Art Market Related Stocks Part 2
Further to the previous post on art market related stocks, the company that can be considered to be the proxy for art market stocks is Sotheby’s who have a large percentage of the segments total market capitalization. Because there are so few art market related companies in the stock market those that are listed tend to be grouped into the luxury goods sector. The Sotheby’s share price graph shows that the company has been doing very well although it is important to note that Sotheby’s do not just sell art so their share price is not an accurate representation of the state of the art market. Many financial experts are predicting an increase in the Sotheby’s share price due to the new wealth in Russia and China.
Sotheby’s share price as of 13/8/07
Although you may like to get involved with art market related stocks or included them in your share portfolio I would not recommend using them as a replacement to investing in pieces of art as they do not offer the same benefits and balance that you get from investing in pieces of art.
Another alternative to investing in pieces of art is to invest in a fine art fund which basically allows you to buy shares in a painting which is then sold in the future hopefully for a profit. I will go into more detail on the subject of art funds in future posts.
**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications.