(By Nalini S Malaviya)
The fall in the art price index as reported in leading newspapers, and the affected sales of certain artworks at international auctions created quite a stir in the art market. Despite this, several art collectors and investors are optimistic and feel such temporary lulls in the market are just that – temporary.
There are several online and offline networks formed by art lovers. One such online network comprises of collectors, investors, artists, dealers, and gallery owners who exchange information on art - price trends, upcoming artists, hot favorites, major shows and so on. Art collector Porus Vazifdar explains, “Art has always been a multifaceted activity - technical to the artist and sensuous to the collector. The art scene in India is not a 'financial market' in the true sense. Most of the ills of the commodity-style market continue to persist, e.g. lack of liquidity, reduced transparency, fake products, high transaction costs, non-standard products, difficulty in valuation, cash transactions etc. The efforts of a few people and increased disposable income have lead to the emergence of a pseudo-financial market. Price-disclosure is that much easier now due to the bold steps taken by a handful of people to publish prices. Hence, I do not believe that terms like, 'bullish', 'bearish', 'correction' etc can apply to art. Yes, prices of art will move in tandem with market factors, especially those unique to art.
There is general consensus that quality plays a major role in determining price trends of an artist. Artists who have sustained their quality have continued to do well even in recent times. Art collector Mehul Patel elaborates, “Chintan Upadhyay's artworks were available for Rs 1.50 lakhs in 2002, and now nothing is there for even 15 lakhs. Vaikutam's small charcoal works were available for Rs 30,000 about fourteen months ago and now cost almost Rs 100,000 each! Laxma Goud’s etchings, which were Rs 25,000 – 40,000 about a year ago are in the range of Rs 60,000 – 200,000”.
Upcoming artists appear to be a safe bet - since investment is low it also reduces the exposure. Whether art prices have actually ‘corrected’ or not is debatable, but what emerges is that it is a good time to buy for the discerning art collector or investor.
(Published in Financial Times, Bangalore)
20 Aug 2007
Protect your Art Investment- Care of sculptures
(By Nalini S Malaviya)
Just as paintings require specialized care and attention so do other forms of artworks such as sculptures. Sculptures are commonly made of materials like stone, metal, glass, wood, ceramic, terracotta and bronze. Care and handling of sculptures depends on the kind of material that has been used. In general it is advised that sculptures be handled wearing soft cotton gloves. Repeated touching can cause finger marks that can gradually affect the surface of the sculpture. Always display the sculpture indoors or in the open according to the material of the sculpture. This is especially true if an indoor sculpture is kept in the open and is thereby exposed to sun and rain, which will inevitably damage the sculpture. Outdoor sculptures are especially treated to withstand environmental elements.
A constant temperature environment is ideal for sculptures as well. Heat, excessive humidity, too much light can cause damage. A sculpture should be dusted regularly to avoid accumulation of dust on it. A light feather brush is ideal for this purpose. One should never use cleaning agents, strong detergents, sprays and polishes to clean or attempt to give a sheen to the surface. Some sculptures have a coating of wax on them for protection and the wax layer can be re-applied periodically, but one must always consult an art conservator before doing this. The kind of stone and metal will determine how the sculpture should be cleaned; hence it makes sense to take expert advice before embarking on such a project.
Glass sculptures look beautiful but require special care just as most other glass objects do. Their fragile nature makes it imperative that they be displayed on stable shelves away from inquisitive hands and out of reach of children. The glass surface should be kept clean for that extra sparkle, and most of them can be washed with mild soap and water. One must handle them carefully and take all precautions that are normally associated with this delicate medium.
Just as paintings require specialized care and attention so do other forms of artworks such as sculptures. Sculptures are commonly made of materials like stone, metal, glass, wood, ceramic, terracotta and bronze. Care and handling of sculptures depends on the kind of material that has been used. In general it is advised that sculptures be handled wearing soft cotton gloves. Repeated touching can cause finger marks that can gradually affect the surface of the sculpture. Always display the sculpture indoors or in the open according to the material of the sculpture. This is especially true if an indoor sculpture is kept in the open and is thereby exposed to sun and rain, which will inevitably damage the sculpture. Outdoor sculptures are especially treated to withstand environmental elements.
