The investment potential of the best art will just keep on increasing, says Simon de Pury, one of the world?s most renowned auctioneers, as art becomes ever more aligned with high luxury. A continuation of our series on investment and business philosophy and strategy.
Simon de Pury
Art is the ultimate luxury. You don?t need it to live, which is a definition of a luxury. And in the past few years other similarities between the art market and the luxury market have emerged.
Ten years ago you would go to different ? not luxurious ? parts of town to see art. In New York you would go downtown; in London you would go east for certain exhibitions and galleries, for example. Now, though, in the art business you need to be very central for the same reasons as you do in the luxury market: it?s all about location, location, location. Thus the concentration of top galleries that are installing themselves in Mayfair in London, while in New York there is a return to the Upper East Side. There?s a lot of artistic activity focusing on these areas because when the international traveller comes to town, he stays in the heart of the city, goes to the top hotel and wants to have everything in an immediate circle, and wants to not have to waste too much time pursuing these passions. So all of that has had an impact, changing the market quite fundamentally. Galleries are now seeking real estate in the same locations as the top luxury brands. Read next: Interview with Guillaume Davin, CEO of Moyn...