 Artist: Siraz Saxena |
Copal Newsletter - April, 2008
Leonardo da Vinci quotes
One can have no smaller or greater mastery than mastery of oneself.
In this newsletter:
- International Art Scenario
- China beats France as world's 3rd largest art auction market
- Art Appreciation
- International Auction Results
- Art Education
- Indian Art Scenario
- Developments at Copal Art
- Copal Activities
- Copal Recommended Artists
International Art Scenario
Art is the leading mode of investment in today’s times and is known as the investment-of-passion among the world's ultrahigh-net-worth individuals. The value of sales at the world's auction houses has tripled in the past five years. With more and more millionaires being born every second all over the world, newer and newer avenues are being studied and researched by investment gurus, for parking of funds. Given below are some articles showing you that art is indeed a favoured investment in today’s world.
Canada's Nouveaux Riches Bank on Art
With the country boasting more millionaires than ever before, wealth managers are cashing in.
David Parkinson
From Thursday's Globe and Mail
April 24, 2008 at 3:19 am EDT
Ms. Wiese is part of UBS's art banking operation - a 14-person group of specialists that provides some of the bank's wealthiest clients with advice on investing in fine art.
The bank last week brought her to Canada to meet about 50 of its richest clients, as part of its new efforts to tap the fast-growing Canadian interest in art collecting - an offshoot of the country's unprecedented wealth boom of the past few years.
The country now boasts more than 250,000 millionaires - up about 40 per cent in the past five years.
..But for the banks themselves, a key driver of the art-banking business is in lending services - using artwork as collateral for loans, thus allowing clients to unlock the value of some otherwise pretty static assets. At Citigroup's art advisory group in New York, demand in the art-backed lending business has been growing by 20 per cent a year.
Art tends to outperform in times when traditional asset classes are falling, and it retains its value relative to inflation.
Copal’s Comments: We have always suggested art as an alternate class of investment. This is seen to be not only the case in India but all over the world. All the nouveaux riches are seen to park, a part of their funds into art. Here is evidence to show that the banking sector is taking art as collaterals against loans, besides doing the job of wealth managers for their clients. We have however been advising our clients to invest in art on a long term basis. Art should not be used as a short term instrument.
China beats France as world's 3rd largest art auction market
The Economic times International Business 3 Mar, 2008, 1950 hrs IST, PTI
Beijing: China has overtaken France as the world's third largest art auction market, reporting about $3.16 billion of proceeds last year.
"In the international rankings by sale proceeds, France, which is usually up in third place behind the United States and the United Kingdom was deposed this year by China, thanks to the dynamism of a number of international auction houses," country's largest online art publishing house Arton said in its report.
Copal’s comments: China is the market leader in art for Asia. Its position as number three in the world art market shows the growth of the Asian art market world-wide. Internationally a lot of Chinese art works are being acquired by big collectors.
Art Appreciation
The Financial Post, Karen Mazurkewich
Published: Saturday, April 26, 2008
With the rapid appreciation of Chinese art, the market has set its sights on India. Sotheby's sold only US$6.2-million of Indian art worldwide in 2004, but last year it raked in US$39-million. "We witnessed a tremendous growth in 2005," says Anuradha Ghosh-Mazumdar, deputy director of Indian and southwest art at Sotheby's in New York. The buyers, mostly wealthy Indians, were snapping up modern masters.
"What we are seeing now is an enormous amount of interest in younger contemporary artists," says Ms. Ghosh-Mazumdar. "This is because of the increased participation of non-Indian clients," she says.
Copal Comments: Copal has been always stating that the art collectors’ world wide find Indian art highly undervalued compared to Chinese art.
Copal has been guiding the art collectors to go in for the new upcoming artists as they will be the heroes of tomorrow.
Dubai a Possible Rival to Hongkong
Dubai, the Gulf's commercial heart, is increasingly attracting contemporary artists, especially from South Asia due to zero import and export taxes for art, and a free flow of capital. Dubai has already become a possible rival to Hong Kong, the world's third most important art auction hub behind New York and London. The region is creating a new generation of young, highly-educated collectors. Art galleries have mushroomed in Dubai. Abu Dhabi, too is building five art and culture centres on Saadiyat Island. Dubai will be holding international art exhibitions.
