Categories Art Market, Financial asset, General, Rentabilidad, Yield

Uncorrelation with financial market and art opportunities

Financial markets are not only disconnected from economic reality but also from the art market. These two graphs show three facts corroborated by themselves and by information obtained from the latest Art Basel and Artprice reports published in March 2021:

1 / The uncorrelation of the art market with respect to the financial market. The current excess of liquidity has caused an excessive rise in the stock price, as can be seen in the second graph, which shows the difference between the S&P500 index compared to the real US economy (based on GDP growth).

2 / The opportunities to buy art at certain discount over its market value given current general depreciation of the art market, as can be seen in the first graph, mainly caused by the pandemic crisis.

3) And the excess supply of low-valued artworks also reinforces mentioned depreciation.

For all of this, never better than now to invest in art funds that acquire works of greater value than $100K such as ArtsGain funds.