Premier Art Finance Artemundi Group / 2019 Premier Art Finance Artemundi Group : 201 | Page 28

N ew York · Lon d on · Mexi co City · M a d rid
HAS THE ART MARKET ENTERED A BUBBLE? .
Each season’s records have raised the “has the art market has entered a bubble?” question. Is the sharp rise
in certain artists sustained by fundamental values or could their prices suddenly collapse? A recent study by Dr.
Kraüssl has underscored that, while the modern segment has dominated the art market by value, contemporary art
seems the only likely to develop bubble-type behavior. This is mainly due to continuous supply in the contemporary
sector and because today’s collectors purchase art “by ear”, making contemporary the most speculative and
cutthroat sector of the market.
9
8
7
6
5 99% Critical value sequence
4 XIX Century European forward
ADF sequence
3
2
Post War/ Contemporary forward
SDF sequence
1
0
-1
American forward ADF sequence
-2
1979
1985
1991
1997
2003
2009
2015
© Dr Roman Kraüssl (22 September 2015, BCLS NYC) Courtesy of Roman Kraüssl
GLOBALIZED MARKET .
Globalization of the art market over the last decade has increased the number of collectors, bringing in eager
new players who are driving up prices in their anxiety to acquire iconic pieces of art. The global increment in
super-rich individuals whose appetite for art helps to keep the market healthy. Buyers are representative of an
increasing geographical diversity in art markets: auction houses report an increasing trend towards a higher
representation of emerging economies. Buyers from China, Russia, Qatar and the United Arab Emirates, hasve
upended the traditional landscape of collecting, formerly dominated by the US and Europe.
In 2017, all five of the world’s
largest marketplaces posted
Sales in Major Markets 2008 to 2018 (Billion US$)
$35
substantial turnover growth:
$30
China
+20%
United
States
+53%
United
Kingdom
$20
$15
+26%
+48%
France
Germany
$25
$10
$5
+18%
0%
10% 20% 30% 40%
$0
2008
2009
European
Union
2010
2011
United
States
2012
2013
2014
United
Kingdom
2015
2016
China
2017
2018
France
©Arts Economics, 2019
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