Recessions and art and $100,000 means something again

Friday, 17 July, 2009

Hmm, one reason investors buy artworks during economic downturns is because a substantial sum of money, such as US$100,000, once again feels like a substantial sum of money.

Art Basel’s buoyancy this year has several causes: the return of fervent collectors who prefer to buy in a down market; the swift reaction of dealers willing to lower their prices to ensure a sale (collectors were in a good mood because “$100,000 means something again”); the perception that art is more solid than some other asset classes; and the keenness of many buyers to divert savings out of their Swiss bank accounts.

Related: , , , ,