Financial Downturn Hits Art Market

Cut Cakes by Wayne Thiebold, oil on canvas, 24 x 30 in.

No one would buy art for hospitals at the fancy art auctions held by Sotheby's and Christie's; the art is simply too expensive. However, it is interesting to see what is happening to prices as that reflects what is happening to art sales in general. According to  the Wall Street Journal this week:

The global financial crisis dealt a blow to the art market during the flagship fall auctions in New York City that concluded Friday, as fewer collectors were willing to splurge on the world's priciest artworks. Overall sales were less than half what they were a year ago, and a majority of works were offered at prices far below their presale estimates.

Art-market watchers had predicted sluggish results. These sales show that the art market is no longer immune from the global credit crisis that has already upended other industry sectors.

One of the pieces that just sold was "Cut Cakes" illustrated above. It was expected to selll for $2,000,000 to $3,000,000, but the actual sale price was $1,762,500.

The article from the November 15th issue of The Wall Street Journal is called "Call This One 'Crisis With a Pipe' Financial Downturn Finally Leaves an Impression on the Art Market" by Kelly Crow. Click here for a link (but registration is necessary)

Comments

[Daniel Sroka]

To me, the art auctions represent the froth of the art industry as a whole. It's the fastest to rise to crazy levels, and the first to bubble away to nothing. I assume that there's little direct correlation between the behavior of those who are willing to pay $2-3 million for "famous" art and the more rational (i.e. realistic) collectors and art buyers.

[hdomke]

Daniel,
I agree with your "froth" comment. However I'm not sure that wealthy art collectors are more inclined to pull back during times of economic downturn than other art buyers. In fact the articles that I'm reading suggest that the reverse may be true. Regular art buyers may in fact be more sensitive to economic circumstances.

The other problem with getting a handle on what is happening to the art market is that it is hard to get numbers on "regular" art sales. Do you know where to find such data?

Henry

[dizi izle]

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