International Auction Results
Christie's Auction
Christie’s total for its series of sales on Mar. 18-21, 2008, was $80,068,489, the highest total ever. Buyers hailed from both Asia and the West, according to Christie’s expert Theow H. Tow. Christie’s dominated the week, with what the firm said was a 63 percent share of the total sales.
Husain's 'Mahabharta' Painting Fetches World Record $1.6 MN at Christie's Sale
M.F. Husain's "Battle of Ganga and Jamuna: Mahabharata 12 (Lot 57)", a painting from the Hindu epic executed in 1971-1972, went under the hammer for a whopping $1.6 million, setting a world record at Christie's Southeast Asia and Contemporary Indian art sale Thursday.
Sotheby's Auction
Sotheby’s spring sale of Indian and Southeast Asian art on Mar. 19, 2008, totalled $12,133,626 for 241 lots. Top prices were achieved for paintings by M.F. Husain ($409,000), F.N. Souza ($313,000) and S.H. Raza ($241,000).
Copal Comments: Copal has been stating that in times to come more and more auction houses will be established. The frequency of auctions will be on the increase and new heights will be achieved both by International and Indian art.
Art Education
Oil Painting 'Originated in East'
By Vincent Dowd
BBC News
Painting with oils was taking place in what is now Afghanistan centuries before such techniques were known to Europeans, researchers say.
French-based scientists have been investigating cave paintings at the ancient complex of Bamiyan. Until 2001 two vast 6th-Century Buddhas stood at Bamiyan. Then they were blown up by Afghanistan's then-Taleban government as un-Islamic
Behind the Buddhas was a network of caves in which monks lived and prayed. Now a team from the European Synchrotron Radiation Facility in Grenoble has painstakingly analysed the ancient paintings in those caves.
They say that in 12 caves 7th-Century wall-paintings were created using oil paint, derived possibly from walnuts or the poppies which grew in the area.
It is believed oil painting in Europe began only some six centuries after this. The findings suggest these may be the oldest known examples anywhere of painting with oil.
Indian Art Scenario
The art market in India, like the international art market, is growing rapidly. New artists are coming up and gaining recognition. Numerous art exhibitions, shows and auctions are taking place in all the happening cities of India. India’s middle class has burgeoned as was mentioned by George Bush recently. With the growing wealth of the Indians, everyone is looking for new avenues to park their wealth. Art is one such avenue and banks, financial investors are promoting art as a stable asset class with good returns over a long term holding.
The number of auctions in our country has grown with the coming up of new auction houses. More and more people are learning to understand and appreciate art. Art awareness is on the increase.
Bengal Master's Work Showcased After 25 Years
Times of India 20 April 2008-05-08
US Exhibition introduces artist Nandalal Bose to the West for the first time. He laid the foundation for a new visual culture in the post-colonial era and today, the work of this Bengal master commands a hefty price at auctions. But for 25 years, the works of Nandalal Bose stayed out of sight in the vaults of the capital’s National Gallery of Modern Art. Now, 100 works by this artist from the Bengal School are on display in the US…
“The works of the Bengal artists hasn’t been aggressively promoted. It’s exhibitions like these that can make a difference,” says curator Kamal Rustomjee, who is known to be an authority on Bengal art.
Copal Comments: Bengal School has been one of the favorites of Copal and we have been strongly recommending them for quite some time now. Despite the massive increase in their prices we are still very bullish on them.
Indian Bags UK's Biggest Art Prize
Times of India 27 Apr 2008, 0125 hrs IST , Neelam Raaj , TNN
NEW DELHI: Indian art isn't just fetching record prices at auctions; it is also making its mark on the international stage. Mysore based artist N S Harsha, who tells stories about everyday life through his paintings, has been named winner of the UK’s largest art award. Awarded every two years, the £40,000 Artes Mundi Prize is one of the largest art prizes in the world.
Crucial Juncture for Art
The Economic Times 27 Apr, 2008, 0244 hrs IST,Nalini S Malaviya, TNN
Domestic art is now poised at a crucial stage and in the near future the results from the upcoming auctions will indicate the market's growth rate. .
The soon-to-be-held Sotheby's auction of Indian art comprises 123 lots by a variety of Indian artists - both modern and contemporary. On May 2, London is expected to be abuzz with the colours of Indian art. The Sotheby's auction is expected to bring in around 24 lakh GBP. The auction will feature works by artists such as Jamini Roy, S H Raza, Ramkumar, Shakti Burman, Badri Narayan, Laxma Goud, and Krishen Khanna among others.
