Many investors of all levels are looking for places to put whatever flexible income they have.  Other than the banks, that is, where the return on investment seems non-existent.  So where are the super wealthy putting their money during uncertain times?  According to The Guardian's Sarah Thornton, they are turning more and more to the high risk world of contemporary art, and high end auction houses are booming:

Fifteen years ago financial advisers were not in the practice of recommending that rich people diversify their portfolios by buying art. Now it is the norm. While buying emergent art is high-risk, speculative investment, acquiring established masterpieces is perceived as the opposite – a back-up in hard times. If all goes wrong in the world, if the eurozone cracks, the Middle East erupts in war, and a tsunami hits Manhattan, that rare, portable 1964 Marilyn by Andy Warhol will still be worth something.

The auction houses are fostering a globalisation of taste with the help of galleries with international outposts such as Gagosian, Hauser & Wirth and now White Cube. While wealthy Belgians used to spend their money differently from wealthy Indonesians, this is decreasingly the case.

During the contemporary sales that will take place in London on 14 and 15 February, bidders from four continents are likely to converge on many lots, including a classic red squeegee-blurred abstract painting by Gerhard Richter (estimated at £2.5m-£3.5m at Sotheby's) and a black and white canvas by Christopher Wool emblazoned with the giant word "FOOL" (expected to fetch £2.9m-£3.9m at Christie's). Both works are tipped to exceed their estimates. Christie's and Sotheby's are superlative marketers who are getting better at funnelling demand for objects by a small group of well-tested artist brands.

Read The art of recession-dodging here.