The global art market is experiencing a second straight year of declines, with auction sales falling significantly from previous years. There is a decrease in wealthy collectors planning to purchase art, while more are considering selling. Despite this, collectors remain optimistic about the market’s performance, with a stable median spending on art. The shift in the art market is due in part to a generational change, with younger buyers preferring more affordable, modern works. As a result, there is an oversupply of expensive Impressionist and Abstract works, while high-end art sales have weakened. Gen Xers are now the most important generation for collectibles, with higher average spending compared to millennials and boomers. Wealthy collectors are reducing their exposure to art in their portfolios, potentially due to increased values in other investments. Concerns about the art market include barriers to international art movement and legal issues like restitution cases. The looming great wealth transfer could lead to a great art transfer, with the majority of collectors inheriting or receiving works through bequests. Despite assumptions that younger generations may sell inherited art due to different tastes, many opt to keep these pieces for emotional reasons.
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Big spenders in the art market driving a correction
