"[The Luxembourg] report notes that following the 2008-09 financial crisis, few market sectors rebounded as robustly as art – particularly contemporary art, which has doubled in value since the beginning of the financial recovery.
"But since art has no fundamental value, it is difficult for economists to apply economic principles to it. It is harder still to trade in art as an asset class, as the market has clearly attempted to do. [...]
Levin said the bubble was inflating in part due to the prevalence of high-end money laundering being done through art, and how the two have come to affect one another. Buy art in one country and pop it in the private jet, the theory goes, and by morning you’ve moved $100m between tax jurisdictions.
"'In certain countries, art is very effective way for collectors to transfer wealth,' Levin said. 'It’s highly mobile and there’s a tendency for it trade up to whatever the strongest currency may be.'"
In other news: I guess for years now NYCers have been saying that the city's been taken over by rich wankers. I guess this confirms it as fact.
image: Damien Hirst; "What Comes Up, Must Come Down", 1994