Communication between collector and appraiser can equal saved dollars from the IRS when preparing a charitable contribution report. Most of my written appraisals are for charitable contribution, so this I know from experience. As an appraiser I need to establish value and quality characteristics of the property I am appraising. It is important to remember an appraiser’s responsibility is value, not as an art scholar or historian. Naturally art history and scholarship is discussed in the report, but the purpose of the appraisal is to establish a value. Often, I rely on the collector to point value and quality characteristics out to me. It is the appraiser’s professional responsibility to do due diligence and find the important quality and value characteristics, but what a lot of time is saved if the collector points those qualities out at the beginning. If I put a $50,000 value on an Indonesian textile- based from a comparable property sale- I need to be able to defend my position. Without the bibliography (often supplied by the collector), being alerted to what is unique, explained to why the property is important and museum worthy, I would have a difficult job doing my due diligence.

Of course condition is the number one important quality and value characteristic. Sometimes there is a significant extra added value feature too. For an charitable contribution appraisal I did for an Indonesian textile, the fact of hand spun thread was extra added value due to the fact many quality textiles were made with commercially spun thread, so this fact was added value- to the tune of $5000. For another batik textile from Java, a small monogram, among the many designs on the cloth, warranted the brother of a groom from the court, the permission to wear the cloth at an important ceremony as part of the wedding. This was $1500 extra value for this particular textile. I am not stating something unordinary or manipulative. An appraiser will do due diligence to perform your appraisal, but as a collector, you can help.

For the cloth batik from Java, the quality characteristics were condition, quality of the tulis batik, numbers of colors and design. This was true of the value characteristics also. When speaking of design in this case, I am speaking of the overall style. The design of the monogram is above and beyond the thematic design of court batik, the typical Indonesian wayang puppet figure style. But the presence of the monogram among other designs adds special value to an already important, valuable piece.

It makes common sense to talk to your appraiser performing the charitable contribution report. This will lead to a well-written report and understanding of the material by the appraiser, and it can also have the consequence of substantiating a higher value for your property than originally expected.

When advising a client, who wants to build an art collection as his/her main investment, it would be important to stress the risk involved in art investment. Since the nineteenth century, art dealers have been advising clients to buy art they enjoy. This is the single, most important element of collecting because if a piece loses its market value, the collector still has a personal attachment to it. Buying what you love is the safest way to invest in art. Building a collection from a pure investment standpoint creates an entirely different set of issues. Some economists suggest art investment can be more lucrative than the stock market, but the mercurial trends and volatility of the art market can make art a much riskier asset than a stock.

Hedge fund managers like Steven A. Cohen have created a heightened interest in art as investment. As a collector, he has generated an interest in certain artists and a confidence in the larger art market.¹ It is suggested that his attention to certain pieces has validated the value of similar artists and for art for the entire market itself. But whether or not the high prices paid for his collection will turn into a profit for him is yet to be determined. He purchases recognizable pieces by famous artists for high prices. At this point he seems more of a traditional collector, who buys what he likes, rather than what will provide him the most long-term profit.

Economists like William Goetzmann, David Kusin, and Michael Moses have conducted studies to evaluate the gain for a collector who wants to use art as his/her main investment. They attempt to compare the gain from stocks versus that of art. By analyzing works of art that sell more than once at auction, Goetzmann says that the rate of return for art exceeds the rate of inflation.² But the cost of selling works of art is very high, therefore cutting into the profit. Also, the likelihood of a buyer willing to pay as is highly unpredictable, even with reliable auction records. Unlike stocks, art is not a liquid asset. Unlike a stock, that reflects the value determined by a large group of people, art is determined by individual taste. The selling price of a piece at auction is determined by the mood or taste of one or two, single bidders — rather than thousands of shareholders.

In her article “Art as an Investment,” Wendy Cromwell discusses the difference between art investment funds and traditional collectors. She says, “Individual collectors are driven by passion, . . . informed about auction history, and they consider provenance and condition as important variables in determining what to pay for a work of art, whether privately or at auction.” Collectors are usually well informed about the artists they collect and which pieces will hold their value. They do not simply speculate on profitable piece but they assimilate a variety of factors into their buying methods.

