It is interesting to observe the relationship between the stock market, the economy and art sales. Past rules-of-thumb don’t seem to be working these days, although historical factoring is always a strong evaluating basis.

Money in the bank verses putting it in paper is a sensitive teetering scale. How many people wash and reuse aluminum foil? Or save mayonnaise jars for canning? After the Great Depression the saving mindset was ingrained. Then the scale gradually reversed.

About five years ago a bank president happily waltzed in the gallery proclaiming how great the economy was and didn’t I agree. I did not agree. “Sure there’s a lot of money,” I said, “but it’s in big corporations, and people are putting their money in those big corporations via stock.” I told him to walk around town and ask the small businesses how they’re doing, and that he wouldn’t get a cheerful answer.

As strange as it may seem the past has shown that when the stock market is hot art sales are down. And bad times see a flourish of art sales. The late eighties and early nineties was a good art period. New York was promoting avant-garde art and getting exorbitant prices, and the auction houses were breaking one record after another. That’s when a Van Gogh landed a cool 54 million. The Southwest was it its art heyday, especially since the decorating craze was pastel and more pastel.

By the mid-nineties the works corporate and tech were glued together, as almost unrealistic demands swept the nation for high-tech gadgets. This equipment monopolized money, time and space. Choosing between and updated computer and a good piece of art became a no-contest. The tech flurry became the stock market’s dangling carrot, and by the end of the millennium everyone from the Safeway checker to the pensioned widow was deferring funds to Wall Street. “Affluent” was a red-letter banner. What artist couldn’t afford to have a print company run off an edition of prints? Then along come the giclee, which is a digital print process. Then add that to what you can do with your home color printers, and you’ve got a flooded market of prints. This creates a damper on the legitimate fine art market.

The art market has been taking a hit for the past four years of more. The recent security dilemma hasn’t helped. Interestingly, right after 9/11 many galleries saw a surge in sales. That sentiment and luxury of having original art saw my gallery’s sales double in September and October. But the world art market uncertainty has petrified the consumer as if we are on-hold. I keep in touch with galleries around the country, and many may not see the New Year. A prominent Montana gallery owner said they’re down 40 percent this year from last. Several local galleries have divulged similar figures. Only my magazine ad rep has painted a rosy picture, but she’s selling ads of course. Once the market levels off we’ll watch the cycle of the scale begin reversing its tilt – or will we?.