Is there an art bubble that is due to burst?

December 11th, 2012

The Bubble  Julie Mehretu squiggles - barely a decade old priced at $2.6 million - Emiliano Granado for NewsweekWith soaring prices for certain contemporary and modern artists, some say there are signs of a bubble that is about to burst, such as the fact that people are attracted to high prices and “trophy” art. Some say it is similar to “tulipomania” in 17th century Holland, whereby the insiders have already purchased, so the market expands to newer, international audiences to continue growth. One [anonymous] advisor put it like this:  “The market has to come down—because it has to. They don’t call it a market because it only goes up. You call that ‘magic.’” Others such as Mary Boone and Sean Kelly, question whether the frenzy at the top of the market is truly an indicator of a bubble. Kelly says, “Every time you thought the world was ending, this market has confounded that prediction.” Read more via Newsweek