As an alternative investment to gold, art has over years proven to be a real solid investment

 Today’s global economic crisis (GEC) which has hit hardest most developed countries, and whose economic experts are trying hard to rectify it, are results of the sub-prime financial debacle and the near collapse of the United States of America automotive industry.

The governments of most affected countries managed to quickly and decisively avert an immediate global economic meltdown, by using stop-gap measures of huge financial bail-outs to avert an economic slow-down. But this was at the cost of the real effects of the GEC being felt in the near future. In essence, these governments took over the financial responsibilities of temporary funding economic growth.

The question that one should ask is where did the government get the massive funding to plug the black-holes in their economies? The answer is they went to the printing press and printed fresh currency which they used to inject into their economies, in order to fill up the black-holes.

These measures brought some form of short-term relief to these economies by averting massive industry closures, high unemployment and most importantly an economic depression.  But it’s well known in economic circles that such measures always come with a hidden cost, printing currency to stimulate an economy can only bring short-term relief.
Today the results of such measures are just starting to be felt, with a steady rise in unemployment, company closures, credit crunch and property fore-closures. In essence these economies are going through a period of economic slow-downs or stagnation, better known as recession.

These symptoms are just the beginning of what is still come, and that is inflation. At the moment those with a general understanding of economics have started to take precautious measures to ride the tide of tough times that are set to come, by hedging their wealth and or savings against inflation by investing in art or gold.
That should explain why prices of art and gold have been achieving record prices.If one opens up the business section of any newspaper, one will read about record prices that gold is fetching in the markets , what is driving these record prices is the fact that many investors are liquidating their currency holdings and are investing in what has always been a safe-haven against inflation that being gold.

The reason why gold is regarded a safe hedge against inflation, is because of its scarcity, just like true art-works. The only known time that gold prices have been low was during the period when many central banks in developed countries opted to dispose the bulk of their gold reserves.

For one to fully understand the current events occurring in the global economy and to have reliable information to choose investment options in order to ring-fence themselves against the effects of the GEC soon to come, one must understand how the current currency system works.

Historically countries currencies were backed by what was known as “the gold standard,” this meant that the real value of every dollar printed by a central bank was backed by gold reserves held by the central bank. This meant that a central bank could not print currency above the value of gold held in their possession. In 1971 the then United States of America president Richard Nixon ended the international gold standard. The gold standard system is a monetary system where currency backed by gold, that is to say, the currency simply represents the gold that you own and can be converted into fixed quantities of gold freely.

From 1971 up to 1973 the Smithsonian agreement was passed pegging world currencies to the USA dollar rather than gold as a fixed exchange. In 1973 the Basel accord established the current floating exchange of currency rates we use today, called the fiat currency system. In Fiat currency system money is not backed by a physical commodity, instead its value is based on its relative scarcity and faith placed in it by people use it.

However, when people loose faith or confidence in the money, it irreversibly becomes worthless , regardless of its scarcity Initially a rapid growth in availability of credit is often mistaken for economic growth, as spending and business profits grow rapidly, and a rapid growth in equity prices. In essence as there are no real control measures to prevent the over-printing of currency in a Fiat system, a fake illusion of well-being and prosperity is created when in reality people are actually digging themselves a deep hole.

In the long run the economy tends to suffer much more by following contraction than it gained from the expansion in credit. In plain English, the economy starts shrinking. Hence the reason why some economies are now witnessing massive job losses, company closures and property fore-closures. When an economy reaches this stage, the next stage is the terminal effects of printing currency in Fiat system that of hyper-inflation.Hyper-inflation is the terminal stage of any Fiat currency, which occurs when money looses its value practically overnight. It is often the result of increasing regular inflation to the point where all confidence in money is lost, life savings are wiped out overnight and prices rise faster than people’s incomes.

Current financial instability has brought about lots of talk about international financial reform, and even return to the gold standard as proposed by some. The gold standard stands in contrast to Fiat currency which has no intrinsic value, but governments declare it to be legal tender, meaning it must be accepted as a means of exchange. One of the main benefits of the gold standard is that it protects citizens from hyper-inflation and debasing of the currency through excessive government spending. With a fiat currency, a government can print as much new money as it likes spending, which leads to a gradual decline in value of currency and citizens’ savings. Under the gold standard, a free banking system stands as protector of an economy stability and balanced growth.

