1. Why invest in art?
Art gives pleasure and if chosen properly can bring excellent financial rewards. With rapidly increasing sales and record setting prices, Indian art is attracting an increasing number of new investors. In recent years, this market has won international acclaim and the attention of world opinion leaders. Growth of Indian art market has been exceptional and is not set to slow down.
Unlike property, art is virtually maintenance free. The art market has a low correlation with the direction of stocks, bonds and other traditional asset classes. This means it can provide a low risk strategy and a powerful diversification effect to a traditional investment portfolio.
2. I want to invest in art but don’t know anything about it. How do I start?
You must first define your budget. Determine your motivation – are you buying art to invest in and make money or simply to satisfy your passion. It maybe a combination of both. What is the medium you are interested in and what type of space are you looking for – or if you do not have the space then would you like to store it?
Once you have set these parameters, it is important that you do some research. Start visiting some art galleries, websites etc to determine the style of artwork that appeals to you. Familiarise yourself with notable artists. Read the art pages in the newspapers as well as the business and investment sections to get an understanding of the Indian art market. Read art market news, artist reviews etc. Copal on a regular basis sends its clients art related news. You can go through this news on our site. Also read our newsletters for more information. It would also help immensely to talk to people who have experience and market insight.
3. How can I be sure I am buying high quality Indian art?
Before entering the Indian art market, it is critical that you are well informed. This will ensure that you are not only buying quality work by the best artists, but are guaranteed of its authenticity and provenance. Also we suggest that you take the help of art experts to buy art.
4. Is it important to diversify my portfolio?
Yes, if you are following an investment strategy then it is important to diversify your art portfolio to avoid the ‘all eggs in one basket’ syndrome. Portfolio can be diversified by spreading your risk through artist, category of artist etc.
5. Is it important to like the work I am buying for investment?
The most beautiful thing about art is that it has both aesthetic and economic value. However collecting art solely for capital appreciation is a sound strategy as it is based on solid research and advice. However the aesthetic value of the artwork is also never lost.
6. Does size matter?
Yes, the bigger the painting the more the price. But then again there are other factors like the artist, medium, quality of work etc. that help to determine the price of the artworks.