In the past, art in its many forms has been used as a form of soothing in times of need. This luxurious commodity is bought when people have extra money and can afford it. But in 2008 fall till Christmas, when art is needed more than ever, people cannot afford to purchase this luxury product anymore. The current economic crisis has already affected the demand for art items and has softened the market in spending. Due to the recent economic market conditions, people’s demands for art are down in Toronto, resulting in less art bought at auctions or in general.
This essay will examine the past and current demand trends of art. As well as the reasons for the trends and what can be done to help the market crisis. It also examines the future possibilities in the market, assuming that the crisis settles down and people’s love for art is still inspired.
In 1998 the total sales of art in Canada were $603 million. Final demands without sales were $549 million, and final demands excluding exports were $478 million. As high as these numbers are in 1998, in the previous years they were even higher. The figures 1998 represent a decline of 2% annually since 1992-93 .This data tells us that in previous years, people through out Canada had extra money to purchase this luxury commodity. This was before the market crisis when the market was experiencing a bull-market for 13 years. As years passed by, from ’92 till ’98 these 2% drops in art demand predicted what the future demand would be
Before the market crisis in the fall of ’08 at art auctions, works of art were being sold out with a possibility of shortages. $603 million sales of visual art by Canadian artists were incredible. Art is an elastic commodity, but in previous years, people still bought tons of it.
Recently in August 2008, the market entered a period of turbulence with high debts in the US mortgages and hurricane reparations. This led to significant disruptions in various segments of the...