Geographical shifts in the market

What are geographical shifts in the market?

This is the phenomenon whereby the centre of gravity of the art trade gradually moves from one city or region to another. Sales that used to take place in one location begin to flow elsewhere. Put simply, the map of the art market is redrawn over time.

How does it work?

Where money and transactions in art move is influenced by changes in rules, in taxes and in the general mood of the market. When trading becomes complicated in one country, collectors and auction houses look for a more favourable environment elsewhere. New centres gradually gain strength, while earlier ones may lose ground.

Why does it matter to the market?

Where a work is sold affects who takes part in the sale, what terms apply and what price is ultimately achieved. Following these shifts therefore helps you understand where interest is heading and where the best trading is being done right now. Anyone who reads these movements will more easily guess where the market will go next.

Can you give an example?

After Brexit, sales began to drain away from London while Paris and Geneva gained strength. It is a clear demonstration that the centres of the art trade are not fixed once and for all and can move faster than one might expect. That is precisely why it pays to keep an eye on where the trading is happening.

— Anna Pulkertová, founder of Art Part Club