While most people have been queuing up in front of ATMs and banks after the demonetisation move, some have been lining up at another unlikely place to get their money exchanged — artists and galleries.
Investing in art
Though the country might be crippled by the move, artists, collectors and gallery owners find this a great time for the art world as people are pumping in their stacked money to buy art.
From upcoming artists who have great potential to some of the biggest names in the art world in India, people have a wide pool of talent to choose from and so, even if they have to pay huge amounts of money, it isn’t a problem.
“I have got offers from Delhi, Mumbai and even Hyderabad. People who don’t know what to do with their money feel investing in art is a better way to deal with it,” says a popular artist from Hyderabad. Also, since the money is rendered useless, people are willing to shell out huge sums of money, that they otherwise would not have. Artists are also open to accepting old notes.
“This is a win-win situation. The buyer’s demonetised money gets converted. If you buy a work from a great master, you can sell it later to an auction house or a gallery who will give you a receipt. You could also sell the work outside India at major art fairs and get tax exemption,” reasons the artist.
A gallery owner was overheard talking about how they have seen clients coming up to them and asking for advice on “good artists” so that they can invest in their work. Sita*, an art gallery owner, says, “There are two categories of art buyers — those who love it and those who just buy it. Usually, art lovers do all the transactions by card or cheque, but the other category pays by cash. During this time, if artists are open to accepting old notes, why wouldn’t buyers pay? We are getting many offers from people who do want to buy artworks.”
However, not everyone is paying in cash alone. Vikram*, a popular artist, says since the move, there has been an increased interest in art. “My buyers have paid in cash and cheques. I have received old notes, but since the amount is split by cheque and cash, I don’t face any trouble,” he says.
Artist Krishna* on an average sells 20 paintings yearly, but he has sold many works this month. “Post the demonetisation, five to six buyers bought works from me by paying in old notes. But they paid the entire sum,” explains Krishna*.
Black to white
The advantages of buying art are plenty. An art collector says, “It isn’t really an investment as you can’t resell the art piece for a great price unless they are masters. However, having a great collection of art will bring you a lot of respect as people will know that you have an eye for art.” The biggest advantage by far is how demonetised money is getting converted.
“For instance, when people invest '9 lakh on a painting, the artist goes to the bank, pays this money and the tax. Thus, the buyer is getting the worry off his chest and the artist is making a decent sum,” explains a gallery owner.
No increase in prices
With people quite desperate to get rid of their demonetised currency, even if the prices are sky high, they are willing to pay for the works of big artists. However, many artists are playing it safe by not increasing their prices.
“In fact, artists are even decreasing their prices so that more people can buy it,” says an art gallery owner.
*Names changed
