Function Magazine

Art, Fashion and Entertainment

Ever increasing art market

Posted by elegant On October - 3 - 2014

The estimated value of the art market is approximately $66 billion a year. The global outlook for 2014 is extremely bullish. Hedge funds and various other vehicles create funds valued at $1.3 billion a year to buy and sell art. According to an article in Barron’s, there are 72 global art funds of which 55 located in China and others in the West including Europe and the United States. More and more millionaires and billionaires are buying art pieces and there are more than 32 million millionaires in the world.

Most of the high value contemporary and postwar pieces are sold in New York at dealers and auctions. But sales are not limited to the US and people from Asia and Latin America are buying in New York too.

The U.S. is the dominant player in the art market. China in second place accounts for more than 24 percent of the market followed by the United Kingdom which accounts for 20 percent. China is the largest emerging market for art sales in the world lately. Today it is the second largest market behind the United States. One of the problems auctioneers are faced with Chinese customers is late or non-payment by the winning Chinese bidders.

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