Art is often talked about as an investment asset that behaves much like gold. If that is the case, we might take notice of this Citibank report predicting that gold has bottomed and will surge to record highs topping out around $3500 per ounce.

Within the gold dynamic, we believe this recent correction was very similar to what the gold market witnessed from 1974 to 1976 — as the equity markets recovered from the bear market bottom in 1974.  In this instance, very recently gold went 14% below the 55-month moving average, exactly as it did back in 1976.

After the low in gold in 1976, the equity market peaked 4 weeks later.  So far, following the $1,181 low in gold, the peak in the equity markets has been 5 weeks thereafter.  And as we started that historic upward movement in gold, beginning in 1976, this was also when the equity market peaked and went into a corrective phase, and that is when gold really came into its own.

Even if the $3500 prediction fails to emerge, the chart of historic gold prices does suggest that art prices may settle in where they are for some time to come. That is, if there’s any real connection between art and gold.

Citi: Gold = $3500 (Business Insider)