There is a general feeling in the art market that the focus has shifted somewhat from Indian modern artists to contemporary artists. In fact, a trend that has become more noticeable now is that buyers and investors are backing younger talent. There are even reports that some senior artists are not finding any takers at all. Whether this is true it is difficult to say, but prices of some of these artists have definitely gone down. Paintings by a few well-known artists that were selling for Rs 12-15 lakhs (market price and not their auction price) are now barely holding out in the Rs 5 lakh range. It appears that there is a greater confidence in the contemporary art market.
There could be many reasons for this downward trend. According to an art collector, quality is a prime factor. As all works by the same artists are not of the same quality, the poorer works are now being reflected in their prices. Another theory is that the buyers are simply bored and find art from younger artists more exciting and refreshingly different. Contemporary artists are more open to experimentation when it comes to medium or concept. Brands and signature styles seem to be getting outdated. The new buyer now wants something ‘different’. Originality of thought is also considered to be one of the parameters that is now defining the art market.
Again, one must remember that the buyer profile has also changed in the last few years. Investors and collectors are getting younger every day and probably that is why they relate better to works by their contemporaries. It is also believed that contemporary artists have a greater international appeal as compared to modern artists. Having said that there is no guarantee that all contemporary artists will continue to perform well. Some of them are bound to lag behind over time when it comes to their investment potential. Similarly, it is very unlikely that Indian modern art will continue its downward trend, but how long it will take to bounce back it is difficult to predict.
(Published in Financial Times)
26 Dec 2007
24 Dec 2007
17 Dec 2007
Selling an artwork
Once art forms a part of an investor’s portfolio, at some point in time he may want to sell it. One sells an artwork to obtain liquidity either because funds are needed to buy another artwork, or to reinvest, or simply because it is a good time to sell and maximise the profits.
When should you sell a painting? Although this would vary from person to person, as a general rule you should sell when there is an increased demand for that artist/artwork in the market. The demand is likely to be high after an artist has performed well at an auction or has participated in a major exhibition or has been recognized internationally. This generally translates into a better selling price. However, when there is a slump in the market it may be good time to buy but not to sell.
When should you sell a painting? Although this would vary from person to person, as a general rule you should sell when there is an increased demand for that artist/artwork in the market. The demand is likely to be high after an artist has performed well at an auction or has participated in a major exhibition or has been recognized internationally. This generally translates into a better selling price. However, when there is a slump in the market it may be good time to buy but not to sell.
Some people may want to buy newer works and may decide to sell the older ones to create space. One must realise selling an artwork is not a simple and easy process. Sometimes the painting may remain with the gallery for a long time before being sold. One may not always get the asking price. Also, when reselling the artwork, it helps to remember that there are gallery commissions, and tax implications, which will affect the profit margins. According to gallery owner Premilla Baid, “There is no right time to sell. It is a very subjective thing. When we sell artworks for our regular clients, we charge them 10% of the sales.”
To ensure you make a sound investment it is essential you know how to pick upcoming artists with the potential to appreciate. Which means when your reinvest the funds try to pick up works that are likely to appreciate in the future. Remember, art should always be looked at as a long-term investment option.
In general art cannot be compared to the stock market or real estate, there are a lot of variables involved and one must make a decision after a thorough research of the market conditions.
15 Dec 2007
Tips for buying at an auction
At the recently held Christie's Hong Kong auction of Asian contemporary art, N S Harsha topped the sale of Indian works. Harsha's 'Mass Marriage' fetched $6.4 million, which is a new record for the artist. Other Indian artists such as Atul Dodiya, TV Santosh, Ravinder Reddy and Subodh Gupta also performed exceedingly well. This is a good sign for Indian contemporary art.
International auctions usually feature well-established names along with a select group of promising artists. Continuing with our series on whether to buy from an auction, here are a few tips that will help you buy from one.
Apart from the big auction houses there are several smaller ones that also organize art auctions on a regular basis. The amount of money involved in these is generally more reasonable. In fact, some of these are organized to raise funds for a charitable cause, and in such cases a portion of the sales are donated towards the charity. Why should you buy at an auction? According to gallery owner Renu George, “auction houses are able to predict future trends, so even if you buy at a higher price at an auction, chances are it will appreciate in the future.”
