Art is ‘in’ for Investment.
>> Wednesday, September 17, 2008
Where earlier art was the preserve of only the artists and art aficionados, today it replaces blue-chip stocks as an invest option. And financial institutions and art galleries in the country have jumped onto the wagon and floated art funds.
While new entrants scope the offerings for investment opportunities, for art lovers’ today buying art is not just about succumbing to a passion it also offers art aficionados the added advantage of future returns, if the need occurs.
In the past few years, art prices have witnessed record jumps, going up to over three times their original price in the last three years. Currently the Indian Art market is growing at an astonishing pace of about 35 per cent per annum. Which not only makes it a promising contender to the stock market, it also has the added fillip of being seen as a more impressive and creative pursuit, with the additional benefit of adorning your living space rather than a vault or bank.
These very same banks, financial institutions and the like who are cashing in on this boom, with art funds and art investment scheme’s to attract corporate houses and individual investors. Oseta Investments Trustee is an art fund started by Osian’s Connoisseurs of Art, Mumbai, with art galleries and salerooms in Mumbai and Delhi. This fund, managed by Osian Auction House, assures a growth of 15 per cent and takes a 30 per cent cut of profits, after a pre-decided investment period.
Other art galleries are also following suit with clearly defined investment periods and promises of assured gains. This rising market is also attracting the interest of financial institutions like Kotak, ING Vysa, Citibank and ICICI Bank.
Source: - indiaartvillage.com
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1 comments:
You have got it right! I wish more investors would see the light on investing in good art. Why not purchase something you can enjoy and live with while it gains value. Being a successful artist myself I have seen a 10 to 15% increase in value almost ever year for the past 20 years. I have tried to advise my clients over the years as to the value of collecting art. The one great thing is that there is virtually an investment for every income level. You don’t have to purchase at the top nor do you want to. The key is to find a good artist that is making a career of being an artist, Not a part-timer. Fined an artist that is selling and making art that people like and can understand, representational art is a good place to look… Landscapes, Seascapes, Marine art. Art investment has other advantages, you don’t pay Uncle Sam as the value of the work increase. You also have a direct involvement with how your investment will grow by working with the artist and building them up by investing in new works and sharing your center of friends co- workers and family the investment value of the artist. Don’t be greedy share your artist! Your artist will care for you as a friend and appreciate the support, in return may help you by being the first to see new works and get first pick of new painting. The pick of the litter. You get the best work. The work that will be most valuable and offer you the best return when you decide to sell. As your artist grows so will your investment and remember if you find the right artist the one that I have been talking about above, chances are there will be a day that the values jump over night 50 to 100% and more. The good thing is that as you purchase paintings, even as the artist prices increase year to year you can have the satisfaction of knowing that the value will go up. How many times have you herd of good artwork go down in price? If you are looking for the right artist take a look at www.christopherwheat.com
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