On the first trading day of 2010, oil topped $80 and gold gained $25 to $1121.50; what is art but another asset class in today’s commodities driven economy. Manufacturing is expanding and money is sticking to art like glue. Look for it to continue to do so but only for acknowledged quality works. There should be gradually expanding auction results in contemporary and design and in the impressionist and modern markets there will be a plethora of records. Galleries will experience similar moderately rising results. Re: prices of art, there has been a firming up since June 09, and the formerly wide-open discount window is slowly closing. China, India, Russia and the Middle East will see continued strength in artistic output and performance in the market, though off recent stratospheric levels; American and European art will continue to flourish as well. Even in light of diminished values and volumes of art sales in the recent past, there has still been a monumental expansion of the art-aware universe, and the base of buyers continues to grow. Once art came off the cave walls it’s been coveted—and like morphine, when hooked, at the least only a steady fix will do. After much searching, I was able to locate two quasi -rare 1970’s classic cars in excellent condition that were specifically expressed as being for sale. Between December and January, not one but both sellers reneged on agreed upon deals when I matched, then exceeded the asking prices. What was frequently the case the past two years was the opposite—jittery buyers pulling out of deals after a meeting of the minds. Then, the same thing happened with three 8-figure impressionist paintings. If this isn’t a good omen for the economy I don’t know what is, or is it a changing of the guard from a period where financial institutions and instruments were equally trusted. Now only the things themselves will do, art, property and the raw materials that will fuel future growth. It’s also rather frustrating when you were hoping to drive a couple of those things into the coming year.
Kenny Schachter