Exchanging art

(By Nalini S Malaviya)

Art is often bought as a décor element or as a status symbol, and as individual preferences evolve with time, many people like to change their artwork to reflect their current state of mind. Art itself is a very personal experience and no two people will respond to it in the same way. What appeals to one might be completely disliked by another. Some people are drawn to pleasant themes such as landscapes and abstracts, while there are some who prefer figurative art and there are yet others who go only by the artist’s name. The artist’s name has become synonymous to a brand. The bigger the artist the more expensive the product, the greater the brand and hence higher the status symbol.

When most people begin collecting art, they prefer to have smaller budgets and usually invest in young and upcoming artists or works by students. As time progresses, their sensibilities evolve and they tend to invest in a wider range of art and in more contemporary works. With stable financial conditions buyers are more likely to invest in known artists.
In this entire cycle the biggest drawback is that as people collect more art they run out of wall space to display them. The challenge then lies in wondering what to do with works collected earlier. Bartering art is a novel concept and one which has been initiated by a few people but is yet to find widespread acceptance. This could be one way to trade in old art with fresh pieces. Another option that could work well would be where galleries could take back the earlier works and offer newer pieces. The difference in price could be adjusted accordingly. Systems such as these will help the market to grow and expand the buyer base further. It will also instill confidence in buyers and investors. At this point in time the one thing that the art market surely needs is to gain the trust and confidence from its investors.

(Published in Financial Times)

Not the best time to sell art

(By Nalini S Malaviya)

During a financial crunch, people like to have the option of selling part of their assets to obtain liquidity. In the recent past art had been promoted aggressively as an alternative asset class and many buyers invested large portions of money in it in the hope of receiving good returns. However, most people who had invested in art without sufficient knowledge of the art market dynamics are now struggling to resell their works. Although, many galleries began offering buy back guarantees on the works they sold, this often came with clauses regarding timeframe, returns and valid for only select artists. Now that investors are facing major problems in reselling art, most of them are disappointed and disillusioned with art an investment option. It is important to realize that investing in art is an altogether different ball game compared to investing in traditional assets such as stocks, real estate and gold.

At this point in time, there are a large number of people looking to exit but unfortunately given the financial constraints permeating all sectors of the market, it is a difficult option. Many of these investors had bought art hoping for quick and high returns, and while this did happen during the boom period it is an extremely unlikely scenario at the moment.
Still, if an investor needs to exit now, he could either sell directly to a private buyer or through a gallery or a dealer. Rare or high quality works can also be sold through an auction house and one may want to consider that also as an option. As art prices have dropped recently if one is selling now, one should be realistic about the selling price. As we have mentioned in the past also, ideally this is not a good time to exit unless one is forced to. If possible hold on to the work for at least another two to three years.

(Published in Financial Times)

Art for art’s sake

(By Nalini S Malaviya)

In the current scenario, there are a reduced number of buyers looking at art as an investment option. Readers will remember that in the recent past art had emerged as an attractive alternative asset class for buyers with disposable incomes. Financial market conditions are such today that job security and liquidity are of prime importance for most people. In such a situation, drastic cost cutting at the corporate and the individual level have affected the sales of artworks. However, this is not a universal phenomenon and there are still a few buyers who are buying art for art’s sake, or, investing in low end art in the hope that it will fetch good returns in the long term. As the amount of investment has fallen steeply and is approximately in the range of rupees 20,000 to 50,000 at best, the amount of outlay is fairly low compared to what was seen even a year ago. This trend was also noticed at the street art fair held recently in Bangalore. More than 1,500 fine art students and self taught painters from across the country participated in this fair. The response was phenomenal and according to the organizers sales of over a crore happened through the day. Interestingly, most of the paintings were water colours of landscapes which did brisk business. Most of the art was priced under Rs 10,000. Obviously, buyers were not looking at the investment value of art, but were drawn to its visual appeal as wall fillers.

Incidentally, a few art students from previous years’ fairs have been known to go on and hold exhibitions at galleries at much higher prices. Therefore, by that same reference there is a distinct possibility that a few buyers at this year’s fair may also have made wise investments. The Bangalore art fair held once a year on the street outside a premier art institute has emerged as a much awaited art event. With a greater focus on quality and enhanced screening of the participants, the fair has the potential to develop into a credible art event. Its USP lies in the fact that is held outside the gallery environs and it makes affordable art accessible to the common man.

