Art Market Braces for Prudence in New York Amid Economic Uncertainty

New York, May 3 (EFE).- The art market will bet on prudence this month in the fairs and auctions that come to New York due to economic uncertainty, which suggests low growth in sales after two years of strong post-pandemic reactivation, as indicated this Wednesday by representatives of the sector.

Bank of America published today its biannual report on the art market, in which it considers that the first half of the year will be a “litmus test of resilience” and that for now there is “continued demand, but less speculation” in the ultra-contemporary art, and a greater focus on modern and surreal art.

On the occasion of the publication of the report, the entity, which has an art services department, addressed these forecasts in a virtual conference together with a representative of the TEFAF fair, considered one of the “crown jewels” and which presents the next week in New York, an important setting for the sector.

The bank’s head of art services, Drew Watson, told EFE that after two years of strong sales in the large auction houses, which in 2021 raised 70% more year-on-year and in 2022 13% more -up to a record of 65,100 million dollars (59,000 million euros) -, this year “double digits will not be seen”.

He explained that in times of uncertainty -in this case financial volatility, inflation and high interest rates- many collectors or asset managers opt for private sales instead of auctions, since they offer more control and flexibility compared to the latter, in which discounts are also expected.

He said demand remains strong, but buyers will be “cautious” and lean toward “top-notch” art offered for sale by established collector managers such as tech founder Paul Allen, media mogul SI Newhouse or record executive Mo Ostin, who star in the most anticipated auctions of May in New York.

These are some of the trends advanced by Bank of America, which has collectors whose works are the most important assets of its heritage as clients of this service, and which seeks to expand its influence to new generations, since in the coming years You will see a “transfer” of capital to the heirs and philanthropic organizations.

In this sense, Watson considered that the incursion of new collectors is, in part, behind some market trends, such as the increase in acquisitions of works by women artists, Hispanic or Latino artists, from the Middle East or Asia, and works digital or NFT.

The next generation, he said, buys and sells art “in a more dynamic way” than its predecessors, has an interest in the works as an “asset” and wants to create collections “that reflect their own values.”

Hidde van Seggelen, the president of the executive committee of TEFAF, highlighted that the hundred galleries and dealers from all over the world that participate in the fair go through high quality standards and “scrutiny”, including the legal origin of their pieces, among the that will highlight several female artists on the rise.

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