The year 2023 will begin with a host of inherited problems from the outgoing year. January is a time for looking ahead and forecasting or making predictions of what is coming down the line, however, unpredictability has increasingly been the norm, meaning that we have become accustomed to living in a state of almost suspended animation. No-one is quite sure which way is forward and indeed whether they should move in that direction. At this point, it’s safer to make short term assumptions rather than long term predictions.

It is likely ‘The Currency’ will send ripples through the crypto markets and art market alike, attracting both professional crypto investors and art collectors.  When a philosophical conundrum like this enters the collective psyche, thoughts and attitudes tend to shift.  It may therefore be viewed historically as being the catalyst that accelerated a move towards digital currency.  

On March 11tth 2021 Christie’s, New York sold its first entirely digital artwork. News in itself but to add to the story, it sold for $69.3 million – the third highest price reached for a work by a living artist – and the sale was made as a Non-Fungible-Token (NFT). Furthermore, payment was made by cryptocurrency – Ether, the first time Christie’s have accepted payment in this form…….

It is highly likely that as a result of this sale we will see a rise in the creation of digital artworks and a frenzy around NFT’s with both art collectors and investors alike rushing to buy them. However, it might be cautionary to sit back and see whether this is a case of “The Emperor’s New Clothes” or a bubble that might burst. As an art collector, it is cautionary to consider the aesthetic value of the work as much as the intrinsic and investment value.

With art fairs cancelled or re-iterated virtually and commercial galleries closed for much of 2020 sales for galleries have been hugely impacted. In 2019 art fairs accounted for approximately 45% of gallery sales, a figure which surely will have dropped in 2020.  Art fairs have been relied on not just for sales but also visibility.  The question being asked now by galleries and the fair organisers is whether art fairs are likely to come back in their previous form and when?

The words that characterise our new lexicon:  ‘unpredictable’, ‘uncertainty’ ‘adaptation’ and ‘change’ can all readily be applied to the art world.  What we saw in 2020 was huge disruption and profound change for everyone.  There has been commentary and analysis on many sectors and industries but the impact on the art market is perhaps less apparent at first glance.

 

As was the case for many industries the art world was forced to adapt by circumstances.

It seems that 2021 is not so much a fresh start but a continuation of the unpredictability, turmoil and difficulties we faced economically, politically and socially throughout 2020. What the past year ought to have taught us is that if we prepare for anything, it is for shocks and surprises on a global scale.

So, what can we expect in 2021?

When the pandemic hit in early 2020 the world was sent into a state of flux.   Uncertainty reigned and the financial markets reacted accordingly with increased volatility.

 

Consumer behavior changed and Amazon shares soared (and have continued to do so) as we all adopted online shopping as the norm.  It’s not just behavior, however, that has changed but also attitudes. 

 

A crisis always presents an opportunity and never more so for someone with a high disposable income. The enforced restrictions meant consumers were no longer spending on luxury travel and expensive restaurants and with nowhere to go, there was less need for designer clothes and accessories.