(Published in Financial Times)

Art for art’s sake

(By Nalini S Malaviya)

In the current scenario, there are a reduced number of buyers looking at art as an investment option. Readers will remember that in the recent past art had emerged as an attractive alternative asset class for buyers with disposable incomes. Financial market conditions are such today that job security and liquidity are of prime importance for most people. In such a situation, drastic cost cutting at the corporate and the individual level have affected the sales of artworks. However, this is not a universal phenomenon and there are still a few buyers who are buying art for art’s sake, or, investing in low end art in the hope that it will fetch good returns in the long term. As the amount of investment has fallen steeply and is approximately in the range of rupees 20,000 to 50,000 at best, the amount of outlay is fairly low compared to what was seen even a year ago. This trend was also noticed at the street art fair held recently in Bangalore. More than 1,500 fine art students and self taught painters from across the country participated in this fair. The response was phenomenal and according to the organizers sales of over a crore happened through the day. Interestingly, most of the paintings were water colours of landscapes which did brisk business. Most of the art was priced under Rs 10,000. Obviously, buyers were not looking at the investment value of art, but were drawn to its visual appeal as wall fillers.

Incidentally, a few art students from previous years’ fairs have been known to go on and hold exhibitions at galleries at much higher prices. Therefore, by that same reference there is a distinct possibility that a few buyers at this year’s fair may also have made wise investments. The Bangalore art fair held once a year on the street outside a premier art institute has emerged as a much awaited art event. With a greater focus on quality and enhanced screening of the participants, the fair has the potential to develop into a credible art event. Its USP lies in the fact that is held outside the gallery environs and it makes affordable art accessible to the common man.

(Published in Financial Times)

Sell art only if you have to

(By Nalini S Malaviya)

As everyone knows this is not a good time to sell art, as prices for paintings and other art forms have fallen significantly. Therefore, if one were to sell now, one would not get the same price as what could have been achieved a few months ago. According to some reports art prices have corrected as much as 30%. However, need for liquidity may encourage investors to sell a few select pieces. In such a scenario, it is important that the seller be realistic about his expectations. Still, if an investor had purchased a work of art 5 or 10 years ago, selling it now will fetch good returns on it.

A seller should do a thorough research and crosscheck current rates from various sources to arrive at an optimum selling price. There have also been instances where artists have shown an interest in buying back their works. This usually happens when the work is representative of a certain phase of the artist, or if it adds value to an artist’s retrospective exhibition. In any case it worth investigating if the artist or his family is keen on regaining the work.
When planning to sell a work, one should also be prepared to wait as it could take some time before the transaction actually happens. Under normal circumstances, too, it is difficult to liquidate art in a hurry. Sellers could check around with galleries, dealers or private collectors who can either buy the work themselves or alternately source a buyer. As buyers are also on the look out for good deals, one may have to be open to negotiation.

It is easier to sell rare and good quality works, especially if they are offered at an attractive price. One should also ensure that all relevant documents – provenance, authenticity certificate and receipts if any – are in order. Before putting up an art piece for sale, remember to check the condition of the work, that it is not damaged or affected in any other way.

(Published in Financial Times)

Be cautious when making fresh investments

By Nalini S Malaviya

This year the stock market has seen major fluctuations and there are still no immediate signs of easing of the economic recession. Investors are facing a dilemma about where to invest. The financial scene appears bleak at the moment, and most predictions point towards a troubled future. Recent trends in the art market, too, have failed to inspire confidence in investors. Prices of most artists have fallen either substantially or at least marginally. Many senior artists are now opting to have an exhibition of their works without offering any piece for sale. This appears to be a strategy to try and maintain their market rates, but, how successful will it be, will become clear only over the next few months.

In such turbulent times investors should be wary of making any fresh investments in art. In case they would like to do so they should consider all aspects related to the art market dynamics – investment timeframe, risk factors and ease of liquidity. One could opt for artists who are considered safe from a financial investment angle and who have established and proven themselves over the years. Although, this forms a safe category and involves blue chip artists, the amount of initial capital is fairly high, and that can be deterrent for a lot of investors.

