continue investing money. Likewise, just because people are not buying at auction doesn’t mean that people have abandoned the art market all together and are not buying art. In fact, the recent stock market meltdown and poor performance of other investment markets has resulted in an increase in the desirability of art as an investment because art is a tangible asset and has proven to offer a relatively high level of insulation from the effects of economic and financial market crises. It is important to remember auction results do not necessarily reflect people’s confidence in the art market or the overall health of the art market as can be seen by the current situation. As far as I am concerned the art market is still showing plenty of signs of strength and resilience which I believe will continue to be the case.
**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.