Click to play videoMumbai: If you plan on re-selling art works from your collection, be careful as its a hot market and you should be aware of the pitfalls.
With every booming market come along a few flipsides that investors need to be warned against.
In case of the art market, the flourishing fake art market has been much spoken about. Now what art investors need to be worried about is how to re-sell art works that they already own.
Quite a few art owners while striking a deal with art dealers, succumb to a low cost and feel cheated at the end of the bargain. And this is where the role of an art consultant comes in.
"Owners unless educated, get works as a present, passed down generations – they don’t understand the value of that particular work, particular artist," said Art Consultant Alka Raghuvanshi.
In a recent case, an art collector said he was cheated by an art dealer who allegedly took some V S Gaitonde sketches from him and sold them for Rs 3.66 crore, but gave him only Rs 35 lakh.
This particular case gives an idea of the scale of the fraud. So this is how you do your homework well.
For re-selling art:
- Keep track of the current price of an artist you plan to re-sell
- Approach an art consultant
- Personally speak to a few gallerists to get an idea of the right price
- If you have documents of the artwork, it further confirms authenticity and that helps in a high resale value
- Try taking a receipt of the deal, because if you think you were cheated, you can always file a case on the basis of the receipt
So for the sake of art, it's high time to be a bit business savvy too.
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