The financialization of art

This article examines the processes through which, since the 1970s, the art market has become more and more a niche market for financial investment, accepted as legitimate by mainstream finance and by economists. It shows that the financialization of art has been an evolving process, and is not yet complete. It is too early to tell if the limits of what can be financialized and securitized have been reached in this market, or if it is merely a slow process. Currently, art investment lacks widespread legitimacy for both the art community and the financial community; the former because of opposition to the redefinition of works of art into speculative assets, the latter because of the market's lack of standardization, information, and liquidity. The creation of boundary objects such as art indexes have helped art to become a boutique investment, but have failed to capture widespread approval.