The global art market, I think, should be one very important indicator of the state of the bubble [as previously discussed in Global Art Market As Bubble Meter, China's Fast Expanding Role]
This from the Economist,
(bold highlights mine)
``IN 2008 China overtook France to become the third-biggest art market in the world, after America and Britain. France managed to reverse that setback in 2009, helped by an Yves Saint Laurent/Pierre Berge sale. But relief is likely to be temporary. The value of sales at art auctions in China reached €2.3 billion ($3.3 billion), up by 24% on the previous year. China's share of the world auction market climbed from 10% to 18%, largely at the expense of Britain and America. Chinese art has grown in popularity. Christie's Chinese sales in New York last month were its biggest ever. Sotheby's sales in Hong Kong (April 5th-8th) are also expected to reach record highs. The 20th-century Chinese art sale alone is expected to raise HK$75m ($9.7m) and the ceramics and fine art auctions could fetch more than HK$200m."
The art market simply serves as another outlet for the massive expansion in circulation credit around the world, with special emphasis on China.
The Chinese government's attempt to control the real estate bubbles only diverts them to the art markets.
According to Artzine, ``While buyers of Chinese contemporary art are still predominantly foreigners, wealthy locals are window-shopping, especially since the government has clamped down on real estate speculation. Suddenly, Chinese art seems a fail-safe investment alternative."
And it won't be long that these will also be manifested in the stock markets, as excess money will only find outlets.
Remember, trophy assets, including the art markets or colossal skyscrapers and or other mammoth projects had been major symptoms of the bubble malady, as people who benefit from these bubbles get overwhelmed by overconfidence and engage in 'braggadocio' projects. [see China's Bubble And The Austrian Business Cycle]
So perhaps until we see more instances of mass delusions of grandeur only then we can say that China's bubble cycle may have crested. Of course, we shouldn't be limited to looking at China for bubbles.
For now, enjoy it while it last.
This from the Economist,
(bold highlights mine)
``IN 2008 China overtook France to become the third-biggest art market in the world, after America and Britain. France managed to reverse that setback in 2009, helped by an Yves Saint Laurent/Pierre Berge sale. But relief is likely to be temporary. The value of sales at art auctions in China reached €2.3 billion ($3.3 billion), up by 24% on the previous year. China's share of the world auction market climbed from 10% to 18%, largely at the expense of Britain and America. Chinese art has grown in popularity. Christie's Chinese sales in New York last month were its biggest ever. Sotheby's sales in Hong Kong (April 5th-8th) are also expected to reach record highs. The 20th-century Chinese art sale alone is expected to raise HK$75m ($9.7m) and the ceramics and fine art auctions could fetch more than HK$200m."
The art market simply serves as another outlet for the massive expansion in circulation credit around the world, with special emphasis on China.
The Chinese government's attempt to control the real estate bubbles only diverts them to the art markets.
According to Artzine, ``While buyers of Chinese contemporary art are still predominantly foreigners, wealthy locals are window-shopping, especially since the government has clamped down on real estate speculation. Suddenly, Chinese art seems a fail-safe investment alternative."
And it won't be long that these will also be manifested in the stock markets, as excess money will only find outlets.
Remember, trophy assets, including the art markets or colossal skyscrapers and or other mammoth projects had been major symptoms of the bubble malady, as people who benefit from these bubbles get overwhelmed by overconfidence and engage in 'braggadocio' projects. [see China's Bubble And The Austrian Business Cycle]
So perhaps until we see more instances of mass delusions of grandeur only then we can say that China's bubble cycle may have crested. Of course, we shouldn't be limited to looking at China for bubbles.
For now, enjoy it while it last.
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