Why art markets are kind of insane right now, and why you should look at other options

Great NY Times piece about why the market for high-end art doesn't reflect what's happening in the world economy. Basically, said one Federal Reserve economist who's studied the art market:

Fine art, he said, is not really part of the overall global economy. Instead, it’s part of the economy of a small subset of the super-superrich, whom some economists call Ultra High Net Worth Individuals, or U.H.N.W.I.’s. And their economy, unlike ours, is booming. 

What s this mean for collectors who don't have pockets that are quite so deep? Well, first, that there are lots of opportunities in other areas for making money with collectibles and antiques, but perhaps the fine art world is just a little too crazy for mere mortals.

That doesn't mean you can't find joy and make money with collectibles. It just means that the art market has gone totally crazy, disconnected from the real world of valuations and funded by billionaires who don't even notice the pain of writing a nine-figure check. If you want to play in that space, good luck.

But if you're wanting to connect with great artifacts from a different time, and perhaps also have the opportunity down the road to sell some of them for a reasonable profit, maybe you and I should have a talk. The opportunities in other collectible fields are actually much more sane and reasonable. What's happening in the art world is instructive, and scary. Thankfully, you can still play in some other collectible areas without giving up your first-born child.