“An art collector is like a hunter, only that instead of dogs they have art advisors.” Artsy.net

Contents 4 Welcome to Maddox Fine Art 6 Introduction 8 Art as an Investment 10 The Current Global Art Market 13 The Two Art Markets 14 Artist Classifications 16 An Emerging Artist - Bradley Theodore 18 An Established Artist - 20 A Blue Chip Artist - Andy Warhol 22 Factors that Drive the Art Market 24 Reasons to Invest in Art 25 Why Invest with Maddox Fine Art 26 Selling Art 28 Portfolio Management 30 Making a Purchase 32 Ancillary Services 34 Visit us Richard Hambleton 36 Art Market Terminology ‘Shadow Horse & Rider’, 2009 267 x 166 cm 39 Contact us Oil on Canvas

2 Maddox Fine Art 3 Welcome to Maddox Fine Art

We are a specialist art investment consultancy and the sister company of Maddox Gallery, an international group of six contemporary art galleries headquartered on Maddox Street in Mayfair, . We provide clear, unpretentious art investment advice to our clients in order to help them navigate the sometimes dizzying landscape of the contemporary art market. As such, we have a core team of investment art James Nicholls in conversation with Luke Blackall specialists dedicated to providing art investors and on the London Live TV art show. collectors with the tools needed to invest wisely in contemporary art. We specialise in identifying and Our team is headed up by our Chairman supplying works of art by emerging, established James Nicholls. and blue chip artists which have the undoubted potential to drastically increase in value. James is an internationally recognised investment art specialist with many years of experience. He is the resident art critic for the London Live TV channel; the resident investment art expert for British Airways – featuring in BA’s long-haul in- flight programming for the last four years; and a contributing art expert on myriad publications. James is also a Patron of both the National Portrait Gallery and the Royal Academy of Arts. His expertise covers a wide diversity of works from Caravaggio to Banksy, and cutting-edge James Nicholls presents the Columbian ‘Oro emerging artists, such as Bradley Theodore. Exhibition’ to the Countess of Wessex. Over the coming pages, we provide a guide to the art market and our services.

Inside our flagship Maddox Street Gallery

4 Welcome to Maddox Fine Art Maddox Fine Art 5 Introduction

The global art market has grown exponentially in the last two decades, and collecting art is no longer the preserve of an aristocratic elite. The hunger for contemporary art is now insatiable, with a broad spectrum of society desiring to buy and collect works, not only to enrich their lives via aesthetic appreciation, but also as a serious investment for the future.

At Maddox Fine Art we help both the novice and We firmly believe that every acquisition should expert navigate the ever-shifting landscape of the be a marriage of aesthetic appreciation and wise global art market and provide advice and investment, and we make it our business to offer guidance on making the right kinds of investments both the novice and experienced investor the – make no mistake, contemporary art is big perfect marriage of an enriching and sophisticated business, with leading galleries in the UK appreciation of contemporary art and the financial attracting in excess of 15 million visitors last satisfaction of investment performance. year alone. Accordingly, the acquisition of art as a high- performance asset class is no longer considered an alternative financial investment, but a key one. In a 2017 poll conducted by Deloitte, 88% of Wealth Managers believe Art should be a key component of an investment portfolio.

“The contemporary art segment of the Mei Moses Art Index has delivered a compounded average annual return of 8.80% over the last 58 years.” Date: 26th March 2019 Source: www.sothebys.com Andy Warhol ‘Campbell’s Soup II’: Vegetarian Vegetable, 1969 / 63 x 84 cm / Silkscreen Print in colours on paper

6 Introduction Maddox Fine Art 7 Art as an Investment

At Maddox Fine Art we can supply investors If you have a particular artist whose work you with access to investment grade art from as would like to buy, then we can often ascertain little as £10,000. At this affordable level, you exactly which works are available, and at what can acquire something from an emerging or price – through our extensive international network established artist who has already created an of art market contacts we can usually source work impression in the market, and whose work we from artists, studios, agents, collectors, and other believe has the potential drastically to increase galleries. If it’s work by one specific artist that you in value in the future. want to acquire, then we can act as your buying From the £20,000-mark we can often supply agent for a small commission. Mel Bochner Mel Bochner investors with access to work by blue chip artists. Conversely, if you have something you are keen ‘Ha Ha ’ 2017 / 87 x 91 cm / Monoprint with collage, ‘Blah Blah Blah ’ 2017 / 70 x 56 cm / Monoprint with At this higher price level, you can own a piece to sell, we’ll certainly consider displaying it in engraving and embossment on hand-dyed collage, engraving and embossment on hand-dyed by an artist whose name is widely known– one our gallery (providing it meets our criteria for Twinrocker handmade paper Twinrocker handmade paper who has already attracted significant attention price performance potential), handle any interest, in both the media and the market, and from and administer the resulting sale – again, we will serious collectors. charge a small commission for work of this nature. At Maddox Fine Art we provide an extremely The Sotheby’s Mei Moses Index: 1950-2018 comprehensive service, and we can take care of framing, hanging, delivery, storage, and much 1,000 more besides – for further information on these ancillary services please see page 32

of this guide. 100 (since 1950)