In the absence of the gold standard there is no way to protect savings from confiscation through inflation. Russia and China have suggested the establishment of a super-sovereign currency, while Brazil and India have suggested substituting other assets for their dollar holdings. Currently the U.S.A and China are embroiled in a currency dispute over the value of the Yuan. The U.S.A is claiming that the Yuan is under-valued, giving China an advantage over the U.S.A in global trade markets, as Chinese exports are deemed to be cheaper than the U.S.A. The currency stand-off between China and the USA seems to have no end in sight as under a Fiat currency system, any powerful economic country can determine the value of their own currency to ensure no set system or measures can determine the value of their currency. What is inevitable is many countries are to go through a phase of hyper-inflation and the Fiat monetary system will eventually die a natural death, and be replaced by the gold standard system.

The question one must ask them self is, if the wealthy investors are hoarding onto gold bullion's and if currencies will be backed by the gold standard in the near future, then how does art come into the equation as a safe hedge against inflation? Firstly before one considers investing in gold they must understand that they need deep pockets, as a kilo bullion bar is currently trading at $45 000. Even after parting with such a huge sum, one must realise they can’t keep a $45 000 gold bullion bar under their bed, so monthly storage charges must be taken into consideration. Historically art has always been the alternative to gold.

During the period of high hyper-inflation in Germany which occurred after the First World War those who had invested in art came through that period better off, as the return on their investment in art-works out-performed investments in options that were available during that period. Most importantly art managed to beat the extremely high inflation rate, which would explain why so many art-works were looted during the Second World War.

As an alternative investment to gold, art has over years proven to be a real solid investment. With these uncertain economic times that we are in, its time to seriously consider your future by taking prudent pre-cautions to ring yourself against the effects of the current economic upheavals and events that are soon to come. In times of economic instabilities you are better off investing in art or gold.
SOURCE

The Ashok Art Gallery is internationally known for one of its most important holdings: more than 2000 major works by the world's most significant Artists.Over the past years, as Ashok Art Gallery has become a major centre for contemporary visual art, the Gallery has built a strong collection of contemporary work of different artists, we became a sponsor of the STANDUP-SPEAKOUT Artshow, Organized by Art Of Living Foundation and United Nations.Organized an International Contenmporary Art Exhibition including artists from USA, The Nederlands, Pakistan and India.We have also participated at Art Expo India 2008, 09 Mumbai and India Art Summit 2008 New Delhi.

While celebrating harmony in diversity, this is the miracle of love: The World Cultural Festival a review

Marking the 30th anniversary of the organization, around 50,000 people from across 151 countries, 6000 artists and 804 dignitaries including ministers, members of parliament and ambassadors were present. The program began with vedic chants followed by the German national anthem and the European anthem – Ode to Joy.Fascinating yoga performances, melodious music, dazzling cultural programmes and colourful costumes took thousands of participants on an unforgettable journey of India and the world as the World Cultural Festival ended in the German capital Sunday. Thousands of people, including Indian Tourism Minister Subodh Kant Sahai and BJP President Nitin Gadkari , braved showers and chilly winds in the German capital to attend yoga performances and riveting Indian dance and music shows as part of the World Cultural Festival. 

The event is celebrated as a "peace festival" at the historic Olympic Stadium that hosted the 1936 Olympics and 1974 World Cup football matches. The stadium turned 75 this year. The festival also marks 30 years of spiritual guru Sri Sri Ravi Shankar's Art of Living organisation.

The function started with playing of nadaswaram, a south Indian musical instrument, by artists from Indian and Sri Lanka. The beats of the barrel-shaped drum filled the stadium with energy as people clapped along, forgetting the chilly winds. On D Day, everything was ready. But that was not counting the vagaries of the weather: that morning, it started to rain, hard and steady. 40.000 disciples of the Art of Living prayed silently to their Master so that the rain stopped before the performance. But another miracle happened.

First 50 Indian singers smiled though the rain while reciting ancient Sanskrit slokas.

Then 500 Polish dancers hopped, skipped and bowed in the mud and puddles. The ancient science of yoga came indeed alive with hundreds of adepts going though asanas. The Art of Living performers seemed to transcend the rain: standing for a long time in flimsy clothing, in 13° centigrade, under sheets of rains, while waiting for their turn, they exploded in joy, grace, rhythm and sometimes power.

The sheer joy, energy, enthusiasm of not only the performers, but also of the nearly 40.000 spectators who had braved the rain, was something to watch. Nobody, even amongst the ministers, presidents and MP's who sat with Sri Sri Ravi Shankar on the dais, was indifferent.

And finally, that was what the miracle was about: not some cheap stunt of the rain stopping, by some power, or just a freak chance, which would have had many in religious ecstasy. But thousands of performers transcending adversity — which that day took the shape of unexpected cold and rain — through their devotion and love of their Master, and in the process, attaining heights of performance, which they might not have achieved in perfect conditions.

