Walpole: Why did you want to set up the Maddox Art Advisory?
John Russo: The goal was to set up a space where expertise and passion converge — a destination that offers guidance, knowledge, and insight into the complexities of the art market. Maddox Art Advisory not only showcases remarkable works of art, but also serves as a hub for cultivating relationships among collectors and artists.
How does the Maddox Art Advisory interact with your original Maddox Gallery?
By combining the strengths of both the gallery and advisory division, Maddox can offer a comprehensive range of services that cater to collectors, investors, and art enthusiasts alike.
The Advisory space can introduce clients who are focused on investment to the Gallery, which offers a diverse range of art for purchase. Conversely, the Gallery can introduce clients who are primarily interested in collecting art for personal enjoyment to the Advisory team for guidance on potential investment opportunities.
By working together, the Advisory and gallery team can create a dynamic experience that caters to the varied interests of our clients and collectors.
Through collaboration, communication, and a shared vision, these two divisions can provide an unparalleled experience that combines the joys of art appreciation with the potential for financial diversification and growth.
Could you briefly describe the service? What is the offer to a client?
Maddox Art Advisory offers a curated selection of high-quality, valuable artworks for collectors and investors seeking to diversify their portfolio or acquire aesthetically pleasing pieces with strong potential for appreciation.
My team provides expert advice on art market trends, emerging artists, and proven investment-worthy pieces. Services include art consultation, acquisition assistance, authentication, valuation, and artwork management, ensuring a seamless and informed investment experience for clients. In 2022, we achieved an average annual return of 27.9%, which means that Maddox has now delivered six consecutive years of double-digit returns.
Additionally, the gallery organizes exclusive events, exhibitions, and artist talks to enrich clients' understanding of the art world and foster networking opportunities within the investment community.
How did you come to be CEO of Maddox Gallery and has your career journey influenced the decision to start the Art Advisory?
Five years ago, I was appointed by the shareholders to supervise the governance and oversight of the global business and all its divisions. With a background in legal, luxury and family office sectors, the Art Advisory has evolved in a more sophisticated offering to clients and collectors in the UHNW and HNW sector.
As our Art Advisory evolves, our goal is to navigate you through the labyrinth of the art market, offering our expertise on emerging talents, prevailing trends, and time-tested investment-worthy pieces that are nothing short of extraordinary.
We take immense pride in our ability to provide clients with comprehensive art consultation, acquisition support, authentication and valuation.
Why should investing in art be an important consideration for HNWIs?
The world of art offers a unique opportunity for those seeking to diversify their wealth and ensure their financial legacy, all while indulging in the beauty and inspiration that art brings to our lives.
First and foremost, diversification is key to the stability and growth of any investment portfolio. By incorporating art into their investment strategies, HNWIs can mitigate risk and weather the storm of market fluctuations. The low correlation between art and traditional investments, such as stocks and bonds, means that a wise art investment can be the anchor during times of economic uncertainty.
Despite banks filing for bankruptcy, volatile cryptocurrencies and turbulent changes in stocks and bonds, the art market has repeatedly demonstrated exceptional resilience and adaptability compared to other investment classes. In the latest Knight Frank report, art was the top performer luxury investment, rising by 29% in the last 12 months and by 91% in the last decade.
Specifically, Contemporary art has become the reining segment among collectors, with its market size doubling in the last 10 years, and outperforming the FTSE 100 by 407 between 1st January 2000 to 31st December 2022.
Secondly, capital appreciation is a driving factor for any investor. High-quality works of art by renowned or emerging artists have demonstrated a consistent growth in value over time. This appreciation potential offers HNWIs a substantial opportunity to not only protect their wealth but also see it grow in the long term. This is why 85% of Deloitte’s wealth managers recommend including art in a balanced investment portfolio for wealth preservation and value appreciation.
Now, let's not forget the intrinsic value of art as a tangible asset. In times when economic stability seems like a distant memory, art serves as a reliable store of value, a shield to protect one's hard-earned wealth.
