Despite ongoing crises in the real estate and financial markets, the high end world of the art market continues to thrive, judging by acquisitions at the recently-ended Armory Show in New York. Although many dealers arrived with lowered expectations because of the collapses at Bear Stearns and in the housing market, many vendors had sold multiple pieces within the first day of opening—amounting to hundreds of thousands of dollars for individual dealers.

Urs Meile, owner of the Lucerne & Beijing galleries Galerie Meile, sounded more than hopeful for his showing: “There was a very good atmosphere yesterday, not at all depressed.” By the end of the opening day, Meile had sold a piece by Li Songsong for $160,000 and a Li Dafang painting for $35,000.

Unlike the quickly-sold works at the exhibition, what is not so surprising was the number of European galleries showing this year. Of the 160 vendors who were represented, eighty-five of them were from Europe—a large number considering that the exhibition at the Armory was once labeled as a “local” show.

As the dollar continues to plummet, international vendors have flocked to show their work in the US because of the advantageous exchange rate for European buyers. Of the twelve new galleries to show at the Armory, only one is American-based, while the remaining eleven are European.

Some gallerists, however, are worried that the dollar is fluctuating too much. “The dollar is a problem because the rate changes every day,” says Andrée Sfeir-Semler who owns galleries in Hamburg and Beirut. “If it falls three or four per¬cent, I lose…Now my prices are in euros.”

Only days after the Armory Show ended, an auction at Sotheby’s in London proved to be another test for the market. It passed with flying colors. The auction was highlighted by works of Old Master and Modern artists as well as Contemporary Prints. The auction house brought out pieces by Henri Matisse, Pablo Picasso, and Andy Warhol, whose work Myths sold for thousands more than the estimated selling price, ultimately going for £222,500 ($447,056). The world’s most famous street artist Banksy was also represented with his work Morons, depicting auction-goers vying for a piece with words declaring, “I can’t believe you morons actually buy this shit.” The work sold for £5,250 ($10,548).

Not all experts expect this bubble to float above the financial crisis for long, though. The president of Fine Art Capital, Andy Augenblick, expects to see a sharp downturn in the cost of purchasing and the style of art that gets bought. “There’s going to be a thinning of the herd,” he said, referring to an expected number of gallery closings and a move to more conservative pieces.

The trend to more traditional works has already begun, according to some dealers at the Armory. Graham Steele of London’s White Cube suggested that “There’s nothing that’s mind-bogglingly new and shocking here. There are a lot of solid pieces and a lot of mid-range prices.” Another gallerist candidly admitted, off the record, that the show was “a bit boring.”

-Jonathan Mason