He believes it is not uncommon for the art market to prosper when the sharemarket is not doing so well as investors look for alternative places to park their money.
“When the sharemarket crashed in 1987 the art market did well until 1989 when people ran out of money.”
But others are not so convinced.
Webb’s art department head Emma Fox says the art market has its own cycles and there seems to be little proven correlation between whether the sharemarket is down and the art market is up or vice versa.
She says five months is too short a period to make a sweeping assessment about the success of the art market this year although it is fair to say the year has started well and the market appears buoyant.
Fox warns it is hard to really know what prices are being paid as not all art is sold in the public domain.
Auction houses record their sales prices and often report them on the internet but much of the art sale market is very private. Investing in art is something that takes time and perseverance to get to know the market and the key players.
“It’s not something you can launch into as a great idea to make money.”
Fox says it is difficult to make a purely financial decision when it comes to investing in art.
“You are investing in someone else’s practice, their life and career. It’s not a good, or a commodity. I think it’s a uniquely emotive market. It needs to have a level of care and research, due diligence.”
For those wanting to get involved in investing in art the best place to start is to form a relationship with someone who knows what they are doing.
“It’s about using the expertise around you, educating yourself.”
Unlike a financial investment, there is no one who will say you will earn 9 per cent in the first year by investing in that, says Fox.
Ferner Galleries managing director Helene Phillips agrees that investing in art is something to be approached cautiously.
“Much of what we spend on art is a lot of money. Money we perhaps could spend elsewhere. So I think to be cautious is not a bad thing.”
Phillips says the key things to look out for in an investment are resaleability, whether the piece is aesthetically pleasing and its provenance _ the history of the artwork and the artist. She believes art should be a long-term investment.
“I would always recommend a decade. I believe no investor in artwork, shares or property can expect to have a substantial return in less than 10 years.”
And like other investments artwork can still have its highs and lows.
“It’s great if you purchase at the beginning of a rise and sell at the end of a high – but it’s hard to pick that. If you are looking for a quick buck for a period less than that – I think maybe you are not being very realistic.”
But despite the challenges involved it seems more people are dipping their toe in the art market.
Phillips and Thomson attribute this to the growth of contemporary art.
“Over a decade I have been actively involved in art there certainly is growing confidence in buyers to buy just what they like.
“People are buying a lot more sculpture, 3-D art – new and innovative media. It is reflective of the confidence people are feeling,” says Phillips.
A large number of people coming out of university with arts degrees has seen more people with awareness of colour and quality buying art and a shift towards younger buyers.
But Thomson says the explosion of new artists in the past 10 years has also seen the market flooded with pieces all too similar in nature.
“There is just so much of it. But there is just too much of the same. There are about 20 contemporary artists who are doing well. But it’s like a pyramid. The best artists are at the top and there are a whole lot at the bottom.”
Instead, Thomson is seeing a rise in demand for more historical works created in the 19th and 20th centuries of which there is only a finite supply.
“Definitely the market for earlier works is on the rise and international trends back that.
“It does tend to be fashion which dictates what sells well in the contemporary market. While the older ones don’t go out of fashion, in 1990 to 2000 they weren’t as fashionable.”
Thomson says he noticed a swing back towards the 19th century art at the turn of the century.
“People began thinking about it and the fact that some of it was three centuries old now rather than being just last century.
“There was quite a lot of art produced between 1860 to 1900. They are being seen as quite important as there are no more of these paintings being produced.”
Thomson says fashion can be an important factor to take into account when buying a piece of art for investment returns. “If you want to look for the right things to buy – you should buy things that people don’t want.”
Or, in other words, don’t buy things that are in fashion at the moment.
Phillips says artworks with a historical view have not risen in price as much as contemporary art pieces, thanks to the popularity of contemporary art.
She attributes this partly to the age of art buyers and to the current fashions in interior decorating where open plan living is in favour. “In general with this work we have to work a little harder to find the right space for it. And it requires determination on the part of the buyer to maintain it.”
But, she says, the popularity of historical works does appear to be growing – a movement which she is hoping to tap into with an exhibition at the Erupt Taupo festival this week. One thing all the experts agree on is to buy art you like, so even if it falls in value at least you have something you enjoy.
The Spirit of Place exhibition is on at the Taupo Museum from May 8 to June 25. Ferner Galleries is hosting the exhibit.