Cast your mind back to 2020, when a global population of thumb-twiddlers were looking for something to occupy themselves with during Covid-19 lockdowns.
With cash to burn and excitement a priority, people flocked to invest in non-fungible tokens (NFTs) and, in turn, pushed the digital tokens into the mainstream.
Fast forward to 2022 and NFTs were barely a footnote in the cultural conversation, with monthly spending collapsing by about 90 per cent between March and November.
This, even as a chaotic global economy propelled traditional art investment to new heights.
So, as we head into a new year, it begs the question: What might 2023 look like for the two markets?
The key difference between NFTs and traditional art
To be clear, we are not sneery about NFTs. We are keen advocates for the technology behind them, but aren’t convinced by the current business models associated with them, nor their current use. However, time will probably change that.
When it comes to art, digital and physical art is not as far apart as traditionalists like to argue: they are both subjective, non-replicable works that are only as valuable as buyers decide.
Even British artist Damien Hirst has leaned into the overlap, offering collectors the choice of an NFT or physical version of his recent work The Currency.
Second, if we put aside the likes of Beeple’s Everydays: The First 5000 Days (which sold for $69 million in March 2021), the NFT market has got one thing very right: it democratised art investing in a world where it had been the preserve of the privileged few.
No matter what you think of NFTs’ cultural or investment potential, the idea that you shouldn’t need to own a private jet to buy into art sounds pretty appealing.
Watch: First text message to be sent will be auctioned as NFT
Still, there is one unignorable difference between the two markets: NFTs’ rapid hype-to-crash trajectory is a far cry from the traditional art market’s tireless uptrend.
NFTs’ hype-to-crash trajectory
The NFT boom could be put down to any number of things. Social media culture definitely bolstered the market, along with (ethically questionable) celebrity endorsements. Throw in pandemic-induced boredom and an influx of government stimulus, and the cryptocurrency market was awash with cash.
But at the heart of it, the reason for the hype was simple: it was an opportunity to make big money, fast.
Faster than stocks, faster than bonds and certainly faster than the art market.
Buy a Cryptopunk today, so the pitch went, and you will be a millionaire in next to no time.
That did not quite pan out. Cryptocurrency was arguably already facing economic headwinds at the start of 2022, but two scandals swiftly eradicated the world’s confidence in the digital rascals: the collapse of the “stablecoin” TerraUSD in May, and the bankruptcy of the third-biggest cryptocurrency exchange FTX in November.
Those caused Bitcoin to nearly halve in price from the start of 2022, and Ether to drop even further.
Sotheby's NFT art forum in Saudi Arabia — in pictures
As for NFTs, the writing was on the wall when dedicated marketplace OpenSea laid off 20 per cent of its staff in July.
Today, there are about a third as many NFT buyers and sellers as there were at the peak in January 2022, and the tokens themselves are being minted around 60 per cent less often.
And there is the rub: NFTs’ short and choppy track record is the polar opposite of the long and successful performance of traditional art, which, according to years of data, has proved that it can hold up through times of war, high inflation and slowing growth.
You can see as much from Sotheby’s Mei Moses Index, which rose an average of 8.5 per cent every year between 1950 and 2021.
So, it stands to reason that physical art investing would have been in particular favour last year, and early data suggests it was. The total auction sales of old masters, impressionist, modern, post-war and contemporary art at Sotheby’s, Christie’s and Phillips hit $7.5 billion in 2022 — up by about 15 per cent from the year before, and a new record.
Which should you back in 2023?
Let us not be glossy-eyed here. Just because the art market had a stellar year in 2022 does not mean it will keep up the same pace.
Consider that a year of non-stop inflation, the war in Ukraine and the prospect of a sharp economic slowdown sent investors to alternatives such as art for returns and security.
But while we are not out of the woods yet, investors are a little more at ease than they were. That could usher them back to stocks and bonds at the expense of art as an investment.
You can’t entirely write off the NFT market, either.
Digital collectibles might have flamed out, but those with fan bases are still trying to diversify their intellectual property by creating products and building out entertainment franchises.
And keep in mind that Ethereum — the home of NFTs — has recently swapped an energy-intensive mining model for a greener staking alternative. That could drive usage of the platform up, and nudge investors towards giving NFTs a second chance.
Even if the NFT market makes an unlikely resurgence, the reality is the days of choosing a Bored Ape over an Andy Warhol are probably long gone.
Investors must remember that any ebbs and flows in the art market are features, not bugs, in the life cycle of any long-term art investment. The performance of all traditional asset classes in 2022 reflects that.
Andy Warhol's 'Shot Sage Blue Marilyn' at auction — in pictures
While the art market may have had a record-breaking year in 2022, ultimately the biggest takeaway was that high-quality, fresh-to-market artworks will fetch premium prices, no matter the wider economic climate.
Tamer Ozmen is chief executive of Mintus, an online art investment platform regulated by the Financial Conduct Authority in the UK and SEC in the US
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
More coverage from the Future Forum
Getting%20there
%3Cp%3EGiven%20its%20remote%20location%2C%20getting%20to%20Borneo%20can%20feel%20daunting%20even%20for%20the%20most%20seasoned%20traveller.%20But%20you%20can%20fly%20directly%20from%20Kuala%20Lumpur%20to%20Sandakan%20and%20Sepilok%20is%20only%20half%20an%20hour%20away%20by%20taxi.%20Sandakan%20has%20plenty%20of%20accommodation%20options%2C%20while%20Sepilok%20has%20a%20few%20nature%20lodges%20close%20to%20the%20main%20attractions.%3C%2Fp%3E%0A
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Squads
Sri Lanka Tharanga (c), Mathews, Dickwella (wk), Gunathilaka, Mendis, Kapugedera, Siriwardana, Pushpakumara, Dananjaya, Sandakan, Perera, Hasaranga, Malinga, Chameera, Fernando.
India Kohli (c), Dhawan, Rohit, Rahul, Pandey, Rahane, Jadhav, Dhoni (wk), Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Thakur.
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
UAE currency: the story behind the money in your pockets
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
UAE currency: the story behind the money in your pockets
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
RESULT
Esperance de Tunis 1 Guadalajara 1
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
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Results
5pm: Handicap (PA) Dh80,000 1,400m; Winner: Faiza, Sandro Paiva (jockey), Ali Rashid Al Raihe (trainer).
5.30pm: Handicap (TB) Dh90,000 1,400m; Winner: Greeley, Connor Beasley, Helal Al Alawi.
6pm: Emirates Fillies Classic Prestige (PA) Dh100,000 1,600m; Winner: Marzaga, Jim Crowley, Ana Mendez.
6.30pm: Emirates Colts Classic Prestige (PA) Dh100,000 1,600m; Winner: Jawaal, Jim Crowley, Majed Al Jahouri.
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,600m; Winner: AF Ashras, Tadhg O’Shea, Ernst Oertel.
7.30pm: Handicap (PA) Dh80,000 2,200m; Winner: Somoud, Richard Mullen, Ahmed Al Mehairbi.
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Killing of Qassem Suleimani
Killing of Qassem Suleimani
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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COMPANY%20PROFILE
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Bib%20Gourmand%20restaurants
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If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Company%C2%A0profile
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Specs – Taycan 4S
Engine: Electric
Transmission: 2-speed auto
Power: 571bhp
Torque: 650Nm
Price: Dh431,800
Specs – Panamera
Engine: 3-litre V6 with 100kW electric motor
Transmission: 2-speed auto
Power: 455bhp
Torque: 700Nm
Price: from Dh431,800
