exhibited you work with more experts; simultaneously expanding the item’s provenance while also questioning or confirming the veracity of its existing provenance.
What’s the takeaway from nearly all of the his advice on preserving value? It all comes down to a properly maintained provenance — and we’re here to help with that. Managing your collection on Codex is not only incredibly easy, but it’s designed to help collectors preserve the value of their assets as their provenance grows and changes. Reflect the developments of your item’s history on Codex and ensure that you’re doing everything you can to increase the value of your most cherished items.
Secure and manage your assets on the Codex Registry easily; start by signing up here.
Written by Corinne Moshy
About Codex
Codex is the leading decentralized asset registry for the $2 trillion arts & collectibles (“A&C”) ecosystem, which includes art, fine wine, collectible cars, antiques, decorative arts, coins, watches, jewelry, and more. Codex will be adopted by the Codex Consortium, a group of major stakeholders in the A&C space who facilitate over $6 Billion in sales to millions of bidders across tens of thousands of auctions from 5,000 auction houses in over 50 countries.
To learn more about Codex initiatives, visit our white paper. To inquire about partnerships and developing dApps using the Codex Protocol, please contact us via Telegram or Twitter
