Picasso's creations still fetch millions.
For those clients with an extra $20 million or so burning a hole in their pocket, is it time to invest in—or bail out of—the collectible art market?
Prices paid at the high-end auctions certainly have been drawing attention, with Christie’s and Sotheby’s selling over $2 billion in art this November.
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Kräussl has researched the market’s price moves and has found that “an important rise in prices of artworks does not necessarily mean that there is an active speculative bubble in the art market.” He has applied statistical analysis designed for bubble detection to almost a million painting auctions from the past 35 years.
His findings? The Impressionist and Modern segment has rebounded since its correction from the 1991 bubble, but it is not yet in new bubble territory.
