A slowdown in the art world usually isn’t included in economy analyses, but art has become an investment alternative somewhat like stocks, bonds, real estate, and commodities. For the last few years, fine art at auctions has been appreciating at about an impressive 13%. That trend, however, is slowing as prices have escalating sufficiently to slow the market. Art is also subject to two simple characteristics: it isn’t liquid in an investment sense, and its value is subjective. The wealthy have been hunting for alternative investment options considering issues in the stock markets, low interest rates, and declining commodities. Real estate and art have become attractive, as they always have been at least somewhat; but especially in comparison to the options. Even art is now being seen as being in a bubble market. Without the art market, and with regional bubble issues in real estate, even wealth is having a harder time finding a home and a haven.
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“A Widespread Chill In Art Sales” – Wall Street Journal
