At a time of geopolitical uncertainty, soaring inflation and falling stock prices, the art market is beyond booming. The explosion is fuelled by a combination of an unusual number of highly desirable works becoming available, and an increase in those who can afford to buy them.
“The rich have got much richer,” said art market specialist and author Georgina Adam, pointing to Forbes’ tally of more than 700 new billionaires across the world in the past couple of years. “And if you’re mega-rich, there aren’t that many things you can acquire that are real trophies, that nobody else can have. Art is a real trophy.”
Anders Petterson, Art Tactic’s founder, said there was also an investment element to acquisitions by ultra-high-net-worth individuals. “After the financial crisis [in 2008], we saw people wanting to put their money into tangible assets. We’re seeing an element of that again now.”
“During the pandemic, there was a dearth of works to sell because of uncertainty about the resilience of the market. A lot of people chose to wait.
“This season, we’re seeing the first real return to pre-pandemic supply levels, and a variety of consignors electing to sell great works of art. And that has attracted a strong and healthy demand,” said Brooke Lampley, chairman and worldwide head of sales for global fine art at Sotheby’s.
The market is also becoming more accessible, thanks to online auctions. This week, for the first time, Sotheby’s broadcast live on Instagram its sale of modern art, attracting nearly 20,000 viewers. Auction houses, which were forced online at the outbreak of the Covid pandemic in March 2020, have embraced digital platforms such as TikTok, Facebook Live and YouTube.
“It has opened channels to a whole new demographic,” said Petterson. The only way to witness an art auction in the past was to brave an exclusive, highly privileged and often intimidating group. “Now you can sit in front of your screen at home to watch this theatrical spectacle. It definitely drives interest.”
At Frederick Charles Art we have seen an increase in online interest and purchases since the pandemic and a growing number of young entrepreneurs seeking to invest in the art market.
Ediz Mustafa, Founder of F Charles Art said: “The market is booming, auction sales have been very impressive with artwork by artists like Alan Davie, Adrian Heath and Bridget Riley to name a few, beating their auction estimated prices by 3 or 4 times, and this seems to be happening more frequently.”
For first-time buyers, getting involved in the Fine Art market can seem like a daunting experience, which is why at Frederick Charles Art we help you to understand the benefits and long-term profitability and how to fill your home or business with images that will prove as worthy assets down the line.
