Art can be a tempting investment, with its creative mystique and potential for soaring values. Whether your tastes are classic or avant-garde, art is a tangible commodity and, as with any commodity, many investors view it as a hedge against stock market volatility. But before you drop a bundle at a gallery or raise your bidding paddle at auction, understand that art comes with its own risks and expenses.The art market is complex, opaque and unregulated, making it difficult for all but the most experienced to navigate, and sound, unbiased advice is essential.
Aside from the added costs associated with maintaining art, there are the fickle tastes of buyers. "Art follows fashions and trends," says a modern day art expert. The popularity of various artists and periods fluctuate, so one year's “must-have” is another year's “Monet”.
Art is now being recommended as an investment avenue by advisers on account of its potential for appreciation. Art investing can be lucrative. "If you take a long view of art, many investors have reaped the benefits, but you have to buy right and know what you're buying."
There are of course commercial considerations that you need to take into account while investing in art.
Adding art to your portfolio could reap financial benefits in the long term, but you need to understand how it fits in with your other investments.
Investors shouldn't think of art as just another commodity, like gold, for instance. "It's much more nuanced than that," says Ashish Nanda, a private art advisor for art investors. "I tell clients it's the most opaque, illiquid and unregulated asset."
Given those limitations, Ashish counsels investors to take
care of their liquid asset needs before buying art and to build a cash
cushion for market downturns. In 2008 and 2009, collectors were selling
what we call "phenomenal works of art" on the cheap in order to raise
cash. That may be good for buyers, but it will put a major dent in your
long-term portfolio if you're the seller.
Because art comes with so many investment risks, most likely you'll need specific advice from an expert. "Investing in art is much more complicated than people realize," Ashish says. "Just because you're talented in other areas of investing doesn't mean you'll excel in art."
How easy is it for an art-lover to walk into a gallery and
buy a piece of art? "I wouldn't liken it to any other industry," says an
art expert. There are a lot of variables to buying art. Whether or not
you can negotiate prices, for instance, depends on the gallery, the
popularity of the artist, the condition of the work and many other
An art adviser can help navigate the purchase, but you need to do some research there, too, by making sure the adviser is one you can trust, with pricing that is transparent. Make sure he or she is only paid by you and not receiving fees from the seller.
Before you stroll into a gallery or art fair, take the time to educate yourself. Reading art publications, visiting galleries and attending events on art. "Get familiar with different periods and genres, talk to artists, visit galleries. Don't buy anything until you've researched the artist."
Art is not for trading; invest for the long term.
Not all pieces done by a renowned artist are masterpieces. You must take help from experts to recognise a masterpiece .
Buy art that you like. It is something you may keep for a lifetime, as you don't know whether you will be able to sell it or not.
Research the artist you want to buy and his works. Understand what he does and what he is best known for. Ideally, go to galleries and see which artists they are promoting. Treat it like stock investing.
Prices of a renowned artist's works do not necessarily shoot up when he dies.
Art does not give you any additional income like interest or dividend.
There are several costs associated with owning art that you won't have with other investments. They include regular appraisals, storage, insurance, maintenance, and auction or gallery fees.
Art is subject to all sorts of risks that affect its physical condition and if you want it to maintain its value, it has to stay pristine. And that involves costs. "Art is not like stocks and bonds that you can put in a bank safe," says Amitava our art advisor.
Can you say that a painting or a sculpture is a personal asset acquired for personal pleasure and, therefore, any gain that you make on the sale of such painting or sculpture is not taxable? This was indeed the position till 31 March 2007, when a painting or sculpture was not regarded as a capital asset. Therefore, any gains that one made on sale of such art was not subject to capital gains tax since only gains on the sale of a capital asset can be taxed. However, from 1 April 2007, the gain is no longer tax-free since the definition of capital asset has been amended to include paintings, sculptures, drawings, archaeological collections or any work of art.
If you hold the painting or sculpture for at least three years, the gains you make would be regarded as long-term capital gains. The gains would be computed by indexing the cost applying the cost inflation index and taxed at 20%, the effective rate being less than 20% of the actual gains on account of the cost indexation benefit. If you sell it within three years of acquiring it, the gains would be treated as short-term capital gains taxable at your normal tax slab rates.