And in this union of their minds and bodies, not only were they forgetful of the rain, but different people from different countries, religions, cultures, some of them even hostile to each other, blended, naturally. And the message, which this gathering was to give, went through effortlessly: that the whole world can come together, while celebrating harmony in diversity. This is the miracle of love, this is the miracle of the rain. And even the sceptics rose as one man as the laser show and thousands of cheering spectators.
Mr. Subodh Kant Sahay, Minister for Tourism, Govt of India, Mr. Nitin Gadhkari, President, Bharatiya Janta Party represented India. “Humanity needs the wisdom of ancient India to heal the wounds of terrorism. Sri Sri Ravi Shankar is the ambassador of peace, a modern rishi who has come to unite the world”, added Mr. Nitin Gadhkari.

“I congratulate The Art of Living and Sri Sri for the truly transforming work being done in over 150 countries which has touched the lives of millions of people and of the younger generation in particular.” added Mr. Sahay.Sheikh Fahad from Kuwait, Minister for Information and Cultural Affairs of Bangladesh, Mr Abul Kalam Azad and Deputy Minister for Development from Israel Mr Ayoub Kara were also present on the dias.

Lauding the organization for its humanitarian work, congratulatory messages poured in from various dignitaries across the world such as Nancy Pelosi, Minority Leader of the United States House of Representatives and the President as well as the Prime Minister of India. “I hope that the festival will be able to spread the values of various cultures while celebrating harmony in diversity.” said a message by Mr. Manmohan Singh. The President of India smt. Pratibha Devi Singh Patil also congratulated by sending message.

Sri Sri also received the prestigious Human of the World Award from General Major Alexander Stephanov, President of the Academy of National Security, Russia.
Dignitaries from India and abroad including Monika Griefahn Co-Chair Right Livelihood Award, Elmar Brok German Member of the European Parliament and the former Chairman of the European Parliament Committee on Foreign Affairs, Mr. Nirj Deva, Member, The European Parliament, Prof. Peter Eigen founder of the advisory council of Transparency International along with several Congressmen,  Members of the European and German Parliament, ambassadors, business leaders, academicians and NGO representatives attended the festival.
Sri Sri spoke both in German and English to the cheers of the local population.

Excerpts of Sri Sri Ravi Shankar’s speech at the World Culture Festival, Berlin, July 2-3.

I am so happy to be here in this city where the walls came down between people, it is time walls come down between cultures and civilizations. We all should remember we are a one world family. We need to bring everyone together in a spirit of love compassion, service.

When we started, we had this idea, the theme song was rainbow colors and the rains have come! Singing in times of difficulty shows that we have achieved something. Whatever the circumstances are, we will continue to serve the world as one human family with differences.

It is time to celebrate the differences and celebrate life on this planet. With all the volunteers, we are sure we can create a stress-free, violence-free society for our children. Poverty eliminated, differences celebrated and connection to the inner Divinity. One Divinity, one humanity, celebrating differences, this is our sacred duty.

The Ashok Art Gallery is internationally known for one of its most important holdings: more than 2000 major works by the world's most significant Artists.Over the past years, as Ashok Art Gallery has become a major centre for contemporary visual art, the Gallery has built a strong collection of contemporary work of different artists, we became a sponsor of the STANDUP-SPEAKOUT Artshow, Organized by Art Of Living Foundation and United Nations.Organized an International Contenmporary Art Exhibition including artists from USA, The Nederlands, Pakistan and India.We have also participated at Art Expo India 2008, 09 Mumbai and India Art Summit 2008 New Delhi.

M F Hussain, the legend is no more, India has lost its Picasso, and not even on its own soil

Maqbool Fida Husain, 95, the renowned contemporary and progressive artist who put India on the world's art map, died today in London's Royal Brompton hospital, after a month of illness. Husain died of a heart attack at the Royal Brompton Hospital in London.
Husain's art made him a legend. He was undoubtedly India's best known painter who presided over a cult following for more than six decades. However, his contribution to the Indian art goes beyond his numerous celebrated works. In many ways, his life, turbulent in its twilight, was a reflection of the churning that India faces through polarised debates on religion, personal freedom and art.

The man who graduated from painting hoardings for films to becoming India's most celebrated painter was born on Sept 17, 1915 at Pandharpur in Maharashtra. His mother, Zunaib, died in his infancy and his father, Fida, remarried and moved to Indore, where Husain went to school. As a child, Husain learnt the art of calligraphy and loved to read poetries while he resided with his uncle in Baroda. He joined the J J School of Arts and started to earn his living by painting billboards for feature films. In 1947, Hussain won an award for his paintings at the annual exhibition of the Bombay art society and this marked the beginning of a distinguished career ahead waiting for this art maestro.

