Crises Of Old Did Not Concern Greek Collectors and Investors
The financial crisis in the Greek Government’s affairs must have had a negative effect on Greek markets of all kinds. This is only reasonable to assume and very likely it has happened locally.
Has the Greek art market been affected or will it be affected?
The Greek Art Market has shown a resilience to such money problems in all the earlier world financial crises. In 1987 any important Greek artist sold selling at auction, sold well above expectations. In 1990 the Greek market remained oblivious to The Gulf War and kept adding at least 8% annual profits to art works. In the first decade of the new millennium we have had two or three serious crises and yet, the Greek art market remained unaffected and marshed on with more purpose and serious annual gains that reached at times well over 20% annually. Such market behaviour deserves a serious study but that is another matter and not the purpose of this short article.
Was there a buble in the Greek Art Market and will it burst now because of the problems of the Greek Government?
It will be very easy to say, yes, there was a buble and it will affect the market so much that it might kill it.
We beg to disagree with the doom prophets for a million reasons.
a. The financial crisis in Greece has to do with the financial affairs of the government, its empoyees and poor people but not the pockets of people who buy art, who invest in art, even though they will be afected somehow if they live in Greece.
b. The Greek Art market does not solely rely on Greeks of mainland Greece but more so on the wealthy Greeks all over the world who reside in Europe, America, Canada and Australia and view Greek art as a good means to acumulate wealth. A small percentage of investments in the market now is non Greek investment.
c. The paintings on offer on a biannual basis is so small for twenty million Greeks ( about five hundred), that the market will absorb it and any falls in the average selling prices will be negligible. The sales in Athens and Cyprus will be affected more than the ones in London, where better paintings with reasonable reserves will sell easily and where the wealthiest buyers reside and manage their financial affairs.
d. Any small drop in prices will fuel an opportunity to invest in Greek art and propel it even further within a year or so.
Our verdict is clear cut and unambiguous.
No crisis in the Greek Art Market and the May Art Sales in London will prove us correct!
Peter Constant