10 Index value

1 “88% of Wealth Managers believe Art 1950 1960 1970 1980 1990 2000 2010 2018 should be part of a Wealth Management offering (up from 78% in 2016).” The graph above shows the Sotheby’s Mei Moses Index for the broader art market Source: Deloitte & ArtTactic Art from 1950 to 2018. The index benchmarks at 1 in 1950 and shows the trajectory & Finance Report 2017 in demand for the overall market, a compound annual growth rate of 8.8%. Source: Sothebys.com

8 Art as an Investment Maddox Fine Art 9 The Current Global Art Global Art Market Market Share

With $67.4 billion in total sales during 2018, the global art economy grew The US once again confirmed its position as the largest market for art for a second consecutive year - a rise of 6% from the 2017 total of $63.7 sales, with its share of total global sales by value increasing by two billion and just under the 2014 high of $68.2 billion. percentage points to 44%. The US, together with China and the UK, accounted for 84% of total sales by value. Sales in the Global Art Market 2008-2018 Other than in 2011 when China achieved a dominance until 2014, as its sales went through Billion $ marginally greater share of world sales, the US an unprecedented boom and the British market has been the leading global sales territory for recovered from the fallout of the global financial $80 the last 20 years. It’s position at number one has crisis. The UK recovered share in 2015 and $70 $68.2 $64.6 been underlined in recent years as its lead over its 2016 and regained second place, but a strong $62.0 $63.3 $63.8 $63.7 $67.4 closest competitors has risen to more than 20%. year of sales in China and a weak Pound meant $60 $57.0 $56.7 $56.9 China was once again in second position by a $50 The countries occupying second and third places have fluctuated in recent years. small margin in 2017. However, in 2018 the UK $39.5 $40 regained its position as the second-largest art Having had less than 5% of global sales until market (21%), while China was the third largest, $30 2006, China overtook the UK’s long-established with 19%. $20 second place in 2010. China maintained its

$10

$0 Global Market Share of the US, UK and China 2008-2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US China UK Others Source: © Arts Economics (2019)

100%

18% 16% 17% 17% 17% 16% 22% 21% 23% 19% Sales in the global art market in 2018 reached The UK had a strong year of sales, shrugging off 28% 80%

$67.4 billion, up 6% from 2017. This second year Brexit worries, with values rising 8% to just 20% 21% 22% 23% 22% 21% 21% of strong growth has brought the market to its over $14 billion. 22% 20% 60% 34% 23% second-highest level in the last 10 years. Meanwhile in the rest of Europe, many of the 19% 21% 19% 25% 23% 20% 23%9% 30%9% 9% 24%9% 9% 40% The auction sector made up 46% of the market, larger markets declined. 9% 18% down 1% year-on year, while the dealer sector Sales in China cooled slightly to $12.9 billion 20% 43% 40% 42% 44% (gallery and online retail sales) accounted in 2018, a decline of 3% on the 2017 figure 35% 36% 39% 31% 34% 29% 33% for 54%. for that market. 0% Sales in the US totalled $29.9 billion in 2018, 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 the highest-recorded level to date.

Source: © Arts Economics (2019)

10 The Global Art Market Maddox Fine Art 11 The Two Art Markets

If you are investing in art for the first time, it’s vitally important to understand the distinction between the two art markets – primary and secondary.

The Primary Market The Secondary Market The first sale of a piece of art, directly from an The secondary market is where the value of a artist, a dealer or even a commissioned work, is piece of art can increase drastically, sometimes primary. Thereafter, all sales are referred to as as much as ten-fold, and in the last ten years secondary, and sources include galleries, private that has applied increasingly to artworks in the sales and art auction houses. contemporary sphere – at the height of the boom The primary market sets the benchmark in value in 2007, total auction sales of post-war and and is where the skill to predict a potential future contemporary art exceeded those of Impressionist art star comes most into play. and modern for the first time in history. In terms of these markets it is vital to recognise the standing of an artist in the holy trinity of ‘emerging’, ‘established’ and ‘blue-chip’ – the three sectors that define the value of an artist or artwork in the public sphere.

