Arts market: A bubble in its infancy?
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In 2009, the record-breaking prices were created despite a decline in overall transaction volumes from previous years. In other words, stellar works of art have significantly contributed to overall revenues.
Some critics have warned that the continued influx of money into the arts market by speculators, many of whom are believed to be from the newly rich, has pushed prices up, creating bubbles of speculation and potentially putting the market in harm's way.
But the money always goes where the profits are. And with more and more rich investors coming in and becoming obsessed with antiques, the market will gradually stabilize.
One problem is that many of the wealthy are buying art not out of genuine understanding of art but to show off, taking the works as status symbols like other luxury goods.
Still, a considerable number of affluent collectors are one-off buyers and the idea of spending years to build a collection is still quite foreign.
To guide people who are buying works of art, major galleries and auction houses are taking up the role of educators and custodians of what is effectively a frontier market.
For instance, China Guardian Auctions and China Poly International Auction, two giants in the local markets, arrange frequent lectures and exhibition tours of key lots in inland cities such as Taiyuan, Chengdu, and Wuhan.
During an interview, Wang Gang, actor, TV presenter and collector of antiques, revealed a long list of celebrities who are collecting traditional Chinese art.
"First of all, collecting is a personal hobby. Investment is not my focus," Wang said.
But I believe that for most collectors who have turned rich overnight, the art market, especially the market for traditional and classic art, is a safety net for their money.
In the long run, participation from the newly rich will boost the local art market immensely.
