Art Market Malarkey – artmarketblog.com
One of the reason that I am becoming increasing sceptical about the possibility of an art market correction is primarily because of the increasing number of emerging art markets being “discovered” on a regular basis. The latest country to be targeted by investors is Indonesia where dealers are struggling to meet demand for artists such as Putu Sutawijaya, Hendra Gunawan and Nyoman Masriadi all of whom are attracting serious attention and big money.
Many Asian countries are experiencing considerable economic growth and Indonesia is no different with Indonesia’s economy having grown 6.32% for the whole of 2007 which is the fastest annual growth rate since 1996. The constant emergence of “new” art markets such as Indonesia continues to re-invigorate the world art market by providing new opportunities for collectors and investors. If an art market correction were to happen it would seemingly have to be the result of a world wide economic event that caused significant financial difficulties on a global scale. One of the problems with past and even current forecasts and predictions regarding the future of the art market is that the forecasts and predictions are being based on a very small section of the world art market, primarily the sale of high end works by the major western auction houses such as Sotheby’s, Christie’s, Bonhams and Phillips de Pury.
If a prediction is going to be made regarding the future of the art market it needs to take into account the world art market, not just the sales made in the traditional centers of the art market. My current analysis indicates that there is a softening of the market for the works of those artists who have been at the center of the art market boom from the beginning but as to how extensive the softening will be has yet to be seen. There is no doubt that questions will continue to be raised regarding the future of the art market which is not such a bad thing considering that there is really no other form of regulation in the art market other than people’s own insecurities.
**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.