An Art Investment and Retail Fund
An Art Investment and Retail Fund
The chart above, prepared by Dr Roger Dedman, shows the correlation between equities and art markets from 1975 until 2006.
Art sales through Australian auction houses totaled $A104 million in 2006, and reached $A175 million in 2007, with an estimated $A150 million through commercial galleries. In addition there is an indeterminate level of sales through private treaty and secondary dealers.
It is estimated that the total potential market for Australian works of art of investment grade, held both in private and corporate hands, is in the range of $A3 billion to $A4 billion.
The 2007 version of the annual Australian Art Market Movements Handbook compiled by Roger Dedman* advises that the annual increase in the Art Market Index (AMI) (See chart below) averaged 11.5% between 1996 and 2002. ….There was a slight setback in 2003, but the market recovered in 2004, and has increased by 20% over the past 2 years.
The chart above shows that prices have increased by an average of 9.3 % per annum (compounded) over the ten years to the end of 2007. This compares with the Australian All Ordinaries Index which has risen by 7.3% per annum (compounded) over the same period.
JOHN BRACK THE BAR
This painting fetched a record auction price for any Australian painting at Sotheby's Australia in April 2006 when it was auctioned for $A3.12 million, $800,000 more than any other Australian artwork at auction.
CLIFFORD POSSUM TJAPALTJARRI WARLUGULONG 1977
This painting was sold for $A2.4 million at Sotherby's auction in July 2007.
JOHN BRACK THE OLD TIME
This painting was sold for $A3.36 million at Sotheby's auction in May 2007.
BRETT WHITELEY OPERA HOUSE
This painting was sold for $A2.88 million at Sotheby's auction in May 2007.