Andy Warhol’s $32 million self- portrait and Willem de Kooning’s $15 million painting of a redheaded woman will tempt billionaires from Qatar, Hong Kong and Moscow at the world’s largest modern and contemporary art fair this week in Switzerland.
As the fine art market rebounds from a two-year slump, investors should consider what happened when two established appraisers were called upon to place a value on Hole and Vessel II, an abstract sculpture by Anish Kapoor .
In ways that are not immediately obvious, today’s overheated art market can help us understand the recent collapse of the overleveraged global economy. Though few have made the connection, developments in the art market have been following the changing investment strategies in financial markets. The global growth in the art market parallels the worldwide spread of finance capitalism. In recent years, the value of art assets has often risen faster than the value of real estate or financial assets.