Confidence in market reaches new highs.

The contemporary art market continues to grow at a breakneck pace, with art confidence readings reaching their highest levels yet, according to a survey released June 6.

Confidence that art prices will remain strong rose to 93 points in the first half of 2006, a 14-point jump over the same period a year ago, when ArtTactic first released its Contemporary Art Market Confidence Indicator.

The increase reflects the resilience seen in the auction market during the first five months of the year. Strong auction sales in New York and increased art investment by collectors in Russia, China and India have all helped to propel prices, according to London-based ArtTactic. Index-maker Art Market Research, meanwhile, reports that contemporary art prices have quadrupled since 1995.

Still, survey respondents remain mindful of global economic trends. A dip in the global financial markets, they predict, will also result in a slowdown of the art market. They are carefully monitoring recent turbulence to examine the effect it may have on art prices for the next quarter.

The twice-a-year survey is based on interviews with 105 collectors, plus 45 dealers, advisers and auctioneers.
—Tim Chan