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)

Essence of art

(By Nalini S Malaviya)

Crimson Art Resource organized an exhibition of drawings and paintings titled ‘A tribute to Adimoolam’ a year after he passed away. The display comprising of twenty works sourced from a few art collectors (and from the gallery) presented a small but personal collection which gave insights into some of his early works as well. According to Naozar Daruwalla, the gallery owner, the intention of the show was to present an intimate compilation rather than aim at a large but scattered one. One of the sketches, a life study was done in the 1960s when Adimoolam himself was a student. The drawings were mainly of musicians, horses and still life. The few oil paintings that were on display were landscapes done in his characteristic impressionist style – broad brushstrokes that create a soothing ambience. Adimoolam was known as much for his drawings as for his abstract naturescapes. The exhibition has officially ended, but viewers may still be able to see the works at the gallery in The Hatworks Boulevard.

The other exhibition that previewed a few days ago at Gallery Mementos features drawings by 38 artists from across the country. Curated by Giridhar Khasnis, the show ‘The root of everything’ presents a good cross-section of artists across different generations and varying styles. From artists such as Paritosh Sen, Ganesh Pyne, Jogen Choudhury, Shuvaprasanna, Vivan Sundaram, Ravi Kumar Kashi, Suchender amongst others, there is a wide range of creativity on exhibit. In most of the drawings the artists have followed a similar style and theme as they do in their paintings. The exhibition presents drawing as the essence of all arts, and one finds a wonderful spectrum of interpretations by the various artists – portrait sketches, animal forms and other equally mesmerizing compositions that are rendered skillfully. The few odd paintings that are on display create a jarring effect amongst the exhibition that is otherwise primarily dedicated to drawings. Overall, a must see for art aficionados.

On a sad note, the sudden demise of R. K. Dugar, owner of Gallery Mementos, last week a few days after the exhibition preview has been a shock to many of us. May his soul rest in peace.

(The exhibition continues till February 28 at Gallery Mementos, The Chancery, Lavelle Road, Bangalore)

(Published in Bangalore Mirror)

On a positive note

(By Nalini S Malaviya)

The art market is hit hard and there is no getting away from it at the moment. But, all this talk about the recession can be quite depressing and I sincerely hope that this phase gets over as soon as possible.
While people are still buying art that is affordable, sales of mid and high end segments are highly affected. Buyers are now treading cautiously, and rightly so. Recently at the preview of an art exhibition one of the artists mentioned how thankful he was that he had not resigned from his day job. However, when the same artist said that he had slowed down the pace of his work as the demand was considerably less, it was reassuring. In my opinion some of the best works will emerge in the current phase. The furious frenzy to produce more works during the boom period will now be replaced by a more spaced output. Artists will have more breathing space and time to follow their creative instincts rather than follow popular demands. This is a good time for them to be experimental, dabble with different media, and come out with smaller works and maybe even an affordable line of works.

Collectors should take stock of their collections and think of getting it catalogued if it is sufficiently large and mark out the works which they would like to sell off. One should also consider insuring the more expensive or rare artworks. Unfortunately, insurance of art is still not a very popular trend in India, and very few companies are offering this. But, one could look around to find a policy that suits ones needs.
For buyers this is a good time to pick up quality works at competitive prices. Those who don’t know much about art but happen to be reading this could use the opportunity to get familiar with the art world. Those of you, who are looking at buying art at this point, should begin with a small budget. This is also a good time to network with people from the art fraternity and to attend art shows and other events. In short be positive and use the time constructively.

(Published in Bangalore Mirror)

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)