“But as jitters hit the global economy, the world’s wealthy tend to turn towards RETNA alternative assets that are seen as more This One’s Been Untitled, 2017 consistent stores of value, modern 244 x 183 cm artworks being prime among them.” Oil, enamel and acrylic on canvas Source: Artsy.net

12 The Two Art Markets Maddox Fine Art 13 Artist Classifications

At Maddox Fine Art we specialise in identifying key works by emerging and established artists: those artists who may have the potential to become household names, or what we tend to refer to in the industry as blue-chip artists. Allow us to elaborate on these different artist tiers...

When it comes to contemporary art there are may well be names you will recognise three sectors of interest to the investor: from various press articles that have been penned about them in the public sphere. The best examples of their work offer outstanding Emerging Artists investment opportunities. An emerging artist is one in the early stages of their professional career, and their work will usually be sold on the primary market. They Blue-Chip Artists have begun to become noticed, and may already Blue Chip Artists are household names, and are have a minor auction record. Their work is now widely known even outside of art circles. Their being collected and they will likely have won works will be found hanging in national galleries prizes, and have started to attract press coverage. and international collections. Many blue-chip You may have to wait some time for their prices artists are now in the twilight of their careers to appreciate, and for a secondary market in or are no longer with us. The most desirable their work to become established. However, this examples of their work will sell for six or seven sector is increasingly attractive to investors as the figure sums. Although blue-chip works are very opportunity to buy work at this level offers the tradable, returns may not be as impressive in potential for large levels of return on investment. percentage terms as those from the emerging or established sectors.

Established Artists Established artists are widely known within the At Maddox Fine Art we deal in all three art market and their work will change hands at categories but we specialise in the emerging auction. They will have a gallery sales track record and established sectors. and their work will be found hanging in public galleries, as well as in private collections. They KAWS ‘Dissected Companion Set’ 2006 / 38 cm / Painted cast vinyl

14 Artist Classifications Maddox Fine Art 15 An Emerging Artist – Bradley Theodore

Bradley Theodore is a visual artist. Born in the Turks and Caicos Islands, he now resides in . Theodore gained prominence as an artist through the popularity of a murals of fashion icons Anna Wintour and Karl Lagerfeld.

Theodore’s work includes murals and paintings An alum of the School of Visual Arts, of fashion influencers, including Kate Moss, Theodore’s works are recognised by his “use of Coco Chanel with Frida Kahlo, Tom Ford, and saturated colors, skull motifs and vivid skeletal Diana Vreeland. He also does digital artwork, interpretations” of popular cultural icons and and was included in Google’s virtual reality- celebrities. His life and entrance to the art world focused Artist in Residency program. was the subject of the documentary “Becoming: Theodore has worked on campaigns for brands Bradley Theodore,” which premiered at the 2016 Moët, Jordan Brand, RMK, Kent & Curwen, Tribeca Film Festival. and Moleskine. He has also worked with hip-hop An illustration of Theodore’s success is that prices collective Wu-Tang Clan, provided images for for his smaller works on paper have doubled in Sony and Universal Records, and created logos the last 3 years – they were changing hands for for camera manufacturer Leica Camera and £3,750 each in 2016, you would now be lucky to board game Monopoly. acquire one for £7,500. Theodore is known for making his art accessible This is driven not only by his rapidly rising to everyone and not confining his work profile, but also due to simple demand-and-supply exclusively to galleries. He has collaborated with economics. The supply of his work is constricted PUMA to bring his soulful, introspective style to because virtually all of his works are original the brand’s Suede’s 50th anniversary. Applying pieces, and thus take time to produce. his unique style to streetwear staples – he has Furthermore, his last three solo shows ‘Son of the reimagined them with bright pops of colour and Soil’ in April 2016, “The Second Coming” in April rich symbolism that explore the human condition. 2017 and “The Coronation” in October 2018, all PUMA silhouettes are enhanced with hand- held at Maddox Gallery were huge successes, all painted symbols like skulls, hearts, and hashtags selling out in a matter of days. that reference today’s culture of representation and communication.

16 Maddox Fine Art 17 An Established Artist – Banksy

If one artist has made respectable, if one artist has carved a path from back streets to international galleries, it’s Banksy. Like graffiti artists worldwide, he prefers anonymity. We do know that he is male, English, and that his work first appeared in and around Bristol in the early 1990s.