The other option which is appearing attractive is investing in upcoming artists. The major reason why this is catching on in a big way is that prices are low and these make for excellent wall fillers. However, one must be aware that the risk is high for this particular category. As the capital required is low, most people are open to spending a part of their disposable income on such art. In this case if one can do a certain amount of research, and back it with technical expertise in order to select quality works, it increases the chances of picking up a winner.

(Published in Financial Times)

Consolidation and stabilization phase of the art market

(By Nalini S Malaviya)

The general perception is that the overall interest in art has dwindled to such an extent that no one is buying art. While, it is true that the amount of money that is being spent on art has gone down considerably, and that many galleries and dealers are affected, one can still come across many buyers who are continuing to buy art for its intrinsic value and also for investment. The economic recession has affected most businesses; at the same time there are people who are comparatively unaffected in the present situation.

There are still a lot of people who attend art show previews and other events. Some of them even end up buying paintings that they like. The category of art that was priced between Rs.15,000 to Rs.50,000 is seeing the maximum sales. Most of these works are either decorative or done by upcoming artists and even final year students from fine art institutes. It can also be noticed that most artists are now open to negotiation as far as prices are concerned. The boom time for art is definitely over and the plateau that one sees now reflects a healthier trend in the art market. This phase is also expected to allow artists and other members of the art community some breathing space which should eventually help the market. Greater introspection, more time and space to explore creativity, focus on business ethics will help in strengthening the market in the long term. As most analysts point out, this period of adjustment will help in the consolidation and stabilization of the art market. Well, it is important to begin the year on a positive note.

Most major art events such as fairs, biennales and seminars are going as per schedule. As galleries point out, it is important to continue with their events in order to keep the interest in art alive. 2009 will be significant in establishing and charting out the course that the art market will take in the years to come.

(Published in Financial Times)

What is decorative art?

(By Nalini S Malaviya)

With the slowdown in the art market, the biggest gainer has been art which falls in the realm of decorative art. A more affordable form of art, decorative art is characterized by its visual and aesthetic sense. The themes depicted are pleasant, non-controversial and make use of colours that have a pleasing effect. Some of them are derived from traditional folk arts and crafts, and may make use of excessive ornamentation to have an ornate impact. While, some on the other hand, focus on creating a harmonious balance with the use of right colours to have a soothing and calming effect. The former, where the use of craft is intended to create a gilt feel, it is easier to characterize as decorative art. Whereas, in the latter case, the lines could get blurred and these can be more difficult to categorize.

In decorative art, where mere skill is used to define the visual language, lack of components such as concept, composition, effective communication and other such factors fail to draw the discerning collector. This in turn has an effect on the overall investment value of the artwork. In contemporary art, the cerebral content of the artwork is an important criterion in making an artist stand out above his peers.

Often artists who focus on the decorative value of their works tend to produce them in quick succession, the content is often repetitive with slight variations and the artists also appear to be catering to popular demand. However, such art finds huge favour with local galleries and dealers, as this forms a category that is generally a fast moving commodity. Within the art fraternity categorization between decorative and other forms of art is common, and well known, where collectors and artists are able to differentiate between the various classifications of art with ease. Whereas, most other buyers are attracted to decorative art thanks to their intrinsic aesthetic content. Fortunately, there is no right or wrong in art and one should follow one’s instinct in responding to a work of art. Only when the motive is financial investment that one needs to hone one’s instincts and do a proper research before buying,

Use the time effectively

(By Nalini S Malaviya)

