• The Indian art market also benefited from the recent boom which increased the disposable income in the economy and bought with it slow but steadily growing group of art aficionados. Interestingly art auctions in India have been rising steadily starting with only 3 auctions in 2003, to 14 auctions in 2005 and approx 40 auctions in 2008.
Art is basically meant to be enjoyed and appreciated. It adds beauty and sensitivity to living; it makes you see and respond to the world around more and deeper. It is an investment in which beauty is a joy forever. But more than that, good art the world over, as well as in India, has been rising in value, both aesthetic and economic. It is now treated as an asset comparable to gold, family silver, etc.
Limited Supply & More Demand Unlike its international counterparts with hundreds of artists functioning around, Indian Art is restricted to only 60-70 artists and with the consistent elevation in the demand for Indian Art, prices are expected to go up in the coming years. Therefore, it is going to be a pleasure( both at emotional & monetary level) for the collectors who are in possession of the art pieces by Indian Artists.
For a long time, real estate was thought to be a sound investment, but the current real estate market has proven that’s not the case anymore. Artwork is a different instance entirely, as are other tangible items like precious metals. Fine art has long been known as being recession-proof because it is independent of any other country’s currency or stock market
The global meltdown has cast its evil spell on the world of commerce and business. Be it clothes, food, petrol, or housing, every other commodity is affected by the recessionary effect. Even the entertainment world, both television and films, lost money in these times. But the world of fine art — of painters and sculptors — seems to have escaped the wrath of recession.
Very heartening to know that the Major auction houses hold Indian art auctions fairly regularly now, and it is opening the eyes of the collectors who see the global potential of Indian art. Keep it going and Indian Art will surely be revered in the times to come!!!
Experience from the Western markets has shown that the Art market is generally uncorrelated to the performance of the stock market or the returns offered by investing in government bonds. So, investing in Art can provide a good diversification strategy, once you have set up the foundation of your portfolio using traditional asset classes.
In one of the most prominent examples of art investing, British Rail pension fund invested 2.9% of its portfolio in the 1970s earning a return of 40o pa. Above inflation till 1999.
Art is an asset class by itself, just like say commodities, equities or government bonds. But like antiques, wines, cars, it is not a mainstream asset class, but rather an alternative asset class providing an alternative to more common assets like equities. However, unlike many asset classes, Art is something that you can touch, feel and enjoy right from the comfort of your living room at home.
Art is an asset class by itself, just like say commodities, equities or government bonds. But like antiques, wines, cars, it is not a mainstream asset class, but rather an alternative asset class providing an alternative to more common assets like equities. However, unlike many asset classes, Art is something that you can touch, feel and enjoy right from the comfort of your living room at home.
