Friday, June 21, 2013

Four reasons that make Indian art a value buy for long-term

Here are the five reasons that will support long-term growth of the Indian art market, still in an early growth phase, offering immense scope for investment:
  • Reason 1: Merrill Lynch and Capgemini’s world wealth survey in 2012 pointed out that alternative asset have become an integral part of high net worth individuals (HNIs) portfolios, up from six percent to nine percent. Their sustained buying has pushed up the bar and the upward journey of the price graph has just started.
  • Reason 2: Art remains a popular investment option for wealthy in the UK during tough economic times marked by a period of low interest rates and economic worries, a BBC News study last year mentioned, quoting from the Royal Institution of Chartered Surveyors (Rics) survey.

    According to its spokesperson, the art & antiques market remains a strong performer for buyers looking to invest in more tangible assets to guard against the uncertain economic picture. The trend of investing in ‘emotional assets’ is getting stronger with investors, having suffered from the global crisis, returning to objects ‘closer to their hearts’, with a decent ROI and liquidity.
  • Reason 3: The art market has certainly become more mature and transparent. Not so long ago, buyers and collectors could compare prices only by attending auctions and rummaging through heavy catalogs. The scenario has changed considerably. The process of acquiring art has become more ‘democratic’, so to say. Also, the base of buyers and sellers is fast expanding! The growth of services and expertise backed by market infrastructure and mechanism within the art world is now more pronounced.
  • Reason 4: Collectors are fervently participating in a series of Indian art auctions, making them hugely successful, to establish its global potential. They are treating the sales as an opportunity to acquire some of the very best contemporary and classic works on offer, set to appreciate in the future. The leading market players are focusing on quality works in order to target the discerning buyers’ category.

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