The global art market is booming

Although the global recession of 2007–2009 did take its toll in the art trade sector, rapid recovery soon followed. The art market shows continuous growth both in terms of volume as well as in terms of transaction value.

Art is an effective alternative investment

From a historical point of view, artworks may be characterized by several features which make them attractive alternative investments for portfolio diversification:

  1. assets with historically continuous value increase
  2. effective inflation hedge in times of uncertainty
  3. low rate of correlation with shares and other asset classes

The Czech Art Market

Compared with the record year of 2013, a slight decrease in the ART + index – which maps the Czech art market based on turnover, price increases and the value of unsold items – took place in 2014. However, a more detailed study of market parameters ascribes this reduction to a decline in supply. The end of 2014 and the first months of 2015 once again point to a recovery on the supply side and thus a larger number of artworks available on the market.

The past year was also symptomatic with respect to price records achieved by works valued at 100,000 to 1 million CZK (medium price range), suggesting a gradual expansion of collector interest in additional artists and a slight increase in prices. Individual segments of the domestic art market may thus be of interest, including e.g. Czech German art, a primary area of specialization since the foundation of Pro Arte, which is currently growing and which offers some very interesting opportunities from an investment point of view.

The development of the modernism segment is equally interesting. Although the past two years registered a slight decline due to the lower number of works offered on the auction market, a growing long-term trend is clearly discernible. This segment forms a key component of the Pro Arte collection, with added emphasis on locating authors who contribute to expanding and developing the
modernism category. Thanks to these authors, Pro Arte is thus able to contribute to the development and strengthening of the art market as such.