By Keyanna Harper
- Private art collectors are taking a step back in their spending citing a strained economic and geopolitical environment
- The market growth for works by Black American artists has enjoyed a 400% increase over the last decade but it’s taking a tumble
Art collectors are adjusting their investment strategies downwards because of the unpredictable and ongoing economic changes. 2023 saw them slash their investment portfolios to 19% from 24% in 2022. This takes a toll on the already declining Black artists’ representation in global auction sales which currently stands at at 1.9% from 2008 to mid-2022.
Why This Matters: The volatility present in the art market is worrying despite the growth witnessed in the period 2008-2022. A decline is now being experienced which highlights how art can be a fluctuating investment asset. And even though Black artists accounted for 1.9% ( to $3.6 billion) of global auction sales between 2008 and mid 2022, it is still considered underscoring because of the inconsistencies and complex dynamics at play within the art market.
With a shifting market landscape, art collectors are paying greater attention to due diligence. Nearly half (47%) of collectors are now actively engaging in art resales driven by a shift in their collecting approach. This trend emphasizes the growing importance placed on financial motivations in art purchases within the community of art collectors. The impact on the art market can vary, and some artworks may maintain or increase in value during economic downturns. Additionally, individual collectors’ decisions may differ based on their risk tolerance, financial goals, and personal preferences.
Situational Awareness: The art market particularly concerning artworks presents both challenges and opportunities, for those involved. While exercising caution helps protect collectors from potential risks, it may also contribute to a more risk-averse environment. This could impact the market by reducing the frequency of high-profile sales or speculative investments, potentially leading to a more stable and sustainable market in the long run.
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