Art Market Still Strong - artmarketblog.com Newsflash: The art market is not cooling, slowing, correcting, busting, bursting, sinking, dying, convulsing, tanking, melting, freezing, crashing, dipping, slumping, softening, flopping, straining...
My answer to this question would be yes, to some extent, but the value of an artwork can still be higher or lower at the time of purchase than the price someone paid for the work at that time. Consider the following scenario: Even though there may not be anyone who is willing to pay $100 million for Jackson Pollock’s “Blue Poles” at the current time the current value of the work is still $100 million however if the work was put on the market during a time when the art market was in the middle of a bull run and confidence in the market was high and the most someone was willing to pay was $80 million then there would be reason to re-assess the value of the work.
The fact that the top quality quality, most desirable works of art are being increasingly viewed as a hedge against the volatility of other markets such as the stock market is proof that there is still plenty of vitality left in the art market. The media will of course continue to exaggerate and speculate in an effort to attract as many readers as possible. Until the wider population realise that the art market is not like other markets and cannot be treated like other markets or compared to other markets there will continue to be misunderstanding and misapprehension in relation to the health and status of the art market.
**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.