Tuesday, July 3, 2007

Mumbai Online : The Big Dive





Monday , July 02, 2007


It’s time for art’s sky-high prices to level out, as the art mart returns to terra firma

Georgina Maddox

What goes up must come down; call it Newton’s law but strangely no market has been able to resist this maxim. The Indian art market, currently soaring at the auctions, is no exception. While one would hate to take away any of the glory our Indian artists are finally basking in, it’s time to bell the cat and ask that niggling question at the back of every art dealer/ collector/ gallery owner’s head: When will art prices plateau?

Things are already levelling out according to Saffronart auctioneer Dinesh Vazirani.

“Over the last two years, the highest price for a single are work was attained in 2005, a Tyeb Mehta painting-the first million-dollar baby. After that, prices haven’t risen above the million-dollar mark,” says Vazirani.

With the capital gains tax introduced, it’s a good time for everyone to take stock. So while a lot of artists like Jogen Chowdhury, Atul Dodiya and Amrita Sher-Gil have touched the million-dollar mark. “The market has adjusted and accepted that new price, but it has stayed on that level for the last 18 months. At this point, the market needs international art buyers and international art museums to step in to take it to the next level,” he explains.

Dadiba Pundole, Sotheby’s India representative, agrees the market is consolidating its prices. “We were expecting prices to settle in our March sale but it hit us in May. Of course, exceptional art will still command high prices but it won’t

depend on the name attached to painting. It will only be quality of the work that matters; it’s high time it happened,” he says.

Given that the Indian art market is just five years old and it has grown phenomenally from US $5 million to US $350 million internationally. But when compared to China, this year the Indian market has made US $1.58 million while the Chinese market for painting is US $9 million. Vazirani thinks there is much room for growth.

Collector Harsh Goenka believes the market has gone soft. “Prices have come down by 20 per cent or so at auctions. However many artists haven’t brought their gallery prices down because it’s like having egg on your face,” says the patron who has been seriously collecting for the last three decades.

Without giving any names, Goenka indicates that many dealers have abandoned their artists and left them to fend for themselves. “These artists are now obliged to quote different

prices publicly and then bargain later with collectors bringing the price down by Rs 3 lakh to Rs 4 lakhs,” he adds.

With all this public posturing, how is one to know real prices? The fakes scam should have warned people by now not to deal with carpetbaggers and fly-by-night dealers. However, even a well known artist can be overpriced. Thus, the best approach is to look at the work of art and not the artist.

“Artists are capable of doing both great and mediocre work. I look for a good painting and not painter. Creating a label or signature has destroyed the quality of work while the media circus has pumped things out of proportion,” says Goenka dispassionately.

Pundole adds a lot of dealers who lack maturity will chicken out. “Overnight success, among both artists and dealers, will not hold out as the market plateaus,” he asserts.

Collector Czaee Shah also believes historically important works will always command a good price. “What would be interesting is to

see what is happens to younger artists. I hope to see a fantastic price for installation, video art and photography.”

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