Market Report by Art Economics founder Clare McAndrew. The global art market raked in over $53.9 billion U.S. — an all- time high. Moreover, the annual sales figure has finally surpassed the 2007 pre-recession high of $51 billion. In February of 2015, Paul Gauguin’s painting of two Tahitian women titled When Will You Marry? was purchased for an estimated $300 million by an unidentified buyer, and holds the record for the most expensive painting ever sold.

In November 2015 the painting Nu

couché (Reclining Nude) by the early-20th- century artist Amedeo Modigliani sold for a whopping $170.4 million at Christie’s the

auction house breaking yet another record. It was the second-highest price paid for an artwork

at auction. Modigliani’s painting

became the 10th work of art to reach nine figures at auction. Both of these artists now join the ranks of Picasso, Warhol, Van Gogh, and others whose works command the highest prices.

So what makes art valuable? Demand drives price and today there is plenty of demand for art. Many of the big buyers are from the burgeoning economies of Asia, the Middle East, and Russia, but domestic demand is also high. Investors with cash are trying to find alternatives to a shaky stock

market and precarious property market. At the same time, while art can make a good investment, experts warn collectors not to expect too much too soon. “Investors in stocks and shares want to buy at the lowest price and sell at the highest. With art, it’s more important that they love a painting or sculpture and get an emotional dividend from it,” said Karl Schweizer, head of art banking at UBS. Art is a good investment if it has been created by the “right” artist.

ABOVE:

“When Will You Marry?“, 1892 Paul Gauguin Oil on Canvas 30.3" x 39.8"

LEFT:

“Nu couché“, 1917 Amedeo Modigliani Oil on Canvas 36.2" x 23.6"

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