(AND WHAT ARE YOUR PLANS FOR 2013?)
According to the Financial Times, fine art sales at auction in 2012 topped $10 billion, with $1 billion sold in one week in November in New York alone. Christie’s reported worldwide sales in 2012 of $6.27 billion, which includes private sales, and represents a 10% increase over 2011. Where is all of this growth coming from?
New Buyers.
Serious buyers have entered the art market over the last few years from places such as China, the Middle East and Brazil. And even more recently, there are first-time buyers from the US and Europe who have been disillusioned by the volatility and underperformance of many other asset classes. Although most collectors don’t buy art solely for investment purposes, it’s almost always one of the factors they consider.
More Galleries and Fairs.
2012 brought much gallery expansion, both in terms of square footage and globalization. Established galleries in New York opened new spaces in London (Zwirner, Pace, Michael Werner); New York and London galleries opened spaces in Hong Kong (Lehmann Maupin, White Cube, Simon Lee); and a French gallery opened one space in Hong Kong and will soon open a space in New York (Perrotin). In addition, there is an ever-increasing number of art fairs – seemingly a different art fair each week in some part of the world. These fairs range from London’s very successful Frieze Art Fair, which debuted Frieze New York last year in a sprawling tent on Randall’s Island, to the new Art Fair Philippines, which launches next month on one floor of a multi-level parking lot in Makati.
Confidence.
Despite the difficult economic situation in much of the rest of the world, I saw an increase in my clients’ transactions in 2012 and expect that to continue this year. I also began working with new clients who are buying with conviction. They believe that art has real value and also enjoy the process; it’s fun, social, prestigious and results in having something they love on their walls.
Strongest Market Segments.
Most of the growth I have seen is in Post-War and contemporary art, at the top and the lower end (younger, emerging artists) of the market. I receive numerous requests for blue-chip artists who are generally deemed to be safer acquisitions providing investment security. The works are priced higher, but the artists’ careers are well established, and if chosen correctly, the works will continue to appreciate. I am also constantly looking for the most promising up-and-coming artists for clients, either because of the lower price points or the excitement of trying to find the next big thing – or both! Currently, I am working with a client to sell two works that I recommended that have doubled in value over the past few years so that he can focus on other areas of his collection, which consists mostly of emerging artists.
Finding great works of art in any price range can be challenging, and purchasing these works is becoming more and more competitive. If you are interested in learning more, feel free to contact me.
1/30/13