Art Market Monitor

Global Coverage ~ Unique Analysis

  • AMMpro
  • AMM Fantasy Collecting Game
  • Podcast
  • Contact Us

Fund Manager: There’s a $1 Trillion of “Billionaire Art Buying Power” Out There

May 20, 2013 by Marion Maneker

fireworks

Fund manager Mark B. Spiegel was doing a little thinking about the art market while strolling the Met yesterday. What’s interesting about Spiegel’s rumination is that he started from the knee jerk assumption that the art market is a bubble. And although there remains no fundamental value undergirding the market, Spiegel sees a fair amount of money driving art forward. Just look at these calculations:

According to Forbes, the combined wealth of the world’s billionaires is over $5 trillion. Even if one were to assume that one must be a billionaire to spend $25 million or more on a painting (thereby eliminating all of those worth in the hundreds of millions) and if one were to further assume that billionaires were– on average– willing to devote no more than 20% of their net worth to fine art, that’s still $1 trillion worth of combined fine-art buying power. (Remember, someone worth a billion dollars who spends a combined $200 million on an intercontinental jet, a 175′ yacht and three incredible houses still has over 80% of his wealth untouched, while someone worth $2 billion still has 90%.) So with $1 trillion of “billionaire art buying power” out there, that’s enough money to purchase 40,000 (!) paintings at $25 million each, while last year only around 20 were auctioned at that price or higher.

Is The Art Market A Bubble That’s About To Burst? Maybe Not. (Seeking Alpha)

More from Art Market Monitor

  • Taylor’s Jewels Bought for Publicity PropsTaylor’s Jewels Bought for Publicity Props
  • Mari-Claudia Jiménez to Lead Sotheby’s T & EMari-Claudia Jiménez to Lead Sotheby’s T & E
  • Christie's Crunched in DubaiChristie's Crunched in Dubai
  • Today in Damien Hirst: The ReactionToday in Damien Hirst: The Reaction
  • Artelligence for March 16, 2018Artelligence for March 16, 2018
  • Ad Reinhardt Sale Splits HeirsAd Reinhardt Sale Splits Heirs

Filed Under: Collectors

About Marion Maneker

LiveArt

Want to get Art Market Monitor‘s posts sent to you in our email? Sign up below by clicking on the Subscribe button.

  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
California Privacy Rights
Do Not Sell My Personal Information
Advertise on Art Market Monitor
 

Loading Comments...