Aboriginal Art - The Alternative Asset Class
by Brenda Colahan

"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 Financial Review, 25th June 2004

2006 has seen continued growth in this sector of the art market, with as many as 5 Aboriginal art auctions held annually in this country and a myriad of galleries and dealers offering works. With the Musee du Quai Branly in Paris showcasing contemporary indigenous artists, the emergence of more community art centres, and combined with information overload, all this may prove daunting for the first time investor!

Who and what to buy and how to recognize 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 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 recognize 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, Ningurra Naparrula, Walungkura Napanangka.

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 recognized arts communities and dealers. All works are clearly numbered with catalogue and image references on the reverse of the canvas and accompanying certification. Art Equity further offers an independent valuation on every piece.

3. Image
All artists produce good and bad work, and some stand out as masterpieces. Be guided towards selecing the best examples by the artist of your choice. Art Equity specialists recognise key imagery by each artist and have an eye for well constructed compositions and quality of execution.

With the high demand for production, one of the less desirable results in the marketplace has been the supplying of volume by less scrupulous dealers for city markets. We recognize lower quality works and ensure that your purchases are of the highest aesthetic standards.

4. Ethical investment
Being guided by Art Equity specialists who procure work only from recognized sources builds confidence. We guarantee that the artist receives a fair deal on payment for artwork. Cheaper works on the market at large may indicate questionable quality, provenance and ethics.

Most importantly, buying high quality works from recognised dealers ensures that high grade materials have been supplied to the artists and that they are allowed to create work in their own time.

Buying for investment

In conclusion, practice caution! The price of a work may appear attractive but for investment one must consider resale ramifications. In the long run buying works through recognized dealers, like Art Equity, who ensure quality and control, provide an independent valuation and which have been acquired through recognized centers 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.

"International collectors accounted for more than half the sales at Sotheby's Aboriginal art auction last week", Susan Owen,p.43  The Australian Financial Review, 10th August 2006

For this reason alone, Indigenous Australian art continues to be an important investment.