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Factors to consider while Investing in Art

Tuesday, July 28th, 2009 | Author:

ahmed_alsoudani_art_investment_assetInvestment in art has hit the dirt big time. Big shot names and industrialists are betting big on wonderful art works. Recent spike seen in the art auctions duly points to the conclusion that art market is here to stay and flourish. No wonder, from big corporate to small time investors are trying their hands at lucrative world of art. Try revisiting any art auction having taken place in last one decade and you will find astronomical sums of money being doled out for amazing art works. Indian artists like M F Hussain, Tyeb Mehta etc have made it big in art market. There is huge demand of works made by them.

 

But, in this mad rush it would be prudent to take notice of one fact. Greed and fear are also attached with investment. One mistake most of the retail investors are making is investment in cheap art works. They think it’s a wise decision and their investment will pay rich dividends in the long run. But that’s a fallacy. Basically, when it comes to art investment, two factors are always there. One, when a person buys a cheap art work thinking of it as a good beginning and second, assuming that just because an art work is getting sold for some discount, it must be good. What they fail to notice is if the art work is being sold for less price or for some discount there must be some reason behind it. It’s okay to purchase a cheap art work if the purpose is to hang it on the all but for investment purpose, it can be a terrible mistake.

 

Give your art investment as much importance as you would to your other investments. Go for a good and quality art work even though it comes costly because you are bound to get good returns in the long run.

Paris Art Market

Saturday, July 25th, 2009 | Author:

Global art market is thriving. In last two decades, prices of art works have touched stratospheric orbit. We keep coming across the news of wonderful art works being sold for unbelievable prices. Many little known artists got their due in the mad rush of art auctions. It also helped in opening up new avenues for budding artists who were earlier struggling for recognition. However, in last one and half year, things have slightly changed. Due to global recession, art market has also got affected. The crisis did manage to penetrate strong world of art works. We all are pretty sure about the crisis being a minor blip in the long term wonderful prospects of art market. But as of now, many investors of the world have put on hold any new art purchasing decisions. Huge art markets like London and New York have also been affected with slowdown.

 

But there is one global market that has not shown any signs of slowing down. Yes, we are talking about Paris Art Market. Compared to 2007 and early 2008, number of auction sales and volumes have remained more or less stable. That is no mean feat considering the recession factor looming large in other major parts of the world. Talking about this year, there has been remarkable improvement in the number of sales figure shown by Paris art market. It has remained higher than London or New York. In February, Pierre Bergé-Yves Saint-Laurent sale took place at the Grand Palaisand it was a huge success.

 

Many wonderful art auctions have been accomplished in the beautiful capital of France. Even in May 2009, Sotheby’s Contemporary Art sale got buyers for no less than 95% of the art works on hammer. Christie’s had a phenomenal success rate in Paris in last few months. All in all, Paris is leading the revival of art auctions in global market.