South Africa’s art price index shows a substantial decline for Q1 but anticipates an upswing later in the year as equity markets continue to rise. (However, we’ve been taught to believe that art is a non-correlated asset which raises the thought that a continuing recovery in the equity markets around the world may not be to art’s advantage):

Prices of South African art sold at auction have on average declined by 7.7% during the quarter ended February 2012, according to the Citadel Art Price Index (CAPI). Despite an improvement in global equity markets, alternative asset classes have not yet cleared all supply in the system.
“It is often said that only three things bring art to market: death, debt and divorce. Knowing that debt is currently the core problem in the global economy, we can deduce that supply in the art market is still elevated and hence prices are under pressure,” Citadel strategist, George Herman said. […]

The total decline in the index since 2008 is now 38%, which equates to that of the JSE in its downdraft from 2007 to 2008. According to Herman, investors in alternative asset classes take their cue and cash from equities, so an improvement in prices for South African art can be expected in the latter half of the year.

The Price of SA Art Sold at Auction Declines (Biz Community)