Wednesday, December 21, 2016
Economy: Will The Art Market Reach New Records In 2017?
History shows that stock markets & art markets walk side by side. Besides the collectors, who buy art because they love it and want to own it, there are also investors & speculators, who purchase because they hope to sell later for a higher price. This year we saw a setback - sales of the big auction houses (Sotheby`s & Christie`s) are down and many mid-sized galleries are closing.
I think it is no coincidence that the art market had accompanied the US stock market which also had a weak period which lasted from early 2015 through this November 2016. Until recently many investors & speculators had avoided risky assets - including art works - because they were skeptical for the global economy (weak US, China & Europe).
But in the recent weeks we are witnessing a return of the global stock markets and many stocks are rallying. The rally shows that investors are getting more appetite for risky assets. This also should rekindle the art market and attract more speculative buyers. Maybe Sotheby`s & Christie´s may report new records in 2017.