As financial markets around the world appear to be on the brink of collapse for a second time in recent history, Artprice.com analyses its recent and historic data and asks if the art market can resist another crisis.

"On 15 September 2008, just as Lehman Brothers was collapsing, Sotheby's London sold more than $120 million dollars worth of Contemporary art works by Damien Hirst, generating three of his best five results.

Following this week's declaration by ArtPrice.com that we have just reached a "turning point in the history of the global art market: China is now the number 1 in terms of fine art auction revenue" (see full report below), it is interesting to consider Asia's role as a whole in the Global art market.  Here are some quotes from Martin Bremond, Head Economist art Artprice.com, made during his analytical presentation of the Global Art Market in 2010 at ArtStage Singapore earlier this year:

The tills are ringing, the air is buzzing and the halls are filled with beaming clients, artists and gallery owners here at Art Hong Kong.  In just its third year of operation, Art HK has clearly positioned itself at the top end of the art fair market and collectors are feeling comfortable and confident about purchasing artworks from artists and galleries from across the globe.  In the words of one Australian gallery director "I am selling to INTERNATIONAL clientele".

The Australian art market and many art collectors are reeling at the news that a recommendation has been made to the government to bar self-managed super funds (SMSFs) from purchasing artworks.  This was detailed in the final preliminary report of the Cooper Review which was asked by the Federal Government to examine and analyse the governance, efficiency, structure and operation of Australia's superannuation system.

The Art Gallery of New South Wales has been revealed as the purchaser of Australia's most expensive painting sold at auction, Sidney Nolan's First Class Marksman.  The painting was knocked down to a telephone bidder on Thursday night - 25th March - at the Menzies Art Brands auction for a hammer price of Aus$4.5 million ($5.4 million including buyer's premium) against an estimate of $3 - 5 million.

The sale of Alberto Giacometti's 1960 Walking Man I sculpture at Sotheby's London on Wednesday night for GBP65 million (US$104.3m) has eclipsed the previous world auction price record of US$104.2m achieved at Sothebys New York in 2004 for Pablo Picasso's 1906 portrait Boy with a Pipe.

This result confirms two things: firstly that the international art market is alive and kicking for the 'right' material and secondly that there are still huge legs in the market for fresh stock by the 'right' artists.

Auction week, and the auction year, closed in Melbourne on a high note. Forthe first time in eighteen months it appears that vendor and buyer expectations have met to such a degree that a depth of bidding was apparent at all three auction houses: Sotheby's, Bonhams and Goodman and Deutscher and Hackett.  Sales rates by volume and value were the best they have been for a long time and reflected the depth of the market that appears to be peppered with a lot of new faces.

The highly reputable Frieze Art Fair (London, 14-17th October) closed on Saturday night amid reports of increased collector interest and purchases.  Numerous sales were reported by established and emerging galleries including a number above the US$1 million mark.  Last year the Fair suffered dramatically, opening exactly one month after the September collapse of Lehman Brothers.  This was in line with the concurrent 70-80% slump in volume of auction sales (Art Tactic - Sept 09).

There is a maxim in the art market that in troubled times there is a flight to quality.  The August round of auctions which included sales at Sothebys, Bonhams and Goodman and Deutscher and Hackett certainly had a good smattering of quality offerings.  However, with the limited availability of stock to sell due to nervous or reluctant vendors, the auction houses needed to be bullish in their estimates in order to persuade owners to part with their artworks.  Consequently the issue in this round of sales was The Price.