A constant temperature environment is ideal for sculptures as well. Heat, excessive humidity, too much light can cause damage. A sculpture should be dusted regularly to avoid accumulation of dust on it. A light feather brush is ideal for this purpose. One should never use cleaning agents, strong detergents, sprays and polishes to clean or attempt to give a sheen to the surface. Some sculptures have a coating of wax on them for protection and the wax layer can be re-applied periodically, but one must always consult an art conservator before doing this. The kind of stone and metal will determine how the sculpture should be cleaned; hence it makes sense to take expert advice before embarking on such a project.
Glass sculptures look beautiful but require special care just as most other glass objects do. Their fragile nature makes it imperative that they be displayed on stable shelves away from inquisitive hands and out of reach of children. The glass surface should be kept clean for that extra sparkle, and most of them can be washed with mild soap and water. One must handle them carefully and take all precautions that are normally associated with this delicate medium.
(Published in Financial Times)
14 Aug 2007
Protect your art investment - Transportation of artworks
(By Nalini S Malaviya)
With increased mobility and multiple job opportunities people change houses and cities with ease. During shifting it is important to take good care of the artworks to ensure their investment potential is maintained. Art Consultant Umesh UV advises, “Nobody should be given the permission to handle them unless they have enough prior knowledge of dealing with paintings in particular.”
There are pros and cons in transporting a painting, which is stretched or un-stretched. A rolled up canvas is easier to transport, but removing the stretcher frame and then reframing can cause damage to the painting. Acrylic paintings are easier to transport as compared to oils. Paper works are more delicate and need careful handling. When covered with glass, one has to be extra cautious to preserve the glass front. If the glass breaks in transit, the shards can cause irreparable damage to the artwork. Umesh who deals with mainly paper works shares his modus operandi, “I send paintings unframed outside Bangalore to prevent breakage of glass and give a hard board on either side to support them against folding or wrinkling.”
He adds, “Within local limits I suggest people transport the paintings in their own vehicle with the care of family members to hold them if they are framed with glass. Outside cities they can remove the framing and get them reframed despite the fact that this might seem to be a little expensive exercise.”
In general one must ensure that the temperature remains constant during transportation. Very high as well as very low temperatures during transit can affect the paint. It can become more brittle and begin to flake.
Some more precautions include,
* Avoid touching the painted surface.
* Never apply sticky tape to the painted surface.
* Never put together paintings with their painted sides against each other.
* Keep them dry
* Large paintings need special care and packaging
It is best to consult and take the help of an expert, who has prior experience in dealing with artworks. As a precaution, it also makes sense to insure the artworks.
(Published in Financial Times)
10 Aug 2007
Factors that affect investment potential of artworks
(By Nalini S Malaviya)
The uncertainty in the art market continues, as prices remain low, sales appear to be limited and the demand seems to be affected. Irrespective of the condition of art market, as an investor one would always like to make a sound investment.
As discussed previously, the quality of a painting or any other kind of artwork is of prime importance. Even if you were to invest in a work done by a mid-level or a senior artist, unless the quality meets highest standards, the work may not appreciate substantially over time. In fact, this has also been demonstrated at some recent auctions, where paintings by senior artists failed to find a buyer. Some of the criteria that define the quality of a work are its technical perfection and uniqueness of the concept. The theme of the work and how the artist chooses to present and interpret it is a mark of his creativity and will ultimately impact his market value. For instance, a socially relevant topic presented in a contemporary style stands a better chance compared to a copy of a real-life scenario.
Its also helps to pay attention to the quality of the materials used in terms of durability, longevity and the finish of the final product. An oil or acrylic painting is more likely to appreciate compared to a watercolour or a sketch. Remember, works done on paper may require greater care and maintenance. It is always wiser to invest in a mainstream artist rather than one whose works are gimmicky or likely to be a passing fad. The condition of the painting (especially if it has changed hands many times) – creases, chipped paint, cuts and tears, obscured signature can greatly affect the price of a painting.
The past performance of the artist is generally a good indication of future price trend. The artist name or brand also plays a role in determining the price growth. It goes without saying that without an artist’s signature the artwork could be worthless. Similarly, it helps to have a provenance certificate, which will help greatly when reselling the artwork.
