<div><em>A billionaire’s guide to the world of decorative arts and other collectibles, writes <strong>Matthew Weigman</strong></em></div><div> </div><div>One of the most notable aspects of the Forbes billionaires list this year is the conspicuously high number of art collectors. From Bill Gates, who famously purchased Leonardo da Vinci’s notebooks, known as the Codex Leicester, for $29 million, to Carlos Slim, who founded his own private museum in Mexico City with over 66,000 works, the pursuit of what has been considered life’s ultimate luxury occupies the wealthy as never before. Testament to the fact, the European Fine Art Fair’s 2015 Art Market Report revealed that the global art market in 2014 reached record levels, with total sales of $54 billion. For those looking to be a part of this multi-billion market, here is a brief guide on how to collect some of the world’s most prized extravagances, with tips for investors and connoisseurs alike.</div><div> </div><div><strong>Decorative Arts</strong></div><div>There’s never been a better time to collect furniture and decorative arts with property from many of the world’s most discerning collecting families coming to market. The design and creativity we dedicate to the private spaces we live in can be considered a form of expression that reflects our personal style and taste — an extension of our personality. By following a discerning approach to assembling a collection, it is possible, through careful choice, to turn one’s home into your very own masterpiece, where antiques, fine arts and decorative arts coexist in a striking and innovative way.</div><div> </div><div>Mario Tavella, Sotheby’s chairman of Private European Collections and Decorative Arts, advises: “Don’t restrict your collection to just one category — always mix and match instead. Your house should not look like the period room of a museum. For the most wonderful environment, combine the antique with the modern to create the ‘wow-effect’.”</div><div> </div><div>Items every new collector should focus on acquiring: Decorative arts will always look their best if they are complimented by a sensational painting. If you cannot afford a sensational painting, choose a painting with a very unusual subject.</div><div> </div><div>Start your collection with the most beautiful Louis XV or Louis XIV chest of drawers you can afford, on which you can put objects by the likes of Alexander Calder and Henry Moore for the perfect combination.</div><div> </div><div>If you are a businessman, you must have a bureau plat which will immediately define your status or rank.</div><div> </div><div>However, do not make the mistake of putting a modern office chair behind it. You need to ‘suffer’ a little with an elegant eighteenth century armchair — it will be worth it.</div><div> </div><div>If money is no object, be creative. Don’t follow the style of collectors who have gone before you. Follow your own tastes and you will become the taste-maker.</div><div> </div><div>Seek advice: Consult with experts for a second-opinion as to which items will best complement your home and existing works in your collection.</div><div> </div><div>Collect objects that you love: Above all else, surround yourself with objects that delight and inspire you. </div><div> </div><div><strong>Watches</strong></div><div>Tim Bourne, Sotheby’s Worldwide Head of Watches, explains: “The global interest in watches has seen significant growth in participation and at our sales we have seen growth of 200-300 per cent in the last 10-12 years. Not only have watches become a highly collectible category that resonates with many people throughout the world, but the increasing wealth in Asia and the Middle East has contributed enormously to the desire to acquire collectible watches.”</div><div> </div><div><strong>Jewellery</strong></div><div>Of all the decorative arts, jewellery is perhaps the most personal, with great names such as Cartier, Tiffany & Co. and Bulgari, speaking of the ultimate in luxury. The most desirable are pieces with a noble and prestigious provenance, which evoke the lifestyle of the personalities who once owned them. A notable recent example, reflecting the allure of a celebrity provenance, is a rare 9.75 carat Fancy Vivid Blue Diamond Pendant from the collection of Paul Mellon, which sold at Sotheby’s in New York for $32.6 million and established $3.3 million per carat as the new world auction record price paid per carat for any diamond. </div><div> </div><div>David Bennett, Worldwide Head of Sotheby’s International Jewellery Division, explains: “Today, the market for jewellery is more globalised than ever. The Internet era has made information available to potential collectors across the four corners of the Earth. In this interconnected world, auctions can bring to sale rare jewels which have been in private collections for many decades or even centuries, as well as unique creations by all of the great jewellers.”