Hirst’s naysayers doubt that. They trace his fall to a $200 million auction staged in 2008, on the day Lehman Brothers collapsed. Hirst sold hundreds of works directly to bidders, defying the custom of restricting supply. “Hirst screwed with his market, and it came back to bite him,” says Michael Plummer, principal of the investment advisory firm Artvest Partners. “He broke the economic rules of the industry.”
A surging art market and manic global equity and bond markets have many investors looking at their collections for returns. But a surging art market and manic global equity and bond markets have many investors looking at their collections for returns. Jeff Rabin discusses how a masterpiece can fit in your portfolio.
Regarding art funds, one of the most talked-about art investment vehicles, Jeff Rabin notes that we are seeing and will continue to see a steady climb in the number of funds coming to market. Based on Artvest’s numbers and data, he estimates the global art-fund industry is somewhere in the $1 billion range, with Asian funds accounting for approximately one-third of that total.
As interest in Latin America increases and its art becomes a more meaningful component of global collections, there are important considerations buyers and sellers in the category need to take into account. These issues are particularly critical for collectors who want to trade in Latin American art internationally.