Due to the current economic recession, investors may find the art scene in a reduced state of activity. There are fewer art shows and events taking place, where most of the bigger exhibitions involving the top bracket of artists are being postponed. While, this is happening more with galleries based abroad but the effects can be seen in the country as well. Travel to art fairs has also been affected and galleries and artists are actively cutting down on expenses. Experts feel that the worst is yet to come and it may be a while before the art scene stabilizes.
However, all this does not mean that art connoisseurs should give up on art completely. There are many things than an investor can do to utilize the interim period effectively and to consolidate one’s collection.
Long term investors can continue to buy affordable art by young and upcoming artists. They should avoid selling wherever possible as this is a buyer’s market at the moment. By the same rule one can look out for good deals at competitive prices. A liquidity crunch can force collectors and dealers to offer attractive prices.
Investors should focus on making sure that their collection is safe and is maintained in a good condition. They could consider insuring their artworks if it hasn’t already been done. A large collection should always be catalogued and documented appropriately. It is important to maintain all documents related to the artworks as any loss of these can affect prices later on. Authenticity, provenance and sale receipts are some of the papers that one should keep safely. It is also a good idea to keep photocopies of these documents in a secure place.
If an investor needs to sell now then one should look for a buyer discretely. Incidentally, premium and rare works are continuing to fetch a good price provided one can find the right buyer.
It is important to utilize the interim period to build a network with other art connoisseurs. The art community is a fairly close knit one, and very often transactions and dealings happen through word of mouth. Recommendations and references are useful to have.
If one is making any fresh investment then research is very important at this stage. Watch out for the not so good quality works that may be available in the market.
The slowdown is likely to continue for the next couple of years, therefore it is vital that one does not let it affect one’s financial and mental health. It is a good time to review ones art collection to see which works should be kept and which ones should be sold off later.
One should continue to visit art shows and keep in touch with the latest happenings. Most galleries plan to continue with their art shows in order to keep the interest in art alive. Good deals are available now, and if one’s wallet allows, buy.

Use the time effectively

(By Nalini S Malaviya)

Due to the current economic recession, investors may find the art scene in a reduced state of activity. There are fewer art shows and events taking place, where most of the bigger exhibitions involving the top bracket of artists are being postponed. While, this is happening more with galleries based abroad but the effects can be seen in the country as well. Travel to art fairs has also been affected and galleries and artists are actively cutting down on expenses. Experts feel that the worst is yet to come and it may be a while before the art scene stabilizes.
However, all this does not mean that art connoisseurs should give up on art completely. There are many things than an investor can do to utilize the interim period effectively and to consolidate one’s collection.
Long term investors can continue to buy affordable art by young and upcoming artists. They should avoid selling wherever possible as this is a buyer’s market at the moment. By the same rule one can look out for good deals at competitive prices. A liquidity crunch can force collectors and dealers to offer attractive prices.
Investors should focus on making sure that their collection is safe and is maintained in a good condition. They could consider insuring their artworks if it hasn’t already been done. A large collection should always be catalogued and documented appropriately. It is important to maintain all documents related to the artworks as any loss of these can affect prices later on. Authenticity, provenance and sale receipts are some of the papers that one should keep safely. It is also a good idea to keep photocopies of these documents in a secure place.
If an investor needs to sell now then one should look for a buyer discretely. Incidentally, premium and rare works are continuing to fetch a good price provided one can find the right buyer.
It is important to utilize the interim period to build a network with other art connoisseurs. The art community is a fairly close knit one, and very often transactions and dealings happen through word of mouth. Recommendations and references are useful to have.
If one is making any fresh investment then research is very important at this stage. Watch out for the not so good quality works that may be available in the market.
The slowdown is likely to continue for the next couple of years, therefore it is vital that one does not let it affect one’s financial and mental health. It is a good time to review ones art collection to see which works should be kept and which ones should be sold off later.
One should continue to visit art shows and keep in touch with the latest happenings. Most galleries plan to continue with their art shows in order to keep the interest in art alive. Good deals are available now, and if one’s wallet allows, buy.

A look at the art market

(By Nalini S Malaviya)

There is no denying that the art market is currently going though a period of recession, correction or adjustment, as various analysts put it. In its recent art market review, Sotheby’s points out that the combined result for the two weeks of sales at Sotheby's and Christie's was $775,747,825. It goes on to say that despite the economic recession, buyers have spent a huge amount on art. The results also indicate that ‘rare and spectacular’ works were sold at the Impressionist and Modern art sales, while there was ‘target buying for exceptional works’ at the Contemporary art sales. According to the auction house, Sotheby’s the results ‘display confidence in an eventual return to the longer-term trend of rising prices’. This will sound promising to investors who have bought art as a long term investment.

In the context of Indian art, investors would have noticed that while prices of Modern artists have remained more or less at previous levels, prices for Contemporary artists have come down substantially. The trend however is not unforeseen. Modern artists have been exhibiting their works for years and have established a niche for themselves. They are backed by a proven track record and consistent performance at domestic and international auctions. Their demand has been quite constant in the primary as well as secondary market over the years. However, one should note that now the overall demand for art itself has come down. This again is expected as most investors have been going through a liquidity crisis. The ArtTactic report on the Indian art market, which came out earlier this month, also indicates a drop in confidence from October 2007 and May 2008 to now.
On the whole, investors will now be extremely quality conscious and will look out for exceptional works from both Modern and Contemporary artists.