(Published in Financial Times)
The uncertainty in the art market continues, as prices remain low, sales appear to be limited and the demand seems to be affected. Irrespective of the condition of art market, as an investor one would always like to make a sound investment.
As discussed previously, the quality of a painting or any other kind of artwork is of prime importance. Even if you were to invest in a work done by a mid-level or a senior artist, unless the quality meets highest standards, the work may not appreciate substantially over time. In fact, this has also been demonstrated at some recent auctions, where paintings by senior artists failed to find a buyer. Some of the criteria that define the quality of a work are its technical perfection and uniqueness of the concept. The theme of the work and how the artist chooses to present and interpret it is a mark of his creativity and will ultimately impact his market value. For instance, a socially relevant topic presented in a contemporary style stands a better chance compared to a copy of a real-life scenario.
Its also helps to pay attention to the quality of the materials used in terms of durability, longevity and the finish of the final product. An oil or acrylic painting is more likely to appreciate compared to a watercolour or a sketch. Remember, works done on paper may require greater care and maintenance. It is always wiser to invest in a mainstream artist rather than one whose works are gimmicky or likely to be a passing fad. The condition of the painting (especially if it has changed hands many times) – creases, chipped paint, cuts and tears, obscured signature can greatly affect the price of a painting.
The past performance of the artist is generally a good indication of future price trend. The artist name or brand also plays a role in determining the price growth. It goes without saying that without an artist’s signature the artwork could be worthless. Similarly, it helps to have a provenance certificate, which will help greatly when reselling the artwork.
(Published in Financial Times)
3 Aug 2007
Invest in art for the right reasons
(By Nalini S Malaviya)
One of the main reasons why one should invest in art is for its visual benefit. To be able to truly enjoy its aesthetic content it helps to gain knowledge on the subject. The more knowledgeable a person is the more it helps when making a sound investment. Reading on art history, trends, artist profiles and auction reports provide a good background to the uninitiated. But then, mere reading about art is not sufficient. Like in any other subject, practical knowledge is a must. It is important to visit art galleries, art shows and take the time to look at as many paintings as one can. This will give a good feel for art, as well as hone your ability to distinguish good art from bad art. For instance, a mediocre painter may try to sell an average piece of work for exorbitant rates. But, if you have the knowledge and the ability to judge carefully, you will be in a better position to evaluate its salability factor and value. In fact, this is also indicated by the recent price correction, where one of the factors that impacted the fall in prices is a growing maturity in buyers which translates into a more discerning, more knowledgeable buyer with a sharp business acumen. It is true that no one can produce outstanding works all the time, but then prices should be consistent with quality apart from considering features such as size, medium etc.
In any case, it is important to buy art for the right reasons – its aesthetic value and sense of joy it brings to the viewer. One should not compare it with stocks and mutual funds. Or, invest in art funds, where you leave the decision making to an expert and don’t have to worry about what to buy and when to sell.
(Published in Financial Times)
One of the main reasons why one should invest in art is for its visual benefit. To be able to truly enjoy its aesthetic content it helps to gain knowledge on the subject. The more knowledgeable a person is the more it helps when making a sound investment. Reading on art history, trends, artist profiles and auction reports provide a good background to the uninitiated. But then, mere reading about art is not sufficient. Like in any other subject, practical knowledge is a must. It is important to visit art galleries, art shows and take the time to look at as many paintings as one can. This will give a good feel for art, as well as hone your ability to distinguish good art from bad art. For instance, a mediocre painter may try to sell an average piece of work for exorbitant rates. But, if you have the knowledge and the ability to judge carefully, you will be in a better position to evaluate its salability factor and value. In fact, this is also indicated by the recent price correction, where one of the factors that impacted the fall in prices is a growing maturity in buyers which translates into a more discerning, more knowledgeable buyer with a sharp business acumen. It is true that no one can produce outstanding works all the time, but then prices should be consistent with quality apart from considering features such as size, medium etc.
In any case, it is important to buy art for the right reasons – its aesthetic value and sense of joy it brings to the viewer. One should not compare it with stocks and mutual funds. Or, invest in art funds, where you leave the decision making to an expert and don’t have to worry about what to buy and when to sell.
(Published in Financial Times)
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