The $64 Million Question

Will the subprime storm that's been brewing in the U.S. put an end to the Gilded Age of the art market? That's the $64 million (or should I say the $72 million) question. Some say, definitely. Others aren't worried. Philip Hoffman, chief executive of The Fine Art Fund — seemingly the only art investment fund that's been able to get itself off the ground with any degree of measurable success — falls into the latter camp. Here's why:

First, wealthy collectors allocate 4 - 5 percent of their incomes to art — "peanuts" — Hoffman says. The implication is that even if American money managers take a hit, their collecting habits won't suffer.

He also voices this popular refrain: "I think that there is a whole new breed of Russians, Indians, Chinese, and Middle Eastern money that is coming into the art market who hasn't touched it before."

Nothing we haven't heard before.

Hoffman does concede, though, that there will be some losers over the next six months because people have started to speculate.

"I think that there'll be selective artists where there are corrections."

Who? He won't say.

John Dizard took a guess for Condé Nast Portfolio here. I'd add the Banksy work that sells at auction (not the downloadable stuff) to the list.