Collector and artist discussing paintings in gallery

Art collecting

Helping you pursue your passions

Designing your collecting journey

UBS Art Advisory supports you in pursuing your passion, navigating the intricacies of building up your own art collection and securing your art legacy for future generations. Turning your vision into a reality requires long-term partnerships such as ours, built on understanding and trust.

Whether you collect art, wine, cars or watches, all collectibles are surrounded by a dynamic ecosystem. When developing your art collection, expect to navigate a market that comprises multiple, interconnected players and opportunities to transact.

Managing a collection is a significant responsibility, and there are several factors to consider. A proper strategy, with the right tools and support, is vital to ensuring the long-term health of your collection.

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While passing on liquid assets can be straightforward, the transfer of art and collectibles is often more complex. It is important to develop a clear plan for your collection, which considers a range of factors. These might include insurance, documentation, conservation and taxation, which should be addressed in consultation with the right specialist.

Proper planning and governance, can ensure the long-term health of your collection, as well as minimizing costs – and conflict – for any family members involved in your strategy.

Developing a collection

Defining a purpose, goal and strategy

Collecting as an individual provides you with the freedom to define a personal purpose for your activity. When developing your collection, consider what motivates you and define a clear goal. This goal should inform a detailed strategy. Consider what steps you will need to take to achieve it. What resources will you need? Can you achieve your goal alone, or do you need support from expert advisors or full-time staff? What will the running costs be, and will they be sustainable?

Buying

When developing a collection, it can be helpful to set out or review your liquidity strategy.

  • Have you considered how much liquidity is necessary for building your collection?
  • How does your collection fit into your overall portfolio?

 

Knowing what to buy, where and when is a lifelong learning process for any collector. Before acquiring a new work, take time to assess a variety of factors, such as rarity, provenance and condition. The art market has taken steps towards greater transparency in recent years. Despite this, it remains important to undertake research into an artist’s prices before making a purchase. Seek advice from impartial professionals, or even fellow collectors, who will help you to define a reasonable price range for your chosen work.

Before you buy

When buying art, it is typically easier to assess the conservation needs of works offered on the primary market, as gallerists will have direct access to the work’s maker, and therefore full insight into the fabrication process and materials.

When buying, consider including a note in the sale contract detailing how the artist and/or gallery will assist if a repair is required.

 

Secondary market purchases, whether from an auction house or dealer, and even from a peer collector, should always be facilitated by an updated report detailing the condition of the work, and addressing any previous damage, restoration etc.

This assessment should be performed by a trained, third-party conservator.

Check that the item’s condition, provenance, artistic and historical significance are correctly represented by the seller and correspond to the proposed price tag.

Get to know the stakeholders

Managing a collection

Inventory

It is advisable to develop an inventory detailing the contents of your collection as soon as possible in your collecting journey. This will prove an invaluable resource as your collection grows – for example, providing over-sight of where works or collectibles are stored – and will also be vital for any estate planning activity.

 

  • Information about makers or artists
  • Title and dimensions of the object
  • Provenance
  • Exhibitions
  • Literature
  • Condition
  • Insurance value
  • Location or place of storage
  • Purchase evidence
  • Current market value
  • Pictures

Insurance

Many reputable providers offer specialized insurance policies, and it is advisable to select a provider who has an in-depth knowledge of your chosen collecting category. In some instances, providers may be highly specialized: for example, a car insurer may only provide classic car insurance, or supercar insurance.

 

When selecting a policy for your collection, consider selecting an itemized ’all-risk’ policy, which covers each of the artworks you own. The advantage of these policies is that they typically cover the art in itself, regardless of its location – even at the moment of purchase. This is important as most damage to artworks happens during shipping. The following checklist can be helpful when assessing which insurance policy is right for you.

While you own

The value of some items can go through dramatic shifts. This can be especially true if you collect art or purchase emerging artists. It is crucial to keep an eye on the market performance of artworks or objects in your collection and, if necessary, schedule regular re-appraisals to make sure they are not underinsured and/or are correctly valued in the event of a sale.

Once an artwork is in your collection, you are responsible for its conservation. Taking the right precautions can protect the work for generations to come, and avoid loss in value. 

Making an impact

Defining your approach

You may not have begun your collection with a philanthropic aim in mind. Even so, as your collection evolves, it can be exciting to reflect on your purpose, and consider the possibilities a foundation, loan, donation or other initiative might offer. When defining your approach, start by asking yourself what matters to you. Perhaps there is a social cause you feel more strongly about? Have you always wanted to have a positive impact on your local community? Once you have identified a focus, this should form the foundation of your strategy.

Transferring your collection

Best practice

Take time to consider what will happen to your collection when you are no longer around to appreciate it. Though it might seem pre-emptive, it is wise to create a plan around succession in the early stages of your collecting journey. This plan should reflect your vision as a collector and your wishes around the collection.

Types of transfer

When developing a succession plan for your collection, there are three primary routes to consider. It is important to note that laws around each of these can vary by country.

Insights

Gain a comprehensive macro-economic analysis of the state of the global art market with The Art Market 2024, co-published by Art Basel and UBS. Authored by renowned cultural economist Dr. Clare McAndrew of Arts Economics, the report sheds light on complex global developments that affect the art market.

Cover image of art market report 2024

We are pleased to present collector’s compass – a practical guide that addresses a wide range of issues relating to the vision, mission and life cycle of a successful collection. This guide considers how a successful collection relates to your wider goals, emphasizing the importance of strategy and long-term focus.

Art and collecting on coffee table

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