«I LIKE MONEY ON THE WALL»

Old Master sales are driven far more by supply than by demand. Artists who lived centuries ago are not going to produce any more work. Museums rarely sell their holdings and almost never let go of top-quality pieces. So the Old Master market is fed largely by private collectors. When markets are riding high, some can be persuaded to sell. But when times are rough, why not sit and wait? After all, Old Masters tend to be long-term holdings, handed down from generation to generation—what difference can it make to wait another year? Prices might go up.

-The Economist
Jan 20 2009