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Contents of the Book

Art defined money exchange

INTRODUCTION

04

INVESTING IN ART

05

AUSTRALIAN ABORIGINAL ART NATIVE OR CONTEMPORARY

33

AUSTRALIAN ABORIGINAL ART & INVESTMENT

37

RISK, RETURN & PORTFOLIO DIVERSIFICATION

59

ART & TAX BENEFITS

63

CONCLUSION

78

Tolstoy (1896) argued that if it is not admitted that art must be intelligible and comprehensible, then any unintelligible or incomprehensible expression of thoughts or feelings may be called "art." If any incomprehensible form of personal expression may be called "art," then the definition of art gradually loses its meaning, until it has no meaning at all. He defined art is a use of indirect means to communicate from one person to another, where aesthetic values are defined by moral values. Contemporary art can be defined variously as art produced at this present elements for their own sake, and as representation.

Money exchange Disclaimer Tolstoy (1896) argued that if it is not admitted that art must be intelligible and comprehensible, then any unintelligible or incomprehensible expression of thoughts or feelings may be called "art." If any incomprehensible form of personal expression may be called "art," then the definition of art gradually loses its meaning, until it has no meaning at all. He defined art is a use of indirect means to communicate from one person to another, where aesthetic values are defined by moral values. Contemporary art can be defined variously as art produced at this present point in time or art produced in the past 3 decades (Wikipedia). Contemporary artists often say they want to heal the world—and many others do their part by recycling (Artblog.com, 2008).


Fine art is becoming the highlight of several magazines and news channels in recent times. Sometimes ago art was looked upon as a hobby, a pastime and perhaps had nothing to do with the demographics or economy of the ‘Times. It was somewhat associated with the ‘day dreamers’. It was the preserve only of the artists who were rated in the second class strata of society. In view of the aforementioned scenario of the recent past, today fine art has replaced blue chip stocks, bonds, shares and other forms of investments the were classified in the high returns group. In this context the art galleries, institutions and forums have gained importance and have connected itself to this dynamic ‘Art Engine’ that is speeding away to glory and is taking the world by storm. Today art not only portrays passion and emotion but also has become a medium of prestige, name, fame, and most of all a medium of high returns. This is really good news for art lovers and artists and is fair after all since it is commonly heard of that “every laborer deserves his wages”. This saying is definitely apt for modern art and for the modern times of today. The old concepts of art being a feeling, a wave of emotions that were rather undervalued have all sunk like the “Titanic.” The world is experiencing a kenosis, a metamorphosis of change, a transfiguration. This book has been written so as to highlight in detail a new era of Fine Arts that is dominating the time and tide of today. “Art as an investment” is what you need to focus upon and you must feel and listen to “the winds of change, the moments of today that creates a new tomorrow”. Art has become more of a reality than a philosophy as to what it was sometime ago. This book informs the reader about Art as a profession, its booming returns, legal aspects, methods of verifying authenticity and counteracting fakes and amazing statistical analysis. If you are an artist or non artist or just a beginner or someone planning to enter this field, it really does not matter. This book has been written on a very common platform so that better becomes the best and the ordinary become extraordinary. Several tips, methods, strategies have been mentioned in this book following which you may attain great heights – ‘the height of a falcon flying to glory’. Well, this is a piece of art in itself and this is where this book wants to take you. So, read this book and attach the pinions of a falcon and get ready to imagine, discover and realize the creator within yourself and see the rewards of creation materializing in front of your eyes. The Creator is always dynamic but there is always a “unity in diversity” and that is the mystery of creation. The book highlights much the Aboriginal form of art and art in general as well. That which was considered “the least of all” has become the “deciding factor” for many!


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If you are an artist or non artist or just a beginner or someone planning to enter this field, it really does not matter. This book has been written on a very common platform so that better becomes the best and the ordinary become extraordinary. Several tips, methods, strategies have been mentioned in this book following which you may attain great heights – ‘the height of a falcon flying to glory’. Well, this is a piece of art in itself and this is where this book wants to take you. So, read this book and attach the pinions of a falcon and get ready to imagine, discover and realize the creator within yourself and see the rewards of creation materializing in front of your eyes. The Creator is always dynamic but there is always a “unity in diversity” and that is the mystery of creation.

Introduction to the Book


The Art Market

A BRIEF SYNOPSIS


S

ince ages, retailers as well as other individuals have been actively trading antique master paintings, ceramics, classical sculptures, drawings, coins, antique furniture etc. However, in earlier times not much people showed interest in investing in art works. Rather they were much more interested in investing in real estate, bonds or shares. It is because; they received greater financial reward by investing in shares, bonds or real estate.

This disinterest amongst people reflected questions pertaining to status or value. For instance, if a person invested in art and not in shares, then it implied that he was financially weak and therefore pursued connoisseurship and disregarded commerce. Do you know the essential distinguishing mark between a mere trader and a gentle man? Well, if a person had the capacity to invest in appreciating assets like urban and agricultural land or coal mines, then he was defined as a gentleman. On the other hand, if he failed to do so and invested only in the so called “useless commodities” (this term was introduced by Thorstein Veblen), then he was defined as a “mere trader”. Another potential reason why people were reluctant to invest in the art market is that…the art market was financially immature or rather weak as compared to the other lucrative investment opportunities. On the flip side, if a person invested in a stock market, then chances of getting a huge return was quite likely. Over and above, the stock market provided insurance companies, wealthy people as well as other custodians their desired liquidity, revenue system and capital appreciation ( in the shape of share splits and dividends). It was only after 1850, that the thought of developing a fund for fine art investment came to people’s mind. In fact, many enthusiasts also introduced clubs for purchasing as well as selling fresh works by upcoming artists and “recognized paintings”. It Modern AIVs or “art investment vehicles” were introduced much later (2000). There are innumerable factors that led to the emergence of “art investment vehicles” or AIVs. They are as follows-

• • •

A separate wing of the investment community dealt with a variety of derivatives. It played a viable role in conceptualizing antiquities and fine art as some other product that could be precisely valued and easily traded in a market. Availability of steady cash, in addition to significant institutional investors and quite a few wealthy individuals are yet another significant factor behind the emergence of art investment vehicles. These institutional investors and wealthy people had sufficient money and were ready to take the risks of switching from conventional investment portfolios to art investment portfolios. Interestingly, the conventional investment portfolios failed to go hand in hand with inflation, be it through revenue flow or through capital appreciation. This made people to look for other investment options. This may be considered as a significant factor behind the emergence of art investment vehicles.


Generational change may also be considered as a significant factor behind art investment vehicles. This change was evident amongst commercial galleries, auction houses as well as art museums, were investing in art was depicted as far more stimulating as compared to speculation of copra futures or pork bellies.

Art funds are nothing but a mystery. Despite the repeated announcements that “art is a newly emerged asset class”, there isn’t much hope of its transformation in the recent future.


Australian Aboriginal Art