ART WORLD Q & A: Edition 7

Though the art market has changed tremendously over the last twenty years, here, I will note just a couple of the most significant points.

First and foremost, art has never been more accessible to the general public. With the invention of social media and its pervasive and increased usage, people have been able to discover and view art in a way they never have, before even stepping foot inside a gallery, art fair or museum. Secondly, there has been a notable growth in terms of art fairs and the importance attached to them. This, in conjunction with a growing interest in art in general, stemming from numerous collaborations that have occurred between the art and fashion worlds, as well as a rising interest in a variety of emerging artists – has inevitably lead to increased awareness in artists’ work and a rise in the number of online sales.

I believe the artists that will stand the test of time are: Peter Doig, Marlene Dumas, Neo Rauch, Yayoi Kusama, Gerhard Richter, Julie Mehretu and Ed Ruscha. Their art is already sought after and highly valued, and having become eminent artists in their own right, their work will continue to remain in demand with prices likely to only increase over time.

If I had $10k I would probably buy a Harland Miller limited edition print, or a Kimiyo Mishima ceramics, or a Richard Mosse photographic print.

For $100k, I would buy a painting by either Matthias Weischer, Luiz Zerbini, or David Schnell.

If I had $1M I would buy a painting by Marlene Dumas, Neo Rauch, Adrian Ghenie.  The price, naturally, also depends of the size of work, year it was produced, etc., so the answers I have given are slightly more generalised.

The advantages of buying at galleries are as follows:

One of the advantages is the direct sale from gallery to buyer. Another is that some galleries have fixed prices on works and some (not all) can offer a discounted price.  Contrastingly, auction houses have presale estimates, which means the price often will increase considerably during the bidding process.

Advantages of buying at auctions:

Auction houses have a big selection of artists from every genre and, therefore, also a large inventory database. There is also a public previewing of the artworks before the auction. Furthermore, auction houses always reveal prices before the auction begins, so it is possible to find the prices on their websites, as opposed to galleries’ websites where the prices remain hidden.

The art market model is based not only on supply and demand, but it is also a mix of history and prediction, in terms of the fact that artwork is bought and sold based on its past value as well as its predicted future price.

Fluctuations, therefore, are normal and can sometimes affect the market when the sale of one artist’s work impacts upon a similar or related artist. Long-term value is hypothetical, and thus particularly difficult to predict. We can assume that in 30-50 years time, modern artists such as, Picasso, Miro, Dali, etc., or the impressionists will have a more stable value in the market. But with contemporary artists it’s far more difficult to say, as they still need time to become consolidated in the art market.

The artist ́s price is determined by numerous factors: exhibition history, career level, sales records, etc. Fashion also plays a part in determining the value of art. Artists who are being talked about or exhibiting in well-known galleries, for example, with big coverage in media, are more likely to sell for a high price. In the current market, people are more interested in what’s new and in vogue. Basically, the upcoming artists who are going to become the next recognised set of eminent artists.

My personal taste tends toward the abstract and non representational. I also like artists who have consciously rejected historical precedents and who embrace new materials or technologies.

Find an expert and ask questions. Do your homework. There is no excuse for ignorance in this market.