Art Market Update

Souren Milikian's report in the New York Times on the state of the art market was spot on. Far from sagging, prices have held up during the recession. New auction records were set throughout the first half of 2009. So, newcomers might conclude, here is the dream area for investors. Sadly, there is a snag. If investment means spending cash in the hope of making a profit on the basis of careful calculation, using objective data and dependable measuring instruments, then investment is the wrong word. There are no identical units in art, because no two works are ever absolutely similar, making exact calculation impossible. So true! May be gem dealers should read the special report on investment in art (The Treacherous Lure of the Art Market, September 4, 2009, NYT).