How The Art Market Has Changed Since The 1980′s
I constantly hear of people using the weakening of the art market in the 1980’s as an excuse to not invest in art. Well I am here to tell you that the current art market is nothing like the art market in the 1980’s and here’s why:
-Globalisation: The globalisation of the art market has provided a far more stable and viable market than was available in the 80’s.
-Technology: The availability of information on art and the art market to a global audience means that people are far more knowledgeable and willing to invest in art. The internet has also allowed artists to expose their work to a world wide audience creating greater interest and demand
-Knowledge: Mistakes were made in the 80’s especially by those setting up art funds who didn’t utilise the appropriate amount of expertise from art market professionals instead relying primarily on financial experts who didn’t understand the workings of the art market well enough.
-Contemporary Art: The art market is currently being driven by contemporary art as opposed to the art market of the 80’s which was driven by more classical art. There are only a certain number of old masters to go around but the contemporary art market is continually providing new, fresh, exciting works all the time.
-Corporate Backing: Some of the worlds largest financial companies such as UBS, Deutsche Bank and Macquarie are all putting large amounts of money and effort into the art market. Would these global companies be actively be involved in the art market if they thought it would be destructive to their business in any way, I don’t think so.
So as you can see there is no point in comparing the current art market to the art market of the 1980′s. I am not saying that the huge boom will continue at its current rate but I think that there is enough evidence to support the view that the positive momentum of the art market is sustainable.
**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications.