Art market heading for new lows

Art, along with antiques and other collectibles have always suffered during financial downturns. They nearly always sell more slowly and for lower prices than during good economic times.

A Wall Street Journal report at the link below gives an example:

Sotheby's stunned the art world three years ago by selling a single painting by Pablo Picasso for nearly $100 million. On Tuesday, the auction house says it will need to sell everything in its evening sale of Impressionist art to hit that mark.


With the recession hitting home among wealthy collectors, the auction houses are bracing for one of their toughest seasons in years.

The auction catalogs weigh half as much as they did three years ago.

Bold plans by art auction houses to protect the value of art work that brought high prices in recent sales will further lower current auction sales totals.

As the article explains:

The roster of artists up for sale has shifted dramatically this season, as auction houses have steered away from some whose prices soared during the recent boom, making them more vulnerable to precipitous drops.

Instead, the auctioneers have sought out more-subtle works by lesser-known artists who are popular with curators in hopes that museums or seasoned collectors will bid.

In a tight economy, buyers may not want to flaunt their fortunes with status art, a recession-era taboo that could affect current sales.

More of the story here.