1.Art An Investment of Passion Vadehra Art Gallery1 In Pursuit of Happiness

2. Evolution of the Indian Art Market Indian art market has witnessed unprecedented growth in recent years o Now estimated to be USD 400 million But still a fraction of the World Art Market o Estimated to be USD 60 billion Art markets globally suffered greatly in the recent financial crisis - India was no exception Things are starting to look up once againVadehra Art Gallery 2 3. Indian Art Remains Relatively Undervalued Pablo Picasso: USD 104.1 million Alberto Giacometti: USD 104.3 million Tyeb Mehta USD 2 million Vadehra Art Gallery SH Raza USD 3 million 3 4. Why do we collect? Vadehra Art Gallery4 Trophy value? Alternate asset class? Passion? ITS A WINNER!!!! 5. What makes investing in art so exciting? Vadehra Art Gallery5 The opportunity to enjoy the artwork on a daily basis The act of selecting and purchasing Investing in culture and collecting historyWatching your Subodh Gupta go from USD 10,000 to USD 200,000 in 3 years 6. Art as investment Pros Vadehra Art Gallery6 Art offers diversification Art provides a range of sub-markets Over time, art prices have kept pace with inflation and often outperformed equities or bonds Non-economic rewards can be enjoyed while the works increase (or decrease) in monetary value 7. Art as investment Cons Vadehra Art Gallery7 Unregulated market, lack of market transparency Illiquid compared to other assets Expensive to crate, ship, install, store and insure Doesnt produce a revenue stream like bonds, stocks and real estate Subject to fraud, damage, and thus to loss of value High transaction costs 8. Who makes a good investor? Vadehra Art Gallery8 Be informed o Ready to do research/homework Be curious Have your own style, set your own rules Collect in depth Develop relationships with artists, curators and gallerists o Access to the best works is a key aspect of investing in art Be a risk taker o Lucky strike! 9. In what do we invest? Vadehra Art Gallery9 1. Emerging Artists Challenge to find the next art star Understanding artists works is especially important since works are often conceptual in nature Even if a small percentage of works appreciate in value, the collection is considered a success! 10. In what do we invest? Vadehra Art Gallery10 2. Old Masters Easier to understand since theres enough documentation and research. Know historical facts 11. In what do we invest? Vadehra Art Gallery11 3. What we like! 12. Investing in Modern Indian Art Vadehra Art Gallery12 Attractive value-to-risk option Lack of supply of top quality works Largely purchased by Indians connection to cultural heritage Collecting history 13. Investing in Contemporary Indian Art Vadehra Art Gallery13 Speculation International support New Media and installations Collecting anticipated history 14. What makes a great artist? Vadehra Art Gallery14 Skill 15. What makes a great artist? Vadehra Art Gallery15 Skill Knowledge of Art History 16. What makes a great artist? Vadehra Art Gallery16 Skill Knowledge of Art History Commitment 17. What makes a great artist? Vadehra Art Gallery17 Skill Knowledge of Art History Commitment Intellectual creativity 18. Investing on a Budget Vadehra Art Gallery18 Emerging artists at attractive prices Bulk buying for better deals Plan for it annual budget Continuous upgrading 19. Investing on a Budget (Contd.) Vadehra Art Gallery19 Buy quality, not quantity or scale Make informed choices o Understand artists practices o Understand the market and gallery scene o Develop a trained eye 20. Auction Trends Vadehra Art Gallery20 Influence of prominent collectors Private gallery transactions vary significantly from auction sales results A particular work may be bid up due to the competitive nature of the last 2 bidders Rising prices are self- affirming. Auction results cannot be relied on as it is a market of Uniques 21. Influences on market value Vadehra Art Gallery21 Geographical location of where the artist lives and works Gallery representation Supply and demand Influence of star collectors Impact of artists personality Critical writing on the artist Public exhibitions at museums 22. Vadehra Art Gallery22