Literature in our Collection

Nazvanov, Greg: The Australian Aboriginal Art Investment Handbook, & Lulu, Raleigh 2010, ISBN 9781445776071

Table of Contents        ¦         Cover Text        ¦         Book Review

Table of Contents

Foreword -3-

Introduction -5-

1 About Aboriginal Art -11

History and Present -15-

The Dreaming -21-

Understanding Aboriginal Art -25-

International Success of Aboriginal Art -27-

Australian Aboriginal History -37-

Tradition and Change in Aboriginal Art -43-

Contemporary Aboriginal Art -46-

Native or Contemporary? -50-

Aboriginal Culture : European Contact -57-

Aboriginal Art as a Political Strategy -63-

Appropriation of Aboriginal Art -68-

Marketing, Collection and Exhibitions -71-

2 Art as a Business -77-

Why Invest in Art? -78-

Art Investment Risks -80-

Art Investing vs Art Collecting -82-

Art as an Alternative Asset -83-

Art Investment Funds : A History -84-

Art for Diversification -88-

Economics and Art -96-

Art Investment Funds : A Low Success Rate -100-

Art Investment Funds : Present -110-

3 Aboriginal Art Market Trends -121-

4 Aboriginal Art as Investment -157-

How to Invest in Art -157-

How to Target Growth? -160-

Why Use a Private Art Dealer? -163-

Before You Buy a Piece of Art -163-

Tips before You start -165-

Categories of Artists -169-

Where to Buy -173-

Follow the Market -175-

Art Key Indicators -176-

Art Prizes -177-

How to Invest in Art via Stockmarket?-184-

Indigenous Art Performance -193-

IAITM : Indigenous Art IndexTM -195-

AAAITM : Australian Aboriginal Art IndexTM -202-

Art and Tax Benefits of Philanthropy -209-

Art in CYI Superannuation -230-

Conclusion -238

Appendix A : AAAITM - Australian Aboriginal Art IndexTM -239-

Index Introduction -241-

Literature review -244-

Criticism of the AMI -245-

Review of the methodology -246-

Special adjustment for valuing paintings -249-

Accounting for medium on which the artwork is made -250-

Steps in constructing the index -250-

The data -251-

Hammer price versus price including premium -271-

Large-size artworks -276-

Dealing with records that do not include a price -279-

The indexes relative to 2001 -282-

Within-year standard deviation as a measure of index volatility -283-

Volatility relative to level -284-

ANOVA model for price as function of artist -285-

Dedman’s price per area versus area -287-

Simple regression of log (hammerprice) (M2) -287-

Regression of price including premium using artist dummies and lenth class dummies (M5) -289-

Model using artist index, medium index (M8) -292-

Calculating indexes for artist and medium made on -297-

Calculating the artist index -293-

Calculating an index for the medium-on which an artwork was made -297-

Improved regression models for price -299-

Further improvement by regressing on continuous surface area -302-

Artist-specific regression coefficients for surface area plus medium index -202-

Stadardised coefficients -204-

Refining the model: selection of explanatory variables -304-

Estimation results of the cleaned regression model -305-

Testing the effect of indexes -309-

Rise of Indigenous population and inflation -312-

Stock indexes -314-

Setting up the yearly Australian Aboriginal Art Index (AAAI) -316-

Comparison of the AAAI existing indexes -318-

Correlation -318-

Timeseries graphs -320-

Comparing the AAAI and Gold Price, the Nikkei, the CAC, and the DAX -321-

Comparing the AAAI and the inflation index -321-

Comparing the AAAI, the ASX200, the EM index, and the Tremont index -322-

Return, risk, and risk/return ratio -322-

Conclusions and summary -331-

References -332-

Appendix B : Regression Models -334-

Appendix C : Price Index and Risk-Return Ratios for Individual Artists and Mediums -345-

Appendix D : Investment Risk Profile Questionnaire -360-

Disclaimers -368-

Cover Text

When it comes to the question where to put your money, there are five major asset classes where you can invest in that will earn some type or return: Cash, Fixed Interest, Property and Shares, or Alternative Assets, like art. Art as an asset class was found to have less volatility and much lower correlation with other assets, hence a portfolio of artworks may play a somewhat more important role in portfolio diversification. Art as a commodity shows characteristics that distinguish it from other alternative assets. First of all, each artists in unique; more importantly, each dealer is different, and artist’s access to the marketplace is controlled by and large by dealers’ tastes. Price indexes are an indispensible tool in discerning, assessing, and monitoring market trends. We recommend a simple index IAI and a hedonic index AAAI as means to track fascinating developments in the Australian Aboriginal art market. We discovered significant negative-correlation between the AAAI and the Nikkei, making Australian Aboriginal art the better investment for investors who wish to allocate assets to the Japanese stock market. We found the Hedge Funds broad index may not be as effective for portfolio diversification, and investors may receive a better portfolio diversification by adding Australian Aboriginal art; same for investors who plan to diversify their investments in emerging markers. Comparing long-term returns of various global equity markets and our proprietory Art Indices, we found that Australian Aboriginal art outperforms stock markets, bonds, property and offers better returns than Gold with a much lower risk.