Art prices in Central Europe

Since the beginning of global financial crisis (GFC) major fluctuations in prices of various assets can be observed. This is the reason of increased interest in alternative investments such as art, that could be useful to diversify the portfolio. Art treated as alternative investment is a subject to trends on financial markets. There is a broad discussion in the world literature concerning various aspects of art as an investment. The aim of this article is the attempt to fill the gap as far as Central European art markets are concerned. The downturn of the global art market was precipitated by the global financial crisis. This general thesis should be carefully verified hence this study is motivated by the need to answer the questions as to how emerging markets in Central Europe performed in the years 2007 – 2012 i.e. before and during GFC.

The purpose of this study is to analyze the short-term price movements and to compare the buyers’ preferences and rates of return as far as periods in painting are concerned for Polish and Czech art markets. The study will cover the artworks of most significant painters (in terms of number and value of sold paintings) and will use transaction data from art auctions in auction houses in Poland and Czech Republic in the years 2007 – 2012. Quarterly research will enable to show the short-term price movements on these markets. Half-year indexes for periods in art (i.e. XIX Century, Modern Art and Contemporary Art) allow the comparison of the buyers’ preferences and rates of return for periods in painting on Polish and Czech art markets.