The Art of Collection, The Power of Investment
Since the time of Vermeer, over 350 years ago, art has changed significantly. It has changed a lot since Picasso, since Pollock, and even since Eva Hesse, particularly with the onset of contemporary popular arts – film, video, electronically produced sound, and the internet. Yet, one fundamental that has remained constant is the human impulse to collect and consume art.
Collecting has a history that spans millennia. Ancient Roman emperors, such as Julian Caesar and Pompey, for instance, were well known for their vast arrays of Greek sculptures and paintings. Moreover, the magnificent royal and aristocratic collections that emerged during the seventeenth century renaissance have provided foundations for most of the world’s public art collections. Wealthy collectors and patrons have thus long been the lifeblood of the art world.
This impulse to collect art emerged from a complex amalgamation of connoisseurship and aesthetic pleasure on one hand, and investment and status building on the other. In my view, the former defines a great collector. What excites any passionate collector is their personal viewpoint and perception on an artwork. By acknowledging one’s personal preference regardless of what is the current rage or what one is ‘supposed’ to like, a collector can separate out specific works of their choice and assemble them in such a way as to advance our contemplation of that particular artist, the history of art, and even its evolution.
As a collector myself, and as the founder of the Stellar International Art Foundation (SIAF), I would encourage any buyer to select for personal benefit rather than simply for financial motivations and to consider their purchase in terms of a wider collection portfolio. This is because my personal experience has taught me that, by collecting a series of artistic works purely out of interest, a buyer begins to value their collection as more than the sum of its parts.
The SIAF, for instance, contains the largest private collection of artworks by one of Delhi’s most accomplished contemporary artists, Paresh Maity, extending over his entire career. Similarly, it contains a vast array of works, including the entire Maria series, produced by the controversial but brilliant MF Husain. These panoramic global collections provide unique insights into the life, times, and processes that inspired these artists, cultural vantage points that can only come from spanning their work across decades. In other words, there is a wider narrative, a bigger story to tell with an inestimable value.
However, other collectors are likely to argue that economic and cultural worth cannot be disentangled. This is something my son, Bhanu Choudhrie, might posit as a second-generation collector, businessman and investor. Whilst he acknowledges and esteems art as a cultural investment, he also carefully considers the possible long-term returns on investment for the artists themselves and for the Foundation.
The fact is in recent years more focus has been given to art as a financial investment across the world. A report by Deloitte Art and Finance, for instance, revealed that 75 per cent of collectors now purchase art with an eye for long-term investment.
Part of the reason for such a dramatic change in sentiment is because during the last few years, the global arts market has achieved an impressive degree of financial growth. Online art purchases were estimated to reach $4.7 billion in 2015 and the sale of post war and contemporary art fetched their owners a total of $5.9 billion. Moreover, auction records are broken nearly as soon as they are made, works by Paul Gaugin and Picasso are fetching over $100m apiece and according to a recent report by the European Fine Art Foundation (TEFAF), art market sales reached an astounding $51bn in 2015, the highest level ever recorded. It is therefore little surprise that many now laud art as a viable form of alternative investment.
Art certainly does make for a viable investment for those wishing to diversify their portfolio. As a largely non-correlated asset, it is somewhat impervious to economic uncertainties, especially capricious stock markets.
However, it must be remembered that involvement with the global arts market necessitates careful consideration of volatile trends, ample diligence, and a certain degree of good fortune.
In other words, art must be treated as an asset if it is going to act like one.
For example, the arts market can be receptive to trends in fashion and consumer taste. In addition, prediction on future price can be difficult because, whilst it is possible to note record prices for ‘similar’ artworks, an artist and their artwork will always be unique. Thus, to yield a significant RIO one must carefully consider which artworks will hold their value and buying out of season may be advisable.
However, what this also highlights is that art is always more than a financial investment. It is a cultural investment. In fact, I would be inclined to emphasise the social and cultural aspects emphasised by the act of collecting.
A study by Professor Semir Zeki from University College London has highlighted how simply the act of viewing art gives pleasure, much like falling in love. Moreover, art creation, collection and examination has long been shown to improve critical thinking and engender a greater tolerance of other cultures and beliefs. By absorbing culture that focuses on elements we content with poverty, racism, sexuality we gain a more profound comprehension of humanity and the groups within it, which can in turn break down barriers.
Try, therefore, to contemplate society without the humanising influence of art and you would eliminate much of what is socially critical, educationally vital, and enjoyable in life. Indeed, art, by definition, engenders innovation, open mindedness, freedom of expression, tolerance, and exploration. It thus has inherent value as part of a philosophical assertion that cannot be quantified in monetary terms alone.
The value of art collection as a form of social and cultural expression must not be underestimated.
Indeed, what must be acknowledged is that art does not come with any abiding promise on future financial worth. Art collection requires patience, passion, interest and intellectual curiosity. It necessitates taking a more holistic view, to knowledge that, whilst an art may prove to be a worthy financial investment, its value extends much further. Though paintings often have a price tag, art itself is priceless.
Anita Choudhrie is the founder of the Stellar International Art Foundation. Currently the Foundation comprises over 600 works dating from the late 19th century to the present day, including international artists, and ranging from paintings to sculptures.
