External Shocks in the Art Markets: How Did the Portuguese, the Spanish and the Brazilian Art Markets React to COVID-19 Global Pandemic? Data Analysis and Strategies to Overcome the Crisis (original) (raw)
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Global Art Market in the Aftermath of COVID-19
Arts, 2022
Although the global art market has often been resilient to international economic and political events, it has faced some of its biggest challenges under the influence of COVID-19. Among others, the pandemic and the accompanying restrictive administrative measures taken by world governments have significantly influenced such key economic indicators as gallery employment, art sales, and the organization of international art fairs. This Special Issue studies various economic, social, and political impacts of the COVID-19 pandemic on the global art market’s current state and future evolution.
Why COVID-19 Will Not Change the Global Art Market
Arts, 2021
This article investigates the valuation of artworks during the COVID-19 pandemic. It examines how art market participants employ fictional expectations of the future to stabilize valuations during uncertain times. A total of 86 forecasts originating from both the center and periphery of the global art market were analyzed. Taking a meta-analytic approach, focus was placed on what each analysis predicts, how it constructs the future it purports to know, and how the expected value of artworks and methods for their purchase are justified. This uncovered the paradoxical reality of art market forecasts—their authors are convinced that the power of crisis could reformulate the art market, but their conclusions do not assume the possibility of real change. Further, the argument is made that speculation about the future is at the core of today’s art economy. Therefore, in a crisis, market participants conservatively orient themselves toward artworks that already have established value.
"The Show Must Go On". Ethnography of the Art Market Facing the COVID-19 Pandemic
2021
This paper aims at understanding, from the inside, the impact of the COVID-19 pandemic and the accompanying restrictive administrative measures on the art market. It is based on the interviews and ethnographic surveys made by graduate students from the Ecole du Louvre, from September 2020 to May 2021. This methodology makes it possible to demonstrate that, during the crisis, art market professionals were driven by the motto “the show must go on”. On the one hand, they wished to keep a straight face and remain silent on their individual difficulties, preferring to talk about their vocation and the positive effects of the crisis. On the other hand, the commercial activity continued despite everything; if the pandemic accelerated the digital turn of the art market, the physical contact with the works and the collectors remained primordial. The art market thus remained physical but accelerated its digital turn. The proportion of each interactional framework—physical and digital—is still uncertain, difficult to measure today and to predict in the long run.
Art markets in crisis: how personal bonds and market subcultures mediate the effects of COVID-19
American Journal of Cultural Sociology, 2020
We examine how the contemporary art market has changed as a result of the disruptions caused by the novel coronavirus. Based on interviews with artists, collectors, a dealer, and an auction house executive, we argue that the decline of face-to-face interaction, previously essential to art market transactions, has placed strain on each corner of the community. In the absence of physical co-presence with the artworks and art world actors, participants struggle to evaluate and appreciate artworks, make new social ties, develop trust, and experience a shared sense of pleasure and collective effervescence. These challenges especially impact the primary gallery market , where participants emphasize a communal commitment to art above instrumental speculation, which is more accepted in the secondary auction market. We find a transition to distant online communication, but the likelihood of this continuing after the lockdowns end and the virus dissipates varies according to the subcultures of these market segments.
Changes in the global art market
Oeconomia Copernicana
Research background: The dynamics of the art market are usually presented in terms of price fluctuations, price indexes and financial returns. This paper proposes the value and volume approach, which has not been considered in an aggregative way for a long time in the economic literature. Purpose of the article: The aim of the paper is to present changes in the global art market in the period 2002–2015. The results of dynamic analysis of the art market are presented, including two approaches: value of transactions and volume of transactions. The impact of the global crisis on the art market is considered. Methods: In order to present the changes on the global art market, statistical indexes of dynamics (single base and chain indexes) are used. Moreover, trend analyses have been conducted for the value and volume of transactions on the art market. The sources of data on the global art market are from Artprice, ArtTactic, and TEFAF (The European Fine Art Foundation). Findings & Value ...
