Artprice: Contemporary Art Market Annual Report

 Business Insider recently posted a quick press release on the Artprice Contemporary Art Market Annual Report. 

To read the full Artprice Contemporary Art Market Annual Report, click HERE.

On investing in contemporary art, the report states

"The Art Market has become structurally efficient over the last 17 years. But in order to ensure you obtain an interesting return on a resale, you still have to take into account – using the price indices and decision making tools proposed by Artprice – the liquidity of each artist, his or her annual volume of sales, and of course the geographical distribution of the artist’s market.

In sum, Contemporary Art represents a competitive alternative investment to financial markets, which since 2007, have never really recovered. Indeed, despite negative Central Bank interest rates and quantitative easing programmes, many economies are struggling to avoid deflation. As with equity markets, to achieve a capital gain on Contemporary Art you have to follow all the news concerning the creators of the works in your collection. In fact, just like equity markets, the prices that a Contemporary artist commands depend above all on information… because information is essentially the primary factor in “value creation”, in all senses of the term."

Business Insider reports

Artprice: Contemporary Art Market Annual Report: Turnover up 1,400% in 17 Years ith an Average Annual Return of +7.6%
PR Newswire
 Sep. 27, 2017, 02:26 PM
PARIS, September 28, 2017 /PRNewswire/ --

Contemporary Art leads the Art Market with Frieze Art Fair in London and the FIAC in Paris

On the whole, the Contemporary Art Market is substantially profitable over the medium and long terms. Despite several corrections, our price index shows that the segment has retained its early-2000s vitality. Turnover growth of +1,400% in 17 years (US$103 million in 2000 to US$1.58 billion in 2017) reflects an extremely dynamic market. Artprice's Contemporary Art Market Annual Report (2016/2017) is available free of charge at the following link:

https://www.artprice.com/artprice-reports/the-contemporary-art-market-report-2017

The chronic financial and economic crisis affecting the world economy since 2007 - clearly illustrated by the widespread recourse to negative interest rates - makes the Art Market look like a desert oasis. According to thierry Ehrmann, Artprice's founder and CEO, the Art market has experienced a healthy adjustment that was both necessary and predictable, leaving the Contemporary Art segment center stage.

This year, the Contemporary Art Market generated a stunning new record with its first-ever result above $100 million. The segment's previous record, $58.4 million for a work by Jeff Koons in 2013, was demolished by the $110.5 million paid for a work by Jean-Michel Basquiat.

Contemporary Art has emerged as the art market's primary locomotive, a role historically played by Modern art, and its figures confirm the general trends outlined and analysed in Artprice's latest semi-annual Art Market Report published in August 2017, online at http://www.artprice.com.

In most cases the acquisition of a Contemporary artwork is made in the absence of History's final verdict on the value of the artist who created it. However, the last 17 years have shown that a well-diversified portfolio of Contemporary artworks generates an average annual yield of +7.6%, substantially higher than the art market as a whole.

Key figures:

1. 57,100 Contemporary artworks sold at auction last year (+3.8%), with every result integrated into Artprice's database.

2. $1.58 billion in auction turnover versus $1.5 billion for the previous period.

3. +1,400% turnover growth since the year 2000.

4. US turnover of $690 million confirms its place as global leader, far ahead of China's$370 million.

5. The UK has been relegated to third place with $348 million.

6. France, fourth with $38 million, generated 2.4% of global auction turnover, down 9.5%.

7. Painting, which accounted for 72% of the total, remains collectors' preferred medium, followed by sculpture (11%).

8. The museum industry - opening over 700 new museums per year - is contributing to a rarefaction of the Art market and provides a solid economic reality for artworks, accepted by a broad consensus.

9. Today, museums, art fairs and artistic events of all types are increasingly proving that Contemporary art engages with the general public and is no longer the preserve of a privileged class.

Brand new report

Available for free online, the new 2017 Artprice Report exploits its Decision Support Systems to combine five analyses that shed light on the development, organisation and latest trends in the Contemporary Art Market. Five studies that explore the market's most sensitive topics and provide insight for art consumers, collectors, professionals and institutions active on the Contemporary Art Market.

1. Return to a growth path

2. Current trends

3. Enthusiasm for Street Art

4. Towards gender parity in the Art Market

5. Financial attractiveness of Contemporary Art

The Top 500 Contemporary artists

Source: Business Insider