(Pubished in Financial Times)

Go easy on investing in art

(Nalini S Malaviya)

As discussed extensively in the past, the global economic meltdown has seriously affected the art market and both primary and secondary sales of art have slowed down.
Some analysts had predicted that since the prices of contemporary artists had risen too sharply in a short period of time, these were more likely to plateau as compared to the modern artists. And this trend is already visible, where prices for contemporary artists are now going through a process of stabilization. This also means that their prices are comparatively lower than what was seen a few months ago.
According to experts, the works by modern artists can be compared to blue chip stocks. And, just as in the stock market one should invest in blue chip stocks now, similarly in the art market one could look at investing in modern artists. Investors could also look at diversifying their portfolio and may want to consider investing in upcoming artists. Upcoming artists may form a high risk category from a financial investment perspective, but as the outlay is also comparatively less, it might be worth taking the risk. When investing in new talent, one should be prepared to hold on for a longer duration to maximize returns. Buyers should also keep a look out for good quality works that may come up at auctions. The slowdown in the art market is irrevocably linked to global financial health, and it may take some time before the recovery process begins.

Therefore, given the current situation, there is no harm in going slow for a while. One should assess and evaluate the situation carefully before investing. This is also a good time to learn more about art in order to be able to make smart decisions.

(Published in Financial Times)

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)

How to choose art by an upcoming artist

(Nalini S Malaviya)

Now that there is a lot of focus on upcoming artists and young talent, one sees many art exhibitions by artists who either debut with it or are in their second or third show. Most art galleries are now promoting such artists aggressively, and it then becomes difficult for the buyer to evaluate the investment potential of such artists. In any case one must remember that it is very difficult to predict the investment value of an artist who does not have a proven track record. It becomes very important, then, that the buyer consider all aspects related to the artist’s future prospects.

One must take into consideration the artist’s qualifications, awards, if any, and the technical aspects of his artistic skills. One can also look at the creative potential which will be reflected in the concept and execution. Innovation and ideation play an extremely important role in contemporary art. For instance, there are artists who come up with a brilliant concept but fail to present it effectively, and then there are times when an artist has nothing new to say. The novelty of an idea combined with effective expression is a much desired and extremely sought after quality. If the artist has held shows previously, one can check out which galleries or venues were involved.

These days what is also becoming important is the credentials of the gallery backing the artist. A good and reputed art gallery will promote their artists at national and international levels, which can affect the artist’s career and investment value enormously. However, there are many collectors and buyers who go with their gut instinct and tend to buy works they can emotionally connect to. Although, this may seem like an old fashioned approach to new buyers, but many collectors swear by it, and this method has worked extremely well for them. Experienced art collectors develop an intuitive feel for the quality and value of art which instinctively draws them towards the right work. As investing in an upcoming artist’s work can pay rich dividends in the long run, one should spend time evaluating and analysing before buying it.

(Published in Financial Times)

Global financial crisis but art appears to be doing well

(Nalini S Malaviya)

Amidst global financial crisis where Lehman brothers filed for bankruptcy and AIG hopes to tide over with a bridge loan, there has been world wide concern whether art will continue to attract investors. In this regard, all eyes were turned towards the Sotheby’s auction featuring an exclusive and a humungous body of works by artist Damien Hirst.

Damien Hirst, often hailed as one of the most successful living artists, is known for his conceptual art which some consider as bizarre. However in this sale, Hirst broke Picasso’s record and fetched a cool £70.5 million in the first round of the Sotheby’s auction. "Beautiful Inside My Head Forever," comprising of 223 works produced by Hirst in the last two years saw phenomenal results at the highly publicized auction. The day sale held the next day also fetched another £40.9 million making it a total of £111.4 million.
"The Golden Calf," a white bullock preserved in formaldehyde, with hoofs and horns made of 18-carat gold and a gold disc crowning the head went for £10.35 million.
The unusual success of Damien Hirst’s works reiterates that there appears to be a strong interest in art. Although, Hirst’s art that comprises of dead animals preserved in formaldehyde and dead butterflies pinned and painted upon has been highly controversial the success of the sale defies logic. There have been skeptics who have pointed out that the success of the auction can partly be attributed to media hype and clever marketing strategy, the results are there for all to see.