Many art investment funds try to diversify their collection in a similar format as a stock portfolio. This model has worked for funds like the British Rail Pension Fund who make a profit of almost 12% by slowly selling off work from a variety of genres.³ Other investment groups, such as the Fine Art Fund, are following the same model. This may work against them in art investment, as it is often more important to have a cohesive vision in a collection than a variety of art objects. Investment funds often try to collect iconic works by famous collectors, rather than pieces they love, to insure their financial gain. This is another risky move. As Cromwell suggests, the provenance of a thoughtful collector’s vision often adds value to its marketability. A random selection of paintings that is sitting in a vault might be viewed negatively, as commodities, rather than unique pieces of art.

Although one can research auction records through a database like the Mei/Moses Index, the auction market is difficult to gauge. Moses says, “The S&P 500 and the Dow 30 are broad measures of how those markets are doing. We need the same thing for art.” But galleries do not report such data, making art investment much less documented than the stock market. Also, in an auction, a piece that sold for a record-breaking price might not actually be worth that price. The value can be constructed by a set of collectors who falsely bid up the price in order to insure their own interests in the artist. The results can also be based on the group or mood of the bidders rather than concrete, reliable data. Thus, a collector cannot insure that their piece of art will sell for its predicted price.

In Finken’s article Goetzmann also sees a discrepancy between the stock market and the art market in terms of a public marketplace. Unlike the visible, transparent public realm of the stock exchange, art buying is most commonly done in private. The choice of pieces is often minimal and collectors must rely on dealers and specialists in order to invest. This corners the market and makes art investment narrow.

For a collector Moses suggests buying lower-priced art, with more room to grown, rather than million-dollar masterpieces. Contemporary art is very risky because of its reliance on ever-changing trends. Kusin suggests American and English furniture as a solid investment. When asked what he would invest in, Kusin would buy modernist drawings and sculpture maquettes in an attempt to build a strong, cohesive collection. Although there was a decline in its value in the 1990s, Goetzmann says prewar and postwar art is a good investment because the works are “high beta.” The genre swings both upward and downward in value with great magnitude. It is risky but has great potential for profit.

According to these economists art investment can be lucrative but riskier than stocks. Art collecting has to be done in a strategic manner, as there is less security and proper data in the art market than the stock market. If advising a advising a client, who wants to build an art collection, it is best that art should make up a portion of one’s investment rather than serve as his/her main investment. Art should also be held for a long period of time. Although a collector can now use art as collateral for a loan from companies like Art Capital Group Inc. or Citigourp Private Bank, they should be well informed about the market. It might be better for a collector to enjoy a panting on their walls instead of putting it into a warehouse for ten years. Therefore, the traditional model of art collecting still functions best. Collectors should buy what they like rather than what seems to be the best investment.

New York Times, Tuesday, May 11,2010. Lead article “The Arts” page C1.

Judith Watkins Tartt, founder of Art-Care, in a statement for the press noted that Ed Able’s enormous knowledge, universal respect, and superb experience will bring a new level of effectiveness as Art-care seeks to better serve individuals who hold art and other material culture under private ownership. She noted that, “Ed is one of the most widely known and respected professionals in the cultural and non-profit fields and his values and commitment to preserving society’s material culture is totally aligned with the mission of Art-Care.”

In commenting on his new association with Art-Care, Able provided his views:
“For more than twenty years, my job and my passion were the stewardship of the material culture held in trust for the public by America’s museums.  However, I have always been very mindful of the greater amount of cultural material that is held in private hands. Protection and stewardship are extremely important in both domains.  Art-Care is the first comprehensive effort to assist the broadest array of private owners in fulfilling their responsibility of preserving our cultural heritage and it is with great enthusiasm and excitement that I begin my role in this enterprise.”

