Global fine art market grows 53%

PARIS, March 22 - The global fine art market grew 52 percent to $6.4 billion in 2006 with prices close to levels last seen in 1990 and exceeding them in some markets such as the United States, according to a study published on Thursday.

The annual "Art Market Trends" study published by Artprice.com, a French company that collects auction data and compiles an art price index based on it, said the surge in the demand was encouraging some collectors to sell off works they bought in the last boom in 1989-1991.

"Driven by galloping prices and a whole new generation of rich art collectors, the number of over $1 million sales has taken off. Today's prices are - in effect - without precedent," the study said.

In 2006, 810 works sold for over $1 million compared with 487 in 2005. It said while the number of total auctions at 9,200 was down from 9,600 in 2005 the volume of works on offer rose along with prices - with demand strongest at the very high end. "The price index for works bought for under $10,000 grew only 8 percent in 2006...For works above the $10,000 threshold, the 2006 growth rate was 33 percent," it said.

The study said 2006 confirmed New York's leading position in the global market - with prices 32 percent higher than the last peak in 1990. London lost ground to the United States, but gained market share from other European countries.