(By Nalini S Malaviya)
With mega bucks involved, it is important to take care of one’s artworks to safeguard their investment potential. A badly preserved work of art - for instance with faded paint, crease marks, torn edges, holes, or any other kind of damage will reflect in its resale price. These days, artists too are more quality-conscious and are ensuring that the quality of art materials they use meet international standards, which are likely to withstand normal wear and tear due to ageing and exposure to common environmental elements.
Comparatively speaking, oil and acrylic paintings are easier to maintain, whereas paintings and sketches done on paper need to be preserved carefully to avoid damaging them. Most artists now use a good quality acid-free paper to work on, but there is no harm in confirming this with the art gallery or dealer. On your part you can ensure that the framing is done from a good framer who uses the best quality materials in terms of mat, backing board, wood frame and the acrylic or glass cover. It is important that the mat used should be acid-free, since poor quality mats will yellow with age and also become brittle over time, which in turn can affect the painting or drawing. The framer should make sure that the backing board is also of superior quality and will hold the artwork rigidly in place. It is advised that the glass or acrylic front should not be touching the artwork. Also, good quality hardware in the frame and to hang it on the wall will help increase the life of the artwork. As with any artwork, make sure there is a constant temperature in that space, as paper works are even more susceptible to fading due to too much sunlight. Excessive humidity can cause growth of moulds or the paper could wrinkle. Focus or spotlighting is very popular in highlighting art but these can also cause over-heating. Also, ultraviolet rays are known to damage artworks. There are glass fronts available that will filter these rays. All this means spending more money, but then in the long run it is important to conserve and preserve your artwork to ensure their investment value is protected.
(Published in Financial Times)
25 Jul 2007
18 Jul 2007
Art Investment - installations and assemblages
(By Nalini S Malaviya)
Installations and assemblages are some new media art that have started making headways into the living room and office interiors as well. New media art is a relatively recent trend and art collector Harish Padmanabha explains, “art is never stagnant, it is very dynamic and constantly evolves to reflect on society and the environment. Therefore, art trends too keep changing.”
While installation art is a form of conceptual, three-dimensional art that combines different mediums and utilizes the concept of space as the main element of expression, it is usually (but not always) temporary in nature. For instance, an installation could be an arrangement, assemblage or even a performance and may combine various disciplines such as painting, sculpture, architecture, video and sound. Of these, assemblages and sculptures are gaining in popularity by art collectors and even investors to some extent.
In fact, corporate entities are increasingly turning to art as an avenue for investment. While, paintings remain the preferred and more conventional mode of investment, new media art has also begun to find favors.
It so happens that installations (that are not transient in nature) are ideal for corporate offices with well-designed modern interiors. An installation usually requires a large space to be able to be displayed well, which is more feasible in an office environs rather than in a residential home. A mixed media installation that combines the corporate image, work ethos and business needs along with aesthetics is bound to draw eyeballs in a space such as the lobby, reception or the entrance. Usually, an installation is commissioned, and then conceptualized and built according to specific requirements. Getting a well-known and established artist to do one ensures it is a long-term investment. Plus, the association with an artist brand adds value to the corporate image as well.
Assemblages, especially ones that are smaller in size are finding more and more takers amongst individual collectors. The novelty value and the artist brand have contributed greatly to its growing success.
(Published in Financial Times)
Installations and assemblages are some new media art that have started making headways into the living room and office interiors as well. New media art is a relatively recent trend and art collector Harish Padmanabha explains, “art is never stagnant, it is very dynamic and constantly evolves to reflect on society and the environment. Therefore, art trends too keep changing.”
While installation art is a form of conceptual, three-dimensional art that combines different mediums and utilizes the concept of space as the main element of expression, it is usually (but not always) temporary in nature. For instance, an installation could be an arrangement, assemblage or even a performance and may combine various disciplines such as painting, sculpture, architecture, video and sound. Of these, assemblages and sculptures are gaining in popularity by art collectors and even investors to some extent.
In fact, corporate entities are increasingly turning to art as an avenue for investment. While, paintings remain the preferred and more conventional mode of investment, new media art has also begun to find favors.
