Investing in Art

The primary market bears the highest risks in the art market because it deals with artists who may not have a strong market for their work. He argues that price spikes can be expected in markets like real estate (and art) when sensible investors are confronted with poor information and shifting psychology among other investors. One way to think about Schiller’s argument is that asset markets like art are prone to making price “mistakes”.

Source: the-easel.com