Contemporary art auctions are happening left and right in London this summer. Sotheby’s had one on June 25-26, then Phillips de Pury (June 29), and now Christie’s is running one (June 30-July 1).

Some have expressed pessimistic predictions on sales figures. The famous British art critic Ben Lewis, who made the documentary “The Great Contemporary Art Bubble”, is among them. He depicts the art market in a far from flattering way, describing it as a world of secret business and market manipulation, where unscrupulous art dealers inflate prices.

On September 15th 2008, the day Lehman Brothers collapsed, and the world finance market began its worst downfall in decades, Sotheby’s held auctions that sold art for a record total of £111m. Because of the critical standpoint Lewis had taken, Sotheby’s had banned him from these auctions, accusing him of a negative view of contemporary art. However, the art market was not shielded from the blooming recession, and eventually the art bubble also burst. Since it’s peak in September last year, contemporary art prices have dropped in price by up to 50 percent.

However, this may be about to change again, and Lewis’s predictions may prove to be overly pessimistic. If the outcome of the recent Art Basel fair is anything to judge by, auction houses could expect good results to come. The art fair experienced its highest visitor numbers ever, and according to the Wall Street Journal, organisers talked of “unexpectedly strong sales”, and many galleries were reportedly satisfied with their outcomes.

This possible resurgence suggests that buyers interested in timeless luxury still see the long-term benefits that art can offer even amidst the recession. Art gives them the chance to invest in an asset that they can surround themselves with in their homes or work spaces, rather than just put in stock portfolios, and which offers social status on a level incomparable to other commodities.

The Wall Street Journal quotes the Cologne dealer Gabrielle Ammann, from Art Basel’s parallel fair Design Miami/Basel, who stressed, “This year we have had really important collectors who are interested in beautiful and timeless design, not those who want quick money-making blue chips”.

Both Theta and Lambda types should be attracted by the benefits that buying art has to offer. For Thetas, who use socially-derived understandings of product characteristics as a basis for their consumption, the social status that owning art brings will be appealing. For Lambdas, a piece of art could be seen as the ultimate expression of individuality, and purchasing it fulfils their wishes to stand out as unique.

Photo by amandafarah