
The art market has surpassed the stock market since 2001 to attract the attention of many collectors again. In the art made on the eve of the auction was strong earnings in 2007 as sub-prime lending began to take its toll on the U.S. economy. 2008 will be a difficult year as collectors and investors wonder if a correction is imminent. Maybe, but tend to keep prices in the short term but can not see the sharp increases we had in 2007.
- Strong Global Supply – European and American works of art to lead the market, but collectors are looking more than ever by the art of the regions to discover. As technology and improve overall education, artistic talent is being discovered in the less known. China, India, Latin America and Australia have experienced strong sales at auction.
- Regional emerging economies – Russia, China and India have experienced tremendous economic growth in the past seven years and are beginning to shape the global economy. Not only can some people in these regions now have the luxury of collecting art, but they are buying many artists of his own region.
- Portfolio diversification – Since 2001, the stock market has had gains modest. During the same time, the art market has more than doubled its volume, leading many to invest in art.
- Price Protection – The practice of tendering of the works of certain artists in their own collection can keep prices high for this artist, but is extremely hazardous, and marginally moral. Demand is artificially set minimum prices for some artists too high for a wide audience. And if a collector with several works by a single artist falls in time difficult, artificially inflated prices will slow the market.
- Guarantees auction – Sotheby's and Christie's have provided a guarantee on sales prices for a growing number of collectors. This has helped bring high-profile jobs in the auction, but some of his lost works minimum, forcing to the auction house to buy the parts.
- Contemporary Art Moves to the Top – Before 2007 Modern Artists sat atop the secondary art market, but last year took first place contemporary art. With some of the best artists still producing work, the pieces are starting to appear at auction within months of their initial purchase of studio artists.
- Back Sales – Some collectors are beginning to celebrate the works only for a while short, back to the auction in a few years and are sold at high prices. This speeds up the sales cycle similar to houses in flipping real estate.
- Artists such as businessmen and women – Some contemporary artists are hiring business managers to keep an eye on his works. Artists live can manipulate the supply of their works and can even drum collectors to purchase high-profile works to keep prices high.
- Celebrity Participation – Obsession with celebrity extends to art and artists warming within celebrity circles, the added press coverage extends to the arts community again creating more demand.
- Museums donors – the main collectors also develop their personal interest museums devote focusing on its collections greatly increased the importance and value of these collections.
The market remains strong, but 2008 is shaping up to be unstable. These ten trends will determine when a market correction. Some suggest that the market will maintain its volume, but other trends showing early signs of weakening. Careful attention is necessary before raising the blade.
Bear Vandal
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