The recent South Asian art auction at Sotheby's New York sold "Steal-2" – a painting by contemporary Indian artist Subodh Gupta for $1.16 million. Two canvases by M F Husain, "Ritual", and an untitled work in acrylic were sold for $1.02 million and $482,500 million respectively. An untitled Tyeb Mehta canvas raked in $902,500 million. At these prices, fine art – earlier the preserve of artists and art aficionados only – is replacing blue-chip stocks as an investment option. And in case those numbers are making you lose heart, then we've got good news for you. In art too, the underlying principle of investment remains true: buy early when the price is low to maximize profits.
Contemporary Indian Artists
“There are upcoming artists on the Indian contemporary art front who are just starting to be known to a wider audience,” says Ganieve Grewal, who represents UK-based auction-house Christies in India. “In our last sale in New York we set six new world auction records for artists representing India, Pakistan, and Bangladesh.”
Today Indian art has matured and Indian contemporary artists have developed a vocabulary of their own. There is a growing awareness of art as a point of cultural pride and as an alternative asset class. A sensible purchase made now – such as investing in an upcoming artist – can result in high dividends in the future. And what's more, art can be one of the most enjoyable ways to invest as you can derive day-to-day pleasure from it while it multiplies in value.
Investment in Art
Emerging artists on their way up the echelons of the art world would be the best to put your cash on. However, like any investment, it's a calculated risk. And, unlike traditional stock markets, short-term gains in art are relatively rare. "The good thing about this form of investment is that it won’t crash like the recent Lehman brothers," says Pheroza Godrej, owner and curator of the well known Cymroza Art Gallery in Mumbai, India. "But, you will also have to study and research comprehensively, and be patient to see results."
The ultimate goal here is to enjoy your purchase before selling it for a profit. Now, making sure that you invest in the pieces that will increase in value in the future can often become a daunting task. Of course, there are no ground rules that can guarantee your purchase. It's not as simple as the practical facts and figures of the stock market, but if done right, it can return huge dividends. Keeping in mind some of these guidelines before you write that cheque might help you make an informed decision.
Rules For Investment
- The cardinal rule is that you have to like what you buy. Chances are that if you don’t like it, others too may not, and that will affect your chances of a resale. Also, art investments are long term. You really don’t want a drab painting hanging on your wall for that long.
- Make a note of the school the artist comes from.
- Always buy signed pieces.
- Quality is more important than size. Also, bigger pieces often become difficult to maintain.
- If you don’t have the time to do thorough research then stick to familiar and easily recognizable subjects that are well rendered.
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