A short update on the art market

… versus the Stock Market

by Asher B. Edelman

Over the last nine years (from the beginning of 2000 through the end of 2008) $1,000,000 invested in …

·          The Dow Industrial Index would have been at year-end 2008 $780,211 or an annualized loss of (2.7%).

·          The S&P 500 Index would have fallen to $614,894 or an annualized loss of (5.7%).

·          The NASDAQ Composite Index would leave only $387,420 or an annualized loss of (10.0%).

·          Artprice Global Indices (a composite of 19th Century, Modern, Post-War and Contemporary indices averaged)  would now be worth $1,711,711 or an annualized positive return of 7.9%.

Though indices are imprecise and do not leave room for choice or judgment, the vast difference between art and equity securities is evident. Well chosen blue chip art has been a store of value in times of war, recession, depression and a leader in appreciation in times of inflation.


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