An ailing art market

Since the financial crisis began, the art market has taken a series of severe blows and is now subject to various external and internal pressures. In the United States, for example, the fall in private subsidies to the Arts has led to significant personnel reductions at some of the most prestigious museums (the Detroit Institute of Arts and the Museum of Contemporary Art in Los Angeles have both cut staff by 20%). At the same time, an enormous volume of cash that was fuelling the market has literally disappeared as the new ultra high net worth individuals in Russia, India and Turkey have seen their fortunes substantially diminished (by the end of Q1 2009, the world counted 300 less billionaires) and the banks have stopped financing acquisitions of art works: the giant UBS has closed down its art advisory pole dedicated to buying and selling artworks.

Read the analysis in Artprice.com here.