Its a running theme of the global art market. In times of inflation, hard assets gain value. Some doubters point to the fact that true inflation means wages put pressure on profits that would presumably be the basis for art purchases. So there will be less money around in the hands of future buyers. What’s the solution? Well, buying A+ art might be the best defense. Which could explain the success of Impressionist works in the the Imp/Mod sales last week.

Here’s Georgina Adam in the Financial Times with a few choice quotes from some dealers who are more associated with the Contemporary market:

Among the strong bidders at the sales was the private London dealer Ivor Braka. Asked why he thought they had done so well, he said: “Perhaps people are anticipating global inflation, and want to put their money into something tangible,” while the art dealer José Mugrabi commented: “At the moment there is more money being produced than paintings.”

The Art Market: Stunning Sales and Bother at Basel (Financial Times)