The Art Market by STELLA
WHERE ARE WE HEADING?
“Interesting and challenging question, right?”
Recent years have brought significant changes and volatility to the art market. The period from 2023 to 2024 saw slowing transactions and notable price corrections due to political instability, inflation and rising interest rates. Previously, the hyper-contemporary segment enjoyed rapid speculative growth but has sharply declined as collectors grew cautious about investing in young artists. The party is over, and many collectors got burned. Unfortunately, artists have also been deeply impacted, with some prematurely ending their careers. A compelling New York Times article highlights these dynamics clearly.
Young artists need our support and protection - a lesson we should all take to heart.
Alberto Garutti
The art world is also experiencing a generational leadership shift. Influential figures like Barbara Gladstone have passed away, while prominent dealers such as Marian Goodman, Paula Cooper and Larry Gagosian are gradually stepping back. Italy mourned the loss of important figures like Germano Celant and Alberto Garutti alongside iconic artists Frank Stella and Richard Serra.
Additionally, it's fascinating to observe the fact that many markets, including the art market, are being reshaped by a major generational shift in wealth. Experts describe this as potentially the largest wealth transfer in history, with around $72 trillion expected to pass to Generation X, millennials and Gen Z over the next two decades. These younger investors are increasingly drawn to alternative investments that align with social equity and sustainability.
Women, in particular, hold growing financial power and increasingly prefer art investments due to their potential financial returns and cultural impact. Women’s investment strategies often emphasise sustainability, personal significance and long-term legacy, making art highly attractive. STELLA actively champions the powerful influence women collectors can have on the global art market and we find it especially meaningful when purpose aligns with broader social shifts.
Although the market slowdown may persist through 2025 or even into 2026, it also creates opportunities to invest thoughtfully in quality art at sensible prices. During downturns, galleries, and dealers often encourage greater artistic freedom, resulting in increased diversity in sculptures, installations and experimental works showcased globally, alongside traditional mediums like figurative and abstract art (which has taken the lead). Diversity remains essential for a healthy art market and robust collections.
Last but not least, this crisis has reintroduced something fundamental: a genuine love for art. After years of focusing on speculation, prices and auction results, we’re once again looking at art because we want to be emotionally moved and deeply touched by it. And that, in itself, is a powerful success.
Frank Stella
Women, in particular, hold growing financial power and increasingly prefer art investments due to their potential financial returns and cultural impact. Women’s investment strategies often emphasise sustainability, personal significance and long-term legacy, making art highly attractive. STELLA actively champions the powerful influence women collectors can have on the global art market and we find it especially meaningful when purpose aligns with broader social shifts.
Although the market slowdown may persist through 2025 or even into 2026, it also creates opportunities to invest thoughtfully in quality art at sensible prices. During downturns, galleries, and dealers often encourage greater artistic freedom, resulting in increased diversity in sculptures, installations and experimental works showcased globally, alongside traditional mediums like figurative and abstract art (which has taken the lead). Diversity remains essential for a healthy art market and robust collections. Last but not least, this crisis has reintroduced something fundamental: a genuine love for art.
After years of focusing on speculation, prices and auction results, we’re once again looking at art because we want to be emotionally moved and deeply touched by it. And that, in itself, is a powerful success.
Richard Serra
Interested in joining the conversation?
We welcome inquiries from discerning collectors and cultural patrons.