High-quality graphics and expansion as crypto bros dump NFTs

Global sales are expected to reach $67.8 billion in 2022, according to the latest report by business analyst Clare McAndrew for Art Basel and UBS Group. It marked an increase of 3% from 2021, which saw a 31% rebound in sales from the pandemic in 2020.

As the world’s largest economy, it was the US market that led the art industry last year. Andy Warhol’s Shot Sage Blue Marilyn, sold for $ 195 million in New York in May, became the second most expensive work sold after Leonardo Da Vinci’s Salvator Mundi, which sold for $ 450 million in New York in 2017.

While the US has retained its first place in the world rankings, it appears that the UK has also strengthened. The British art market has not recovered to pre-pandemic levels, but is looking for buyers after Brexit. The fall in sterling last fall didn’t hurt.

Everywhere, the most expensive works of art are the strongest sellers, according to McAndrew’s Arts Economics. Sales of more than $10 million were the only segment that increased the value of sales last year. This lot included Georges Seurat’s Les Poseuses, Ensemble (Petite Version), which sold for $149.2 million, and Paul Cezanne’s La Montagne Sainte-Victoire, which fetched $137.8 million. This high rate reflects the increase in luxury stores among the most valuable collectors.

In contrast, the demand for low-wage jobs reflects the fear of recession, inflation and rising interest rates that have influenced the behavior of the wealthy. The market started in the last quarter of 2022.

What is happening in the picture affects what is happening in the economy more broadly.

After the rise of the real estate markets and cryptocurrencies increased in value in 2021, more and more people, especially in the US, know the joy of buying up. But with the decline of technology and Bitcoin, and high borrowing costs, luxury companies such as the Burberry Group and Gucci-owner Kering have seen some young, ambitious buyers, continue to now in their wholesale sales.

In the picture, this is seen when it comes to non-fungible tokens (NFTs), certificates of authenticity that run on blockchain technology. With crypto bros spending their profits on NFTs alongside Audemars Piguet watches, sales of art-related brands are expected to reach $2.9 billion in 2021, up from $20 million a year earlier , according to Arts Economics, with data from Nonfungible.com. The boom was well represented by Beeple’s Everydays: the First 5000 Days, which sold for $69.3 million two years ago.

After peaking in August 2021, demand for NFTs has cooled due to the fall in the price of Ethereum—the cryptocurrency of choice for trading most of these tokens. Sales of NFTs are expected to halve in 2022 from the previous year, although sales of collectible NFTs continue.

Some young people are buying art like never before, but a separate report from McAndrew for Art Basel and UBS found that they are high net worth individuals, with assets of more than $1 million. so that there are no private property and businesses, and they have. has spent about $10,000 on art in each of the past three years. These millennial and Gen Z consumers are different from the crypto bros.

The question now is: How will the recent banking crisis affect the art market?

In times of crisis, art can be seen as a treasure trove. But stock-market volatility and layoffs in the tech industry and beyond could hurt demand. External problems can prevent sellers of economic activities from bringing them to the market, which is another important factor in determining the strength of international sales.

Either way, with the rest of the US, China holds the key to the exchange of art and jewelry.

Arts Economics notes that after the crisis of 2008, a booming market in China was one of the main reasons behind the recovery, with the sale again in 2010. Art Basel Hong Kong was busy last month, indicating that there is a lot of pent-up demand for the image.

This adds to the good looks from brands like Prada and Moncler that keep the luxury customers coming back. Analysts at Bernstein noted that some Chinese fashionistas have begun to travel abroad again. For those who sell the creations of Balenciaga and Basquiat, Chinese buyers are unlikely to unleash a wave of retribution that may not come soon enough.

Andrea Felsted is a Bloomberg Opinion columnist covering consumer and business issues.

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