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Contemporary art trends and news from Asia and beyond

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Posts Tagged ‘art valuation’

Rising confidence in Indian art as market recovers

Posted by artradar on June 9, 2010


INDIAN ART MARKET CONFIDENCE

Francis Newton Souza's Imbecile Girl in a Green Blouse (1957) will be on sale in Saffronart's summer auction 2010. Its estimated price is USD275,000-350,000.

A recent article published on livemint.com by the Wall Street Journal reported a rising trend of speculators’ confidence in the Indian art market, possibly as a result of a rebound in valuations of Indian artworks.

The article used the data in the latest report by London-based art market research firm ArtTactic to show that speculators’ confidence in the Indian art market is on the rise, after its significant drop in May last year as a result of the global art market downturn.

“The ArtTactic Speculation Barometer for Modern Indian Art shows a 28% increase since October 2009, and is now at 6.3, up from 4.9. This is the highest reading since ArtTactic started its survey in May 2007,” the article reported.

“In my reading of the Indian context, most collectors who entered the market over the last five-seven years were keen speculators.” Arvind Vijaymohan, Head of Indian arts advisory Japa Arts Pvt. Ltd (as quoted on livemint.com)

“…Vijaymohan says that in the current situation, there exists a section of speculators who consider this the perfect time to enter the market, and acquire works of modern Indian art at low values.” http://www.livemint.com

“For Anders Petterson, managing director of ArtTactic, the most revealing aspect of the report is the speed of the recovery in the modern art market even though it raises the threat of speculative buying.” http://www.livemint.com

The article reported that “the combined auction sales for Indian art in March 2010 raised a total of $15.2 million (Rs69.3 crore)”.

The article also noted the widening gap in confidence between the modern and contemporary Indian art market.

“The Modern Indian Confidence Indicator is 51% higher than the equivalent confidence indicator for contemporary art. The report reasons that the established nature of the modern Indian market has created a sense of “safe haven” for many art buyers, a fact that is leading to its expansion.” http://www.livemint.com

Read the full article here.

CBKM/KN

Related Topics: Indian artists, collectors, business of art, market watch

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Posted in Artist Nationality, Business of art, Classic/Contemporary, Collectors, India, Indian, Market watch, Research, Surveys, Trends, Venues | Tagged: , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Art loans can offer liquidity to your collection

Posted by artradar on November 4, 2009


ART LENDING INDUSTRY: ARTTACTIC PODCAST REVIEW

On October 13th, ArtTactic published there latest edition of the ongoing podcast series dedicated to art market topics. The new podcast titled “Art Lending Industry is an interview with Andrew Rose, the president of Art Finance Partners based in New York City. Highlights from the interview include detailed information about the array of available loans through Art Finance Partners, Rose’s opinions about how the recession has affected art lending, and a status update on the current state of the art market.

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Art Finance Partners is a specialty finance company that provides innovative credit and advisory solutions to owners of "unconventional" assets, such as fine and decorative art, antiques and collectibles.

Types of Loans

“Bridge Loan to Sale”– Advance in funds against and art asset that will be sold. Used to get cash before sale transaction happens. The duration is typically 12-18 months with renewal provision.

“Acquisition Financing”- Upfront loan given to buy artwork, paid back overtime. Similar to real estate loan/mortgage.

“Working capital line”– Used by dealer or collector to finance inventory or collecting needs. The duration is 12 months with the option to renew.

The advantages to employing art loans to your personal art investment strategy are two fold. They offer liquidity between auction cycles (bridge loan to sale), and allow you to defer payment which frees up capital increasing yearly collection budgets (acquisition financing).

How the recession has affected art lending

When asked how the recession has affected art lending, Rose’s response was upbeat.

“Every business is facing the same liquidity crisis at the moment.” He continued to state, “we are seeing a fair amount of demand. Surprisingly in this market we haven’t seen the for-selling that one may have expected in this recession.”

How are artworks valued and has the current recession depreciated these values

Art Finance Partners utilizes basic valuation strategies when determining the value of the artworks lent upon. Their strategy consists of referencing established auction prices for comparable artworks through online databases like ArtNet or AskArt. In the case of a rare artwork, they consult their database of private sales, or get the opinion of an appraiser or art dealer.

Art Valuation Facts:

Loan to value ratio: 40-50%

General value of artworks down 20-30%; ultra contemporary artworks down 50%

Andrew Rose ends the interview stressing that good quality artworks sell well. Although trends and tastes change, Rose reiterates: “there will always be demand for very good quality international artwork on the international market.”

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SF/KCE

Posted in Acquisitions, Advisors, Business of art, Collectors, Interviews, Recession, Resources, Services | Tagged: , , , , , , , , , , | Leave a Comment »

Artprice launches web-based art collection management and valuation service free to subscribers

Posted by artradar on February 17, 2009


ART MANAGEMENT  VALUATION

Free asset valuation and management tools are ubiquitous in the financial sector and it was just a matter of time before similar offerings were released by art service companies.

Artprice offers automatic valuations of collectors’ portfolios using a tool which draws prices from its database. It remains to be seen how well this works as credible valuations of comparatively illiquid and non-homogenous art assets require judgment which, one would imagine, is beyond the capabilities of technology. But we are ready to be wrong. If any readers have tried the service, feel free to leave your comments below.

From the press release:

Artprice launches My Art Collection, the first free and confidential art portfolio management service. This service, now available to Artprice’s 1,300,000 subscribers is available…for professional or amateur art collectors anywhere in the world. However much you spend on art, the value of your collection is evolving at an ever-faster pace as the art market becomes increasingly sensitive to economic and geopolitical events. With Artprice’s unique and free service My Art Collection, you can follow the value evolution of your collection as a whole with regular revaluations for each of the works in the portfolio.

Using a simple tool that takes full advantage of Artprice’ knowledge in the sector as world leader in art market information, collectors can follow the financial value of their works and their portfolios at just a glance.

This exclusive service enables Artprice subscribers to take full advantage of their immediate access to Artprice’s leading standardised marketplace and to buy or sell elements in their collections in reaction to market fluctuations.

Moreover, in just a couple of clicks, Artprice subscribers can access the pay-service Artpricing: within 48 hours, our analysts (art historians, professionals and econometricians) can provide updated valuation of works. Artprice subscribers can also access the Artprice databases which contain more than 25 million auction results, indices and price statistics for over 405,000 artists.

In addition, this portfolio valuation service will give our subscribers access to online insurance services with quotes calculated in real time by Artprice and its art insurance partners, thereby accelerating the notion of an immediate financial guarantee of their works.

Related categories: collectors, market watch

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Posted in Art Index, Collectors, Market watch, Services | Tagged: , , , , , | 1 Comment »