The sales tax or value-added tax that you pay on the purchase of a work of art would also form part of your cost of acquisition for computing your capital gains. If you have bought an old painting and have spent on restoring it, can you claim the restoration cost as a deduction in computing your capital gains or as a normal expense? Such restoration cost would normally not be allowed as a deduction from your normal income, unless you earn income from the painting, such as by renting it to a gallery, in which case the amount could possibly be claimed as a deduction from such income. If you are unable to claim such expense, then at the time of sale, such restoration cost could be claimed as a cost of improvement if you are able to prove that the painting was in a damaged state when you acquired it, and by restoration, the value of the painting has been enhanced. The restoration cost, being a cost of improvement, would be eligible for indexation from the year in which it was incurred. If you store a painting in a vault, can you claim the storage expenses as a deduction? Such storage expenses are actually expenses of holding on to the asset and do not contribute to the improvement of the asset or earning of income in any way. Such storage costs are, therefore, normally not allowed as a deduction either from normal income, or from the capital gains earned at the time of sale.
Any income earned while you own the painting, such as rent
for allowing it to be displayed in an exhibition, or a fee for allowing
it to be reprinted in a book, would be taxed as your normal income under
the head “income from other sources”.
Would the painting or sculpture be liable to wealth tax? Fortunately, till now, the definition of asset under the Wealth Tax Act does not include such paintings, sculptures or works of art, and, therefore, such assets are currently not subject to wealth tax. However, the Direct Taxes Code (DTC), which is to come into effect from April 2012 and is currently in the form of a Bill awaiting enactment, proposes to extend the levy of wealth tax to include archaeological collections, drawings, paintings, sculptures or any other works of art. Such assets would, therefore, be subject to wealth tax. How such assets are to be valued would be a major bone of contention as valuation of art can be highly subjective. As the saying goes: “Beauty lies in the eyes of the beholder.” Fortunately, the wealth tax limit is reasonably high at Rs1 crore.
Works of art would continue to be liable to capital gains tax under the DTC as all types of property, other than stock-in-trade, would be regarded as capital assets. The DTC also proposes to change the long-term capital gains tax rate to normal tax slab rates, though the benefit of cost indexation would be available if the asset has been held for at least one year from the end of the year in which the asset is acquired (instead of the current three years).
If you want to include art in your portfolio purely for investment purposes, without the challenges of owning a physical collection, consider an art fund. In such a fund, investors get much more diversification than they could from amassing a physical collection, according to Rabin, but they don't need to have all the expertise, or worry about storage, restoration, transportation, security and insurance issues.
There are different types of funds with diverse investing
strategies. Some are opportunistic, with managers looking across the art
world for any good investments. Others are more specific, specializing
in certain periods, regions or artists. So, shop around for the one that
is appropriate for your portfolio.
Be aware that art funds usually have no liquidity and long holding periods -- eight years is typical, says Ashish. In order for funds to gain returns from investments, the managers need the time to invest the assets and the choice to liquidate them over time. "In that respect they should be thought of more like a private equity fund than a mutual fund," he says.
Art Insurance, a niche and modern concept globally, whose potential and need is being fast realized in India today, chiefly covers high value paintings and artifacts against all risk. And yes, as art is not merely limited to paintings, it also encompasses antiques, valuable property and furniture, porcelain, statues, sculpture, high-valued jewelry, collectibles like stamps, coins, clocks, watches etc.
India has produced $10 billion worth of art since Independence. A majority of this has surfaced only in the past few years. As art becomes more and more valuable, art insurance becomes a crucial. Also, as more and more Indians are looking at art as an investment, insuring art collections is definitely in order.
Art Insurance which has begun in pockets in India, indemnifies against physical loss or damage occurring during the period of insurance, while at the insured locations and within the insured territorial limits, subject to certain exclusions, basis of valuation acceptable to the insured and insurer, on the market value, conditions of the insurer and wordings offered.
But a good insurance company can do more than provide a policy. Representatives will come to your home and review where your paintings are installed -- for instance, over a working fireplace is a no-no because of the possibility of soot -- how they are hung and stored, and the general environment. Some works of art are susceptible to sunlight, but special glass coverings can help protect them. The company can also make suggestions about how to frame art and maintain it.
Do you know about maintaining your collection of paintings?
Paintings made using fine oil paints on quality canvases can maintain their brightness and vivid colours for centuries. All the paintings that are sold through our website employ the same techniques and materials that were used by the great masters when creating some of their finest artworks. If treated with care, your oil painting can last and maintain its vivid colours for decades.
Canvas paintings, which are not protected by glass (except in some museum circumstances for preservation), require special consideration regarding handling and maintenance.??A few valuable tips will help you avoid making mistakes that might damage your oil painting, and will help you preserve it for many years as a keepsake.
