Is the current volatility in the stock markets some sort of threat to the new auction season

artinfo.com

Instability international stock market this week has caused much anxiety among financiers about the possibility of the onset of a deep economic recession. The media also added fuel to the fire is actively discussing the stock price jumps that occur for several days. Can these fluctuations affect the apparent prosperous art market, asks resource Artinfo, and how volatility in markets will affect the upcoming fall season trades?

known consultant on the art of Lisa Schiff ( Lisa Schiff), Todd Levin < strong> (Todd Levin) and Shvartsman Allan (Allan Schwartzman) jointly have found as many as five reasons for optimism. So:

1. Auction houses are in the final phase of preparation for the autumn auctions.

process of preparing for the autumn auctions of lots began in the spring, so auction houses now just settle the last remaining formalities with the sellers of works, while the two thirds of lots of future auctions are ready to present to customers.

2. Compared with the crisis of 2008 the trust market has not yet been exhausted. Allan Schwartzman believes that the fall prices on the art market, which occurred at the end of 2008 - 2009 year was likely the result of reducing the level of confidence in the auction houses after the bursting of the excessively bloated price bubble. Lack of confidence means that the buyer is willing to spend less money and momentum on market decline. However, there is no such problem: money in the market enough.

3. This summer, collectors behave actively. Despite the events in the world of economics and finance , the art market today is distinguished by high activity of buyers and sellers who are willing to enter into new deals. And yet there is demand and supply, the market will be sustained. "I do not feel that someone of my customers highly concerned about what is happening" - says Lisa Schiff. Allan Schwartzman agree with my colleague: he is just now in talks to buy several expensive works for their customers. "To me, this August - a very active", - said the dealer.

4. While the art market is inextricably linked to the global economic situation, he develops his own, special cycles . The art market may not experience the downturn in world financial markets, it can even grow strongly due to that amid falling prices of securities investors will invest in art. However, the decline, if it happens, of course, will not work for the art market unnoticed. Levin recalls the late 1980s, when the overly energetic Japanese buyers inflated prices auctions to the maximum. As a result, in 1990, revenue amounted to auction houses, 607 million dollars: that's when Japanese Reey Saito ( Ryoei Saito) bought "Portrait of Dr. Gachet" by Vincent van Gogh ( Vincent van Gogh) for a record $ 82 million and the painting-Auguste Renoir ( Pierre-Auguste Renoir ) «Moulin de la Galette" for 78 million. A year later, however, revenue fell incredibly - by 5000 percent (yes, just imagine) - and was only 12 million after this huge bubble burst. "There is no doubt that what is happening in the market as a whole is reflected in the art market", - said Levin.

5. The exact prognosis can not yet give none . Horse racing courses in the securities market may reflect not too significant in the long-term changes, and there may be a harbinger of major change: now long-term prognosis can not be given, and just have to wait (as they say, wait and see.) However, notes Levin, do not panic because of the unexpected results of several trading days on the stock exchange: "Those who have lived through several boom and bust, the current situation in the market does not inspire strong anxiety ».

Artinfo failed to get comments on this subject the company's management Sotheby's, but representatives of Christie's said that the auction house looking for the coming season" with a cautious optimistic ».

Prepared by Mary Estrova, AI

Source : artinvestment.ru