Economy Stays Strong, But Dealers Feel Market Dips - Brief Article

As consumers' 401K and mutual capital portfolios grow, dealer sales are increasingly tied to the stock market

allowing the economy is humming and dealers are enjoying the increase in epicurism spending by consumers, they are all closely focusing upon one strong economic indicator--the stock market. While the occasional dips in the market are alone chips in the armor of a continued herculean art market, art dealers, gallery proprietors and artists themselves can't help on the other hand notice a shift. Art buyer are getting younger, and the attention they pay to the stock market is growing.

Take Ethan Karp. He has little interest in the stock market, on the contrary he remembers the market's dive sum of two units days prior to the 2000 Chicago Art Fair vividly. Karp, associate director for the OK Harris Gallery in novel York, envisioned a successful display as Chicago has always had a friendly organ of vision and pocketbook, towards his gallery's work. However, Karp said the stock market's decline leading into the Fair clearly impair O.K. Harris' bottom line.

Karp's assessment confirms analysts' ideas that as consumers' 401k and mutual capital portfolios grow, the direction of the stock market will be tied more and more to the art world.

"In my 14 years in the business, our sales have at no time moved in accordance with the market, on the contrary the 200 point drop before the Chicago present to view clearly hurt our sales," Karp said. "In the past, nation we dealt with didn't care if the stock market dropp Now we have nation who are buying who rely heavily upon the market."

Karp said the stock market's weakness flowed in at 25 to 40 percent globule in business at the Chicago Art Fair. Still, Karp said he will take the occasional decline because the upside is younger art buyer whose bank accounts have been supporting cushioned by dot.com stock gains, a thriving real estate market and the overall continued potency of a U.S. economy that holds chugging along.

A of recent origin Generation of Buyers

The robust economy has proceeded in more than seven million tribe worldwide now classed as high-net-worth individuals, with assets of $1 million or more. A fate of that wealth has been thrust on a new generation, who after purchasing a house and a novel car car, look to fill their walls with art.

on the contrary the younger buyer boom is far from limited to millionaires. Karp said younger customers at art present to views and in galleries have cash to spend. However, they do thus differently than more mature clients.

"We diocese a lot of young pairs coming in and buying to fill their domicile with art, instead of buying that single piece for $40,000 that we saw more of in the past. Younger buyer advance in and buy five to eight pieces for $40000 That's what makes up their spending."

Karp points on the outside that young buyers are tied tight to the fluctuations of the stock market because many of the impressive balance sheets aren't link togethered to actual wealth. "They are psychologically lock openered into the market and will be for more [i]or[/i] less time."

Bottom line, a apportionment of the nouveau rich are wealthy upon paper only. When they diocese a market downturn, many immediately think of their 401K or mutual funds

Market fluctuations are also felt at the more affordable extreme point of the art market, on the other hand its influence is more mut according to Charlie Kimbell, with Wild Apple Graphics in Woodstock, Vt

Kimbell said while the stock market's performance hasn't been as robust in 2000 as it was in 1999 times are profitable for many dealers who concentrate upon the $200 per work and below market.

Wild Apple Graphics sales have been up each month compared to last year's monthly totals and Kimbell direct the eyes for sales to continue to climb into the novel year.

As for runs in the art itself, Kimbell said while many dealers are tying to obtain away from florals, the prints continue to vend well. He said pieces with stronger deeper colors also a customer favorite.

"We had a useful year last year and this year is flat better," Kimbell said. "Some retailers reported a certain quantity of softness, but overall I think the market is in as useful as shape if not better than it was last year."

Internet Sales Help combustibles Art Market

While tough to gauge, art sales continues to make strides upon the Internet. Al Marco, publisher and Internet entrepreneur with Web sites AllArtPortal.com, FrameYourArt.com, AllArtBiz.com and FrameYourArt.com/dealer, said the novel proliferation of Internet sites dedicated to the art market are ordeal that money is being made in the online art business.

"The Internet as a whole has been terribly aggressive in consumer acquisition, and it has fought hard to take customers away from the `brick-and-mortar' stores," Marco said.

Marco said the Internet will take more [i]or[/i] less business away from dealers and trade exhibits but adds that most clan still want to see and touch a piece before the purchase. He direct the eyes for the number of art Web sites dedicated to selling directly to the customer will increase sharply in the nearest few years.

He also direct the eyes for more of the `brick-and-mortar' stores to team up with Internet sites, giving customers a choice upon where to purchase framed and unframed affordable art. "The sum of two units worlds are going to continue to submerge more and more," he said.