Commodities on Canvas

Back in the days not very long ago, Indian contemporary art was collected because of the love for the genre, and not particularly for financial gain. Those given works directly from the artists or purchased with a minimal outlay of cash before the recent price escalations were at the right place at the right time as far as prices went.

An example of this most fortunate happenstance is Harold Leventhal, an American political activist, filmmaker, music manager and art lover. Stationed in India during World War II, Leventhal’s experiences there left a profound and deep imprint on him. His relationship with art and India continued over the following 60 years in his friendships with notable Indian artists including M. F. Husain and Satish Gujral. His estate collection will be included in Christie’s auction coming up March 21 in New York; and some of these painting will fetch prices well within 6-figures.

Most of us are not so lucky. Investing in art, like playing the stock market or putting money in other commodities, is a matter of timing. The rub is deciding when to buy, hold, or sell. 2007 could prove to be a pivotal year for prices, and there are many questions for the investor to ask.

Should one forgo the works of the Progressive Artist’s Group--which may have become out of fiscal reach for many by now anyway--and focus on second and third generation painters? Which ones? How about Souza, Husain, Raza drawings, sketches, and watercolors? Will they skyrocket in price, as have the oils on canvas within the past half-decade? Will sculptures be the “next big thing”? Should the works be sold now and make a nice profit or hold off, hoping their values will go even higher in the future?
Investing in Indian contemporary art requires the similar knowledge, skills, and decisions that go into investing in other commodities. Unless one has a crystal ball, though, there is no foolproof strategy. Successful payoffs are dependent on market forces, supply, demand…and a little luck.