Negative interest rates have increased investment in the Art Market.
The biggest challenges of this century is the negative interest rates practiced by central banks. These rates seriously undermine all forms of cash savings, hence the explosion of the Art Market in which Artprice has shown, with data on millions of transactions, that the yield on an artwork costing €20,000 is 9% p.a. and a work costing €100,000 provides a perpetual annual return of 12 to 15%. In volume terms, the Art Market has grown by 1,200% since 2000.
So this is the macro and micro-economic basis of today's Art Market: a market that has emerged for the last 16 years as a safe haven against economic and financial instability, with substantial and recurring returns.
The Art Market is an efficient, historical and global market whose ability to withstand economic and geopolitical crises is well established.
Against a backdrop of negative interest rates, the Art Market looks remarkably healthy with its Contemporary segment alone posting a 1,200% progression of annual turnover over the past 16 years and a +43% linear progression of the average value of an artwork. These returns are not limited to star signatures; in fact our data shows that works valued at above $20,000 already generate significant annual yields of 9%.
Art prices keep changing scale. Topping at around the $10 million threshold in the 1980s and then reaching the $100 million bar in the 2000s, the New York Times reported the sale of a Gauguin painting to a Qatari buyer for over $300 million (NYT, 5 February 2015). Artprice believes it will not be long before the billion-dollar threshold is crossed.
Artprice.com's department of Econometrics and Statistics will thus release a study on yields for different management profiles.
Artprice.com's department of Econometrics and Statistics will thus release a study on yields for different management profiles. The needs of banks and financial institutions, that are hit hard by central banks' negative interest rates and do not want to penalize their clients, find the necessary resources with Artprice, who will start offering a Art Market investment logic with its partners at the beginning of next July, with all necessary precautions and the definition of potential risks by investment profile.
Artprice is listed on the Eurolist by Euronext Paris, SRD long only and Euroclear: 7478 - Bloomberg: PRC - Reuters: ARTF.
Artprice is the global leader in art price and art index databanks. It has over 30 million indices and auction results covering more than 620,000 artists. Artprice Images(R) gives unlimited access to the largest Art Market resource in the world: a library of 118 million images or prints of artworks from the year 1700 to the present day, along with comments by Artprice's art historians.
Artprice permanently enriches its databanks with information from 4,500 auctioneers and it publishes a constant flow of art market trends for the world's principal news agencies and approximately 7,200 international press publications. For its 4,500 000 members, Artprice gives access to the world's leading Standardised Marketplace for buying and selling art. BPI-labelled Artprice develops its Blockchain project for the Art Market.
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The 2015 Art Market Report contains the famous Artprice ranking of the world's 500 most sought-after artists, the top 100 auction results, market breakdowns by country and by city, by period and by medium, Artprice indices and 21 chapters that provide an uncompromising analysis of the Art Market. It is available free of charge in PDF format at http://imgpublic.artprice.com/pdf/rama2016_en.pdf
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