Art As An Alternate Investment Avenue

Art is an 'in' option for Investment

Some years ago, art was the preserve of only the artists and art aficionados, in today's time, it has replaced blue-chip stocks as an invest option. Financial institutions and art galleries across the country have jumped onto the wagon of investment in Art and floated art funds.

While new entrants look out for the offerings for investment opportunities, for art lovers' today buying art is not confined to succumbing to a passion. Instead, it also offers art aficionados the added advantage of future gains/returns, incase need occurs.

In the past few years, art prices have witnessed great jumps, going up to over thrice their original price in the last 3 years. Presently, the Indian Art market is growing at an astonishing pace of around 35 per cent per annum. This not only makes it a promising contender to the stock market, but also has the added fillip of being seen as a more creative as well as impressive pursuit, with the additional benefit of adorning and beautifying your living space rather than a usual vault or bank.

Forms of Art

The various forms of Art are as follows-

• Abstract Art - This art does not represent the reality as wee see it. The idea of the painting can be originated from the real world; but the patterns and colors used to create the painting are far from reality. The viewers can look for the meaning as per their thoughts and opinions; that may be actually quite different from the artist's perception.

   

• Figurative Art - Such kind of art is inspired by the real and visible world. The concept and/or objects on which the painting is based [for instance - human form] can be viewed in reality. They may be modified for the purpose of conveying a particular message.

   

• Landscape Format/Painting - This kind of art represents landscapes which have rectangular shape.

   

• Sculpture - Sculptures are three-dimensional artworks created by shaping or combining hard, plastic material, text, light, wire, sound, commonly stone (either rock and/or marble), glass, metal, or wood. Certain sculptures are created directly by finding or carving; while others are assembled, built together and fired, molded, welded, or cast.

   

Advantages of investing in Art

• Diversification - Since art prices do not depend on other assets, they act as a cushion when other markets, for instance stock market, are not doing well

   

• Aesthetic value - The aesthetic pleasure of viewing a piece of art, especially for art lovers, is a great advantage of investing in art.

   

• Limited risk - Art works rarely depreciate in value and there is a limited downfall risk since the price of art works rarely moves down. The prices may stagnate but usually do not depreciate.

   

• Price appreciation - Another advantage of investing in art is the prices of art works that appreciate over a period of time. One should look out for the works of under-valued artists - meaning artists' whose works are of extremely good quality, but are available at a comparatively cheaper price than their peers.

Investing in Indian Art

Following are the various ways of investing in Indian Art-

• Auction

• Online auction

• Art gallery

• Online portals