For almost 40 years, Able was CEO of non-profit organizations and associations.  Most recently he served for 20 years as the President and CEO of the American Association of Museums from 1986 to 2006 where he led the organization to become the most influential and largest cultural association in the world. He has been recognized for many years as a major leader in the wider non-profit community and was named by the “Non-profit Times” as one of its Top 50 Most Powerful and Influential leaders in the non-profit field for nine years. He has served on the boards of The National Center for Non-profit Boards (BoardSource) where he was a founder of the organization and served for 13 years as a board member, the American Society of Association Executives(ASAE), the National Humanities Alliance, the National Cultural Alliance and Independent Sector (The national association representing the largest charitable and philanthropic organizations in the country.)  He is a Fellow of the American Society of Association Executives and was awarded the Society’s highest award, the Key Award, for outstanding performance and contribution to the field of association management.  In addition, he has been presented with life-time achievement awards by several associations of museums, The Chairman’s Medal from the National Endowment for the Arts and numerous other awards. He was appointed by the Secretary of State to serve as a member of the US Commission on the United Nations Education, Scientific and Cultural Organization (UNESCO).  Mr. Able is a frequent speaker and media source on museums and non-profits and has been a leader in the areas of governance, ethics and public accountability for non-profits.  He holds a bachelor’s degree from Emory University in Atlanta, Georgia and an MBA from George Washington University in Washington, D.C.   He now pursues a career in consulting with museums, associations, foundations and philanthropic organizations

Art-Care, founded in 2005 by Senior Conservator, Judith Watkins Tartt, is a unique on-line resource for a complete array of Service Providers including conservators, appraisers, insurance companies, art shippers and others who serve private individuals and public institutions.  The mission of Art-Care is:

MISSION: Support the stewardship, preservation and protection of art and other material culture under private ownership by connecting owners with highly qualified service providers

GOALS: Support public  institutions by providing an objective and unbiased source to which they can refer private owners for a variety of art service professionals and companies.

Support individual citizens in good stewardship, preservation and conservation of material culture held under private ownership by providing a centralized source for an array of highly qualified service-providers. .

Support highly qualified private service professionals and companies in connecting with private owners of art and other material culture..

Serve as a comprehensive educational source to assist the general public
in making sound decisions and taking appropriate actions in the preservation and stewardship of privately held art and material culture.

For more information on Art-Care, go to WWW.Art-Care.com

by Carol Hagen

Just one look at the devastation wrought by hurricanes Rita and Katrina should be enough to convince collectors of any level of the importance of documenting their collections. Collections management is an ongoing process, the core of which is the creation and maintenance of a thorough inventory and catalog of the pieces. Documentation needs to be kept up-to-date and stored away from home in a safe deposit box. The most efficient way to revise records is to store them in a digital format using collections management software.

Why document your collection?

There are many reasons why a collector should inventory their collection:

• Proper documentation of pieces minimizes risk, which can lead to lower insurance premiums.
• If disaster strikes and an insurance claim is needed, thorough documentation speeds the claims process and helps guarantee a fair settlement.
• When an object is damaged, by water, fire, an accident, or in transport, detailed descriptions and photographs aid in the restoration process.
• If items are stolen, documentation can assist law enforcement in recovery and provide proof of ownership. Police officers can rarely recover and return objects that have not been photographed and adequately described.
• Documentation also helps preserve family history and insure items are successfully passed down to future generations.
• For collectors who have multiple residences or who loan their art, documentation ensures accurate representation in publications and labels, and aids in tracking the location of pieces.

What is Proper Documentation?

A through catalog of a collection should include:

1. A detailed list of all the pieces – using the Object ID™ standard, which includes complete descriptions and measurements. Object ID is the international standard for describing cultural objects. It has been developed through the collaboration of the museum community, police and customs agencies, the art trade, insurance industry, and appraisers of art and antiques. (Visit www.object-id.com to view the Object ID Checklist guidelines on creating a detailed description.)
2. Very good photographs – detailed images, digital format is the best, making sure to record any unique characteristics of the objects
3. Documentation on purchase, invoices, provenance, and an appraisal
4. Condition report – especially important for art being loaned or transported

How Should Documentation be Stored?