This particular auction has been significant, also for the fact that Hirst bypassed dealers and took his works directly to Sotheby’s. This means that commissions that normally go to a gallery or dealer would now go straight to the artist.
There has been growing concern over the future of art as an investment option with financial markets reeling, and while the Hirst sale may have been a landmark one, there is no guarantee that future auctions will be equally successful.
However, it does appear that in these uncertain financial times, collectors with deep pockets are likely to find good art at competitive prices.

(Published in Financial Times)

Decorative art sells more!

(Nalini S Malaviya)

Despite the growing awareness about contemporary art, people are still attracted to conventional art forms such as paintings. In paintings, too, the ones with aesthetic appeal sell faster than unconventional themes. Typically, galleries see brisk sales of traditional art genres and styles, and buyers that pick up works for under Rs 50,000 look for decorative art. This can probably be explained by the fact that such paintings are usually associated with a feel good factor. Decorative art falls in the realm of the comfort zone of the buyer, and are best suited to dress the walls. At that price the buyer is looking for an aesthetic investment rather that a financial one.

It is widely accepted that art enhances the social status of an individual and plays an important role in defining spaces. The common buyer may find conceptual art difficult to relate to, and while newer mediums or radical concepts may create a thought provoking piece, but, a buyer may be reluctant to display it in the home. Often family and social considerations affect buyer preferences. For instance, Indian sensibilities are averse to displaying nudes in either home or corporate spaces. Similarly, controversial themes or unpleasant imagery may find critical acceptance but not necessarily many buyers. Decorative art that is rooted in ethnic and cultural milieu tends to find a wider audience.
However, serious art collectors are attracted to experimental pieces as it does not conform to the run of mill art, and it is this very uniqueness that draws them to it.

With new artists coming up with newer concepts the market sees plenty of experimental art. But, due to lack of a proven track record, buyers may be unclear about their investment potential. It is only the seasoned collector who is able to somewhat predict their investment value or are willing to take the chance. Resale considerations also affect sales and if the buyer is unsure about the work’s resale prospect he is reluctant to buy it.
Similarly, space considerations also play a role when it comes to forms of art that are larger in size or are site specific.

(Published in Financial Times)

Contemporary art and trends

(Nalini S Malaviya)

According to recent trends there has been a perceptible shift in the buying pattern and contemporary art has emerged strongly as a viable avenue for investment. And, although modern artists continue to do well, the focus on contemporary art has resulted in the remarkable growth of this sector. One finds that the serious art collector is more inclined to invest in contemporary artists. What makes this an attractive proposition is that contemporary art often combines unique concepts with innovation in execution and medium. Plus, as contemporary art is doing well at international auctions, it is a win-win situation for the artist and the collector.

The buyer profile has also broadened and there are a greater number of people from a younger age group who are developing a passion for art. The younger profile brings fresh sensibilities and their buying pattern tends to be more accepting of newer concepts and mediums. With buyers coming of age and changing mindsets there is greater interest in art that is often unconventional and even radical.


Overall, the awareness about art, its intrinsic value and its investment potential has increased dramatically over the last few years. Viewers are now more open to all kinds of art. Artists too are in an experimental mode and one gets to view different kinds of art in small and big cities, especially the latter. With greater exposure to art, there are artists too from small towns who are not afraid to think big – they surprise the viewer with their innovative concepts.

Although, there are limited takers for conceptual art, there is greater appreciation for it now as compared to say, two years ago. In fact, many collectors especially those aged under 40 who are saturated with conventional art are increasingly turning to new media and contemporary thought in art. On the other hand, conventional art which is more decorative in nature is still very popular with traditional mindsets.

Focus shifts to upcoming artists

(Nalini S Malaviya)

There is renewed focus on young and upcoming artists as prices of established artists are climbing beyond the reach of most buyers. In general, mid-range and top bracket artists fetch prices in the range of multiple lakhs and crores, and this phenomenon is affecting the new buyer who would like to begin an art collection. Most buyers begin with an initial budget of less than a couple of lakhs. Hence it is no surprise that all eyes are on fresh emerging talent. Incidentally, new artists too price their works in the range of Rs 25,000 to 50,000, depending on the medium and size.

