Deloitee Art and Finance Report 2019

 As I quickly mentioned last week, one of my favorite art market reports was just released, the 6th edition of the Deloitte ArtTactic Art ad Finance Report for 2019.

Will have more over the next week or so as more reviews and comments on the report come out and I have had more time to review and digest the analytics and content. In the mean time, to download the full report, click HERE, for infographics (a few are below) click Here.

Deloitte states about the report

Art & Finance Report 2019 – 6th edition
Since launching the initiative in 2011, Deloitte and ArtTactic have seen the global art market ebb and flow: from the aftermath of the financial crisis to the peak of the market in 2016. In parallel, we have also monitored how the wealth management sector is increasingly responding to competitive pressures in its own industry, and the role art and collectible wealth are playing in the transition to a more holistic wealth management model.

Since our last report in 2017, external factors such as increasing political and economic uncertainty, rapid technological progress, climate change, and social inequality have dominated the headlines on a daily basis. We live in a changing world, fraught with uncertainty. This is the context in which we should view the global art and finance industry—the crucial intersection between culture and wealth.

We hope that this report will help to raise awareness of the developments and initiatives that have emerged within the art and finance industry over the past couple of years. Transparency, regulation, and technology trends will play an important role in the future of the art and finance industry.

However, a collaborative approach between all stakeholders (art professionals, collectors (young and old), and wealth managers) is essential if we are to address the pressing issues and challenges we face, particularly as regards increasing trust in the art market today and in the years to come.

Barron's reports on the Art Finance reprot  stating in its headline "The Global Art Market Takes a Downturn"

The global art market slowed down in the first half of 2019 on the backdrop of heightened political and economic uncertainty, according to an annual Deloitte report out Monday.

During the first six months of this year, global auctions sales from Christie’s, Sotheby’s, and Phillips dropped to US$5.55 billion, down 20.3% from US$6.96 billion recorded in the first six months of 2018.

The slowdown was more accentuated in the Chinese and Asian art market, where total sales declined 53% year-over-year to US$447 million in the first half of 2019.

Last year, global auction sales of the aforementioned three major auction houses increased 8.9% to a combined total of US$12.21 billion, the highest point since 2014, according to Deloitte’s Art & Finance Report.

Additionally, about 81% of collectors surveyed by Deloitte in conjunction with ArtTactic said they wanted wealth managers to incorporate art and collectibles to their service offerings, which was up from 66% in 2017 and the highest reading since the report was launched in 2011.

However, the ArtTactic Risk Barometer—which measures collector’s perception of the risk in the art market—stood at 7 in September on a scale of 10. That was above its 10-year average of 6.4 and up 10% from the reading of September 2018.

Among experts surveyed, 29% believe the art market will go up in the next six months, versus 51% who said the same in May 2019.

The decline in the market confidence is a result of the global political and economic uncertainty, including heightened risks of Brexit and the U.S. trade war with China. Meanwhile, the lack of transparency, as well as prevalence of speculative behavior in the art market, are also major concerns from collectors, the report said.

This year’s report, the sixth edition of Deloitte’s Art & Finance Report, is based on surveys of 54 private banks, 25 family offices, and 138 art professionals, from April to June 2019.

In addition to the global art market trend, the report also dealt with topics including art and wealth management, art-secured lending, art as an investment, art and technology, and risk management.

Source:  Barron's

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