This article is about the changes that occurred in the contemporary art market since 1990
Introduction: A short history

In the “Postmodern” era, changes like the mass expansion of the internet and communication (cell phones) were part of the technological revolution, which played an important role in the development of neo-liberal economy and globalization.
The fall of the Berlin wall in 1989, the end of the communist era and United States dominance, led to the establishment of a free trade economy in the 90’s. The free trade economy encouraged an explosion of art as a new form of investment, and artistic production succumbed to financial power.
Since 1990 the visual arts have become a global phenomenon. The notion of art as “a Western activity” is no longer the only acceptable standard. In today’s postmodern art world, artistic centers are not limited to certain Western capitals but widely dispersed in different parts of the world.
Example of that were the proliferations of Biennials in Asia, Latin America, Oceania and Africa since the 1990s
Istanbul Biennial, Turkey, Asia, since 1987
Osaka Triennial, Osaka, Japan, Asia, began in 1990 and ended in 2001
Cetinje Biennial, Cetinje, Serbia and Montenegro, East-Europe, since 1991.
Dak’ Art biennial, Dakar, Senegal, Africa, since 1992.
Taipei Biennial, Taipei, Taiwan, Asia, started as a local event in 1992.
Caribbean Biennial, Santo Domingo, Dominican Republic, Central America, start in 1992.
Sharjah Biennial, United Arab Emirates, Asia, since 1993.
Johannesburg Biennale South Africa, Africa, started 1995 end 1997.
Gwangju Biennale, South Korea, Asia, since 1995
Shanghai Biennale, China, Asia, 1996 and 1998 national biennials, since 2000 international.
Mercosul Biennial, Porto Alegre, Brazil; countries members of the Mercosul and guests, since 1997.

“It became evident that nothing concerning art is evident anymore, neither in itself nor in its reaction to the whole nor even it is right to exist” Theodor Adorno.

Contemporary Art Collection: A Good Investment

To understand the contemporary art market, we need to consider its components and players. The primary art market focuses on fairs and exhibitions, allowing new artists to be discovered or promoted. The secondary market is dictated largely by auction houses and dealers, with the support of art advisers, entrepreneurs, curators and collectors, who enable artists’ reputation by establishing the market price of their work. (1)
Collectors and their collections can be defined like the combination of symbolic, cultural, social and economic capital, Pierre Bourdieu (2) which since the 90s has decreased its cultural and social value in relation to its economic value.
Today, the number of investors in contemporary art has increased. The first art market crash in the 1980’s, a consequence of the Gulf War was followed between 1990 and 1993 by a period of recession. With the establishment of a global economy, from September 2001 to July of 2007, the value of the art market increased by 152%. (3)

In 2000, CNN valued the global art market’s worth at $4 billion a year, 90% of which was controlled by Christie’s and Sotheby. (4)

The impact of the internet on the contemporary art market was remarkable. It not only allowed collectors to have access to artists and their prices, but enabled new collectors to invest in emerging artists without taking high market risk.
The stability of the art market as a protective financial asset was reaffirmed by its resistance to the collapse of the New York and Paris stock markets after the September 11 crisis. Since then, progress has been made, and a new generation of billionaire collectors has emerged with the opening of international markets in China, India, Russia and the UAE.
In 2006 China ranked 4th in the global market, which allowed it to obtain its place in important auction houses like Christies in London, Sotheby’s in the United States, and Artcurial in France. Supported by Asian auction houses, Chinese art showed an increased profit of 10% profit in 2006 and the number of Chinese and Western collectors has grown.
On November 2007, the Ullens Center for Contemporary Art (UCCA) in Beijing, founded by the Belgian collector baron Guy Ullens and his wife Myrian opened its doors to the public, and increased the West’s understanding of Chinese art. This non-profit gallery is housed in an industrial building complex in the 786th district. The area, which includes about one hundred Chinese and international galleries and non-profit spaces, reflects the recent rise of Chinese contemporary art in the global market and the growing interest of local, regional and international collectors. (5)

With a growth of 480% in the last 10 years, Indian art gained importance on the international art scene. The sale of Subodh Gupta’s monumental sculpture for € 304.000 in February 2007 presents an example.

Following the second Moscow biennial, and a most successful auction of Russian contemporary art at Sotheby’s London in February 2007, at which 80% of the lots were sold, contemporary Russian art enjoyed considerable attention. In recent years with the reaffirmation of capitalism, the artistic scene has radically changed. Six contemporary art centers have opened in Moscow and a new wealthy class of amateur collectors are investing and promoting local art. Although much of the contemporary art focuses on social and political aspects of the old communist regime, a diversity of artistic language is beginning to emerge. (6)

In addition to China, India, and Russia, Dubai hopes to be a third player in the global art market after London and New York. Dubai, the modern financial center of the United Arabs Emirates (UAE), controls the sixth largest oil reserves in the world. In recent years, the generation of wealth from increasing oil prices has allowed Dubai to transform itself into the financial entertainment capital of the Middle East.
In March 2007, Dubai inaugurated the first Conte
mporary Gulf Art Fair, which included galleries and artists from all over the world. Christie’s was the first auction house to open. Its second auction of contemporary Arab, Iranian, Indian and Western art attracted a number of international collectors, creating record sales of 9.4 million dollars.

Abu Dhabi, the UAE capital, has begun to view art as a source of large scale investment. Future plans for the Island include a billion dollar resort, with five art centers and another multi- million dollar project, Frank Gehry’s Guggenheim museum set to open in 2012.

"This led to the determination to create a cultural hub between East and West on a scale never seen before". (7)

Changes in the art market have created repercussions in countries like France, with traditional backgrounds. Arnaud Oliveux, who works in the contemporary department of the Artcurial auction house explained that Artcurial was the first French auction house, which adopted an English system of organization like Christie’s in London or Sotheby’s in the US, in place of the XIX century French model.

Since 2001 when Artcurial opened its offices in the Hotel Dassault on the Champs Elysees in Paris, it has developed a dynamism and global vision with the introduction of contemporary art from emerging world markets like China, India and the Middle East.

A proliferation of contemporary art fairs and biennials has increased over the past six years. These artistic events have reshaped the market giving artists an opportunity to display their work and the public a chance to see new contemporary works, before they go to museums. On the other hand, art fairs generate pressure on the galleries and dealers, who in turn pressure the artist to increase production, and the quality of the art works, can suffer.

Today, when the economic value of art as an investment and its relation to the global economy is a reality, we have two questions to consider: can art be affected by the possibility of a global recession? And what is the future of art production and circulation? (8)

Bibliography
(1) Adam, Lindeman, Collecting Contemporary, Taschen GmbH, 2006.
(2) Pierre Bourdieu, Richard Nice (translator), Distinction: a Social Critique of the Judgement of Test, Harvard University Press, March 2007.
(3) Contemporary Art Market, the annual report 2006/2007, cat. The artprice, Brochage, France, October 2007.
(4) http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/visual_arts/article3620880.ece
(5) http://www.theartnewspaper.com/article.asp?id=7043
(6) SotArt exhibition, La Maison Rouge
(7) www.artdubai.ae
(8) Five Theories on Why the Art Market Can’t Crash (9) http://www.guardian.co.uk/world/2006/nov/22/france.arts
(10) Rafael, Pic, “Les habits neufs du mécénat culturel”, Aéroports magazine Issue 28, p. 16, 17, 18, 19,20, March, 2008.
(11) Calvin, Tomkins, “A fool for art, Jeffrey Deitch and the exuberance of the art market” The New Yorker, November 2007.