An oil/ acrylic painting is a sturdy, long-lasting, and durable art form, and with proper care and handling, it will last for generations. A visit to any good museum will confirm this, but keep in mind that museums go to great lengths to safeguard their masterpieces.
Here is the fun part. Oil/ acrylic paintings, especially portraits, demand pride of place in your home. Involve your spouse or family in deciding the perfect location.
Hang your oil painting on two picture hooks which are appropriate to the wall (wood, plaster, drywall) and strong enough to secure the weight of the picture. Two hooks, rather than one, will allow the picture to maintain a horizontal position.
Choose a place for your painting that does not get direct sunlight or is subject to hot or cold drafts.
Hang high enough to be able to see the painting clearly from anywhere in the room. A spot over a mantelpiece or over a sofa (above head height of anyone sitting on the sofa) is usually ideal.
Avoid hanging oil/ acrylic paintings in hallways or on walls where there is frequent family movement or where furniture may be brushed against the wall.
If you have central heat or air-conditioning, that's great. If not, a rule of thumb is, if people are comfortable in the room your oil painting occupies, chances are your oil painting will be comfortable too.
Hanging an oil painting above the fire place is perfectly secure
Indian Art is the visual art produced on the Indian subcontinent from about the 3rd millennium BCE to modern times. Voluptuous feeling is given unusually free expression in Indian culture. A strong sense of design is also characteristic of Indian art and can be observed in its modern as well as in its traditional forms.
Indian art can be classified into specific periods each reflecting particular religious, political and cultural developments.
Obscurity shrouds the period between the decline of the Harappans and the definite historic period starting with the Mauryas, and in the historical period, the earliest Indian religion to inspire major artistic monuments was Buddhism. Though there may have been earlier structures in wood that have been transformed into stone structures, there are no physical evidences for these except textual references. Soon after the Buddhists initiated rock-cut caves, Hindus and Jains started to imitate them at Badami, Aihole, Ellora, Salsette, Elephanta, Aurangabad and Mamallapuram.
Buddhist art first developed during the Gandhara period and Amaravati Periods around the 1st century BCE. It flourished greatly during the Gupta Periods and Pala Periods that comprise the Golden Age of India. Although the most glorious art of these Indian empires was mostly Buddhist in nature, subsequently Hindu Empires like the Pallava, Chola, Hoysala and Vijayanagara Empires developed their own styles of Hindu art as well.
There is no time line that divides the creation of rock-cut temples and free-standing temples built with cut stone as they developed in parallel. The building of free-standing structures began in the 5th century, while rock-cut temples continued to be excavated until the 12th century. An example of a free-standing structural temple is the Shore Temple, a part of the Mahabalipuram World Heritage Site, with its slender tower, built on the shore of the Bay of Bengal with finely carved granite rocks cut like bricks and dating from the 8th century.
The tradition and methods of Indian cliff painting gradually evolved throughout many thousands of years - there are multiple locations found with prehistoric art. The early caves included overhanging rock decorated with rock-cut art and the use of natural caves during the Mesolithic period (6000 BCE). Their use has continued in some areas into historic times. The Rock Shelters of Bhimbetka, a World Heritage Site, are on the edge of the Deccan Plateau where deep erosion has left huge sandstone outcrops. The many caves and grottos found there contain primitive tools and decorative rock paintings that reflect the ancient tradition of human interaction with their landscape, an interaction that continues to this day. The oldest frescoes of historical period have been preserved in the Ajanta Caves from the 2nd century BCE. Despite climatic conditions that tend to work against the survival of older paintings, in total there are known more than 20 locations in India with paintings and traces of former paintings of ancient and early medieval times (up to the 8th to 10th centuries CE).The most significant frescoes of the ancient and early medieval period are found in the Ajanta, Bagh, Ellora, and Sittanavasal caves.
Akbar riding the elephant Hawa'I pursuing another elephant
The Chola fresco paintings were discovered in 1931 within the circumambulatory passage of the Brihadisvara Temple in India and are the first Chola specimens discovered.
Researchers have discovered the technique used in these frescoes. A smooth batter of limestone mixture is applied over the stones, which took two to three days to set. Within that short span, such large paintings were painted with natural organic pigments.
During the Nayak period the Chola paintings were painted over. The Chola frescoes lying underneath have an ardent spirit of saivism is expressed in them. They probably synchronised with the completion of the temple by Rajaraja Cholan the Great.
Kerala mural painting has well preserved fresco or mural or wall painting in temple walls in Pundarikapuram, Ettumanoor and Aymanam and elsewhere.
