As most buyers will testify there are numerous problems that plague the art market when it comes to pricing. One keeps talking, hearing and reading about the lack of transparency in the art market. Prices of artists vary from gallery to gallery and from one city to another. This difference is usually much more than what one would expect due to transportation or other costs related to logistics.
Credibility of the seller is another very essential factor that needs to be considered when buying art. As most people are aware there are numerous fly by night art dealers and consultants who are quick to cash on to the growing popularity of the art mart. Out to make a quick buck some dealers charge commissions that are ad hoc and do not hesitate to hike the price of a particular artwork according to its demand. One wonders if that is ethical? On the other hand, auction prices are completely driven by demand – the more the demand the higher the hammer price. In which case some may argue that if a buyer is willing to pay more in any secondary market then why not utilise the situation to one’s advantage.
As a buyer one needs to be alert about multiple aspects when buying an artwork. Fakes as well as price differences and credentials of the dealer are just some of the elements that one needs to consider. Recently, we had discussed how the Internet and online support groups could help in checking and validating prices of artworks. The same methodology can be used to check the credentials of a gallery or a dealer.
However, one must remember that art appreciation is something that is largely subjective. Other things (dealer credibility, authenticity of the artwork) being equal, it does come down to how much you like a piece of art, and how much you are willing to pay for it. And, even if art is a viable investment option, today, one should not lose sight of the fact that its real value does come from its aesthetic appeal.
7 Feb 2008
5 Feb 2008
Year of auctions ahead
The year has just started and already there is a lot of action in the art market. Art house Osians held an auction commemorating 100 years of Indian contemporary and modern art on January 19, where prices picked up after last year’s lull in the market. J Swaminathan and S H Raza commanded Rs 3.1 crore each, while a Tyeb Mehta went for Rs 2.6 crore, and M F Husain fetched Rs 2.2 crore.
Then, an auction of fine art and other artworks was organised by Bid and Hammer on January 24. Incidentally, Bid and Hammer is a new auction house, which debuted with this auction. However, at the time of writing this column the results were not officially disclosed. Next in line is the forthcoming auction by Emami Chisel Art, which has 89 lots by 70 artists. It has names like Tyeb Mehta (Kali III), F.N. Souza (Manor House), M F Husain (Safdar Hashmi), S H Raza (a rare landscape), J. Swaminathan, Bikash Bhattacharjee (Over The Dark Clouds), Manjit Bawa's (oil on canvas), Amrita Sher-Gil (two charcoal drawings) and Akbar Padamsee (a bronze head). What is interesting is that apart from the regular artists who feature in auctions – both domestic and international - there are also a few artists who are first-time entrants in an auction. According to the Emami Chisel’s website, the low estimate for the auction is Rs 15 crore, while the high estimate is Rs 22 crore.
Incidentally, one of the paintings titled Safdar Hashmi by M F Husain was the first painting by an Indian to cross the Rs 10 lakh mark in 1987. The debut auction by Emami Chisel Art will see a physical-cum-online bidding. The previews for this auction will be held in Delhi, Mumbai and Kolkata and the online bidding starts on February 10, while the hammer comes down in Kolkata on February 23.
The number of auction houses and auctions on Indian modern and contemporary art is likely to grow. As the art market continues to stabilize, the buyer base will expand, and the interest in Indian art will also increase. And, of course, buyers will become more confident in investing in art as it will become more attractive as an investment option.
(Published in Bangalore Mirror)
Then, an auction of fine art and other artworks was organised by Bid and Hammer on January 24. Incidentally, Bid and Hammer is a new auction house, which debuted with this auction. However, at the time of writing this column the results were not officially disclosed. Next in line is the forthcoming auction by Emami Chisel Art, which has 89 lots by 70 artists. It has names like Tyeb Mehta (Kali III), F.N. Souza (Manor House), M F Husain (Safdar Hashmi), S H Raza (a rare landscape), J. Swaminathan, Bikash Bhattacharjee (Over The Dark Clouds), Manjit Bawa's (oil on canvas), Amrita Sher-Gil (two charcoal drawings) and Akbar Padamsee (a bronze head). What is interesting is that apart from the regular artists who feature in auctions – both domestic and international - there are also a few artists who are first-time entrants in an auction. According to the Emami Chisel’s website, the low estimate for the auction is Rs 15 crore, while the high estimate is Rs 22 crore.