Working freehand, with stencils and spray cans, A typically Banksy gesture was the temporary his output is instantly recognisable not just by exhibition – an anti-tribute to his technique, but also for his subject matter. Disneyland – that he organised in the neglected His work is often subversive and anti-establishment seaside town of Weston-super-Mare. In place but with a generous helping of humour. In a for five weeks during summer 2015, it aped the Banksy expect to find rats, apes, policemen, famous Mickey Mouse amusement parks around bombs, soldiers and children. the world, sold out every day and is estimated to His initial popularity as a street artist appealed have bought over £20 million of extra income to to gallery owners. Consequently the first Banksy the town’s traders. 1 exhibition was organised in 2002 by the 33 /3 It’s not just as an artist that Banksy has proven Gallery, Los Angeles. His work then began to be a star – but also as an investment. The price appearing at auction – often without his approval of his work has grown 20 times in the last 10 – and frequently sold for rather more than the years, 200% in the last 3 years alone. His success high estimates. Among the buyers were celebrities in galleries and salerooms has had the effect of like Christina Aguilera. increasing interest in the work of other ‘street’ Banksy’s popularity with the celebrity crowd was artists and he has created a growing market for on show at 2015’s Cannes Film Festival. At an this genre of art. auction held at the ultra-chic Hotel Eden Roc to raise funds for amfAR, an AIDS charity founded by Elizabeth Taylor, Leonardo diCaprio donated Banksy’s work ‘Copper on Cardboard’. It quickly sold to one of the well-heeled Hollywood bidders for $1 million.

Banksy ‘’, 2004 / 50 x 60 cm / Screenprint

18 An Established Artist - Banksy Maddox Fine Art 19 A Blue Chip Artist – Andy Warhol

If any one artist in the last fifty years has created and dominated a market in an art genre, it’s Andy Warhol. His variations-on-a- theme, creating many distinctive images from a single master, are recognisable from afar, hugely collectible, and publicly popular.

Born in 1928 in Pittsburgh, Pennsylvania, Warhol His New York studio was aptly named died in 1987 in New York City. During his 58 ‘The Factory’. He worked there with an years he became – and remains – America’s most ever-changing staff of assistants. famous 20th century artist. From Warhol comes The silkscreen technique that he developed the term ‘Pop Art’: Pop for popular, which his allowed the studio to produce many images from work has been in galleries and auction rooms ever a single master, with each copy adopting different since. Warhol is the second top-selling artist in colour variations. the world’s sales rooms, with over $1.58 billion This semi-industrial output means that even of work sold, beaten only by Pablo Picasso, with today there is an ample supply of Warhol’s work $3.02 billion. available – no collection is complete without one Amongst his distinctive output are many iconic or more. images: portraits – most famously of Marilyn Although the price record for a Warhol is a Monroe and Chairman Mao; Campbell’s soup massive $105 million, much of his work cans and Coca-Cola bottles; dollar signs; flowers; is rather more affordable. One example: a silk Elvis Presley as a gun-slinging cowboy; car screen print of Marilyn Monroe which sold at wrecks; and shoes (early in his career he worked Sotheby’s New York for £21,800 in 2002 and as an advertising illustrator, and drew hundred resold at Christies London for £158,500 of shoes). 12 years later.

Andy Warhol ‘Marilyn’, 1967 / 101 x 101 cm / Screenprint

20 A Blue Chip Artist - Andy Warhol Maddox Fine Art 21 Factors That Drive The Art Market

When entering into the world of art, there are several key factors to consider that drive the market, all of which can act as a powerful catalyst to increase the value of an artwork. We outline some of these below and opposite. Jeff Koons ‘Balloon Rabbit, Monkey & Swan’, 2017, / Porcelain

