Peaks and crests are inevitable to an investment cycle

Considered an authority on art auction data analysis, Professor Michael Moses once stated: “There are several inherent beauties associated with the act of collecting art - the beauty of the object, the excitement of the hunt, the joy of meeting and talking to people, and the diversification potential of art in a portfolio.”

On the other hand, celebrated art collector Charles Saatchi had famously remarked: “I never think too much about the market. I don't mind paying three or four times the market value of a work that I really want…” There’s a lesson to be learnt here: Peaks and crests form inevitable parts of any investment cycle, but a piece of exquisite art continues to hold its value and beauty.

In spite of a perceived lull in the market across all asset classes, there is every reason to include art in an investment portfolio. “You might think you can’t invest in fine art, but is very much an asset,” affirms Prof. Moses, adding that because it is non-correlated with financial markets, art constitutes an alternative asset which mitigates risk.

As the financial dimension of art gets institutional backing, it will capture the attention of the masses as an investment opportunity. Once the importance of art as investment seeps into the public psyche, it will set in motion the economic triggers to reaffirm our broader artistic and cultural infra-scape like never before. Popularizing regulated art funds with the general public also holds the key.

Once a sustained flow of factual data and credible valuation criteria are established, the framework of institutionalizing the art asset will gather momentum, hastening the nascent art revolution of contemporary India driven by the momentum of public participation. Against the backdrop of the evolving art scene and the marketplace, an aspiring collector-investor needs to initiate and immerse oneself in the process of acquiring works that exude diversity, reflect current trends, as well as hold in terms of beauty and value.