How to scan for good art-investment

The art market boom that had taken place between 2000 and 2006 had introduced many fakers who had created art-masters overnight by the sheer strength of money, trumped press coverage and cross selling without actual exchange of money. Most of the artists who were promoted during this period by art guilds were abstractionists and digital artists. This is because these artists could make a large number of art works at very short notice.

The influential art houses would sell art works of an artist to their own networked clientelle without actual exchange of money and give huge press-publicity. Repeated such moves would lead to a positive expectation in the art market and soon investors will flock to the market to buy such art-works. After a short span of time, the artist’s works would be put up again for sale, this time at an higher prices. The art houses in the nexus would even offer to buy back the art works earlier sold at these higher prices. This would create even more of positive expectation and now more investors would flock in. Then suddenly the art houses would put for sell a large number of art works at very high prices and reap the profit.

The investors during the boom period never asked about the quality of art. They had been investing because of the possibility of quick money. But the system which was generating this quick money possibilities could not be sustained for ever. The market was bound to crash. Even if there had not been a recession, the system was bound to fail.

Now we are entering into a mature phase, where investors are willing to learn more about art before investing. So what are the qualitites of good art?

Though the value of art is intrinsic and what is good for one may not be good for other, yet there are certain basic features which can be easily discerned about good art.  Here we would enumerate the features that an investor should look for in the artworks in which he/she is planning to invest.

1. Do not invest in artists who have already sold a large number of art works in the market, or whose works are available in a large number of galleries. Because these artworks are easily available, it would always be difficult for an investor to sell off these works. Art works which are not easily available or are available in a limited number of galleries are difficult to buy but easy to sell.

2. Investing in art works which are easy to make are also not good options. Since they are easy to make, they can me made in large numbers if there is a sudden demand for these works. This will then cause the problem of selling.
3. More an artwork is striking, and more it is different from what is available in market, the better it is from investment point of view. Striking art works are difficult to make and that is why they remain striking. The demand for these art works will only increase and their prices are also likely to increase.

4. An art work is an exclusive product. Exclusiveness is what what distinguishes it from crafts and other decorative items available in market. So investing in exclusive art works is always a good option. The more exclusive an art-work is the better it is.

5. Can one trust important art-critics in evaluation of art-works? There is no clear answer for this question. But most importnant art critics are not independent and are in the payroll of important art houses. They only appreciate their own inhouse artists. The frauds that took place in Indian art market two years back had been caused with the aid of many such critics.

6. Then without critic how to know what is exclusive art? Trust your senses. There is nothing much to understand in art. An art-work should apeal to you. If it does, it is an investible option. However once you have liked an artwork, try to talk to the artist and gather information about him from the artist himself.

As it is good art has three important qualities: Originality, exclusivity and limited quantity