F N Souza's 'The Red Road' has the highest estimated price between 2.5 and 3.5 lakh GBP, followed by Akbar Padamsee's two works that are estimated between 1.5 and 2.5 lakh GBP each. Incidentally, 11 works by Souza ranging from a lower estimate of 3,000 GBP (for the lowest priced work) onwards will be placed for bidding.
Developments at Copal Art
Copal's Art Investment Board Meeting
The first meeting of Copal’s Art Investment Board was held at The Oberoi, Business Centre, Mumbai on 4th April ’08 at 4.30pm. Since it was the first meeting the Chairman of the Board Mr. Ashok Vajpeyi introduced Copal, its aims and objectives, and business module to the members. Different issues pertaining to the art market, providing credible valuation for art, liquidity, creation of secondary market and procurement of artworks were discussed enthusiastically by all the members. Some members suggested that Copal must expand its infrastructure in accordance with the growth of the Company and that the art education program that is presently being conducted by the company on a monthly basis in Delhi, should be extended to other bigger cities also. Most of the members liked the business model of Copal.
Members of Copal Art Investment Board Who Attended the Meeting
| Mr. Bhadresh Jhaveri | Director, Jhaveri Securities Pvt. Ltd., Vadodara |
| Mr. Sanjay C. Shah | Director, KSA Shares & Securities Pvt. Ltd., Mumbai |
| Mr. Parag Shah | Director, Latin Manharlal Securities Pvt. Ltd., Mumbai |
| Mr. Latin C. Shah | Director, Latin Manharlal Securities Pvt. Ltd., Mumbai |
| Mr. Shyamanand Jalan | Senior Partner, S. Jalan & Company, Kolkata |
| Mr. Anurag Mehrotra | Head – Wealth Management Group Edelweiss Securities Limited, Mumbai |
| Mr. Sunil Shah | Evergreen Capital Advisors, Mumbai |
| Mr. Ashok Vajpeyi | Chairman, Copal Art Investment Board |
| Mr. Ajay Seth | Chief Mentor, Copal Art |
| Special Invitees | |
| Mr. Shishir Khandwala | Director, KSA Shares & Securities P Ltd, Mumbai |
| Mrs. Seema Qadeer | Head of Operations, Copal Art Pvt. Ltd. |
Copal Website
We have been repeatedly informing all the art enthusiasts and art collectors that our website is now active. We would suggest you all log on to the site as you would find it very informative and educative. The site also contains information on the latest recommendations and tips given by Copal. The address of the website is www.copalart.com
Copal Activities
Copal Dialogue Looking at Art - Series V
Copal conducted the monthly art education program ‘Looking at Art’ Series V on 18th April 2008 at India International Centre Annexe, New Delhi. Eminent art-critic and historian Dr. Geeti Sen spoke on Manjit Bawa’s painting ‘Dharma and the God’. The eminent poet-critic Ashok Vajpeyi presided. This program was jointly sponsored by Copal and Edelweiss Securities Ltd.
Forthcoming Looking at Art - Series VI
We are pleased to inform you that as a part of our art investor’s educational program, the next Copal dialogue will be held on 15th May 2008 at India International Centre, Annexe, 40, Max Muller Road, New Delhi – 110 003. Prof. Rajiv Lochan, Director, National Gallery of Modern Art, New Delhi will be discussing the painting of artist K. G. Subramanyam titled ‘Malva Nights’. The eminent poet-critic Ashok Vajpeyi would preside.
As informed earlier Doordarshan telecasts this program on its channel. Copal is recording the series and is planning to launch a film, which would be shown in the domestic as well as the international market.
The entire series is also being documented and a book on the same will be released after the series is completed.
From the Desk of the Chief Mentor
Investment in art should be done only with a long term perspective in mind, which in the normal course suggested by Copal, is a period of 3-5 years. It has always been seen that artworks over a period of 5 years and above have given phenomenal gains. It is not advisable for art investors/art collectors to enter the art segment with a short term trading view.
Liquidity in this segment also takes time. Therefore in order to get a good valuation, it is essential for the collector to be patient, and not make a distress sale. Patience helps bring good valuation.
Copal Recommended Artists
Artist Subodh Gupta Sets World Record on April 3rd, 2008 at Artcurial Auction House in France.
