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March 28, 2007
The Art Bubble Expanded in 2006
Great data on the expanding art bubble in the latest Artprice report. We're within 5% of the prior global art price peak set in 1990, and 34% above the 1990 peak in the U.S.
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I don't get "bubble". Seems to reveal an anti-art attitude to me. Is that right?
In general, the art market lags the stock market. After all, you have to make the money first in order to buy such luxuries. In 1990, though, the stock market was about 3,000. It is up four times. The art market is not up anywhere near that.
Plus, since 1990, there is tremendous new wealth and hence wallspace in the world. All that wallspace and all those luxury homes call out for art. And it is traditionally an OK investment, even really good if you have an "eye".
But, that said, the rise of contemporary art prices is a new and risky phenomenon. I read all the time about how it is reaching the level of impressionist art in dollar volume. But contempo art can easily lose its value. That has always scared off serious buyers. The rise of contempo is a section of the art market that I would love to see analyzed, for I think it might be related to larger issues of change.