The art of the interest rate cycle
High-end art sales have slumped this year as sellers withdrew important works from major auctions at the last minute for fear of tainting specific artists’ markets
29 August 2024 - 08:00
In April I discussed how inflation and interest rates affected equity markets, but an almost agonised article by Zachary Small in The New York Times recently reminded me that I haven’t touched on how more eclectic markets are affected by the cost of capital.
The value of art, like gold or crypto, isn’t something intrinsic — you can’t do a discounted cash flow and calculate it. Instead, it’s a social convention that broadly concurs that some art is valuable, depending on the artist and the scope of work...
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