ART MARKET

Global Art Market

Global Art Market

Introduction

The art market generates annual investments equal to about 45 billion euros, including auction houses, galleries and dedicated fairs (50% of which occurs at auction houses). The main markets are the US market and the UK market (more than 70% of the global turnover). In net growth the emerging markets of China, Russia and the Arab Emirates. Painting represents the most knocked down artistic technique, with two operators contending for 75% of the international turnover. On the whole, the art market reached the peak of its valuations in the first months of 2008, favoured by the boom of contemporary art (Levell, 2010, 46).

Discussion and Analysis

If the trend continues, valuations will go back to the levels of 2003. The decline in the demand for contemporary art corresponded immediately to a drop in the American market. The bear trend (which began in Europe due to its lower offer in the contemporary art sector), already emerged in the catalogues of the 3 London auctions in February 2009 where -25% is estimated on the turnover, that is 40 million euros less. On the other hand, such a significant correction is admissible considering the performance of the art market against the performances of the financial markets in the period January 2005-January 2008.

According to many observers the cycles of the art market are closely related to stock market cycles, only deferred by a few years. In other words, a part of the financial profits realised on the stock markets would be charged off and invested in parallel markets, like the art market and real estate. The art market is proceeding showing signs of tiredness, but it is stretching distances from the financial and real estate markets which are toiling along in a climate of crisis and uncertainty. It is quite typical that, in moments like this, high-quality art becomes more appealing to collectors-investors who see in the purchase of an important art work or object the best way to protect themselves from financial tempests.

China has overtaken the United States as the world's biggest market for art and antiques ending decades of American domination. This historic turning point, which is also an important indicator of seismic shifts in the wider global economy, is revealed in a new report published on Friday 16 March 2012. The International Art Market in 2011: Observations on the Art Trade over 25 ...