Global Art Market

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I. Global Art Market Overview

1. The Art World and The Art Market
For the recent last decades, art market has become very popular with a boom in total sale revenue worldwide. People start to participate and pay attention to the art world more interactively and frequently. For example, art institutions have gained more admissions than ever before; museum visits surged globally and more people are willing to pursue an art-related career. Generally speaking, art world is broader than the art market. The art world is a overlapping subcultures held by a belief in art. They spread out globally but cluster in art capitals such as New York, London, Los Angeles, Berlin, and the emerging market such as Hong Kong, Beijing and Dubai. The market
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The art market paradigms have been changing significantly over the last few decades. China, Russia, Middle East, Brazil, Africa has becoming the new emerging markets for the total increase number of participants and trades. Even though art is becoming more attractive to investors (some dealers describe it as art real estate), the lack of market transparency, illiquidity and high trade costs have limited the participants and left the priorities to a few wealthy individuals and set up a high entry bar for new collectors.

2. Global Art Market
Here we use some numbers developed by The European Fine Art Foundation (TEFAF) to describe the global art market:
• Slowing economic growth and continuing uncertainty in the global economy filtered down to the art market in 2012 with global sales contracting by 7% to $58.3 billion
• Economic dynamics and political uncertainties have produced volatility in many asset markets with safety issues and a premium on blue-chip stocks and low risk assets. The same art work will be repeatedly appear in the high-end market for the famous artists
• Post-War and Contemporary art was the largest fine art auction sector, with a 42% share by value and reaching $6.1 billion (which reached the highest level)
• The Modern art sector was the second largest with a 30% share of the fine art auction market. The
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