What year was 2019 for the art market, and what will be the “new normal” after the Covid-19 upheaval? To provide indications is the sixth edition of Art&Finance report by Deloitte and ArtTactic, formulated by collecting interviews in three sectors: collectors, sector operators (art dealers, auction houses, gallery owners, but also logistics companies as well as the entire ArtTech world) and finally professionals belonging to the world of finance, in particular to Private Banking and the Family office. The analysis shows that art is increasingly an investment asset, which is part of a broader management of assets: 86% of the asset managers questioned state that they include the management of artistic assets and collectibles in the services offered ; given that it also responds to the desire expressed by the collectors themselves (81%) both to be guided in this direction and to have consolidated reports.
From the perspective of the wealth manager, family officer or private banker the intention is to always have more a holistic approach to art understood as an asset class offering a multiplicity of services - appraisal of works of art, art advisory, management of collections, consultancy on regulatory and hereditary aspects - capable of differentiating the offer and generating and strengthening relationships with its customers in a context extremely competitive market. The watchword is therefore more and more "diversification", both of investments including assets linked to art, and of the same services linked to the art market. In fact, 77% of asset managers have introduced entertainment formulas in the form of private visits, admission to art fairs, museums and exhibitions; 71% also dealt with art education and training for customers; more than half of the respondents offer the possibility of diversifying between investments in works or art funds, but the management of art collections remains the priority.
In the course of 2019 the market has confirmed thehigh interest in lots top quality, the availability of which however decreased compared to the two-year period 2017-2018, with a consequent drop in overall turnover. With the aim of contributing, for the part of competence, in the process of information on the market of collectiblesproviding interested parties decision-making tools useful for orienting oneself in purchasing decisions, Deloitte analyzed the auctions of works of art and collectables proposed in 2019 and in previous years by the main international auction houses (Christie's, Sotheby's and Phillips), with a minimum value of 1 million dollars. This analysis showed that scarcity, a typical feature of high quality works, was one of the factors that contributed most to the reduction in business volumes, equal to the -18,6% y/y for the paint sector and -6,1% y/y for the other collectibles sector, the so-called Passion Assets. However, no negative trends were noted in relation to the number of transactions, which remains at the levels of previous years, also thanks to the growing number of new buyers active on online platforms.
Contributing to this scarcity is the climate of caution generated by the wars on tariffs and the turbulence relating to tax regimes of some areas of great importance for the sector, which has made the collectibles market more reflective, both in terms of purchase and sale. Despite the downward trend, quality, provenance and desire for novelty have continued to guide purchases, both for more expert collectors and for new buyers, demonstrating the growing maturity of the sector. In fact, constant attention has been paid to museum-quality works of art, to private collections and to the most exclusive assets. This is true both for collectors in western squares, guided by the search for exclusive lots and attention to quality, and for Asian collectors, who are increasingly interested in paintings and ancient goods typical of the European tradition. The strong interest was also confirmed for the works of artists little recognized by critics but of great value in their respective historical-cultural context, including many female artists as well.
As far as the Covid-19 pandemic is concerned, it will certainly have an impact, as will Brexit as well. Deloitte indeed believes plausible to expect a growth in the importance of Paris for the auction market on an international scale, following the UK's exit from the European Union. Nor should we forget the aspects connected to the wider world of culture, increasingly perceived as a central element for sustainable development, both from an economic and social point of view, , increasing attention to the social impact investing, potential drivers with positive implications also for the collectibles market. "In a restart scenario like the current one, we want to photograph the latest trends in the art market, where attention to the financial value of the purchase of works of art continues to grow, alongside the passionate and aesthetic aspect to make the link between art and asset management ever closer”, he comments Ernesto Lanzillo, Deloitte Private Leader.
“Even the art market has suffered the effects of the uncertainty that has characterized the political and partly economic panorama at an international level in the face of the Covid-19 emergency, however demonstrating its resilience. It will therefore be important to monitor its evolution to understand what changes and what opportunities may arise”, he concludes Pietro Ripa, Private Banker Fideuram”.
