Credit Crunch Art?

March 4, 2009 at 9:52 pm | Posted in Art, Art Auctions, Art Collecting, Art Market, Art Sales, Art World, Collecting Art, Contemporary Art | Leave a comment
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CONTEMPORARY ART STRUGGLES IN TIMES OF RECESSION.

It's not only Dali's clocks that are melting!

It's not only Dali's clocks that are melting!

Just when you thought the art market was the last safe haven as the rest of the world’s economy melts down…It turns out it isn’t considering how the art bubble has officially burst according to experts.

Profits have gone down in a market that seemed unstoppable only a year ago. Auction houses around the world are increasingly concerned about art sales following their poor winter performances where whole lots remained unsold. Even artist are now forced to lower their prices as no nouveu riche is willing to pay a vast amount of money for an art piece…Good old times where Chelsea’s Roman Abramovich bought a Francis Bacon for £86.2 m.

The Art Capital Group has predicted a downfall in prices “by a total of 20 to 40 percent”and its finance chief executive, Ian Peck, during an interview with The Independent’s Art supplement explained how “the concept of a recession in the art market is no longer an abstract but real condition”.

During the past decade, contemporary art has witnessed a tremendous rise in prices and benefited from a growing popularity amongst socialites all over the world. A favourable situation leading to extreme speculation, outrageous prices and a type of  art that is considered by some a fraud as the art dealer, David Nahmad, explained  during a press conference.

He said: “There is a real art market, with real artists, and then there is the stupid art market which uses publicity to make some artists become very expensive. That doesn’t mean they are good. A diamond skull at $100 is an offence. That’s ridiculous!”

It seems that the economic downturn may even have positive results when it comes to contemporary art. At the end of the day, it should be  all be about the value not the prices!

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