Rethinking Markets

As my friend Chuck says, even the crappy Picasso’s are bringing in $30 million. What in the world is going on? The all-art index is up 21% in the first half of 2007, compared to 14% for the S&P500. The November ArtNews reports that Sotheby’s and Christie’s are offering upwards of $1 billion in guarantees this year. Sotheby’s and Christie’s sold $7.5 billion in art in 2006, and more this year. Add Phillips de Pury & Co. (which emphasizes contemporary, where the action is), and it’s surreal.