Wednesday, March 24, 2010

How to safeguard your art investment?

Post 2008, there has been a persistent anxiety over the lack of appetite even for masterpieces. Referring to the ‘heavily hyped Indian art scene’ driven by excess liquidity and sheer speculation, India’s top contemporary artist Subodh Gupta had remarked in the recent past: “Even college students were making works with the market in mind, and with the boom, the market was flooded with dealers."

A majority of them having disappeared, the question is: Will they return unscathed from the economic downturn, as the market for modern and contemporary Indian art looks to gather momentum? Indeed, the contemporary art world can get extremely confusing, and intimidating.

In fact, any investment except of fixed nature comes with no guarantee of returns. In this context, art expert Kishore Singh of The Business Standard mentions in his recent column:

“A relevant question many collectors are asking: when it comes to buying art s how really to navigate the minefield of choosing from among established but younger artists. While there’s some merit in acquiring what one likes or responds to, art is not so inexpensive as to lend itself to impulse buys. As one matures one’s tastes too become increasingly sophisticated, making it vital to choose the right artists (if not the right art) at the outset.”

He observes that the number of exhibits have gone up in the last six months, marked by greater experimentation. Collectors though, are struggling to overcome their apprehension sans any independent analysis avenues in the market. How can a buyer then make sure that the works of art on which he or she is planning to put down money remain depreciation-proof?

First and foremost, decide for yourself how much you can allocate to start. With the contemporary art prices having reached reasonable levels, you may strike a few good bargains. How else to make your art investment depreciation-proof? We shall seek answers in the next post…

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