Southampton - Is it genetic wiring or some law of attraction that makes us want to take home whatever object catches our eye? Anything and everything, from anywhere in the world, is fair game as "Collectible." It's personal and dictated only by desire. For some, it's stamps. For others, it's antique doorstops. Some of us are passionate collectors of art but not always for love. Some collect art passionately for profit and status; art as a "brand" so to speak.

Renowned dealer and collector Eugene V. Thaw.

According to renowned dealer and collector Eugene V. Thaw, there is no real art market as much as there is hype and spin. "The prospective art buyer should be clear whether they are starting a collection for love of art, or for profit and status. There are just trophies and what they can be hyped up to." Which is how a Rothko owned by David Rockefeller, originally appraised for $10 million about nine months before it sold at Sotheby's, went for $72.8 million at the time of sale. There was a tremendous amount of promotion for months prior to the auction causing the sale dollars to be spun into the heavens."

Well, those were the days. Buying art at a time when a reassessment of the "essentials" is foremost on the minds of many may seem anything but essential. That is, except for those of you who are avid art collectors. For you, if there is a will, there is a way.

The Mei Moses Fine Art Index is the number one art index most often quoted by the media and elsewhere in the analysis of the financial returns of the art market. The Index focuses on mature artists whose works command significant prices at auction and represents the annual percentage of return realized on a fine art investment for a particular year.

Art market prices have certainly not enjoyed immunity from the recent financial upheaval. The Mei Moses website on the 2008 art index report states, "The 2008 decrease in the return of the all art index of almost 4.5 percent is the first time our all art index has declined after five years of positive annual growth averaging almost 20 percent."

Mei Moses Fine Art Index is the number one art index most often quoted.

Furthermore, their recent findings for the first quarter of this year indicate that their "all art index" declined by 35 percent. According to the Financial Times Limited, the "decline accelerated as people who lost money in the financial crisis put up works for sale, often at a loss." Even corporations and museums are downsizing their collections. The data from the Mei Moses Index indicates contemporary and postwar art prices suffered the most, though the Old Masters were only marginally affected.

Clearly it's a buyers market and a great time to buy original artwork if you are the average collector or someone interested in starting a collection. One side benefit of a slower market is that if you are a novice collector, the gallery dealers and experts will have more time to talk to you.

ArtHamptons developer Rick Friedman. Photo by Mariah Quinn

Is art a good investment these days?

Vicky Nash Shaw, ISA AM, an accredited personal property appraiser (www.TheAuthenticAppraisal.com) reports, "Like the stock market, unless you have a crystal ball, it is difficult to tell. There are periods in recent history where art prices certainly outperformed the stock market, as measured by comparing the Mei Moses Index to the S&P; Index. Many art experts believe that art will outperform the stock index over the long run…"

Still it's always been risky to trade in fine art for profit. You can't always get instant liquidity by dumping a painting on the market as you would with a stock, without taking a loss. The wiser perspective might be to buy art for love first, but also regard it as an investment for profit over time.

Rick Friedman, developer of ArtHamptons and the Hamptons Home and Garden Show, is himself, an avid collector of mid 20th century art, has this to say about investing in art. "When you buy blue chip art, you will never over-pay, although you may be buying a little early…."

He goes on to say, "As it stands, dealers are eager to move their wares and are willing to negotiate. The current prices haven't been this low in four or five years. However this window of opportunity may only be temporary. Because a lot of high quality art was sold on the market at a loss earlier this year, there may be some "bounce back" at some point in the near future."

Given these circumstances, you have a great opportunity this coming weekend to dip your toe back into the art market.

Art fairs in particular are the most efficient way (though sometimes exhausting) way to see a lot of art all in one place.

The second annual international fine art fair, ArtHamptons, starts this weekend. There will be $200+ million in fine art for your viewing pleasure and for sale. Featured are 64 nationally renowned galleries who specialize in a rich assemblage of museum caliber art from the 20th and 21st centuries. The fair provides local, national and international collectors with a rare summer opportunity to purchase vetted and significant paintings, sculpture, drawings, photography and prints.

ArtHamptons is scheduled for July 10 through July 12 at the Bridgehampton Historical Society Grounds. Whether you are seasoned collector, a novice or gallery tourist, don't miss this show!