Art Prices Drop 35 Percent

When the recession first started, it seemed for awhile that art might retain its value. Now, not so much: The Financial Times reports that art prices plunged 35 percent in the first quarter of 2009. The bust has particularly hit postwar and contemporary artists, including Andy Warhol. The decline has been fueled by art collectors in London and New York, including Madoff victims, selling off their pieces in order to raise capital. The worst year for art prices on record is 1991, when they fell 41 percent.