15 Nov 2007

Who is investing in art?

There appears to be a popular misconception that art is bought only by the rich and the famous. Or, by those who are serious art collectors. The truth is art has suddenly become a viable asset class for young professionals. Thanks to the IT boom there has been a spurt in salaries, and as a result there is a growing number of people with deep pockets. In Bangalore itself, there is a huge interest in art from individuals working in the IT sector. In the past, once people had invested in real estate and mutual funds, they looked at art as another investment avenue. However, now art has become a status symbol. It has become a prized possession that needs to be acquired and then flaunted.

Gallery sources reveal that there has been a significant increase in the number of buyers in the age group of 20 – 30 years. These are buyers who have Rs 50,000 to Rs 2 lakhs, which they would rather spend on art than splurge it on mindless shopping. It also indicates the awareness levels in this young age group about the potential of art as an investment instrument and its snob value.

What stands out is that there are many first time buyers who visit art galleries with the sole intention of buying art as an investment. Unfortunately, most of them have no clue about art and rely completely on the gallery in selecting the artwork. A majority of them, in fact, are drawn towards artwork that is aesthetic and has a far greater decorative value than an investment value. However, thanks to the hype in art investment, they end up buying works that do not appeal to them. Also, another popular trend that seems to be catching on is that festival shopping for jewelry and clothes now also encompasses shopping for artworks. These generally are in the more affordable range and with a greater emphasis on aesthetics to fit in with home decor.

(Published in Financial Times)

14 Nov 2007

Investing in decor

Investing in art is always a long-term proposition. This asset class - it is perceived as one these days - is quite different from money market instruments or commodities for that matter. It involves aesthetics, preservation and a keen eye for potential. It is therefore essential to keep in mind a few facts about art before buying an artwork, if you have its investment aspect in mind.
To begin with, an artwork does not lie in a demat account. It will be displayed in your home or office for a few years. It is therefore absolutely essential that you like the piece you are buying, apart from its projected market value. This apart, it is also advisable to buy a ‘marketable artwork’, going by the current trend.

Another aspect that you need to keep in mind while buying an artwork is the artist himself. An upcoming but promising artist’s works will not be as expensive as an established and senior artist. Some knowledge about art will help as you can identify potential and buy works that will appreciate over time, at a good price. It is therefore necessary to study artists and read-up on reviews before buying an artwork.

Yet another factor you need to dwell on is the sort of work you are buying. Oil and acrylics on canvas cost a little more but are also likely to fetch higher returns when you resell them. A good frame will ensure the durability of the artwork as well. In addition, you need to take steps to protect your artwork adequately while on display at your place.

Many people buy an artwork, display it for a couple of years and sell it to buy another one. This way, they have a variety in their decor - workspace or home - and get a return on their investment too. While this is a good strategy, knowing some basics about art investments will ensure you make the right choice.

(Published in Financial Times)

5 Nov 2007

Art Buzz (Mumbai)



Is The Art Market Stabilizing?

(By Nalini S Malaviya)

In the last few months there has been a lot of interest and curiosity surrounding the art market. The past five years saw a phenomenal growth in the market where prices rocketed upwards, but then there was a stabilization of sorts recently. However, speculation continues whether the market is recovering or is the slump likely to continue for some more time. The recent held auctions by Sotheby and Christies seem to have reaffirmed faith in Indian art. In fact, the senior group of artists have performed exceptionally well, and this seems to indicate a renewed confidence in Indian art, which is likely to be substantiated in other forthcoming auctions as well.

The domestic market, too, appears to be thriving well. There seems to be a lot of emphasis on the young and upcoming artists. Artworks priced in the range of 1-5 lakhs or even as high as 10 lakhs are in the spotlight. This is especially true when these works have been done by the next generation of promising artists.

The price correction has been a leveller of sorts and has also helped in making the buyers more quality conscious. As the awareness has grown, buyers have become more demanding. The emphasis on quality strikes a welcome note. Artists now, hopefully, will be forced to slow down, pay more attention to detail as well as take their time to turn out creative works. It will also act as a filter to separate the genuine artists from the commercially-minded ones.

With more focus on the younger artists and a greater interest in the lower price range, art will also become more affordable to a wider buyer base. This by itself should give an impetus to the market, renew interest and strengthen it somewhat. Newer trends may find a larger audience. Apart from conventional artworks, newer mediums and styles may also find wider acceptance. Lower prices may continue for sometime, but it is likely to have a positive impact on the overall art market in the years to come.

(Published in Financial Times)

31 Oct 2007

Importance of the Right Frame

(By Nalini S Malaviya)

A beautiful frame serves to draw attention to a work of art. But more than the decorative value of a frame, it is important to invest in the right kind of frame that will support the painting without damaging it in any way. We have seen in the past that artworks on paper are particularly fragile in nature and can get damaged easily. A good quality paper forms the basis of a good quality artwork, and is an essential element that contributes to the longevity of a painting on paper. However, if a poor quality wood or backing material is used for framing a painting that has been done on the best quality paper, it will eventually defeat the purpose.

If wood is used for framing, it is essential that it is pre-treated and seasoned appropriately. Wood can be highly susceptible to wood borers and other kind of pests that can spread to the painting and damage it irreparably. A bad quality backing for the painting can shrink or warp and again damage the artwork. If the wood is not properly seasoned, moisture can get in between the glass front and the painting. This can encourage mould to grow. Poor quality mats will yellow with age and may also become brittle over time, which in turn can affect the painting or drawing. The acrylic or glass cover should also be of good quality, for instance an ultraviolet (UV) protective glass can be used. This will protect the painting from the harsh effects of UV light to prevent it from turning ‘yellow’ or fade with time. The freshness of colors and pigments will also be maintained over the years. One should also avoid using adhesive tapes such as a masking tape, which can damage the mat with time.

If maintained properly, a good watercolour or drawing can last for a long time and one can enjoy its beauty and the freshness of colours for a long time to come.

(Published in Financial Times)