Gallery Representation & Solo Exhibitions Auction Results Press Corporate Endorsement Gallery representation often plays a critical role When price records tumble in the dramatic If an artist achieves strong press coverage in Corporations with money to spare in their developing an artist’s profile. When an artist amphitheatre of a crowded auction room the specialist art magazines, newspapers, radio, marketing budgets like the kudos of being has established a long-term relationship with a media love it. More often than not, there’s a story television arts programmes, online blogs and associated with art – a recent example of this was gallery, then it is a sure-fire sign that the artist has combining the wealth (of the buyer) and the fame respected publications, then it does a lot to raise the Maddox-represented artist Retna’s work considerable merit – as such, a solo exhibition is a (of the artist), which enables print and broadcast the profile of that artist. Media attention has appearing on a Justin Bieber album cover. considerable mark of confidence. journalists to write attention-grabbing headlines. inarguably elevated the profile of now widely known artists, such as Grayson Perry and Tracey Maddox Gallery has recently held solo exhibitions That’s fine if you’re buying big name artists with Art Fairs for several key artists, all of whom we supply a track record on the secondary market. However, Emin, to the financial benefit of the early buyers Art fairs provide buyers with a single venue where investors with access to, including: Bradley many emerging and mid-career artists won’t have of their work. they can see a wide range of work from myriad Theodore, The Connor Brothers, David Yarrow, an auction track record. Many of the emerging artists that we recommend genres. For artists it provides exposure to a much Mr Brainwash, and Richard Hambleton. purchasing work from at Maddox Fine Art have Often primary sales of their work are in original bigger audience, and often an audience that would already had excellent press exposure. ownership, so while any auction results will give a otherwise be unfamiliar with their work. measure of an artist’s standing, it’s always worth Lack of Availability of Work Most of the higher profile galleries and auction looking for evidence of price movement in other If you should be at a solo or group show where Public Galleries & Museums houses will have booths at art fairs and play their art market indicators. ‘red dots’ predominate beside the work on display, Public galleries and museums are keen to acquire part by inviting their established customers it means the artwork has been sold. An artist that and show work that they consider to be of to attend. is in such high demand will have representation in contemporary significance. The same is true of A story… All those multi-million Warhols a number of respected galleries, and a waiting list major private collectors. were once affordable to those with limited Books & Journals for commissions, both of which are great signs. If an artist’s work is sought out by the curatorial means. in the 1960s and 70s Dorothy When an artist has gained a certain level of These factors are particularly relevant to take staff of important collections, then that’s as good and Herbert Vogel – a postal worker and recognition, they will often feature in art into consideration when investing in emerging as a guarantee that an artist’s work has great a librarian from New York – saved hard reference books or have magazine editions artists, such as Bradley Theodore, whose solo investment potential. to buy small works by emerging artists, dedicated to their work. These are key show at Maddox Gallery in April 2017 sold out in paying a few hundred dollars for each. milestones, and often function as a a matter of days. Unsurprisingly, such popularity The Vogels’ collection is now worth hundreds springboard for the value of the work. means he has a backlog of commissions. of millions of dollars.

22 Factors That Drive The Art Market Maddox Fine Art 23 Reasons to Why invest with Invest in Art Maddox Fine Art

Capital Growth Potential Diversification At Maddox Fine Art we believe that actions speak louder than When isolated the contemporary art segment The global art market is by and large completely words. The best way we can demonstrate to investors that of the Mei Moses Art Index reveals that uncorrelated to the world’s major stock markets. contemporary art has delivered a compounded It can therefore be used by investors as an we are worth taking seriously as art advisors is our track record. average annual return of 8.8% per annum excellent portfolio diversification tool in times We are very proud of the following tangible results: between 1950 and 2018. of economic uncertainty. Post-Brexit the UK is certainly facing a period of economic uncertainty. Between the 1st January 2018 and 31st December We have a dedicated section on our website which Investing in a piece of Art means your investment 2018 the average percentage profit achieved by features numerous signed client case study forms, is Fully Asset Backed Inflation Maddox Gallery clients was 25.2%. demonstrating the purchase and subsequent When you invest in a piece of Art you become Investing in Art can be an excellent hedge against This is the mean figure calculated from the sale sale of works of art by clients which have the owner of a tangible asset which will always, inflation, as shown in the graph below. At the time of every piece of client-owned work between contributed to this excellent average return https:// unlike some other investments such as stocks and of writing (January 2019) inflation is running at 1st January 2018 and 31st December 2018. maddoxgallery.co.uk/art-investment/case-studies shares, have a residual value. 2% per annum. (All of which were the sales of works that (password: ‘MaddoxStreet’) we had previously supplied to clients). Satisfaction of Ownership Investing in a piece of art won’t yield an income as it’s a capital growth orientated investment. Instead your dividend is the ability to enjoy owning your piece of art by living with it hanging in your home or even in your office.

Performance When Inflation is High and Rising

Bonds (US) 5%

Art (Mei Moses Art Index) 18%

Commodities 13%

Equities (US) 2%

Asset class in period from 1973-2012 David Yarrow ‘The Wolf of Main St III’, 2017 / 132 x 193 cm / Archival pigment print (source: JP Morgan 2016. ECJ Capital Research)

24 Reasons to Invest in Art Maddox Fine Art 25 Selling Art

Before you invest in a piece of art, whether it be a piece by a blue-chip, established or emerging artist, it is important to have a clear understanding of the potential exit strategies available in order to realise a profit further down the line.

