Godfrey Barker asks why the Impressionist and Modern prices are so strong in such a weak economy:

“There’s a flight out of cash,” said Christie’s director Stephen Lash. “People with wealth don’t want money in the bank or anywhere else. They prefer Picassos.”

After a blip in impressionist and modern picture prices in New York in November – they fell 23 per cent in a week – the market has steadied in London this year. “There’s a lot of money out there and there’s a lot of new buyers we haven’t seen before,” said Henry Wyndham, chairman of Sotheby’s and the auctioneer last night.

Strength in the day sales and the preference for decorative or “commercial” pictures seems to re-inforce Wyndham’s comment. But are these new faces coming because of a desire for real assets or in response to falling prices?

Picasso Matador Makes a Dashing £7m at Sotheby’s (This is London)