The Contemporary Art Market Bubble by AL MARTIN (AL MARTIN RAW.COM)
(PHOTO: Balloon Dog by Jeff "Kitschy Kitschy" Koons)
(12-16-14) In the wake of Art Basel Miami Beach, the contemporary art fair and the 19 or so other so-called ďsatelliteĒ art fairs held in Miami during the first week of December, itís becoming evident that the art market is beginning to get strained. Itís less liquid.
You can see this by simply looking at the Sothebyís and Christie's auctions and other large houses that handle contemporary art and check their bid failure rate. Itís been steadily increasing since 2011 and even Sothebyís and Christie's have warned that there is a speculative bubble in contemporary art. This bubble is now getting holes punched into it because of whatís going on in Russia.
And why has this bubble been created? Because people keep plowing money into it as a way of both disposing excess wealth and a way of transferring wealth out of nation-states where itís not so easy to transfer wealth out of.
The art market is so opaque that it makes you wonder if itís not just another money laundry.