Appraisers, curators, and insurers all recommend storing collection documentation in an electronic format such as the Curatorial Management System (www.curatorialmanagementsystem.com). Maintaining an inventory in an electronic format provides for easy updating, printing, duplication, and storage. Electronic files can be stored in multiple locations and can save a tremendous amount of space when dealing with large collections. In addition to inventory capabilities, some curatorial management software packages also offer tracking and sorting, sales and loan agreements, robust reporting, and insurance claims. Having an appraisal stored in electronic format will also save a collector money when seeking a re-evaluation or update on the evaluation.

How Often Should an Inventory be updated?

Collectors should keep inventories up-to-date at all times, but reviewing and updating every six months is a practical goal. For serious collectors, ASA, Accredited Senior Appraiser, Leonard Aronson, suggests a range of three to ten years between full reappraisals of items, depending on the volatility of valuation of the items in the collections and the needs of the collector. Though he does caution that if the location or condition of an object changes, the documentation should be updated immediately.

What Types of Errors are made in Documentation?

The biggest error made in documentation is lack of documentation. Other errors include:

• Not storing documentation in a secondary safe location (safe deposit box and/or on file with an attorney, financial planner, or insurance agent)
• Not letting others know where the documentation is or how to access it
• Not having adequate, detailed photographs and / or descriptions

Julian Radcliffe, Chairman of the Art Loss Register, an international organization that has aided collectors and museums with the recovery of over 3000 stolen items worth over $100 billion dollars, elaborates, “The number of victims who have reasonable photographs or descriptions is improving, but still there are many, perhaps 30%, who cannot log their loss, because the image or description is inadequate. Sometimes owners fail to take measurements or photo the defects, damage, or grain of the wood details, which are essential to matching items such as furniture or those such as sculptures, cast from the same mold, which are not unique without such marks.”

Hire a Professional

If cataloging a collection seems a daunting task, art collectors can hire a Collections Management consultant. Services such as Visnulimited, based in Nashville and Los Angeles, can photograph and document a collection, providing the owner with a complete professional itemized catalog of their pieces in both print and electronic formats. Collections Management services can also put you in touch with a certified appraiser for full valuation needs.

Summary

The Chartered Property and Casualty Underwriters Society claims, “An inventory (of a collection) is worth its weight in gold!” A collector, who practices good collections management habits, not only protects their investment for generations to come, but also maximizes the use and enjoyment of their artwork today.

When visiting a museum we look with delight at paintings produced by generations of artists. But sometimes we miss rare and beautiful works of art that hide in plain sight — the antique gilded frames that surround many of those paintings. These are often extremely complex in design and construction, and required a tremendous amount of time and skill to create. The best of them have such perfect design and workmanship that they add immeasurably to the enjoyment of the art they surround and protect.

Today, these antique gilded frames are highly valued and are often collected as decorative art objects, completely independent of their intended function as a frame. If you have a gilded frame, you owe it to yourself to know more about it: how it was made and why, how to evaluate its condition, and what options there are for treatment and restoration of frames that may have deteriorated or become damaged.

The Gilding Process—How It’s Done
The application of extremely thin sheets of genuine gold to a prepared surface is a skill that dates back over five hundred years. It has remained popular to this day, after all it seems to create a solid gold object from the most basic of elements: wood, rabbit skin glue, chalk, clay, water, and, of course, a little bit of real gold.

Here’s how it’s done. First you need very thin sheets of gold leaf (today they are approximately 1/250,000 of an inch thick). Take a carved wood object and brush on multiple layers of gesso, a heated mixture of glue, whiting (chalk) and water. When the gesso cools and dries, it forms a hard “shell” that covers the grain of the wood. Then rework the gesso layer to remove all evidence of brush strokes and surface texture.

Next, add 3-4 coats of bole, a very fine particle clay combined with rabbit skin glue and water. When the bole is dry, the gilding can begin. Wet the object with gilder’s liquor, a solution of water, alcohol and a little rabbit skin glue. While the surface is still wet, cut a piece of gold leaf with a gilder’s knife, lift it with a squirrel hair brush called a gilder’s tip, and then carefully lay the sheet of gold down on the bole. The gilder’s liquor will activate the rabbit skin glue in the bole and as the water evaporates, the gold is slowly “glued” to the object.

