The first half of 2013 seems to be really positive for contemporary art which, according to the MPS Art Market Value Index, records a 35% growth. Furthermore, there is a return of interest in the Old Master, ie the paintings of old masters and the "great artists" of impressionism.
The preferred places for auctions are always London (top for turnover) and New York (for paintings), with Asia continuing its expansion and Europe a bit on the margins.
Painting, like jewels, are confirmed as safe havens against market volatility, but the minor arts are also astounding, offering interesting performances for antique objects, diamonds and fine wines from well-known fashion houses. Excellent performance in investment simulation, the "Art portfolio" is confirmed as the most profitable and efficient.
These are the main points of the MPS research:
Painting market: the final results of the first half of 2013 show a slight drop compared to the previous half year and after the adjustment phase of the last 3 years, as evidenced by the trend of the MPS Global Painting Index, down by -18,4% on 2012. The The market is still far from the peak of 2008, and the recovery now seems to be hampered in the segments with the highest capitalization: MPS Art Pre War Index (-35,3% on 2013) and MPS Art Post War Index (-4,6% on 2013) , down despite world records this semester.
Breakdown of turnover by geographical area confirms the United States as the main market for painting, albeit recording a slight contraction (from 47,3% in the first half of 2012 to 37,7% in this first half of the year). The most interesting result is given by London, which is assuming an increasingly important position on a continental level compared to the other markets. The Asia segment, while underestimating the real volumes since it does not include the three most important Chinese auction houses (Poly, China Guardian, Beijing Council), shows a share of turnover that is continuously growing compared to previous years. Finally, the Eurozone confirms itself as "peripheral", with an increasingly marginal role in the international context.
In the analysis by compartments, the Mps Art Old Masters and 19th century. Index records an increase of +31,9% compared to the first half of 2012, thanks to the performance of the New York auction of old master paintings organized by Sotheby's in January, which totaled 58 million dollars. In evidence, the painting by Pompeo Batoni "Susanna and the Vecchioni" sold for $11.394.500 million.
The MPS Art Pre War Index suffers from a downward trend since the previous year with a drop of -35,3%. The data for the first half of 2013 are not characterized by high turnover values if not for a series of records involving highly renowned artists such as Picasso and Modigliani, whose works have reached an enviable trend in just a few years. Worth mentioning is the auction record for Georges Braque with the work “Paysage à la Ciotat”.
The Mps Art Post War Index represents the sector most affected by the crisis in recent years, and the results for the first half of 2013 would confirm a climate of mild pessimism (-4,6% on 2012). But the climate of distrust was interrupted by the world record achieved by Christie's in the contemporary art auction in May, with a total of almost 500 million dollars. The highest result ever achieved in the history of auctions, with works belonging to Pollock, Lichtenstein, Basquiat, Rothko, Guston and of course Gerhard Richter, who became the most quoted living artist in the world with the masterpiece "Abstraktes Bild".
The first half of 2013 presents good growth prospects for the so-called minor arts: the MPS Global Arti Minori Index in fact records a positive trend of 4,2% over the first half of 2012. The analysis of the performance of the various minor arts during of the last seven years (2006-2013) in fact shows largely positive returns (+116,4% vs 2006). Among the most important performances is that of antiquities (+154,1% compared to 2006), followed by jewelery (+140%), sectors that drive the overall performance expressed by the MPS Global Arti Minori Index. The results of fine wines, sculpture & furnishings and photography, on the other hand, albeit positive, are lower than the global index of the minor arts (respectively: +93,3%, +68,3% and +10,5% on 2006).
The analysis of the performance of the MPS Art Market Value Index over the last three years (period June 2010 - June 2013) shows an overall positive return (+71,3%) and higher than the other indices considered: the MPS Jewels Market Value Index ( +66,3%), S&P 500 (+50%) and FTSE Mib (-14,9%). Art and jewels confirm their nature as safe haven assets with among the most profitable returns within the "luxury industry".
Considering the last year, it can be seen that the performance of all four indices is positive, headed by the MPS Art Market Value Index (positive change of +35,3%). Focusing on the past six months, the MPS Art Market Value Index and the S&P500 are the only positive indices (+14% and +12,6%), while the MPS Jewels Market Value Index and the Ftse Mib are affected by the difficulty of the financial markets both take on a negative sign (-5% and -7,2%).
From the portfolio simulation analysis it emerges that increasing the weight of the MPS Art Market Index within a portfolio guarantees a better performance both in terms of yield and efficiency. For this reason, investment in art is confirmed as a decidedly interesting alternative asset class.
