How the Current Economical State is Affecting the Art Sector

Historically, the art market/art world is both resilient against financial crisis, and is quick to recover in the event of an economic recession.

With it's low correlation to other assets, it's ability to hedge against inflation, and it's historical resilience during recessions, investing in art can be a smart investment choice for those seeking to balance their portfolios and mitigate risk.

With that being said, is this time different? We have seen recessions before and the art sector has weathered the storm, but they didn't have the pandemic behind them. Never before have we seen an increase in art sales like we had during and after the pandemic.

However, the aftermath of this is proving to be difficult. Artists that sold before the pandemic were now selling record numbers of art. Artists that didn't sell before were now selling. Part-time or emerging artists quit their jobs to focus on their art and it became their career. More Australians turned to art than ever before as they weren't going on vacation and were turning inward and wanted to be surrounded by things at home that were beautiful and comforting.

We are now in the hang over period. Art sales have slumped in the past 12 months and not just to the lows of before the pandemic, it has crashed more than ever before. Artists are still quitting their jobs to pursue their dreams, but this is riskier than ever for them and we need to continue to support that dream by buying original art. If you love it you will never regret it.

Everyone knows art is a long-term investment. Firstly, love it, enjoy it, and most of all have the courage to buy it. The art sector is strong and there will always be a wide variety of new and exciting pieces to enjoy since artists will never stop trying to do the impossible. The future of art is uncertain, but one thing is for sure: creativity will flourish as long as artists are open to change and interested in the world.

We have always been told that the worst thing you can do as an artist is to reduce your rates when the economy slows. Artits should avoid lowering their prices after their rates have already been established by the market and collectors. Our economy ebbs and flows, and we need to ride out this kind of thing. Once you reduce your price you can never go back. Buyers then think they can get your art at any price. There's no longer any set value to it.

Artists and gallery owners are coming up with ways to encourage sales, merge with community and survive!

We founded Creative Edge Art Collective as a not-for-profit as a way to support artists and bring them into the community. A way for buyers to trust that the artist and the gallery is a trusted place that supports both the artist and community who bid their work. A transparent platform. A professional platform and one that relys on it's artists and it's members.