Because the bole provides a cushion between the gold leaf and the gesso, you can then burnish the gold to a mirror-like shine with a specially-shaped agate stone. Often this technique is used on ornaments and moldings to create a distinct contrast with areas that are left matte or un-burnished. This creates a delightful play of light on the surface of the gold.

Evaluating the Condition of a Gilded Object
Like all works of art, gilded frames are constantly subject to damage and deterioration. The first step in caring for them is to evaluate their condition. This involves examining their structure, gesso layer, ornamentation, bole layer, surface finish layer, and even the collected dirt, smoke residue, and tarnish that make up the object’s “patina.”

THE STRUCTURE. With picture frames, something as simple as a loose miter joint can be dangerous to the integrity of the whole object. On gilded furniture, the small wormholes commonly thought to be a sign of authenticity and age, are actually caused by powder post beetles and can cause very serious weakness in weight bearing arms or legs.

THE GESSO LAYER. The gesso on a frame can last for hundreds of years. But if it is exposed to excessive alternating damp and dry conditions, the resulting stress will cause it to flake off its wood substrate. Like an open wound, a compromised surface can be the first step to deeper and more serious damage. Flaking gesso is a warning sign that treatment is needed immediately!

ORNAMENTATION. A missing ornament on a picture frame is a serious visual distraction, and relatively easy to replace. This was not always the case. For hundreds of years, frames were carved in wood, a versatile medium well suited to gilding. But carving wood was time-consuming and, worse yet, it wood was prone to splitting and breaking along the grain.

At the turn of the 19th century, the invention of a radical new material called “composition” changed frame making forever. Composition, or “compo” for short, is made from rabbit skin glue, whiting, linseed oil and rosin. This forms a heavy paste that can be pressed into molds to create ornaments. For the first time, this allowed frames to be manufactured in quantity and with a speed that far exceeded the earlier hand-carving process. Mass production, in turn, gave rise to an unprecedented number of designs and patterns. However, the new material had problems of its own. A common problem is that the linseed oil and rosin in compo can shrink and crack, causing ornament to separate from base frame molding.

FINISH. This is, perhaps, the most complex part of any evaluation. There are many different possible finishes, and they can be applied with different techniques. Correctly identifying these is essential before an object is repaired or even cleaned. Without this information, even the wrong cleaning approach could leave you wiping the gold right off your object!

Gold leaf comes in different grades (purities), with pure gold being 24 karats. Most of the gold leaf used for gilding is 23 karat or less, meaning that the gold is mixed with small amounts of copper and silver to produce subtle differences in color.

What is called “white gold” contains a generous helping of silver, giving it a “warm” silvery tone. There is also pure silver leaf and several types of what is know as “imitation,” or “metal leaf.” It is important to determine which of these was used on your gilded object because they each have distinct properties.

The easiest finish to apply is bronze powder. It can be mixed with a wide range of binders, and painted on. It is inexpensive, readily available, and requires very little skill to apply it. Unfortunately this falls into the “too good to be true” category. As a professional gold leaf conservator, I spend way too much time removing old tarnished “touch ups” or complete “repaints” done with bronze powder paint. If the surface of your frame is a uniform dull, brownish gold, chances are it’s not dirt from old age, but tarnished bronze powder paint from an earlier attempt to restore the finish.

THE BOLE LAYER. The bole layer sits just below the gold leaf, and is usually red or grey. You will see it revealed in the high points of contact on antique gilded objects where the gold leaf is worn off. It will often influence the overall color tone of the object. This is true especially as the gold leaf wears away, revealing more of the bole layer. The color of the bole layer can even contribute to our knowledge of the history of an object, since certain colors were preferred in particular countries during different historical periods.

THE PATINA. Not all, but the majority of gilded objects were originally bright gold in color. But over time they develop what is called a “patina” — a beautiful mellow glow caused by a combination of oils, soot, tobacco smoke, and other atmospheric contaminates. Although real gold does not ever tarnish, abrasive cleaning and dusting of gilded objects over time can grind these elements into the surface and tone down the bright gold finish.

