It seems that it is all the art world is talking about these days.
“It’s Not a Soft Landing: Contemporary Art Prices Come Crashing Down”, titled Artnet on March 22nd. Is this the End?
It got people talking, worrying, and making doomsday predictions. But really? The End? The end of what? Of the ultra contemporary art bubble? The end of art speculation?
I have my doubts. Yes, recent contemporary art auction results have come down significantly in recent months. But maybe it is not a bad thing. Yes it has negatively impacted the auction houses’ profit margin; speculators that are looking to flip works and make a profit and anyone who is solely looking at art for its investment value.
But is it symptomatic of the entire art market? I don’t think so. The art market is known to be resilient. And ultimately, a cooling of the auction market will offer opportunities for buyers who acquire art on the primary market.
The fact that the prices on the secondary market are “crashing down” is not affecting the artists’ bottomline. In the United States, artists make no money when their work is sold on the secondary market. And it is not affecting most art collectors, who are looking to buy art on the primary market, directly from galleries or artists.
According to Artnet there is a “growing disconnect between the primary and secondary markets. Primary prices have gotten so high for some artists that they cannot be resold for a profit any longer”. And while this holds true for certain artists, it’s the type of information savvy art buyers need to make informed decision. Buyers, beware.
The majority of my clients buy art on the primary market. According to a recent UBS survey on art collecting ““most collectors are motivated by personal pleasure and self-identity when it comes to assembling their art collections”. It is reassuring to know that is not all about the return on investment.
As an art advisor it is my role to educate my clients about the right market value of artworks; identify artists whose career has a potential for growth; warn them when there is too big of a disconnect between the primary market price and the secondary market price; and ultimately make sure my clients spend their money wisely while acquiring art they will enjoy for a long time. In my opinion, 2024 will provide opportunities to the savvy art buyers.#contemporaryart#contemporaryartmarket#artmarket#artcollecting#artbuying#primarymarket#secondarymarket#artadvisor
This post was published on LinkedIn at: https://www.linkedin.com/feed/update/urn:li:activity:7183885352808402944?updateEntityUrn=urn%3Ali%3Afs_feedUpdate%3A%28V2%2Curn%3Ali%3Aactivity%3A7183885352808402944%29