Auction Houses Private Sales This exit strategy is ideal for works by blue-chip Any major market consists of investors looking or established artists, where there is an existent, to buy and investors looking to sell. At any time, large and well-established secondary market. we can market clients’ work on their behalf, However, what needs to be taken into account aiming to identify an investor or collector who before deciding to send a piece to auction, would like to add the work to their art portfolio. are the fees for doing so. The leading auction This exit strategy can be extremely lucrative for houses can often charge from 12% - 25% owners of works from sold-out exhibitions, or of the hammer price. collections where pieces desired by would-be purchasers are simply no longer available from Gallery Sales the primary market. Due to our relationship with our sister company Maddox Gallery we are able to market our Exhibitions client’s artwork via three prestigious London Maddox Gallery regularly holds exhibitions – gallery spaces – Maddox Street, Shepherd Market these can be either group shows or solo exhibitions and Westbourne Grove. for individual artists. We will often look to include Through this route we have been able to achieve clients’ pieces in a group show exhibition in order significant profits for our clients, various examples to achieve a secondary market sale. of which can be seen in the case studies section of our website. Artnet Maddox Gallery also has a well established Artsy profile on the online Art platform Artnet. Artnet, Maddox Gallery has an excellent gallery presence similarly to Artsy, is one of the pre-eminent online on Artsy - one of the world’s busiest online art art platforms. We can arrange for any of our platforms, and we can arrange for any of our clients’ pieces to be listed for sale on the Maddox Richard Hambleton clients’ pieces to be listed for sale on the Maddox Gallery Artnet profile. ‘Standing Shadow - Blue’, 2018 132 x 51 cm Gallery Artsy gallery page. Hahnemuhle Photo Rag 308gsm

26 Selling Art Maddox Fine Art 27 Portfolio Management

Those seeking to invest in art without in-depth market knowledge, or the time to learn and research the market, can be at risk – our role is to minimise that risk. The traditional advice given by the art trade is simply to buy work that you like. At Maddox Fine Art, we believe that you should indeed buy art that you like, but only if it has significant potential to grow in value.

The art market is unregulated, unlike many other work. The gallery runs a regular series of solo and areas of investment. It doesn’t take too much joint exhibitions, evening openings and meet-the- research to uncover stories of fakes, ownership artist events. disputes, questionable provenance, and even mis-attribution. The three core values that define Track Record Maddox Fine Art are reputation, expertise and We are extremely proud of track record. trust – primarily in our client relationships, but Our advice and ability to supply art at the right also in our dealings with artists, artists’ agents, price has meant that the average percentage profit and secondary market suppliers. The unique we made for our clients in 2018 was 25.2%. combination of art market expertise and financial Evidence of this track record is located Harland Miller ‘High On Hope’, 2015 / 109 x 50 cm / Screenprint and investment skills gives us the ability to on the client Case Studies section of our website. help both new and more experienced collectors http://maddoxgallery.co.uk/art-investment/case- acquire – and dispose of – growth portfolios of Inside The Secondary Market Keeping You Informed studies (password: ‘MaddoxStreet’) modern and contemporary art with confidence. The visible arena of the secondary market consists The art market is one of the world’s most dynamic of auction houses, galleries and fairs. But there’s market places – prices can rise and fall fast, and Portfolio Managers Gallery another very significant element that doesn’t want there is always something happening. We keep our The key to our business is understanding our Our head office is situated just off New Bond to be visible – art collectors often want to dispose clients well informed regarding their portfolio, customers and their investment objectives. Street in London’s Mayfair – the beating heart of work discreetly through private sales. We have potential acquisitions and disposals, and on news Our expert Portfolio Managers work together of the fine art district. excellent relationships with many high-profile on the market in general. with our clients to define their investment and collectors and are often approached by them We have our own three-floor gallery, which collecting goals and then seek out and offer when they want to release equity, or simply includes a sumptuous private viewing room, works we think meet those objectives. Every refresh their portfolio. When this happens, where you can see the works we suggest client of Maddox Fine Art is allocated to a we make works available to our customers that purchasing in intimate surroundings, and learn dedicated Portfolio Manager. they would otherwise not have access to. about the provenance of both the artist and the

28 Investing with Maddox Fine Art Maddox Fine Art 29 Making a Purchase

When you choose to invest in a piece of art with us we will always provide you with some important documentation relating to your purchase, including a signed Certificate of Authenticity and a signed Insurance Valuation.

