Art is not a commodity. But art as an asset is valued in conjunction with global commodities. Australian market observer Wayne Gordon was waiting to hear from Janet Yellen. When she announced plans yesterday to keep to her slow and steady rate rise plan, Gordon concluded the US dollar would feel some effects from that decision as rates lag the actual accelerating economy. Here’s what Gordon said on Bloomberg:
“Last night was really setting the scene for the next three-to-six months,” Gordon said in a Bloomberg TV interview. “Yellen was very, very clear” that although she sees risks to the economy as balanced and sounded more optimistic, she’s going to stick to three rate hikes this year and three next year, he said. “That means real interest rates go deeper into negative territory in the U.S., that means a weaker U.S. dollar and it means a better gold price.”
What could this mean for the art market which is already seeing strong sales as Winter wanes?