Art galleries are actively searching for new talent and promoting them as the next generation of investment worthy artists. While, this bodes well for the younger artists and the Indian art scene, it does have its ramifications.
Artists without a proven track record will be snapped up by galleries and may even be promoted aggressively. This, in turn can affect the market in the long run.
It also means that collectors and investors must conduct a comprehensive research before investing in new artists. Lack of artist’s history in term of previous sales and growth rate may detract a few buyers, but overall, attractive pricing may swing the deal in most cases.

On their part reputed art galleries will ensure that they tie up with promising artists, but on the other hand, fly by night operators are likely to be less discerning.
The advantage with established galleries is that have trained staff who have the ability to spot talent. Artists too will benefit from such associations, and this, in fact is a good time for talented young artists coming out from prestigious art schools. Many are offered sponsored shows even before they graduate out of art institutes. All this implies that the credentials of the promoting gallery becomes extremely important. Apart from the quality of the work, buyers will also be relying on the credibility of the gallery.

(Published in Financial Times)

Contemporary art market heading towards stabilization

(Nalini S Malaviya)

A market report by the leading auction house Sothebys points out that the recent results from auctions of art suggests that the Contemporary art market appears to be stabilizing after several years of rapid growth. Although, the report takes into consideration all contemporary art, it is an important summarization that will have an impact on the growth of the Indian art market as well. The report suggests that the collector base appears to be broadening, which means that the market is likely to see a further stabilization in the future. It also discounts the idea that the art market prices are likely to fall due to the rapid rise seen in the last few years.

According to the ArtTactic Indian art market analysis, contemporary Indian art is gaining momentum, and more Indian works are likely to be seen in Western contemporary auction. In fact, the report suggests that this may even happen probably at the expense of Chinese contemporary art. Newer partnerships that are being forged between leading galleries and Indian artists will have far-reaching impact on the prices and will provide greater exposure to Indian artists. According to these reports the future of Indian art market looks secure, at the moment.

All eyes are now on the Saffronart autumn online auction of Contemporary Indian art, which will take place online from September 3 - 4. This auction features 130 works by 62 artists of modern and contemporary Indian art. Previews will be held in New York and Mumbai prior to the online auction. Next in line is Sothebys Modern and Contemporary Indian art auction, which will be held on Sep 18 in New York. The sale features 127 lots by senior and upcoming artists from the country. Jamini Roy, FN Souza, Ganesh Pyne, Atul Dodiya, Baiju Parthan, Jitish Kallat, Hema Upadhaya are some of the artists whose works will be auctioned at the sale. Collectors and investors will find it interesting to see the results from these two auctions as they will further indicate the growth rate of the Indian art market.

(Published in Financial Times. ET online - title for the story erroneously reads Contemporary art edging towards stagnation instead of stabilization)

Prints an affordable option

(Nalini S Malaviya)

Prices of paintings and sculptures have reached astronomical heights and art lovers are now looking for affordable options. Etchings, serigraphs and lithographs are emerging as an alternative to traditional forms of art. Limited edition prints are fast gaining in popularity among all classes of investors and collectors. Prints by modern artists such as Raza and Husain are already in the higher bracket and may even be out of reach for many buyers. Usually in terms of pricing prints cost a fraction of the cost of a painting by the same artist.

In fact, one now hears of collectors who like to invest only in prints and are actively on the lookout for upcoming artists who are proficient in printmaking.
There are a few artists who specialise in printmaking and their works are extremely sought after. Artists such as Krishna Reddy (one of the finest printmakers in the country), Laxma Goud, Zarina Hashmi and Atin Basak are a few names that are known for their fine quality prints.
The initial resistance to prints was mainly due to the fact that printmaking involves multiple copies. However, gradually the perception has changed and people are realising that this too is an original art form. The change has occurred over the years as the awareness about printmaking techniques has permeated the buyer’s consciousness.
An edition size could be as low as five or as high as fifteen, but ideally a lower edition size is preferred.

When buying a print, one should ensure it is a print and not a poster. In case of an intaglio, look for the plate mark which is an indentation along the edges which appears due to the pressure with which the paper is pressed upon in transferring the design. Limited edition prints are signed and numbered (S/N) by the artist. The lower the number of prints the better its investment value, however the higher the number of prints the more affordable it is.

(Published in Financial Times)