Collectible Investments for the High Net Worth Investor

Chapter An Overview of the Art Market

Introduction

Although there certainly is a market for art, there is no homogenous art market similar to the public securities markets—that is, a broad-based, consistent trading market. Public market securities are bought and sold for the sole purpose of making a profit, whereas the art market is a fluid mix of buyers and sellers, most of whom probably do not have profit as a motivation. Investing in art, meaning to hold it solely for future appreciation rather than dealing in art (buying at wholesale and selling at retail), is a minor part of the overall market. The art market is highly fragmented into specialty areas, each of which has its own value criteria and its own community of interested buyers and ...