A Shifting Picture
Yet, regardless of how people buy, a crucial element is missing: certainty.
Without confermation of authenticity, history and potential returns, an artwork can represent a risk fewer buyers will take. Fewer investments translate into fewer movements, decreasing the market’s opportunities and fluidity. It is a vicious circle.
The implications of this are far-reaching for everyone. While art should be for everyone, only the financially stable and those willing to accept risk have genuine access.
As the internet plays a more important role in people’s buying habits, it is our goal to ensure the security and certainty provided by blockchain technology are also present in the art world, unleashing further benefits for everyone in the market.
Today’s art world is changing. Overall sales decreased by 11% in 2016, with over 40,000 professionals investing less in a supply-driven market for the second consecutive year. Yet, it remains in good health.
This is largely thanks to its participants’ profile evolution. Traditional outlets are increasingly turning to alternative channels like the internet and social media, helping them reach new clients and transact internationally. Indeed, of Sotheby’s, Christie’s and Heritage’s combined $720m sales in 2016, 19% took place online.
Factor in the increase of gallery and private collector volumes by 20% in 2016, and it is clear to see the art landscape is shifting.
A barometer for the art and finance industry, this issue examines art’s place in a prosperous wealth management portfolio.
Looking at the global state of the art market in 2016. Contrasting the fortunes of dealers and galleries, as well as a look at the countries accelerating in growth and changing trends.
The evolution of art into a truly global market, with a more diverse ownership base than ever. How the prevalence of art fairs has accelerated this growth and helped boost sales.
Art’s journey to become a genuine investment channel, and how globalisation of the market has driven growth against an uncertain financial backdrop.
How high net worth individuals are seeking ‘treasure assets’, including art. Examining the motivations behind this, and their context individual wealth.