Art market prices heading for record highs in November 2005

Art prices are now at their highest levels since the speculative bubble burst back in 1990. The Artprice Global Index calculated using data on repeat sales reveals that following the fall auction season in New York, art prices rose by 24.4% between January and December 2004. Taking into account fluctuations in exchange rates, the increase in euro terms was just 14% over the same period.

If prices continue to advance at the same pace as in 2004, they could well surpass November 1990 highs in November 2005, thus taking art market prices to unprecedented levels. Collectors seeking to make substantial gains might by that stage consider it the right time to sell off some of their art assets they acquired in the 1980s.

Artprice Global Index (July 1990 – Dec. 2004)
Base July 1990 = 100 EUR

While prices for most impressionist artists were strongly driven by speculation between 1989 and 1990, today they are far below these levels. For example, works by Monet are still valued at 36% below 1990 levels, and pieces by Pissarro and Sisley have lost 25% and 43% in value respectively. Even the historic work “Au Moulin de La Galette” by Renoir that fetched USD 71 million on 17 May 1990 would sell at a loss, given that on average Renoir prices have fallen 47% since this painting went up for auction. Overall, although the Artprice Index of impressionist painters remains 36% lower today than it was 15 years ago, it has still gained 44% since 1997.

Artprice index for the main art movement trends in 1990- Dec. 2004.

Renaissance: -21% 17th C. Nothern School: +12% 18th C. French Paintings: -27% Romanticism: -19% Barbizon School: +8% Hudson River School: +248% French Impressionism: -36% American Impressionism: +164% Cubism: -25% Surrealism: -16% Expressionism: -22% American Abstraction: +85% Pop Art: +123% Contemporary Photographs: +57%