Moreover, the benefits of art investment go beyond the realm of finance. By acquiring significant works of art, HNWIs can amass cultural and social capital, contributing to the enrichment of our shared artistic heritage. In supporting artists and institutions, they play a crucial role in shaping our creative landscape and leaving an indelible mark on history.
Finally, we shouldn’t underestimate the sheer joy and passion that the world of art brings to our lives. The process of discovering, acquiring, and cherishing a work of art is an experience that transcends mere financial gain, enriching the soul and uplifting the spirit.
The fusion of financial, cultural, and emotional rewards makes art investment an essential consideration for HNWIs. It is not merely a strategy for wealth management, but a journey that enriches life through the power and beauty of art.
What’s the biggest mistake collectors make when investing in art?
While financial return is a significant aspect of art investment, the emotional and aesthetic value of a piece should not be overlooked. Collectors who focus solely on potential gains may miss out on the joy and personal fulfilment that comes from owning and appreciating a work of art.
More importantly, it’s recognising that art’s valuation is based on scarcity and societal value. The more time an artwork is withheld privately, the higher resale price it can achieve. Freshness of the market is one of the most important components when valuating an artwork. If an artwork hasn’t been available for sale within a substantial time, buyers will be more willing to pay higher amounts to secure the piece. Sotheby’s Mei Moses studied the repeated auction sales in the last 45 years, proving that 88% of art held for at least ten years turned a profit.
What’s been the most exciting purchase in your own collection?
A piece by the street artist Retna. I would consider him to be one of the last living truly great street artists. He represents the end of an era of raw talent that is unlikely to be seen again.
In your opinion, which British artists should be on collectors’ radars right now?
Everyone should be paying attention to Will Martyr. As a contemporary artist with a growing international reputation, Martyr's career trajectory suggests promising potential for appreciation and increased demand for his works. Collectors who recognize his talent and invest in his art early on may benefit from the artist's ongoing rise in prominence.
With a studio in London’s East End, Bridget Riley continues to create art today, although the supply of works has significantly decreased. Aged 91, there will come a point where the market stops being fed new artworks, which will inevitably increase demand for those in circulation. Add to this the meteoric rise of female artists in recent years and Riley’s Op Art is expected to become a household name, just like her peers Yayoi Kusama and Tracey Emin. With an extensive exhibition at The Art Institute of Chicago in September 2022, the curatorial momentum continues for Riley with a retrospective of her drawings currently taking place at the Hammer Museum in Los Angeles.
There has been a surge in the auction market for Hockney’s prints in the last 12 months, with the artist likely to keep setting new sales records every year if the momentum continues. His newest body of work, “painted” on an iPad, was prominently featured in a blockbuster exhibition at London’s Royal Academy in 2021, which continued its global journey in 2022 at the Centre for Fine Arts in Brussels and the Sakip Sabanci Museum in Istanbul. With his classic landscapes and domestic scenes, reimagined through technology, he has succeeded in inspiring multiple generations and appealing to a new audience of young collectors.
With his current low valuations, a savvy investment in Banksy art would be an astute decision now more than ever with his continued rise in popularity and fame in the years to come. Returning to his activism against the Ukraine war, Banksy broke his silence on 16th November 2022, with six provocative murals in the middle of the battlefield and by releasing a unique fundraising print. Most recently, his spontaneous works Valentine's Day Mascara in Margate and Morning is Broken in Kent have hit the press headlines once again.. We are already witnessing a change in Banksy’s median artwork prices and estimates back to 2021 levels. Compared to last year, the median auction realised price has tripled from the average in 2022.
If money were no object, which artwork would you love to own?
Ed Ruscha is an iconic figure in the world of contemporary art. As a pivotal member of the Pop Art movement, his innovative contributions have left an indelible mark on the artistic landscape. Owning a piece by Ruscha would be a testament to the appreciation of his immense influence and legacy.
Find out more about the Maddox Art Advisory here
