Aspects to be kept in mind while buying art - II

When buying art or for that matter, any asset class, aspects such as liquidity, risk taking ability and return expectations will come into play. These obviously vary from one individual to another and hence need to be clearly defined at the outset.

Art has come into spotlight thanks to the rising stature of Indian artists on the global canvas and the stupendous prices that they now fetch. Broadly speaking, the price discovery process in the art market has become much more efficient thanks to open bidding. The main concern of liquidity does not apply to this asset class owing to its democratization and growing popularity. Quality works are very much in demand and draw enough buyers.

Of course, to understand valuation mechanics, you need to consult experts in the field. They appreciate and understand the work better than laypersons, who may not be able to determine the precise value of an artwork. It’s better to leave the job to experts or perhaps to the market if you have faith in it through peaks and falls. As with any asset, the appreciation over and above your buying price may not be immediate.

However, the acquisitions need to be done carefully and after necessary groundwork. The decision to buy an artwork should importantly be based on your inclinations and fondness for a particular artist, theme, genre, style or form; it should not be random but a well thought out call! Most importantly, quick gains should not be the sole motto.

In fact, most genuine collectors (who may also be termed investors, so to say) enjoy the very idea of owning an artwork. The idea is not to make huge profits from the investment. They simply collect and treasure the works they possess. The very process of buying and cherishing a painting is fascinating.Ultimately, art bought for art’s sake will fetch you handsome returns, if you listen to your heart.