Why art is an investment you should make

Rouble Nagi

Art can be a very tempting investment, with loads of glamour, creative mystique and potential high value returns. However one must understand that art comes with its own risks and expenses.

Art in India was never about investments as the saying goes “Nothing great in the world has ever been accomplished without passion”, mainly art connoisseur and collectors bought art typically as a hobby or passion which includes me. The change in the art scenario happened around 10 years ago, when Indian contemporary artists started selling at auction houses such as Christie’s at prices that were unheard of in India. Tyeb Mehta in 2005 sold his painting ‘Mahisasura’ for Rs 6,95,00,000 at a Christie’s auction . The same year F.N Souza sold for Rs 6,54,00,000 at Saffron art. After which, year after year the prices kept escalating and the latest being V S Gaitonde which sold this year at Christies for a staggering Rs 23,70,25,000.

If   you  see  the returns gained by high net individuals have been due to strategic diversification of their investments into a broad range  of asset classes “Art” being one of them.  Art as an investment is a genuine contender as part of any sophisticated asset planning and cannot be overlooked for one unique reason: an ever-increasing demand coupled with an absolutely limited supply. The art market is now stable and somewhat rational in India and abroad and can  even compete  with other forms of financial investment options for investors. Another trend I have noticed over the years is that Art is not volatile. This is exactly what makes it different from other investment instruments. Over the years I have collected art and have noticed that art is the only form of investment where prices don’t come down. Art is not likely to be affected by the whims  of  the  economy.

Tips for Investing in the Arts:

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Rouble Nagi

Founder |Rouble Nagi Art Foundation & Rouble Nagi Design Studio

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  How to appreciate good art

· Research any living artists who catches  your eye. Learn about their education, their commissions and their exhibits.

· Visit museums, galleries and art institutions in your area regularly so you can recognize potential movers and shakers in your region.

· If you're considering a piece by a renowned artist, get an appraisal. Look for quality, and don't buy anything in bad condition.

· Gallery owners will tell you that buying art is an emotional decision, but don't fall for that line if you are thinking of it as an investment.

. The rarity of a work of art is what gives it value, so an original will always be worth more than a reproduction, print or serigraph

But on that final point let's be very clear - art is a long-hold asset. At minimum you should be looking to live with your acquisition for 5-10 years to see a real return.