It so happens that installations (that are not transient in nature) are ideal for corporate offices with well-designed modern interiors. An installation usually requires a large space to be able to be displayed well, which is more feasible in an office environs rather than in a residential home. A mixed media installation that combines the corporate image, work ethos and business needs along with aesthetics is bound to draw eyeballs in a space such as the lobby, reception or the entrance. Usually, an installation is commissioned, and then conceptualized and built according to specific requirements. Getting a well-known and established artist to do one ensures it is a long-term investment. Plus, the association with an artist brand adds value to the corporate image as well.
Assemblages, especially ones that are smaller in size are finding more and more takers amongst individual collectors. The novelty value and the artist brand have contributed greatly to its growing success.
(Published in Financial Times)
9 Jul 2007
Long-term potential looks good (Art Market)
(By Nalini S Malaviya)
Recent results from international auctions and subsequent media reports seem to indicate that the Indian art market may be slowing down to some extent. Indian art has witnessed a phenomenal growth in the last few years where prices soared to astronomical levels over time. Media hype and global recognition along with a huge demand for contemporary Indian art further fueled the market. However, recently, there have been reports of poor quality works from the top bracket of Indian artists and that is attributed to be one of the reasons for the slump. Another factor could be that buyers and investors have become more discerning. Armed with sufficient knowledge on art, and an eye for quality they have become more astute in their dealings. Investment Banker Anil Nayar feels a strong economic boom has contributed to the hype in Indian art. He adds, “we are following China in every way. So while their art is now a USD1.5 Billion market, ours is just 350 million. Price corrections are a part of any market. It does not necessarily indicate a reversal of the long term trend, but is more technical in nature.” Any lowering of price will make the long-term investors happy. Also, this could be a wake-up call to artists to create quality works and refrain from mass productions. Anil Nayar adds, “The corrections allow people sitting on the sidelines to enter at a lower level with better margins of safety and thus helps future holding power. Good thing about Indian art is that it is in its infancy, and collectors are typically wealthy individuals with lots of holding power. So, the corrections will be driven by middlemen and gallery owners. They will want volatility and corrections in order to be able to add to their inventory at lower prices.” Whose prices are likely to be effected? Responses are mixed while, some investment analysts’ feel that mid-level artists will be affected the most, a source in Bangalore believes prices for the top level of artists will come down whereas new and upcoming talent will continue to sustain themselves. The Indian art market is still young and these temporary lulls are unlikely to create long-term setbacks. It won’t be long before the market stabilizes itself.
(Published in Finacial Times)
Recent results from international auctions and subsequent media reports seem to indicate that the Indian art market may be slowing down to some extent. Indian art has witnessed a phenomenal growth in the last few years where prices soared to astronomical levels over time. Media hype and global recognition along with a huge demand for contemporary Indian art further fueled the market. However, recently, there have been reports of poor quality works from the top bracket of Indian artists and that is attributed to be one of the reasons for the slump. Another factor could be that buyers and investors have become more discerning. Armed with sufficient knowledge on art, and an eye for quality they have become more astute in their dealings. Investment Banker Anil Nayar feels a strong economic boom has contributed to the hype in Indian art. He adds, “we are following China in every way. So while their art is now a USD1.5 Billion market, ours is just 350 million. Price corrections are a part of any market. It does not necessarily indicate a reversal of the long term trend, but is more technical in nature.” Any lowering of price will make the long-term investors happy. Also, this could be a wake-up call to artists to create quality works and refrain from mass productions. Anil Nayar adds, “The corrections allow people sitting on the sidelines to enter at a lower level with better margins of safety and thus helps future holding power. Good thing about Indian art is that it is in its infancy, and collectors are typically wealthy individuals with lots of holding power. So, the corrections will be driven by middlemen and gallery owners. They will want volatility and corrections in order to be able to add to their inventory at lower prices.” Whose prices are likely to be effected? Responses are mixed while, some investment analysts’ feel that mid-level artists will be affected the most, a source in Bangalore believes prices for the top level of artists will come down whereas new and upcoming talent will continue to sustain themselves. The Indian art market is still young and these temporary lulls are unlikely to create long-term setbacks. It won’t be long before the market stabilizes itself.
(Published in Finacial Times)
3 Jul 2007
Importance of certification in art
(By Nalini S Malaviya)
Fakes and forged artworks have existed for a long time now but as the Indian art market rakes in mega bucks, the stakes are that much higher. There is a greater influx of fakes, forged signatures and fraudulent practices seen in the market. One of the ways to avoid buying a fake is to obtain a letter of authenticity from the seller. This method although not foolproof does offer some safeguards. In fact, when buying art, knowing about the artist, and the background of the artwork can give an indication to its authenticity.