Before the auction event, a catalogue is distributed to prospective bidders. The catalogue, lists out the works (name of the artist, title, size, medium, provenance, etc), lot numbers, and estimated selling prices or ‘reserve price’. This will give you an idea, which works to bid for. It also gives you time to crosscheck and get familiar with the artist’s credentials and track record. Before the auction there is a viewing of the works that is organized for the prospective bidders (unless it is an online auction, but these too sometimes organize an exhibition). It is usually a good idea to physically check out the artwork and not bid on the basis of the catalogue alone.
It is important to predetermine your exit price. It is very easy to get carried away during the auction, and to keep bidding in the heat of the moment. However, if you set your limits it will help you enormously.
(Published in Financial Times)
International auctions usually feature well-established names along with a select group of promising artists. Continuing with our series on whether to buy from an auction, here are a few tips that will help you buy from one.
Apart from the big auction houses there are several smaller ones that also organize art auctions on a regular basis. The amount of money involved in these is generally more reasonable. In fact, some of these are organized to raise funds for a charitable cause, and in such cases a portion of the sales are donated towards the charity. Why should you buy at an auction? According to gallery owner Renu George, “auction houses are able to predict future trends, so even if you buy at a higher price at an auction, chances are it will appreciate in the future.”Before the auction event, a catalogue is distributed to prospective bidders. The catalogue, lists out the works (name of the artist, title, size, medium, provenance, etc), lot numbers, and estimated selling prices or ‘reserve price’. This will give you an idea, which works to bid for. It also gives you time to crosscheck and get familiar with the artist’s credentials and track record. Before the auction there is a viewing of the works that is organized for the prospective bidders (unless it is an online auction, but these too sometimes organize an exhibition). It is usually a good idea to physically check out the artwork and not bid on the basis of the catalogue alone.
It is important to predetermine your exit price. It is very easy to get carried away during the auction, and to keep bidding in the heat of the moment. However, if you set your limits it will help you enormously.
(Published in Financial Times)
11 Dec 2007
Should you buy at an auction?
When it comes to art there are numerous auction houses - both domestic and international - in the fray. We keep reading about reports where a certain painting fetched a record amount or where an artwork was withdrawn from the catalogue, as there were doubts about its authenticity. The latter used to be a fairly rare phenomenon until recently. Still, the important point is that artworks that lack credibility or have even a shadow of doubt attached to them are withdrawn from the sale proceedings. Sotheby, Christies, Bonhams Saffron Art and Osian are just a few of the auction houses that deal with art. There are many more auction houses that are being set up in India.
Should you buy at an auction?
Theoretically auction houses have experts in the field at hand, who carefully assess, evaluate and authenticate each work before adding it to their catalogue. Also, they ensure that the work is of good quality. Another advantage is that a variety of works can be found at an auction. And, in general artists that are represented at auctions are considered to be either established or promising.
Art collector Harish Padmanabha explains, “Anyone who has the desire to collect can buy from an auction.” He adds that reputed auction houses know good art from bad and that helps the buyer. They also assess the condition of the artwork, and provenance and authenticity are also taken care of. Another advantage for the buyer is that there is a transparency in the dealing, which may not happen with some art galleries and dealers.
For serious art collectors, auctions are probably the best way to source works that are rare or not available in the market. Collectors look at auctions to complete their set or own a work that is highly coveted. For new buyers it is always advisable that they attend a few auctions before starting to bid at one. It will help them to get familiar with the proceedings and will also add to their confidence level.
(Published in Financial Times)
Should you buy at an auction?
Theoretically auction houses have experts in the field at hand, who carefully assess, evaluate and authenticate each work before adding it to their catalogue. Also, they ensure that the work is of good quality. Another advantage is that a variety of works can be found at an auction. And, in general artists that are represented at auctions are considered to be either established or promising.
Art collector Harish Padmanabha explains, “Anyone who has the desire to collect can buy from an auction.” He adds that reputed auction houses know good art from bad and that helps the buyer. They also assess the condition of the artwork, and provenance and authenticity are also taken care of. Another advantage for the buyer is that there is a transparency in the dealing, which may not happen with some art galleries and dealers.
For serious art collectors, auctions are probably the best way to source works that are rare or not available in the market. Collectors look at auctions to complete their set or own a work that is highly coveted. For new buyers it is always advisable that they attend a few auctions before starting to bid at one. It will help them to get familiar with the proceedings and will also add to their confidence level.
(Published in Financial Times)
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