"Record prices as collectors brush off market crisis" (FT 10/05/08)
The FT reported today that "Art collectors this week shrugged off the US economic downturn and global financial turmoil to buy solidly at the big New York auctions".
Maybe the growing uncertainty surrounding the banking sector and increasing inflationary pressure is encouraging some of the wealthiest in society to turn to the art market as a haven from the fluctations and concerns in the more traditional financial markets.
One of the star lots to sell at Sotheby's this week was Edvard Munch's 1902 "Girls on a Bridge" which sold for $30.8m. The FT reported that is was sold by founder of DFS furniture, Graham Kirkham, who apparently purchased it in 1996 for $7.2m. A sound investment indeed, especially as it was sold previously at auction in 1980 for $2.8m.
Other pieces under the hammer this week included Claude Monet's "Railroad at Argentuil" which sold for $41.4m and a Picasso sculpture, "The Crane" which achieved $19.1m.
The FT report also outlined the art market investment return, comparing the performance of the Post War and Contemporary sector against the Old Masters sector. This analysis showed a clear divergence since around 2000 with Post War and Contemporary surging ahead to outperform it's counterpart (source - http://www.artasanasset.com).
Maybe there is still hope for us all as finding the next big contemporary artist may be easier than finding an affordable Old Master paintings?
Saturday, May 10, 2008
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