Art market feels the heat

By Nalini S Malaviya

The global financial meltdown has spread its tentacles to encompass art in its grips as well. The art market appears to have slowed down its frenzied pace; recent auction figures indicate that there has been a slump of sorts. In view of the economic situation, it is not surprising that the recession has also hit sales of art.
As the mayhem at the stock market continues, one would have expected more investors to opt for alternate investment avenues. This is a common trend that one asset class faces a slump, others pick up (as can be seen with gold prices). However, the issue of lowered liquidity associated with the art market seems to be detracting a major chunk of investors. Unfortunately, liquidity has long been an issue with art collectors and investors as an urgent need for funds cannot be translated into hard cash. In practice to resell art at a good price requires a lot of time, effort and the right contacts.

There is also growing concern and speculation regarding the prices of artworks - will they sustain or fall drastically in the short term? Upcoming auction results will indicate the direction prices are likely to take.
Another perceptible shift that has been noticed is that investors once again appear to be more inclined towards the modern artists as compared to the contemporary artists. Readers will recall that prices of contemporary artists have shot dramatically upwards in the recent past and the buyer base had shifted allegiance to the younger and more experimental category of artists. This trend may not have been completely reversed but buyers do appear to be now inclined to invest in the more stable and established modern artists.
What also emerges is that there is an urgent need to establish a system which can enhance the liquidity of art which will boost the art mart tremendously.
Well, to sum up the good thing is that this could be the right time to pick up quality works at competitive prices. This is a buyers’ market and prices are open to negotiation.

(Published in Financial Times)

Art Buzz (Bangalore)

The Olive Art Initiative presents “DIFFERENT STROKES”, an exhibition of works by Sanjib Saha, Anshika Varma and Shankar S. This exhibition at Olive Beach, is from November 1st to November 7, 2008 from 12 noon to 11:30 pm. The show previews on October 31st 20008 at Olive Beach.

Art in the virtual world

(Nalini S Malaviya)

In this electronic age where technology has pervaded every aspect of our lives how can art be left behind? The virtual art fraternity is replete with artists, galleries, collectors and connoisseurs. An online presence is a highly effective tool to network with members with common interests. While social networking sites have made news for a variety of reasons, there are now a growing number of networking sites dedicated to art. Online networking provides an edge over peers, offers a much larger reach and is an effective PR and marketing medium. All this at minimal costs (or often free). Another major advantage is the rapidity with which information is exchanged resulting in faster turnaround time.

Earlier the trend was more towards setting up websites to showcase artworks and art related services. Whereas now, blogs have emerged as a popular and free-to-use platform that offers similar, although somewhat limited facilities as a website, but is a great way to create an online presence. Easy to use and even easier to update and maintain, blogs can be used for marketing oneself and to reach out to a wider audience.

In the virtual world, where geographic or regional boundaries do not exist it is easy to relate to likeminded people. Dedicated social sites on art offer an exclusive platform to different players from the art community. Exchange of knowledge, expertise, views, statistics and the latest buzz allow valuable interaction between members.
Similarly, online newsletters and publications enhance exposure to art related events and news from across the world. While all these provide a valuable platform to the artist, they also offer the buyer wider access to information.

As we can see there are numerous benefits in being active on an online forum, but there are a few disadvantages that one should be aware of. These may not be specific to art related sites but it helps to go over them. As online identities can be misleading, it is important to check out the credentials of the person you are interacting with. Similarly, when any financial transaction is involved one should be extra cautious about use of credit card or divulging personal details. With that in mind sometimes a moderated networking site works out better.
In any case, it is always advisable to follow Netiquette when expressing oneself. So, go ahead and create a virtual presence to either showcase your art or to learn more about art.

(Published in Bangalore Mirror)

Art Buzz

Art Buzz (Bangalore) Milind Nayak