</div><div> </div><div><strong>Tips on Collecting:</strong> Focus on the highest quality pieces — not necessarily the biggest stones.</div><div> </div><div><strong>Trust Your Taste: </strong>If you like something and feel a connection with it, there’s a good chance someone else will too, if you come to sell it. Ask for certificates to accompany the jewel, which attest to its quality and origin. Remember that important or historical provenance can greatly increase the value of a piece of fine jewellery.</div><div> </div><div><strong>Classic Cars</strong></div><div>Classic cars are the best performing of all luxury assets over recent years. Of the alternative investments examined as part of The Coutts Index: Objects of Desire survey in 2014, classic cars have returned the most since 2005, rising by 257 per cent, easily outpacing any other comparable investment over the period. At the recent Amelia Island car sales in the US, almost 20 examples sold for $1 million-plus mark, with new records set for Ferrari, Porsche and Mercedes Benz. The top lots were a 1960 Ferrari 400 Superamerica SWB Cabriolet, which sold for $6.4 million and a 1955 Jaguar D-Type, which had raced at the 1954 24 Hours of Le Mans, and fetched $3.7 million.</div><div> </div><div>Alain Squindo, vice-president, RM Sotheby’s, advises: “First and foremost, start with what interests you and what you have a passion for — be it sports and racing cars or elegant coach-built classics. If you buy what you like, that is what will ultimately bring you the most enjoyment. From then on, do your homework to authenticate the vehicle and its history.” </div><div> </div><div><strong>Tips on Collecting: </strong>Don’t buy a car with the thought of making money overnight. Buy something you are going to enjoy driving and owning. But don’t fall in love at first sight either. Some cars have great appeal, but that doesn’t always translate into value or reliability.</div><div> </div><div>Low production numbers and survival rates are important factors in the value. Fewer than 100 produced is good. Fewer than 50 is even better.</div><div> </div><div>Bigger engines can sometimes mean a bigger return on investment. The most desirable 1960s muscle cars are the special, high-performance, big-block V8, four-speed muscle cars, built in limited numbers.</div><div> </div><div>Knowing a car’s complete history is one of the most important factors to consider. Any factory-issued paperwork or documentation can add considerable value to a car’s selling price.</div><div> </div><div>Don’t forget to make allowances for upkeep. Classic collectibles require climate controlled system garages or special storage facilities, plus regular service and maintenance. And don’t forget to add car insurance to the equation.</div><div> </div><div><strong>Contemporary Art</strong></div><div>The 2015 TEFAF Art Market Report showed that postwar and contemporary art was the largest sector of the fine art market, representing 48 per cent of all fine art sales by value, reaching a combined figure of $6.4 billion in 2014. The significant growth in this sector has continued into 2015, with record-breaking figures at London’s showpiece February sales. The most eye-catching of these was undoubtedly the $46.3 million paid for Gerhard Richter’s AbstraktesBild, 1968, a new high for any living European artist. Alongside the auction houses, the contemporary scene is also dominated by a series of highprofile fairs across the globe: prominent among these are Frieze in London and New York, Art Basel in Hong Kong, Basel and Miami and Art Dubai in the Middle East.</div><div> </div><div>Cheyenne Westphal, Sotheby’s co-head, Contemporary Art Worldwide, says: “My advice to new collectors would be to visit as many exhibitions and auctions as you can, learn about the artists, and discover the work that you truly love and want to live with. This could be paintings or prints by giants of contemporary art like Warhol and Richter, or younger artists such as Jonas Wood and JiaAlli, but the important thing is to follow your passion.”</div><div> </div><div><strong>Tips on Collecting:</strong> Visit as many exhibitions as you can. Explore the art fairs; they are a fantastic opportunity to discover new art exhibited by major galleries.</div><div> </div><div><strong>Do Your Research:</strong> Websites such as Artprice and Artnet publish extensive databases featuring auction records. Follow your passion and buy it because you love it.</div><div> </div><div><em>The author is Worldwide Director, Sales Communications, Sotheby’s</em></div><div> </div><div>(This story was published in BW | Businessworld Issue Dated 16-11-2015)</div>