Incidentally, one of the paintings titled Safdar Hashmi by M F Husain was the first painting by an Indian to cross the Rs 10 lakh mark in 1987. The debut auction by Emami Chisel Art will see a physical-cum-online bidding. The previews for this auction will be held in Delhi, Mumbai and Kolkata and the online bidding starts on February 10, while the hammer comes down in Kolkata on February 23.
The number of auction houses and auctions on Indian modern and contemporary art is likely to grow. As the art market continues to stabilize, the buyer base will expand, and the interest in Indian art will also increase. And, of course, buyers will become more confident in investing in art as it will become more attractive as an investment option.(Published in Bangalore Mirror)
21 Jan 2008
Compare prices before buying
The biggest advantage of the Internet for art collectors and other buyers is access to information and the opportunity to compare prices. Recently, a prospective buyer found that a painting he was interested in cost differently on two online art galleries. As both the galleries could not have had the same painting one deduced that they were probably from the same series with minor variations. What was amazing was that the prices could vary so much - more than double. Eventually, it turned out that one was a ‘primary’ price and the other the ‘secondary’ one.
In the art market too, there is a primary and a secondary market similar to what exists in the stock market. The primary sale is the initial or the first sale of an artwork whereas when it is resold it is called the secondary market. In a resale the seller may raise the price substantially to improve his profit margins but unless there is a real demand in the market for either that artist or that particular work the sale may materialize or not. Therefore it is safe to say that the secondary price is driven completely by demand.
It therefore goes without saying that if one is not alert about cross-checking and verifying data, one may end up overspending. The Internet as well as specific online groups offer a unique opportunity to select artworks, research on the artist, compare prices and solicit advice from specialised networks - all for free. In fact, this offers a tremendous advantage to new and unsure buyers who can gain from others’ expertise. Right from information about the investment potential of an artist, his current market value and availability to reputation of online galleries and websites, these networks offer a valuable support system to its members. However, one must not completely depend on virtual sources to collate all relevant information. Remember, it is difficult to evaluate motives and credibility through only online communication.
The best way one can utilize online groups and supports is to use it as a learning tool and build your own information base. Over time, you will find yourself gaining in confidence and will be able to take independent decisions relating to art investment.
(Published in Financial Times)
In the art market too, there is a primary and a secondary market similar to what exists in the stock market. The primary sale is the initial or the first sale of an artwork whereas when it is resold it is called the secondary market. In a resale the seller may raise the price substantially to improve his profit margins but unless there is a real demand in the market for either that artist or that particular work the sale may materialize or not. Therefore it is safe to say that the secondary price is driven completely by demand.
It therefore goes without saying that if one is not alert about cross-checking and verifying data, one may end up overspending. The Internet as well as specific online groups offer a unique opportunity to select artworks, research on the artist, compare prices and solicit advice from specialised networks - all for free. In fact, this offers a tremendous advantage to new and unsure buyers who can gain from others’ expertise. Right from information about the investment potential of an artist, his current market value and availability to reputation of online galleries and websites, these networks offer a valuable support system to its members. However, one must not completely depend on virtual sources to collate all relevant information. Remember, it is difficult to evaluate motives and credibility through only online communication.
The best way one can utilize online groups and supports is to use it as a learning tool and build your own information base. Over time, you will find yourself gaining in confidence and will be able to take independent decisions relating to art investment.
(Published in Financial Times)
14 Jan 2008
What to buy - painting or installation?
Even as contemporary artists continue to rule the market, new media, which incidentally is not so new any more, finds fewer takers in the domestic art market. Art lovers, especially individual collectors prefer to buy conventional art such as paintings, and sculptures - to some extent. Installations, video art, digital art although are rich in creative content and provide stimulation to the senses find fewer takers, when it comes to loosening the purse strings.
When buying art, the primary motivating factor apart from its investment potential still remains its visual appeal. Buyers look for art pieces that draw them irrevocably or those with which they feel an instant connection. What is interesting here is the diametrically opposing views that collectors or rather nouveau buyers, and investors or seasoned buyers have. It appears that new buyers tend to go for visual appeal. Whereas, buyers who have been around for some time and have already fulfilled their aesthetic instincts, then look out for creative stimuli. They are then willing to experiment and are more open to experimental work from artists as well. So, the basic difference seems to lie in the initiation period – the longer the involvement with art the greater the aptitude for newer artists and mediums. However, budget constraints always tilt the balance one way or the other.
