The UPS and Downs by KAWS, £ 30000- £ 50000, is estimated, on a preview during a preview of the Philips showroom in Central London, ahead of their upcoming evening and day versions. Picture date: Friday 17 January, 2025. (Through the photo getty image by Ian West/Pa Pictures)
Ian West – PA Image | Pa Chitra | Getty images
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The auction sales are decreasing for the third consecutive year, as dealers, auctioners and collectors have taken into account a deep crisis in the art market.
Auction sales for the first half of the year in Sothabi, Christie and Philips fell by 6% to $ 3.98 billion in 2024 compared to the same period. The auction is the lowest in a decade of minimum (separating 2020 epidemic) and now more than $ 3 billion from 2022 to 44%.
Post -wise and contemporary art, which has been the main engine of development for art auction in recent decades, according to Arttactic, fell to 19% even more in the first half.
“Global economic growth, ongoing inflation, and increasing geopolitical stresses are expressing concern, weighing on confidence and creating a more cautious investment atmosphere,” Arttactic said. “These factors are likely to challenge the market speed in the second half of the year, as the industry is still suitable for uncertain global scenario.”
However, they are not showing concerns, money in other sectors of the economy. Rich’s prosperity is at a record level, top 10% of Americans add $ 37 trillion to their money since covid, marking a 45% increase. The stock markets were more than 20% in both 2023 and 2024 and are still up again in 2025. Housing values and commercial evaluation have also increased by adding to individual funds.
Yale’s professor William Goitzman has studied the relationship between art prices and financial funds that are going back in 300 years and found that they are “highly correlated.”
“Art demand increases with the wealth of art collectors,” he wrote in his famous paper “Taste, art and accounting for financial markets in three centuries.”
With personal funds at All-Time High, however, Goitzman said the 300-year correlation was broken. He said that one of the two explanations for deviation is: either the art market is a temporary aberration and will bounce back this year or next year, or the art market is undergoing a more structural change.
He said, “The question is that any fundamental deviation from the social criteria of very rich involves collecting art at the highest prices and levels,” he said. “We don’t know yet.”
This fundamental deviation, if it is happening, may be linked in generational changes in money. For decades, the art market has been largely operated by Baby Boomers, who created large art collections as their wealth grew in the 1980s, 90s and in the 2000s. Many of those baby boomers collectors are now buying low or downsizing. And a growing number is leaving wealth with large collections to sell, as their children often do not want art.
At the same time, the new generation of the rich – millennium and General Z – the more digital worlds and the 20th -century artists may not have the same taste or interest in paintings. More than $ 100 trillion Money is expected to be passed mainly from baby boomers to the next generation, some experts say that art market may show symptoms of structural changes and more existence crisis.
The auction houses are running to customize with more online sales, luxury goods and low -priced offerings. Auction sales in the luxury category – including jewelry, handbags, alcohol, watches and sports memorabilia – the first half increased by 1%, even a decline in arts sales, according to the arttactic.
Jewelry is especially bright glow among young, women collectors Money changes womenJewel and jewelry sales jumped 68% in the first half than a year ago. Online auction is also getting a fast share on physical auction as young collectors like to bid with their phones.
The total auction sales in Christie were stable in the first half, thanks to the large part of online sales and luxury. Its luxury sales, including classic cars, rose 29% to $ 468 million. In highlights: Mary-Thres Pink Diamond, stated that Mary was from Antonate, sold in $ 14 million, and “Blue Belle” fancy Vivid Blue Diamond moved to $ 11 million.
Glow from jewelry and luxury items is also helping Sothabi, which sold its own blue diamond, the famous “Mediterranean Blue” in May at $ 21.5 million in May after a fierce dialect war.
Young collectors are strong demands for collectual collections priced less than $ 100,000, with the most competitive bid for work under $ 50,000. At the top end of the art market, with a price of more than $ 10 million, declined by 39% last year, while ART Basel and UBS Global Art Market Report increased to 13% sales of work less than $ 5,000.
Bony brainonChristie’s CEO, told reporters that the main mission of the auction house is to offer items that its customers want today, and offer them at the right price – especially for the new generation collectors. This year, 80% of the dialects have been completely online and about one -third of the winning dialects have come from Millennial or Jean Z buyers.
“We are showing great relevance to General Z for the younger generation, for millennium,” Brainon said. “This is something that is really important to pursue our business.”
