That is the topic of my latest Bloomberg column, here is one bit:
Recently an Andy Warhol painting sold at auction for $195 million, the highest price ever for a 20th century artwork. A dance hall-themed painting by Ernie Barnes went for $15.3 million, 76 times the original estimate. The Macklowe collection sold at Sotheby’s for $246.1 million, the most ever for a single collection.
First, savings are still high due to stinted consumption from the pandemic. And many of the wealthy have been buying additional homes and wish to furnish them with art.
Second, the recent run-up in inflation rates around the world has intensified the search for hedges. There are few true inflation hedges, and crypto now has been knocked out of that role. But art can serve as an inflation hedge in almost any environment.
Art gives its owners the pleasure of looking at it on their wall, and no rate of