Consumption of Art in Times of Crisis
Colocvii teatrale, 2021
Since the outbreak of the coronavirus pandemic, the arts and culture sector has faced a paradoxical situation. While demand for cultural and creative content has intensified over the lockdown period and digital access has become more critical than ever, economic indicators predict that the cultural sector will be one of the most affected and probably one of those that will recover slowly. Beyond short-term initiatives, such as surveys or data collection, aimed at providing artists and intermediaries with financial and logistical support, both academics and practitioners need to engage in a common mindset on the future of art consumption, especially from a consumer perspective. This article addresses the main challenges facing the arts and culture economy in times of global health crisis, identifying the specifics of cultural goods and services. Specifically, the paper shows the extent to which traditional consumption patterns have been affected and what research is needed to develop sustainable solutions. We argue that consumers will be critical actors in the recovery process, and in this respect four research directions are suggested: the collection of data on consumer cultural practices; consumers and digital cultural experience; consumer involvement and fidelity in art and culture; consumer welfare.
Journal of Economic and Financial Sciences, 2020
The global financial markets have been severely affected by the influence of the Coronavirus Disease 2019 (COVID-19). Across the board, most of the financial markets have experienced a very sharp decrease in trade as a consequence of this pandemic. Investors sometimes choose to include such assets in order to diversify portfolios and also at the same time distribute risk away from the usual financial markets. As the global economy begun to falter under the influence of COVID-19, the value of holding fine art as an alternative investment increased. Research purpose: This article examines the implications of the impact of COVID-19 on the financial markets and the global art markets. This article explores the real impact of COVID-19 on the respective stock markets and then compared it against the global art price index, both in European euro and American dollar. Motivation for the study: The impact of COVID-19 will have numerous spill over effects into other sectors of the economy, one such sector being the market for fine art. Fine art as an investment item has many desirable qualities to an investor and can act as an alternative investment asset because of its ability to hold value. Research approach/design and method: Five financial markets are analysed in this study, namely the German DAX, the American Dow Jones, the Japanese Nikkei and the London Stock Exchange and the Johannesburg Stock Exchange (JSE), Financial Times Stock Exchange (FTSE), by using a combination of market simulations and forecast techniques, including Auto-Regressive Integrated Moving Average (ARIMA), Generalized Auto-Regressive Conditional Heteroskedasticity (GARCH), Monte Carlo simulation and Minimum Mean Square Error (MMSE) techniques. The real impact of COVID-19 is assessed on the respective stock markets and then compared against the global art price index, both in European euro and American dollar. Main findings: The findings show that there is a significant positive influence on holding fine art as an alternative investment, especially as the levels of market risk increase because of COVID-19. Practical/managerial implications: The impact of an economic or social crisis has led to a diversification of trade in investments. Similar to currency portfolios been diverted into gold trade to mitigate risk due to political or social unrest, equity trading has mitigated some risk into alternative forms of investment. Contribution/value-add: This article highlights the nature of portfolio diversification into fine art as an alternative investment, brought about due to extreme market conditions.
Art and Resilience: The Artist's Survival in the Spanish Art Market — Analysis from a Global Survey
Sociology & Anthropology, http://www.hrpub.org/journals/article\_info.php?aid=6774, 2018
This article aims to diagnose certain characteristics of the resilient personality in the Spanish artists who developed their artistic careers in the years before the economic crisis that began in 2008 and who have suffered the resulting loss in their activity and their economy. Along with sources of positive psychology that analyze resilience as an individual's personal and social ability to effectively overcome situations of crisis, this paper is based on the research developed by the authors in recent years from data provided by more than 1,100 visual and plastic artists in Spain, a wide survey about the economic situation of this sector nowadays and the evolution since the beginning of the economic crisis. It also seeks to determine whether there is a resilient artist profile, which through personal, social and professional tools, has reoriented his career and maintains his artistic activity as the main source of income. The methodology used, both analytic and descriptive, allows determining not only what characteristics of the resilient personality may be detected in this group of artists, but also which tools they use to survive the crisis in the current art market.