APPLICATION TECHNIQUES. The two most common application techniques are “water gilding” and “oil gilding.” The older, and more difficult technique is water gilding, where the adhesive coating is water-based. With the invention of oil painting, gilders developed an oil-based process for their art as well.

Identifying which process was used is essential. Water gilding must be cleaned with mild solvents like mineral spirits or denatured alcohol, while oil gilding can be cleaned with a mild water based soap solution. Using the wrong cleaner can have disastrous consequences.

The Conservation of a Gilded Object
Like any work of fine art in need of care, antique gilded objects require specialized knowledge from a trained professional. Without that experience it is far too easy to do more damage than good when working with gold leaf.

While each case is unique, there is a basic process we follow when treating gilded objects:

• Repair structural weakness
• Stabilize flaking gesso with hot rabbit skin glue
• Replace missing gesso
• Re-carve missing ornaments or cast them from a mold made with dental impression material
• Duplicate the bole color as needed
• Apply new gold leaf as needed (a process called in-gilding)
• Blending the new gold into the old gold to soften the transitions
• Custom mix a thin glaze from a variety of earth colors and carefully apply it to make the new leaf match the original patina

The result is a restoration that is as close to invisible as we can make it.

As the owner of a gilded object it is your responsibility to decide how far treatment should go. “Minimum treatment” will be non-invasive, “medium treatment” will involve a blend of carefully-considered conservation techniques, and “complete restoration” will return the object to its original intended form—a beautiful, shining, golden work of art.
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R. Wayne Reynolds is the owner of Giltwood Restoration in Germantown, New York. You can visit the Giltwood Restoration Art-Care web page by clicking here.

There is no avoiding the fact that paintings are safest when they are left on the wall in a climate-controlled space. However, there are good reasons for moving a painting: it may be bought or sold, you may lend it for exhibition, or you may need to ship it to a conservator for repair or restoration. The ideal choice in any of these situations is to use a shipping company that specializes in fine art. Check our Art-relates Services listings under Transportation to see if there is a company in your area.

If you are packing a painting to be shipped, here are some tips:

If you are a serious collector of high value, rare or precious objects, it is likely that you will need to store some or all of your collection at some point. If and when this time arrives, it is important to know how to evaluate and choose the proper storage facility. The two most important aspects of storage are protection and preservation.

Protection

• A fine art storage facility must be a fire resistive or non-combustible structure, composed of concrete and reinforced steel beams, so that if there were a fire, it would be contained.
• The facility should be freestanding and distant from other buildings.
• The entry and exit point should be the same and there should be only one entry/exit. Ideally, there should be no windows in the storage areas; if there are, they should be blocked from light.
• Motion detectors, shock sensors, and fire and smoke detectors should be installed in all areas of the facility and they should be connected to central security stations that connect respectively with the Police and Fire Departments. They should be monitored 24/7.
• Fire protection should include either a wet pipe or dry pipe sprinkler system throughout the facility, especially in storage areas.
• Inspections of security and fire protection systems should be conducted regularly and maintained using service contracts with professional vendors.
• Personnel who are responsible for handling the art should be trained and bonded.
• The loading dock should be secure at all times and monitored by company staff.
• A computerized inventory system should be available.
• All access to the facility should be monitored, restricted and documented. Access should be limited to working hours.
• Private vaults should be provided for those collectors requiring a higher level of security and privacy.

Preservation

• Temperature and humidity control is critical for art preservation. The temperature should be maintained between 68 and 72 degrees and the humidity level should be between 50 and 55 percent.
• Smoking must be prohibited.
• An active pest control program should be in place.

Finally, your personal inspection of the facility is highly recommended, as your observations during that visit are an invaluable tool in making your final decision.

FORTRESS® has been providing Museum Quality Storage® for 23 years and is the leader in the industry. FORTRESS® also offers a variety of services, including packing, transportation, shipping, crating and installation. Please visit us at www.thefortress.com for more information.

Boston
617-288-3636

New York
718-937-5500

Miami
305-374-6161

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Kimberly Jones is the Vice President & General Manager of FORTRESS® Miami and has managed the Miami operation for 22 years.

by Newbold Richardson
The Costume and Textile Specialists