The art market and art shows, according to economist Joachim Fels of Pimco remarkable parallels with the real economy. “Especially the higher segment is a mirror of the economy and the society.” Fels lists 5 terms of its agreements.

Last week, the painting was Portrait of an Artist (Pool with Two Figures) by David Hockney are auctioned off for eur 90.3 million dollars, a new record for a painting by a living artist. It amazes economist Joachim Fels of Pimco by any means. The parellellen with the economy, according to him, is too great.

1. Stock market and art market are similar to

The ups and downs of the art market follow the course of the economic and financial market cycle can. Just before the financial crisis of 2008, the sales volumes and the prices of works of art through the roof. Then laid them fully in, in 2009, a verkoopdaling of 40 per cent from the peak in 2007.

Fels: “The strong recovery of the art-buying process in 2010 and 2011 had a lot to do with the fear that the nulrente and the monetary easing in the inflation hole would hunt. Art is, after all, by many, as the value of the investment seen in times of inflation. But when the inflation did not come, ebbing a part of the enthusiasm away. The negative interest held the interest in art as an investment are still somewhat alive. But now the interest rate rises again, the results of art auctions more volatile”

2. Good bye mid

The increasing incomes and vermogensongelijkheid between the rich (the top 10 percent) and the super-rich (the top 1 percent to 0.1 percent) is reflected in the art market. So is the sale in the mid-market segment, where works of art between 50,000 and 1 million pounds are sold, the doldrums hit. Many smaller and medium-sized galleries had their doors close.

Compare that with the sales in the high end segment that new peaks knows, driven by billionaires. “Meanwhile, there are all kinds of supergalerieën surfaced, aimed at wealthy private art collectors who unique and iconic pieces wanted to buy, for home or a private mueseum.”

3. Beware! There comes Asia

The economic rise of Asia is reflected in the international art market. According to Christie’s, the art-buying process to Asian buyers 30 percent of the total art-buying process and sales over the past decade, with a 325 percent increase.

4. Collateral for debts

The latest trend in the art sector that the developments in the economy reflects, is the rise of loans with art as collateral. Much of the work as an investment to be bought, used as collateral for loans.

5. Pay with crypto’s

Digital start-ups bring small investors together, often with the help of cryptomunten. “It seems as if the one bubble (bitcoin) used to be a different to buy (art), but of both I know too little to determine whether they are actually soap bubbles or not,” writes Fels.

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