Aboriginal Art - The Alternative Asset Class
Brenda Colahan
January 06
“High quality Indigenous art with sound provenance should not be ignored as an alternative asset class within any investment portfolio.”
Arthur Roe, Arthur Roe & Associates
When compared to the international art market, Australian Aboriginal Art is booming. Affordable, widely available and in its infancy as an asset class, now is the best time to buy.
The Australian art auction calendar now schedules as many as five Aboriginal art auctions annually. There are, too, a myriad of galleries and dealers offering works. Combine this with information overload and it may prove difficult to know where to start for the first time investor!
Who and what to buy and how to recognise quality pieces from those produced for a rapidly growing marketplace are common fears. As with any sound investment strategy, conducting appropriate due diligence is essential. Art Equity takes the hype and hard work out and presents to you its definitive four point plan towards investing in Aboriginal art.
The Art Equity Four Point Plan
1. The Artist
Be guided by our experts in choosing artists identified as significantly talented, with an eye to the future. Whilst you may recognise names such as Emily Kngwarreye, Rover Thomas and Johnny Warangkula - whose works are setting new records internationally - buying before the next wave of legends are created is the key.
On a steady rise are prices by key women artists, Kathleen Petyarre, Gloria Petyarre and Barbara Weir. Whilst major works by Willy Tjungurrayi, Ronnie Tjampitjinpa and George Ward Tjungurrayi may still be procured for between $20-$50,000, and are yet to peak.
2. Provenance
A growing market place wants fresh new work on offer and this necessitates the question of provenance. It is important to know that your piece has a solid objective history of production and ownership.
Art Equity acquires all pieces from recognised arts communities and selected trusted sources. All works are clearly numbered with catalogue and image references on the reverse of the canvas.
Art Equity further supplies an independent valuation on every piece sold.
3. Image
All artists produce good and bad work, and some stand out as masterpieces. Always seek advice towards selecting the best example by the artist of your choice. Art Equity specialists know key imagery by each artist and have an eye for well constructed compositions and quality of execution.
With a high demand for production, one of the less desirable results has been the supplying of volume to fulfill an increasing demand in the city markets. We recognise works produced quickly for the more commercial end of the market and ensure that your purchases are of the highest aesthetic standards.
4. Ethical investment
Be guided by Art Equity specialists who procure work from recognised and trusted sources. We guarantee that the artist receives a fair deal on payment for each artwork. Cheaper works tend to be the domain of tourist shops and local traders after the quick sell. As such, their resale value down the track may be very limited.
Most importantly, supporting the artists ensures that high grade materials are supplied and that they are allowed to create work in their own time which is conducive to quality.
Buying for investment
In the long run, buying works through recognised dealers, like Art Equity, who ensure quality and control, provide an independent valuation and which have been acquired through reputable sources, will ensure successful resale in the future.
Some 70% of all art sold within Australia is Aboriginal, and around 90% of all art exported from Australia is Indigenous in nature. For this reason alone, Indigenous Australian art is an important investment which demands attention.