Home LifestyleArt Art Market is Strong

With $1.6 billion hammered around the world in fine art auctions during the 1st quarter of 2021, the art market may look like it has already returned to a “normal” rhythm. True, the Q1 total is exactly the average Q1 total over the ten Q1 periods preceding the health crisis (2010 – 2019). But this impression, based on auction turnover alone, hides a very different situation from that which prevailed two years ago.

thierry Ehrmann, President and Founder of Artmarket.com and its Artprice department, acknowledges that “it is still a little early to disentangle the effects of each of the powerful factors currently shaking the art market: Covid, Brexit, NFTs, etc. But their consequences are already visible”.

Artprice is therefore redoubling its efforts to ensure continuous monitoring of the market’s most sensitive indicators and keep a close eye on its overall health. Artprice wishes to share the conclusions of its econometrics department in order to contribute to the market’s transparency.

1. A record number of transactions

Despite the logistical complications linked to the health crisis, fine art auction transactions have never been as numerous as in Q1 2021. In total, 112,200 lots were sold around the world, i.e. 6% more than in Q1 2019 (105,600 lots sold). The digital transition undertaken by the major auction houses has enabled the emergence of an online market that is particularly suited to the middle market.

2. A declining unsold rate

An key indicator of the balance between supply and demand in the market, the unsold rate varied only very slightly over the period 2010-2019, fluctuating between 31% and 34%. In other words, the art market has become accustomed to seeing a third of the lots offered for auction fail to reach their reserve prices. But in Q1 2021, only one in four sales (25%) failed: demand is therefore increasing a little faster than supply!

3. A gradual geographic rebalancing

Q1 turnover figures are usually dominated by London, which hosts the first prestige sales of the year. In 2021 the agenda had to be postponed by several weeks but nevertheless went ahead. However, the dominance of the UK capital appears weakened: London accounted for 37% of global sales revenue in Q1 2021 versus 48% in Q1 2019. New York, which managed to generate 27% of the global turnover in the first three months of the year, appears to be the main beneficiary.

4. The NFT revolution

The sale of Beeple’s NFT Everydays marked the start of a possible revolution on the art market. The work was purchased for $69 million in a Christie’s online auction using the Ether cryptocurrency. Indeed, this new market appears to have become even more ‘intangible’ since Sotheby’s generated $16.8 million by selling “The Fungible Collection”, a digital work offered online in unlimited quantities and created by the anonymous and mysterious Pak.

5. Red-chips dethrone blue-chips

Since the end of 2020, art auctions around the world have hammered some surprising results for extremely recent works. Journalist Scott Reyburn (in The Art Newspaper) cites, as an example, Christie’s “20th Century: Hong Kong to New York” sale on 2 December 2020 and says he was surprised to see Dana Schutz’s canvas Elevator (2017) fetch $6.5 million and Andy Warhol’s “classic” Campbell’s Soup Can (1962) sell for just $6.1 million (especially as the latter reached $7.4 million in 2014). Reyburn concludes that the arrival of new collectors, in search of the latest novelties (“red-chips”) is overtaking the desire to possess “blue-chip” artworks.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.