Is A Bubble Forming In The Art Market?

As some hedge fund traders are labeling the stimulus-dependent stock market a “bubble,” could another bubble be forming in the fine art market?

“Best year ever” in art

In 2013 the art market had its best year ever, with indexes measuring art prices up nearly 15%.  “2013 was indeed the best year ever recorded in [art] auction history,” said Thierry Ehrmann, founder and CEO of Artprice.com. “This splendid year was shored up by a globalised demand, particularly with buyers from Asia, the Middle East and Russia, who played a crucial role in the market’s fine performance, and displayed a voracious appetite for flagship artists of the 20^th century, landing them in a spate of records.”

So why...