Art Fund Proposal - Essay Example

? ART FUND PROPOSAL Introduction Impressionism came about in the 19th century at a time when photographswere getting popular. Artists were trying to bring out qualities painting possessed which photographs did not. These include natural light, color and spontaneity. Impressionists did not use color black but rather used dark greens, blues and purples to convey shadows and darkness. The impressionists included Claude Monet, Berthe Morisot, Mary Cassatt, August Renoir, and Edgar Degas. They painted en Plein air, meaning that the painting was outdoors and that it tried to capture those fleeting moments of beauty as well as the vivid colors that sunlight illuminated. They were less fascinated in symbolism and in a form. However the main characteristics include relatively thin, small but visible brush strokes, it involves open composition, emphasizes on accuracy in the depiction of lights in its changing qualities, ordinary subject matter, common, visual angles that are unusual and inclusion of movement. I chose to fund on impressionist mostly because of the artists in the group. I feel they were focused and dedicated to painting. For instance Claude, Monate prioritized on the mixing of colors and then afterwards he would think of which image to paint. I also like this category of artwork due to the fact that it was motivated by photography which had started to gain popularity by then and it went on to represent momentary action in the fleeting lights of landscape and day to day lives of people. Examples of artworks Some of the examples of impressionism artworks that would be amusing for acquisition by the fund include Port of Dieppe, evening, 1882, water lilies, 1916 both by Claude Monet, the visitor, about 1880 by Mary Cassatt, at the cafe, about 1879, still life, 1869 by Henry Fantin-Latour Market analysis In determining the marketability of impressionist art, the price indices must be computed. Impressionist art is not a homogeneous commodity and therefore not traded in well organized markets such as stocks and bonds. It has special features which include reputation and reliability which make it be characterized by a hierarchy of sub-markets. The primary market normally involves the artist taking the artwork for sale at local exhibitions, galleries and also taking directly to the customer. This normally serves to give artists an opportunity to signal their abilities mostly to the secondary market. Selling is normally by auctioning (Agnello, 1986, 446). However, auction does not capture the fluctuations in the prices of low demand and paintings that are out of fashion. Factors that may affect demand and supply include external factors such as those characteristics that surround the sale and end up affecting prices as well as returns, sale of out-of-fashion paintings, repeat sales, selling of works that have got a low public interest. The supply is affected by the demand factor and also the availability of funds (Agnello, 1986, 447). The relationship between demand and supply for the impressionism art is similar to that of luxury goods. There is a limited supply, making art have a higher value. Also, exclusivity associated with the art normally leads to higher prices thus affecting the demand curve. The indicators that may point towards the inelastic demand curve include change in taste, threat of substitutes, pricing and accessibility and changes in income (Mamarbachi & Favato, 2013, 4) Performance of the market The vogue to invest in the art has received a large boost from the availability of the art price data (Campbell, 2013, 2). However there are a number of inefficiencies in this market art as an investment has remained risky (Ralevski, 2008, 2)The art market has lead to much stronger economic expansion in some countries including brazil, India, China, Russia and South Africa. China particularly has modified profoundly the geographical structure of the global art market. In Beijing Hong Kong and Singapore their governments support strongly major cultural events including impressionism art fairs. China has recorded a growth in auction revenue by 49% from artworks, Singapore +22%, and Indonesia 39%. This growth has being brought about by the emergence of exceedingly wealthy new collectors and a growth in number of varieties in the investment fund (Ehrmann, 2011, 3). Impacts and roles of public institutions and regulatory policies on the art sector Public institutions contribute to the growth of this sector through the purchase of the artwork for education purposes by the schools and colleges. Also, through teaching of the artwork in schools the public gets enough knowledge of the sector whereby its importance is apprehended. Other public institutions like museum play a big role in art work. For instance, the Dixon’s collection through the exhibition Monet to Matisse do feature works by important artists of impressionist and post-impressionist movements. They also celebrate the beauty and also variety of Dixon collection from the soft to the graceful. The government has also been important in the investment in the fund since it forms the baseline on the much the country will invest. Thus, it formulates the principles which may affect the supply and demand of the artwork (Heilbrun & Gray, 2001, 11). Correlation between This Sector and Other Forms of Exchange Other forms of investment like Stocks and even bonds are homogeneous commodities on their own and traded in highly organized markets, unlike art (446). However, art is also a form of investment that may yield many returns and contribute much to the economy (Feldstein, 1991, 193). Art fund though is not practiced worldwide by all countries unlike other forms of investment including stock and bonds. It is also important to know that when investing in art fund, when and what one invests matters similarly as it does matter in financial markets. Overall returns are lower than the equity markets and also the risk is greater though high-end paintings are known to do well (Agnello, 1986, 443). Future of the Investment Fund The future of this sector is speculated to provide more growth in the countries supporting the artwork. Trends have been analyzed to provide an understanding of the annual evolution of global auction market. Art price press agency has also come up with measure to encourage adoption of artwork by providing rankings including Top 500 artist by auction revenue and Top 100 auction results of the year. To increase the redistribution forces the omnipotence to rely on an old tradition is expected to change. China has worked on a collection of a recent phenomenon, and it has looked to bear results (Ehrmann, 2011, 8). References Agnello R 1986, Investment returns and risk for art: Evidence from Auctions of American art. University of Delaware. Retrieved 4th March 2013 Campbell R, Art as a financial investment. Erasmus University Rotterdam, Maastricht University. Retrieved on March 4, 2013 from Ehrmann, T., 2o11, Art market Trends: 2011 art market analysis. Feldstein, M. S. (1991). The economics of art museums. Chicago, University of Chicago Press. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=432216. Heilbrun, J., & Gray, C. M. (2001). The economics of art and culture. Cambridge, Cambridge University Press. Mamarbachi R, Day M & Favato G, Art as an alternative investment asset. Henry Management College, UK. Retrieved on March 4, 2013 from https://artmarketanalyses.com/uploads/publications/pdf/Art%20as%20alternative%20 Investent%20Mamarbachi.pdf Ralevski, O., 2008, Hedging the Art Market: Creating Art Derivatives, a dissertation paper for the degree of master of business administration. Read More