As an art collector, if you are under the notion that paintings gain value only after the creator’s time, you are mistaken.
There is a growing tribe of investors who are parking their funds in everything from heritage silverware to royal tapestry, carpets, sketches, period jewellery, film posters, and maps, among others.
Bid and Hammer, an Indian auction house, is looking to put India on the auctioneering map with its specialist offering. Just as it is about to begin its 12th auction with “historic silver” articles ranging from works of craftsman from Bhuj to Birmingham, the company says that the Indian auction market is growing sharply.
Besides growing awareness about India’s rich heritage, collectors are also investors who are keen to garner a slice of the art market.
“In India, we have about 1,000 years of history, but our collectibles’ range is from last 150-odd years. This is surprising, as most of our historic collectibles are either missing or have been carted off to other countries,” Ankush Dadha, Director of Bid and Hammer, says.
While noting that its auctions in India are so far only “teasers,” Dadha says newer clients forced it to move away from auctioning just paintings to a more versatile portfolio that would have decorative value, historic appeal and even cater to the investment sentiments.
Growing clientele
“There is bubble in the art market. Corporate houses, high-net worth individuals and seasoned investors are joined by hedge fund managers and art houses in our auctions. With each auction, the number of our customers is growing. Also the average age of bidders has come down,” Dadha adds. While pointing out that international auction houses like Sotheby’s or Christie’s conduct “two-three auctions a day,” he says in India, the auctions are held at a gap of three months.
“There is an element of risk involved in the business. Logistics and infrastructure costs are huge. Also, there is an insurance element. Besides, every product has to be examined by multiple specialists to ascertain the historic value,” he adds.
Dadha notes that South India has a natural proclivity to art and culture and is big time into historic auctions, Capital city Delhi is inclined to bling and shows a preference for jewellery and silverware while Mumbai prefers work of art.
Ask him if he has a piece of advice for art investors, Dadha quips, “If you are a serious investor, put aside 5-7 per cent of your investment in art.”