A Certificate of Authenticity Taking Delivery A Certificate of Authenticity, commonly referred If you have the space, adequate security and to by the acronym COA, is an important insurance then we will always recommend taking document which vouches for the authenticity delivery of any artwork you purchase through us. of a work of art. We will always issue you with This is because art, unlike some other asset classes, an individual, signed Certificate of Authenticity is an investment which can be enjoyed at home. for any piece of art supplied by us at the time of If you choose to take delivery of your art, then purchase. Our advice is simple – never buy a piece we can arrange this for you at highly discounted of art without a COA. commercial rates – we will never add a profit margin to a delivery of a piece of art for a A Valuation customer but instead organise delivery for you using one of our trade partners at the true cost. A Valuation is essential for insuring your piece of art and we will always supply you with a signed valuation with any purchase you make Storing your Artwork through us. If you would prefer not to have your artwork delivered to your home or office, then we can arrange for your art to be stored with our partner Art Logistics Limited (www.artlogistics.co.uk). Art Logistics are a well-established operator of secure art storage; their high security storage facility is ideally located midway between the London gallery districts and Heathrow airport. It is fully covered by CCTV and has climate “It’s not what you look at that matters, controlled storage rooms. Their expert staff it’s what you see.” have years of experience in handling and storing Henry David Thoreau valuable and often fragile works of art. Jean-Michel Basquiat ‘Flexible’, 2016 153 x 116cm Silkscreen Print

30 Making a Purchase Maddox Fine Art 31 Ancillary Services

At Maddox Fine Art our primary objective is to assist investors in profiting from a considered investment in art, but we realise that when you buy an artwork there may be a number of other aspects with which you require assistance. We offer a comprehensive service to assist and guide you in ownership of an artwork.

As with many other investments, when you buy Framing an artwork there can be several other costs to The right frame can significantly enhance the consider, and without guidance these can mount appearance of an artwork, but critically, it should up and eat into potential future profits. We do also protect it. The vast majority of the pieces what we can to minimise these for you, and we we will supply you with will already be framed – can often supply you with access to services, such however, if you are buying an unframed piece it is as framing and hanging, at commercial rates. important to choose the right frame. Maddox Fine Art works with a number of Insurance renowned framers and we are happy to arrange If you are choosing to take delivery of your for your piece to be framed. We will do so at the artwork, then most household or commercial commercial cost price, and we will never apply a contents insurers will require works of art above profit margin to the framing of a customer’s piece. a certain value to be declared to them individually. Insurers will often require a valuation proving the Hanging items’ value when amending your insurance policy Where and how you hang art not only helps to to cover your purchase. enhance the aesthetic appearance of your artwork, You can use the complimentary Insurance but also helps to protect its investment value. Valuation we provide you with at the time of We are happy to advise you on where to hang purchase to satisfy this requirement. your art and, if you should require, we can In the event that your regular contents insurer arrange for a specialist to visit you at home to quotes an unreasonable revised insurance offer further advice, or install the piece for you. premium to insure your artwork, we can introduce you to a specialist fine art insurer who will provide you with an extremely competitive quote. The Connor Brothers ‘Tell Me Beautiful Untrue Things’, 2018 / 185 x 115 cm / Oil on canvas

32 Ancillary Services Maddox Fine Art 33 Visit us

It is said that beauty is in the eye of the beholder, This is something we greatly encourage, and it and it’s certainly the case that to truly appreciate serves a dual purpose, in that not only can you an artwork you need to experience it first-hand come and see some fantastic art hanging here at – pictures simply cannot do a work of the gallery, but you can also meet us in person art justice, even with modern ultra-high over coffee – or even something a little stronger resolution photography. – in our sumptuous meeting room. As such, the majority of our clients – whether We would love the pleasure of your company, they be investors or collectors – pay us a visit to so please do come and pay us a visit. view an artwork in person, prior to, or just after, making their first purchase.

