After the gold rush: today’s art market in focus
In the 20th edition of The Wealth Report, we’re revisiting our predictions over the years to see how they’ve fared.
The art market defied gravity for years 鈥� but no more.
We reflect on the past two decades of the art market, highlight today鈥檚 opportunities, and explore the shifting attitudes of new collectors.
For much of the past 20 years, art has been a sound investment. Despite the 2008 financial crisis and the 2020 pandemic, the value of art sales grew to US$64 billion by 2011 and has hovered there since. As an investment, it was touted as the best of both worlds.
But in recent years the mood has shifted sharply, particularly in relation to more traditional investments. 鈥淟ook at gold,鈥� says independent art adviser Nazy Vassegh. 鈥淚t鈥檚 gone up in value by 60% in a year and will always have strong residual value. I can鈥檛 think of one artist or work of art that could claim that.鈥� By 2025, the idea of art as a safe investment had all but disappeared.
New opportunities in art emerge
For those prepared to look beyond the big names and genres, opportunities remain.
Current popular practitioners include many artists formerly underrepresented and undervalued. This is helping to boost areas such as surrealism, for long not taken seriously, and previously overlooked female artists.
Greater value is also being put on categories that celebrate the power of the human hand, such as ceramics and textiles. Meanwhile, digital art, still slightly tarnished by the fall of the NFT market, is a niche, burgeoning category.
Such swings are part of the art market鈥檚 usual cycle, says Marc Glimcher, President of contemporary art gallery Pace. He admits the latest swing has been 鈥渕ore intense鈥� than anything before.
