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Skate’s Reports: Masterpieces Market Exceeds $50 Billlion in Size in 2014, Yields 4.9 Percent Average Return

Three Studies of Lucian Freud (in 3 parts) (1969) by Francis Bacon.© CHRISTIE'S

Three Studies of Lucian Freud (in 3 parts) (1969) by Francis Bacon.

©CHRISTIE’S

Skate’s has released key performance metrics for the global art market measured by the universe of the top 10,000 artworks by auction prices (Skate’s Top 10,000).

The world’s high-end art market crossed the $50 billion mark in the second half of 2014 with an aggregate market value of the top 10,000 artworks by auction prices reaching $50.7 billion as of December 31, 2014. For an artwork to get on the Skate’s Top 10,000 list, the work has to sell for at least $1.51 million.

The two key metrics of the high-end art market largely remained the same—it is comprised of slightly over 600 artists with more than one artwork in the Top 10,000 universe (and more than 300 artists with more than five artworks in it), and 16.6 percent of the trading volume within the Top 10,000 was made of repeat sales, suggesting a fairly strong liquidity of the high-end art. Investment returns continue to be strong with annualized weighted average return on repeat sale being 4.92 percent (returns before ownership costs and taxes).

Table 1. Market Size

Dec-31, 2014
Jun-30, 2014
Total value of Skate’s Top 10,000 Artworks 50,663,864,731 48,453,902,321
Percentage of trades being repeat sales 14.2% 13.5%
Percentage of volume being repeat sales 16.6% 16.4%
Number of artists with more than 1 trade 603 607
Number of artists with 5 (or more) trades 309 310
Threshold price 1,507,728 1,445,000
Weighted average effective rate of return (ERR) 4.92% 4.85%

Source: http://www.skatepress.com/skates-top-10000/

Picasso and Warhol continue to be the towering artists within the top 10,000 universe in terms of liquidity and size. The Warhol market has significantly overtaken Picasso’s in terms of trading volume ($560 million in high-end trades in 2014 versus $345 million for Picasso), but both remained on par in terms of number of auction trades and repeat sales within the top 10,000 category.

Table 2. Top 10 Artist Markets Within Top 10,000 Price Category

# Artist Number
of
auction trades
in 2014
# Artist Auction trading
volume in 2014, USD
# Artist Number
of
repeat sales
in 2014
1 Pablo Picasso 58 1 Andy Warhol 560,435,539 1 Pablo Picasso 18
2 Andy Warhol 55 2 Pablo Picasso 345,101,066 2 Andy Warhol 17
3 Jean-Michel Basquiat 22 3 Francis Bacon 302,129,191 3 Claude Monet 11
4 Gerhard Richter 22 4 Gerhard Richter 266,038,311 4 Jean-Michel Basquiat 9
5 Claude Monet 21 5 Claude Monet 246,884,473 5 Gerhard Richter 7
6 Zao Wou-Ki 21 6 Alberto Giacometti 218,195,193 6 Alberto Giacometti 6
7 Joan Miró— 17 7 Mark Rothko 203,338,273 7 Lucio Fontana 6
8 Lucio Fontana 17 8 Jeff Koons 167,989,716 8 Francis Bacon 5
9 Alberto Giacometti 16 9 Jean-Michel Basquiat 158,959,960 9 Roy Lichtenstein 5
10 Alexander Calder 15 10 Cy Twombly 136,959,089 10 Yves Klein 5

Source: http://www.skatepress.com/skates-top-10000/

For more Skate’s Top 10,000 statistics please register for Skate’s Research Reports at www.skatepress.com; the latest Skate’s Masterpieces Market Report can be downloaded from http://www.skatepress.com/art-market-reports/skates-masterpieces-market-report/.

This post has been written to promote content produced by Skate’s, which is owned by ARTnews’ parent company. ARTnews is not involved in the creation of its reports.

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