A provenance certificate is a letter of authenticity that should contain -
* A digital scaled down image of the artwork, and details of the art piece such as the title, name of the artist, medium and size.
* It can also include date of the artwork and details on its origin.
* It should have a signature from the gallery representative and also of the artist whenever possible
Some galleries will give this document by default while at other places you have to ask for it. It is the responsibility of the art gallery or dealer to sell an original artwork and therefore they should take adequate steps to authenticate it even before it appears before the buyer. Unfortunately, that may be difficult at times, especially when the artist is no more and one of his works appears in the market. Authenticating an artwork is an expensive and tedious process and it is always better to buy an artwork one is completely sure of. By that reasoning it is also essential one buys from a reputed art dealer or gallery. Riding the art boom are several self appointed experts and middlemen who might be willing to offer rates lower than the existing market rates but then unless it is a genuine artwork that they can substantiate with adequate documents it is not worth it.
Measures such as registering an artwork at a central agency and tagging artworks with authentication proofs are also making news and may soon be adopted more widely.
(Published in Financial Times, Bangalore)
25 Jun 2007
Investing in Art
(By Nalini S Malaviya)
As the market for art is expanding there is a corresponding increase in the prices of artworks, where some of the artworks are being sold at exorbitant rates. For instance, paintings which cost between Rs.50,000 to Rs.2 ,00,000 just a couple of years ago are now in the range of Rs.5,00,000 to Rs.8,00,000. This phenomenal growth can be attributed to the enhanced recognition of contemporary Indian art at the international level, and a buoyant Indian economy. Another factor that has contributed enormously to this exponential price growth is media hype; and artists, dealers and galleries have been quick to seize the opportunity. Similarly, branding in art – where the demand for an artwork is entirely related to the celebrity status of the artist - plays a huge role in determining prices of artworks.
For buyers, a budget upwards of Rs.10,00,000 ensures that they can invest in artists who are fairly well established and thereby a safe investment option. However, with that kind a budget one can pick up only one or two works. With a larger initial investment amount one can diversify one’s portfolio and pick up works by upcoming, established and senior artists, thus spreading the risk.
Riding the art boom, art funds too, have caught the imagination of investors who are looking at art from a purely investment angle. Art funds are especially attractive to people who are not particular about owning a work of art. Also, if an investor has limited knowledge of art, such funds work well for them, as long as the fund manager is sound on art. It is very probable that the near future will see more art funds being launched.
Prints, lithographs and serigraphs offer another avenue for investment in art. These limited edition prints cost a fraction of the price of an original artwork by the same artist, and therefore make for a more affordable option. These are also growing in popularity as more and more original works go beyond the reach of most buyers.
(Published in Financial Times, Bangalore)
As the market for art is expanding there is a corresponding increase in the prices of artworks, where some of the artworks are being sold at exorbitant rates. For instance, paintings which cost between Rs.50,000 to Rs.2 ,00,000 just a couple of years ago are now in the range of Rs.5,00,000 to Rs.8,00,000. This phenomenal growth can be attributed to the enhanced recognition of contemporary Indian art at the international level, and a buoyant Indian economy. Another factor that has contributed enormously to this exponential price growth is media hype; and artists, dealers and galleries have been quick to seize the opportunity. Similarly, branding in art – where the demand for an artwork is entirely related to the celebrity status of the artist - plays a huge role in determining prices of artworks.
For buyers, a budget upwards of Rs.10,00,000 ensures that they can invest in artists who are fairly well established and thereby a safe investment option. However, with that kind a budget one can pick up only one or two works. With a larger initial investment amount one can diversify one’s portfolio and pick up works by upcoming, established and senior artists, thus spreading the risk.
Riding the art boom, art funds too, have caught the imagination of investors who are looking at art from a purely investment angle. Art funds are especially attractive to people who are not particular about owning a work of art. Also, if an investor has limited knowledge of art, such funds work well for them, as long as the fund manager is sound on art. It is very probable that the near future will see more art funds being launched.
Prints, lithographs and serigraphs offer another avenue for investment in art. These limited edition prints cost a fraction of the price of an original artwork by the same artist, and therefore make for a more affordable option. These are also growing in popularity as more and more original works go beyond the reach of most buyers.
(Published in Financial Times, Bangalore)
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