Sunday, February 26, 2017

Economy: Will The Art Market Follow The Stock Market?

(Drivebycuriosity) -  The global stock markets are on a tear: The US stock market (S&P 500) gained about 6% year-to-date and climbed to an all-time-high, Shanghai`s stock index rose 5% & Germany`s DAX advanced 3%.  The stock markets are responding to better news from the global economy and they are signalling growing optimism.

I suppose that the global art market will follow the stock markets and will reach record sales & prices as well. History shows that stock markets & art markets walk side by side. Art is not only bought by collectors, who love it and want to own it, art is also purchased by investors & speculators, who hope to sell it later for a higher price.

Last year the art market suffered a setback  - sales of the big auction houses (Sotheby`s & Christie`s) were down and many mid-sized galleries got closed. The weakness on the art market accompanied a soft patch on global stock markets  - from early 2015 through  November 2016. During this time investors & speculators had avoided risky assets - including art works - because they had been  skeptical for the global economy (weak US, China & Europe). Now they are coming back which should bode well for the art market.

I think that the growing global economy and the return of the investor optimism will lift all boats.

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