Then again art such as installations and also large sculptures have associated physical problems that then translates into fewer sale figures. Large pieces are impossible to accommodate in cramped apartments and even average-sized houses for that matter. Buyers face the same issue with large paintings as well. Many artists indulge in creating art that is experimental in form, concept and medium fully aware that these are unlikely to be bought by any individual collector. With the Indian art market poised to create a larger impact than ever before, who knows artists might even consider coming out with a specially designed miniature line of experimental artworks that keeps in mind the urban constraints.
(Published in Financial Times)
When buying art, the primary motivating factor apart from its investment potential still remains its visual appeal. Buyers look for art pieces that draw them irrevocably or those with which they feel an instant connection. What is interesting here is the diametrically opposing views that collectors or rather nouveau buyers, and investors or seasoned buyers have. It appears that new buyers tend to go for visual appeal. Whereas, buyers who have been around for some time and have already fulfilled their aesthetic instincts, then look out for creative stimuli. They are then willing to experiment and are more open to experimental work from artists as well. So, the basic difference seems to lie in the initiation period – the longer the involvement with art the greater the aptitude for newer artists and mediums. However, budget constraints always tilt the balance one way or the other.
Then again art such as installations and also large sculptures have associated physical problems that then translates into fewer sale figures. Large pieces are impossible to accommodate in cramped apartments and even average-sized houses for that matter. Buyers face the same issue with large paintings as well. Many artists indulge in creating art that is experimental in form, concept and medium fully aware that these are unlikely to be bought by any individual collector. With the Indian art market poised to create a larger impact than ever before, who knows artists might even consider coming out with a specially designed miniature line of experimental artworks that keeps in mind the urban constraints.
(Published in Financial Times)
7 Jan 2008
The colours of 2008
Controversies, price fluctuations and celebrity art shows – they all made news last year. The Indian art scene hit new heights and then seemed to flounder for a little while. Fortunately, the year end auctions saw a renewed interest in the contemporary artists, where NS Harsha, Atul Dodiya, Subodh Gupta and TV Santosh performed well at the Christie’s Hong Kong auction of Asian contemporary art. And, the Saffron art winter auction held in early December collected more than Rs 30 crores, where SH Raza, Tyeb Mehta, FN Souza, Rameshwar Broota, Jogen Chowdhury and MF Husain were amongst those who fetched the highest prices.
How does the art market look like in 2008? It seems Indian art and artists will continue to make waves both at the domestic front and internationally. This should translate into a subsequent increase in the number of art shows, galleries and dealers. Younger artists who have the talent are also likely to do well. According to art collector Harish Padmanabha, “popularity of modern artists will hit the stands once again. No one can take away credit from stalwarts like Husain, Raza, Tyeb Mehta, Gaitonde and Ganesh Pyne.”
Which artists will do well? Padmanabha asserts, “It is difficult to predict the future of new artists who are at the beginning of their careers. But, the interest in contemporary artists is likely to continue. Also, the global interest in Indian art will continue to gradually build.”
Artist Ravikumar Kashi feels, “the market has slowed down somewhat in the last few months, but personally I have done well. Soon the market should start to look up.” Buyers have become more discerning and this trend is likely to continue. With awareness comes the ability to judge and that is one reason why footfalls have not converted into sales in the last year. Bangalore is fast emerging as a hotspot for art after Mumbai and Delhi. Hopefully, local artists will soon get their due and this should reduce disparity in prices of artists from Bangalore versus Delhi and Mumbai.
(Published in Financial Times)
How does the art market look like in 2008? It seems Indian art and artists will continue to make waves both at the domestic front and internationally. This should translate into a subsequent increase in the number of art shows, galleries and dealers. Younger artists who have the talent are also likely to do well. According to art collector Harish Padmanabha, “popularity of modern artists will hit the stands once again. No one can take away credit from stalwarts like Husain, Raza, Tyeb Mehta, Gaitonde and Ganesh Pyne.”
Which artists will do well? Padmanabha asserts, “It is difficult to predict the future of new artists who are at the beginning of their careers. But, the interest in contemporary artists is likely to continue. Also, the global interest in Indian art will continue to gradually build.”
Artist Ravikumar Kashi feels, “the market has slowed down somewhat in the last few months, but personally I have done well. Soon the market should start to look up.” Buyers have become more discerning and this trend is likely to continue. With awareness comes the ability to judge and that is one reason why footfalls have not converted into sales in the last year. Bangalore is fast emerging as a hotspot for art after Mumbai and Delhi. Hopefully, local artists will soon get their due and this should reduce disparity in prices of artists from Bangalore versus Delhi and Mumbai.
(Published in Financial Times)
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