Husain's creativity, style and innovation in paintings have made him reach the pinnacle in Indian art. In the 1947 annual exhibition of the Bombay Art Society, his painting Sunhera Sansaar was shown. This was his first exhibition. After the Partition later that year, Husain decided to stay in India. Soon the Progressive Artists' Group was formed. F N Souza, a member of The Progressive Artist's Group, invited Hussain to become a member of it in 1948. Through it, Husain was exposed to, and strongly influenced by, the work of Emil Nolde and Oskar Kokoschka.

From 1948 to 1950 a series of exhibitions all over India brought Husain's work to the notice of the public. In 1951 Husain travelled to China. In 1952, had his first solo exhibition in Zurich, and over the next few years his work was widely seen in Europe and the USA. In 1966 Husain was awarded the Padmashree by the Government of India. In 1967, he made his first film, 'Through the Eyes of a Painter' which was shown at the Berlin Festival and won a Golden Bear. Husain went on to make two more films: 'Gaja Gamini' (2000) with his muse Madhuri Dixit and later 'Meenaxi: Tale of 3 Cities' (2004).

In 1971, Hussain was invited along with Pablo Picasso at the Sao Paulo Biennial. Apart from the several solo exhibitions, Hussain has many studios in major metropolitans of the country. In 1973, he was awarded the Padma Bhushan, in 1989, the Padma Vibhushan and was also nominated to the Rajya Sabha in 1986.

Some of his best known works are called the Sufi paintings, and were first exhibited at the Pundole Gallery in 1978. During these years Husain slowly grew into a public figure, often embroiled in controversies. His Shwetambari exhibition at the Jehangir Art Gallery consisted of two halls shrouded in white cloth, whorls of which also shared the floor with torn newspapers. Later, he gave a public performance at the Tata Center in Calcutta. For several days a crowd watched as he painted pictures of six goddesses. On the last day of the exhibition he destroyed his paintings by painting the whole thing white.

Husain had become a photogenic icon, and the newspapers loved him. The stuffy Calcutta Club was pilloried when it refused admission to a barefoot Husain on the grounds that he violated their dress code. He was nominated to the Rajya Sabha in 1987, and during his six year term he produced the Sansad Portfolio. In the early '90s, several collections of his paintings were made accessible to the public in exhibitions of permanent galleries. The most interesting of these is the Husain-Doshi Gufa in Ahmadabad, collaboration between the painter and an architect in the construction of a gallery.

Soon, Husain went on to become the highest paid painter in India. His single canvases have fetched up to $2 million at a recent Christie's auction. The Peabody Essex Museum (PEM) (Massachusetts, USA) showed a solo exhibition from 4 November 2006 to 3 June 2007. It exhibited Husain’s paintings inspired by the Hindu epic, Mahabharata. In early 2008, Husain’s Battle of Ganga and Jamuna: Mahabharata 12, a large diptych from the Hindu epic, fetched $1.6 million, setting a world record at Christie's South Asian Modern and Contemporary Art sale.

His name was also included in the list of the 500 Most Influential Muslims in the World, issued by the Royal Islamic Strategic Studies Center in Amman, Jordan. At the age of 92, Husain was to be given the prestigious Raja Ravi Varma award by the government of Kerala. The announcement led to controversy in Kerala and some cultural organisations campaigned against the granting of the award and petitioned the Kerala courts. The Sabarimala Trust went to the Kerala High Court and it granted an interim order to stay the granting of the award until the petition had been disposed of.

With the rise of Hindutva in the 1990s, some of Husain's works became controversial because of their portrayal of Hindu deities in the nude or in an allegedly sexual manner. The paintings in question were created in 1970, but did not become an issue until 1996, when they were printed in Vichar Mimansa, a Hindi monthly magazine, which published them in an article headlined "M.F. Husain: A Painter or Butcher". In response, eight criminal complaints were filed against Husain. In 2004, Delhi High Court dismissed these complaints.

In 1998 Husain's house was attacked by Hindu groups like Bajrang Dal and art works were vandalised. Shiv Sena endorsed the attack. There were also reportedly death threats. In January, 2010, he was offered the citizenship of Qatar, which he accepted. He was living in Dubai and London since, and breathed his last at a London hospital on 9th june 2011.

The Ashok Art Gallery is internationally known for one of its most important holdings: more than 2000 major works by the world's most significant Artists.Over the past years, as Ashok Art Gallery has become a major centre for contemporary visual art, the Gallery has built a strong collection of contemporary work of different artists, we became a sponsor of the STANDUP-SPEAKOUT Artshow, Organized by Art Of Living Foundation and United Nations.Organized an International Contenmporary Art Exhibition including artists from USA, The Nederlands, Pakistan and India.We have also participated at Art Expo India 2008, 09 Mumbai and India Art Summit 2008 New Delhi.