totally

I found Alan Bamberger's linked essay "ART, MONEY, SHEPARD FAIREY, BANKSY, AND THE QUEST FOR CLARITY" more interesting. These 2 essays bring up a valid point....

It is a brave new world for art buying BUT this frenzy plainly can't go on for ever. most normal people can't afford to keep dropping the cost of a small family car on art each month. And those that do will indeed get bored and move on to the next thing.

Me, I don't mind, I may have bought a lot of art this year but very very little of it has been on the secondary market and none of it was over a grand. Those people burning through the credit cards to buy art had better be careful....

Regardless if it continues indefinitely or pops soon, what I think many don't realize is that they are cogs in a much larger machine. The people really making money are not the Ebay print flippers - they are the monied people buying originals and reselling them within a years time for 2x+ what they originally paid for it.

The print frenzy just adds fuel to the fire that the originals selling privately & at auction will realize ridiculous returns. Think of what would happen if the original of one of the top print images was on auction!

Once again I agree with you pezlow that a lot of people should be careful (are going to get burned). Congrats on the mod position also! Good to know I know people in high places

I hope it does pop so i can pick up some more banksy on the cheap! oi oi

Well spoken, and a legitimate points. I am glad to see others thinking along the same lines I do.

One comment in addition to those everyone has made that needs to be pointed out is the fact this art market we are witnessing has been perpetuated by its own growth, and that is not likely to last. Talk of running up debit to make purchases, and spending such large percentages of income on art is a worrisome prospect. It speaks to the slowing in growth of the collector base's ability to keep up with pricing at the entry levels. The basis influx of cash needed to maintain the current price levels and sustain continued growth margins is on the rise and will need to be a exponentially greater multiple as time goes on if the value of work is to continue rising. While there are some people here with loads of dosh to be able to buy whatever they like, most other people have been able to justify the more expensive expenditures they are currently making by having the ability to offset the additional expense with profits made from offloading pieces they bought years ago for relatively cheap. Mentally, those profits are like 'found money', and that allows them to go drop huge chunks of cash that they (in most instances) would otherwise never be willing or able to pay. That works fine so long as there is continued growth in those lower levels of purchasing to be able to keep demand out of sync with supply and continue maintaining (or raising) prices. The problem is, without a continued growth in that lower area, prices at the top will slow up first, then fall with the lack of expendable money coming from below, which would likely take prices substantially down across the whole market.

In closing, as has been said many times here... don't buy art as an investment, buy it because you love it. Also do not go into debit for art, as it is a liability that you have to outlay cash (interest) for, insure, house/store, and in the end there is no guarantee of breaking even on your expenditure, let alone profiting from it!