Art as an investment: How to build an art collection from scratch
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Loading... - Viransh Chabra
- 01 Nov 2022
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Learning about the works, data-backed decision making are some of the things you should do before investing in art. Here's how you can go about it, according to experts
The idea of a global pandemic driving purchases of fine art may sound absurd, but that is exactly what occurred during the lockdown. Dinesh Vazirani, CEO and co-founder of Saffronart, an international auction house with nearly five hundred auctions to its credit, chalks it down to the fact that people were more involved in their living spaces and collectors had more time to focus on what to add to their repertoire, given that art is a highly involved purchase.
Besides collectors, many new buyers, those with new tech money and a disposable income, too came into the market. Indian Art Investor, an independent market intelligence firm focussed on Indian Art, in a private art market survey that included 158 galleries in 2021, found that among the new buyers there has also been an increase in the number of women buying art.
Curiosity and the desire to explore art as an investment, as well as technology, have helped grow and give this creative industry a boost. “We have seen a significant growth in new buyers in recent years who have expressed an interest in purchasing art across various categories. These are buyers who are comfortable with buying art online and are, therefore, not limited by geographical spaces,” says Vazirani. “We’ve also seen the presence of more mature collectors than speculators in the market in recent years.”
There have been significant developments in the Indian art market over the last two decades and the market is only expected to grow. Experts point out that for buyers, it helps to know the trends in the market as well as to keep some basic indicators in mind when investing in an artwork.
There have been significant developments in the Indian art market over the last two decades and the market is only expected to grow. Experts point out that for buyers, it helps to know the trends in the market as well as to keep some basic indicators in mind when investing in an artwork.
The Indian Art Scene
There has been a significant movement in the Indian art auction market in recent times. Venetia Vickers, head-financial knowledge, Indian Art Investor, points out that in 2001-2002, the total turnover generated was around ₹7 crore against 231 works that were sold at auction. Ten years later, that number went up to ₹271 crore against 1,100 works sold while in 2021-22, the turnover has jumped to ₹1025.6 crore against 3,617 works. Read More...