Mughal painting in miniatures on paper developed very quickly in the late 16th century from the combined influence of the existing miniature tradition and artists trained in the Persian miniature tradition imported by the Mughal Emperor's court. New ingredients in the style were much greater realism, especially in portraits, and an interest in animals, plants and other aspects of the physical world. Miniatures either illustrated books or were single works for muraqqas or albums of painting and Islamic calligraphy. The style gradually spread in the next two centuries to influence painting on paper in both Muslim and Hindu princely courts, developing into a number of regional styles often called "sub-Mughal", including Kangra painting and Rajput painting, and finally Company painting, a hybrid watercolour style influenced by European art and largely patronized by the people of the British raj. Noted art historians working in the region include Professor Francesca Penty whose extensive work on Mughal Art has focused on the connections between the gensis of Hinduism, the caste system, and erotic imagery, and is considered by many in the field to be the seminal work on Mughal Art.
Contemporary art is art produced at the present period in time. Contemporary art includes, and develops from, Postmodern art, which is itself a successor to Modern art. In vernacular English, "modern" and "contemporary" are synonyms, resulting in some conflation of the terms "modern art" and "contemporary art" by non-specialists.
Contemporary Art from the 1960s or '70s up until this very minute.
Here at About.com Art History, 1970 is the cut-off point for two reasons. First, because it was around 1970 that the terms "Postmodern" and "Postmodernism" popped up -- meaning, we must assume, that the art world had had its fill of Modern Art starting right then.
Secondly, 1970 seems to be the last bastion of easily classified artistic movements. If you look at the outline of Modern Art, and compare it to the outline of Contemporary Art, you'll quickly notice that there are far more entries on the former page. This, in spite of the fact that Contemporary Art enjoys far more working artists making far more art. (It may be that Contemporary artists are mostly working in "movements" that cannot be classified, due to there being around ten artists in any given "movement", none of which have shot off an email saying that there's a new "movement" and "could you please tell others?")
On a more serious note, while it may be hard to classify emergent movements, Contemporary art -- collectively -- is much more socially conscious than any previous era has been. A whole lot of art from the last 30 years has been connected with one issue or another: feminism, multiculturalism, globalization, bio-engineering and AIDS awareness all come readily to mind as subject matter.
So, there you have it. Contemporary art runs from (roughly) 1970 until now. We won't have to worry about shifting an arbitrary point on the art timeline for another decade, at least.
The increase in discourse about Indian art, in English as well as
vernacular Indian languages, changed the way art was perceived in the
art schools. Critical approach became rigorous; critics like Geeta Kapur, R. Siva Kumar, Shivaji K. Panikkar, Ranjit Hoskote,
amongst others, contributed to re-thinking contemporary art practice in
India. The last decade or so has also witnessed an increase in art
magazines like Art India, Art & Deal, Indian Contemporary Art
Journal and Art Etc. complementing the catalogues produce by the
I believe Modern Art began just as the Impressionists were winding down. While this is an acceptable classification, strong arguments can be (and have been) made that Modern Art began at a variety of different dates. Depending on which survey course a person takes, Modern Art is said to have begun with either:
But which one is right? It's important to know that none of them are "wrong." (Here, it was simply a case of "1880" working out well, for me, in terms of organization.) For simplicity's sake, let's just say that Modern Art began in the 19th-century, and ran through a whole slew of "-isms" up until the end of the 1960s.
Regardless of chosen starting date, the crucial factor is that Modern Art means: "The point at which artists (1) felt free to trust their inner visions, (2) express those visions in their work, (3) use real life (social issues and images from modern life) as a source of subject matter and (4) experiment and innovate as often as possible."
Wordy, I know! Art is kind of messy that way. It's often easier to make it, than to try to explain it -- and making it can be about as easy as childbirth, some days. But that's Modern Art (and Modern Life) for you. Say, now that you're positive of the meaning, why not go have some fun poking around in all of those other delicious "-isms"?
Modern Indian art movement in Indian painting is consider to have begun in Calcutta in the late nineteenth century. The old traditions of painting had more or less died out in Bengal and new schools of art were started by the British. Initially, protagonists of Indian art such as Raja Ravi Varma drew on Western traditions and techniques including oil paint and easel painting. A reaction to the Western influence led to a revival in primitivism, called as the Bengal school of art, which drew from the rich cultural heritage of India. It was succeeded by the Santiniketan school, led by Rabindranath Tagore's harking back to idyllic rural folk and rural life.
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