34 Visit Us Maddox Fine Art 35 Art Market Terminology

Acrylic Etching A rival to oil paint, coloured pigment is held in A printing process resulting, usually in a work a clear plastic solution. It provides bright, long- with a limited colour range. lasting colour. Gouache Board A thick, heavily pigmented water-based paint. A more modern substrate, board is heavy card Impasto with a smooth or embossed surface. A description The application of paint so thickly that it stands of a work might, for example, say ‘acrylic out in relief from the substrate. on board’. Intaglio Canvas A portfolio word covering printing techniques like The classic substrate for painting, canvas is a drypoint, etching, engraving, where ink is pressed heavy fabric stretched over a wooden frame into marks on the printing plate, the ink then – a stretcher. transferring to paper as the plate and paper pass Collagraph through a press. A hand printing technique using many separate Limited Edition printing plates to provide limited editions with the A print made in a limited quantity, each identified visual appeal of an original painting. with an edition number so that, say, 14/25 would David Yarrow ‘Africa 2’, 2018 / 180 x 243cm / Archival Pigment Print Condition be the 14th print of an edition of 25. After the You’d expect a primary market purchase to be in edition has been completed the printing plates perfect or ‘mint’ condition. An artwork that has are destroyed. led a hard life might well be ‘poor’, ‘damaged’, Medium Proof Resale Rights ‘dirty’, ‘crazed’, ‘creased’, ‘deteriorated’, A word describing the way an image is put onto When prints are made, the first off are ‘proofs’ When a work is sold on the secondary market for ‘flaked’, etc. a surface, such as oil, acrylic, pastel, watercolour, which let the artist or printmaker examine €1000 or more, the original artist may be entitled Conservation collage, etc. them in detail to see whether any corrections or to a royalty on the sale. The royalty is calculated amendments are needed. on a sliding scale that peaks at 4%. A skilled technique to repair damage Oil and deterioration. A paint type where pigments are mixed in an oil, Provenance Triptych Diptych often linseed. Oil paint dries slowly and some A very important concept in the secondary A work consisting of three panels. Often they A painting consisting of two panels, each complete art techniques exploit this to build up mixed and market, ‘provenance’ is the record or records that are hinged, with the two outer panels forming in itself, but complementary when displayed next layered colours within the work. let the work be traced back to its primary market ‘doors’ over the central panel, thus providing to its partner. introduction. Without adequate provenance it is some protection when not on view. The outside difficult for a work to be accepted as definitely of a triptych may also be decorated, but usually by a particular artist. not as elaborately as the inside.

36 Art Market Terminology Maddox Fine Art 37

HOXTON

MAIDA VALE

REGENT’S PARK CLERKENWELL BLOOMSBURY SHOREDITCH Russell Maddox Gallery Contact us Square

MARYLEBONE Locations

HOLBORN PADDINGTON Maddox Street Westbourne Grove Lincoln’s Inn Fields CITY OF LONDON Maddox Fine Art St Paul’s Cathedral 9 Maddox Street SOHOMayfair, London W1S 2QE Tel: 020 3781 7590 [email protected]

BAYSWATER COVENT 9 Maddox Street, Mayfair, London W1S 2QE 112 Westbourne Grove, London W2 5RU MAYFAIR GARDEN

Shepherd Market Maddox Editions

National Gallery Tower of London Tate Modern HYDE PARK KENSINGTON Opening hours South Bank GARDENS Centre BOROUGH Monday: 9.30am – 6.00pm Tuesday: 9.30am – 7.00pm Wednesday: 9.30am – 6.00pm ST JAMES’S

Thursday: 9.30am – 7.00pm GREEN PARK Friday: 9.30am – 5.00pm

8 Shepherd Street, Mayfair, London W1J 7JE 5 Shepherd Street, Mayfair, London W1J 7HW Saturday: Closed London Sunday: Closed Eye Gstaad Los Angeles ST JAMES’S PARK

Buckingham

Palace SOUTHWARK BUCKINGHAM

KNIGHTSBRIDGE WESTMINSTER PALACE Houses of

Parliament GARDENS Westminster Disclaimer Abbey Maddox FA Limited trading as Maddox Fine Art is not regulated by the Financial Conduct Authority and is not authorised to offer advice on investment, whether regulated or unregulated. If you are making investment decisions you should seek advice from an independent financial advisor or other regulated professional.

BELGRAVIA Investments in art can go down as well as up. The information in this document should not be relied on for investment decisions. Maddox Fine Art (together with its SOUTH affiliates, officers, directors and employees) gives no guarantee, warranty or representation as to the accuracy, completeness, suitability or content of the information provided in this document and shall not be liable or responsible for any errors, omissions or inaccuracies herein. KENSINGTON Promenade 7, 3780 Gstaad Switzerland 8811 Beverly Blvd, West Hollywood, CA 90048 LAMBETH BERMONDSEY 38 Maddox Gallery Locations Maddox Fine Art 39

Tate Britain WALWORTH PIMLICO

VAUXHALL RANELAGH CHELSEA GARDENS

KENNINGTON BURGESS PARK

PARK VAUXHALL PARK

CAMBERWELL

BATTERSEA PARK “I dream of painting and then I paint my dream.” Vincent Van Gogh

9 Maddox Street Mayfair London W1S 2QE Tel: 020 3781 7590 www.maddoxgallery.com [email protected] Maddox FA Limited 09833235