The London-based art market research and analysis company surveys several key players in the market. According to it, the perception of speculative element is on the rise again after a sharp drop in the first half of 2009, when the art market hit an all-time low. Their Speculation Barometer for Modern Indian Art denotes a significant 28% rise since October 2009. It’s now perched at 6.3, up from mere 4.9. This is probably the highest reading since the firm began its survey in 2007.
The speculation barometer measured on a scale of 1-10, indicates how market players view and perceive the speculation level in the market. In its measurement, 1 stands for the lowest level of speculation and 10 denotes very high level of speculation. Respondents are concerned that market might enter another bubble if it rebounds too quickly and too sharply, owing to speculative buying, the new report mentions. Anindita Ghose of The Mint quotes Arvind Vijaymohan of Japa Arts, Indian arts advisory, as saying:
”It would be fair to assume that in a young market such as India, where appreciation for art is not engrained at a formative level, speculation is bound to be a key driver. In my reading of the Indian context, most collectors who entered the market over the last five-seven years were keen speculators. In the current situation, there exists a section of speculators who consider this the perfect time to enter the market, and acquire works of modern Indian art at low values. Some prominent players are on standby to acquire.”Importantly, liquidity in the art auction market has been greatly boosted after getting deflated and hitting bottom in 2009.
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