(Copal has been recommending the artist from September 2007)
Subodh Gupta's 'Vehicle For The Seven Seas' executed in 2004 fetched € 502,330 ($785,243), which set a world record for the artist and was auctioned for more than three times its estimate. The estimated price for the sculpture was estimated € 140,000-180,000. There was fierce bidding in the packed sales room. The sculpture was eventually sold to a French collector. The sculpture was made up of a bronze trolley with gold patina and three aluminium suitcases.
The previous record or the artist was established in Hong Kong on November 25th, 2007 with an untitled painting (167 x 229.3 cm) going for $494,308. The artist has appreciated 500% since Copal’s recommendation.
Copal recommended artists Mithu Sen, Bardri Narayan, National Heritage and Bengal School have entered the Sotheby’s auction. We will be covering the analysis of the auction result in our next month’s newsletter.
Artist Veer Munshi, another of Copal’s strong recommendations has entered the Collector’s Corner of Saffron Art, India.
Artist Senathipathi has also entered the Osian auction.
National Heritage Artists in the latest Osian auction, held in New Delhi, sold their works for Rs 60 lacs per sq. ft.. The price of these artists has now jumped up to Rs 1 crore 20 lacs per sq. ft., in just a matter of two months. Even at this juncture, Copal strongly recommends Tagores, Nandlal Bose, Jamini Roy etc.
Artists Recommended by Copal for May 2008
| Artists recommended by Copal* | Remarks |
|---|---|
| Ganesh Haloi | **** |
| V.S.Gaitonde | **** |
| Ram Kumar | **** |
| Rameshwar Broota | **** |
| Thota Vaikuntham | *** |
| Rabindra Nath Tagore | **** |
| Abanindra Nath Tagore | **** |
| Gaganendra Nath Tagore | **** |
| Jamini Roy | **** |
| Jyoti Swaroop | **** |
| Nandalal Bose | **** |
| Atul Dodiya | **** |
| Kishore Shinde | **** |
| Veer Munshi | **** |
| Neeraj Goswami | **** |
| Dhaneshwar Shah | **** |
| Siraj Saxena | *** |
| M. Senathipathi | ** |
| Hukumlal Verma | ** |
| Kuldeep Singh | *** |
| Hemant Rao | **** |
| Pradeep Puthur | **** |
| Rahim Mirza | ** |
| Viraz Naik | *** |
| K. M. Adimoolam | **** |
| Subodh Gupta | **** |
| Santhanraj | **** |
| Ganesh Pyne | **** |
| N.S. Bendre | **** |
| Badri Narayan | **** |
| Mithu Sen | **** |
| Sanju Jain | **** |
| Yusuf | *** |
| Yogendra Tripathi | *** |
| Sunanda Khajuria | **** |
| Baiju Parthan | **** |
| Old Tanjore | **** |
| Kali Ghat Paintings | **** |
| Bengal School Masters | **** |
| All National Heritage Artists | **** |
| Old mythological | **** |
| Miniatures | **** |
Recommended for May 2008.
Copal requests all art collectors to send us their e-mail addresses, as Copal does from time to time mail invitations on various art programs being conducted by Copal. Also, we do keep sending recommendation of artists, achievements of Copal recommended artists, and other interesting happenings taking place in the national and international art world, by e-mail to all our art collectors. We would hate to have the collectors loose this golden opportunity to be able to acquaint them with the art area. We must state here that, we are the only Company in India, which helps to create art awareness and conducts educational programs, for the benefit of art lovers and art collectors.
We do have the e-mail addresses of quite a few clients, but there are still others who have e-mail addresses and the same is not listed with us
Disclaimer
Prospective Art Collectors are requested not to construe the contents of the newsletter, or any other prior or subsequent communication from Copal as investment, legal or tax advice. Each Art Collector should consult his / her / their own financial and legal advisors and accountants as to tax and related matters concerning potential purchase of the artworks.
Although the information contained in the newsletter has been obtained from sources which Copal reasonably believes to be reliable and authentic, Copal, its auditors and / or its legal advisors make no representations or warranties regarding its accuracy or completeness. Nothing contained in the newsletter is to be, or should be, relied upon, as a promise or representation of Copal.
The Newsletter is not an assurance that a market will develop for the artworks purchased from Copal by the Art Collectors. Each Art Collector must be prepared to bear the economic risk of the purchase. Kindly refer to our website www. copalart.com, for detailed disclaimer