Our econometric department of the art market offers spot-on indicators to bring you clear information and help you in your decisions.
Volatility of contemporary art prices
While the 1991 crisis made auction sales considerably more difficult, that of 2008 implies a greater degree of selectivity on the hottest segments of the market: Post-war and Contemporary art, particularly on the so-called «emerging» Asian markets. Th e new generation of collectors has invested en masse in contemporary artists with whom they feel most in sync, but they have also focused much of their cash on the most speculative signatures of the moment.
This phenomenon is reflected in our ranking of the Top 10 artists of 2008 with two living artists parading alongside the world's biggest revenue earners: Damien Hirst and Gerhardt Richter. In 2008, Post-war art (i.e. by artists born between 1920 and 1944) and Contemporary art (artists born after 1945) represented 32.3% of global Fine Art transactions and close to 35% of global art auction revenue. In fact, during the year, the most recent art was more likely to fetch six figure bids: whereas 3% to 3.3% of transactions in the combined segments of Post- War, Modern and Contemporary art fetched over $100,000, this ratio rises to 6.5% in the Contemporary segment alone. The same proportion of Old Masters also fetched over $100,000; but the overall number of lots was substantially smaller (20,000 vs. 50,000 in the Contemporary segment). As the most volatile sector of the market, Contemporary art is the first to suffer from the crisis and it has already seen some very sharp price adjustments: Artprice's global art price index shows that Contemporary art works lost 34.4% of their value in 2008 the sharpest contraction of all the segments back-pedalling 2 years of speculation to 2006 levels.
excerpt from: Art Market Trends 2008
© 2009 artprice.com
New York remains the largest market
With turnover of $ 1,322 million for some 30,000 lots sold, the United States dominated the art market once again in 2004. US auction houses accounted for 46.5% of the global fine art market compared with 42% in 2003, and total turnover generated in the United States rose 45% in one year.
A number of factors contributed to this substantial rise: an increase in sales volume (+15%), a dramatic cumulative rise in prices (+18.5% on the New York market) and the
growing number of lots sold for over a million dollars (229 works in New York, compared with 132 in 2003). Intense competition among the leading auction houses enhanced further the quality of works that changed hands in 2004, with New York benefiting the most from this race for the finest pieces. The Big Apple is by far the best market for selling works in the seven-figure range. Underlying this dynamic increase is a combination of factors: the inevitable wider accessibility of the art market, resumed growth on the financial markets, the dollar's depreciation and the search for alternative investments. While an investment of $ 100 in the US art market in 1994 yielded 60% in 2004, it was a completely different story in France: an art investment of € 100 only yielded on average 2% in 10 years.
The changing face of the European market
excerpt from: Art Market
© 2005 artprice.com