How does the Art Market work? - Everything you need to know

Posted by Owity L on

How Does Art Market Work?

    The Art market is fierce, competitive and exciting; auction houses such as Christies, Sothebys and Phillips sell 100's millions worth of art every year, even during economic recessions. Looking at the sociological development of the museum industry, I believe that the art market will soon reach a turning point in its development from a niche market to a global market. In other words, it is now driven in part by an accounting logic that justifies hundreds of millions of dollars in acquisitions. According to the New York Times, for example, $100,000 worth of work was offered in the US and $1.5 million in Europe.

    Original Art is sold through one of three ways; either through a gallery, directly from the artist or through an auction house. Most items sold at auction houses are usually resold, only a few select artists sell through auction houses. 

    Graphics and works on paper make up only a small fraction of the total number of works sold in the United States and Europe, but still a significant proportion of total art sales. 

Art Market Auction - Banksy

    Famous street artist Banksy expresses his feelings on the Art market. Referencing his ideology that "anything in a gold frame, becomes more valuable".     

Types of Art to buy/invest in

  • Paintings 

There's various types of paintings, but oil paintings are the most famous ones.

  • Prints 

Prints can come on various types of paper, from cotton paper, Giclee 100lb natural paper, Gicless 300 GSM and more.

  • Designer Toys/Sculptures 

Many contemporary artist create Art Toys/Sculptures; Ron English, Daniel Arsham and Kaws being the most famous one. 

Art MArket - Daniel Arsham

  • Event memorabilia associated with Artist 

Artists host exhibitions all over the world, the memorabilia associated with exhibitions are sometimes collected and resold. ex: Exhibition posts, invitations, small print & more

 

A List of our favourite places to Buy/Sell Fine Art

 

Our Guides: 

How to Buy Art online
How to Sell Art online

 

        Before the coronavirus reached Poland, collectors bought works of art at different prices. They were more likely to buy works exhibited at young art auctions, where the starting price was often under $10,000 or even $1,500. 

        This is not the first time that a work of art has fled, intensifying the sale at a higher market price, "says Dr. Zbigniew Kowalczyk, Professor at the Art Institute of the University of Vienna. 

        The art market is one of the few areas saved from quarantine by quarantine, and experts are optimistic about the future. The results of 2017 are in line with the long-term trend in the global art market, which incidentally makes the art market a particularly exciting market. But, for the first time in history, recent growth and recovery are supported by local markets developing around the world, not only in Europe, but also in North America and Asia.  

        The recovery in the Chinese market seems particularly impressive, given that, according to the World Art Council (WAC) and Mundi International, the US total increased by $9.5 billion in the first half of 2017, compared to $5.2 billion a year ago. Still, China's $5.1 billion this year is ahead of that of the United States, but the results in the two countries are very similar, and sales are higher than ever. In China, 89,400 lots were sold, and the competition for the top spot in overall art sales has never been so intense. 

    Most famous Auction Houses 

    1: Christies - christies.com

     

    2: Sothebys - sothebys.com 

     

    3: Phillips - phillips.com/

        In short, it looks as if the two global superpowers will continue to dominate the global art market for a substantial part of the 21st century. On the one hand, this has had a negative impact on Russia's local art markets, which have underperformed over the past decade. One reason is that affluent Russians tend to live and enjoy their leisure time in places like London.

       They try to create a more cosmopolitan identity by collecting art and therefore buy a wide range of art from artists such as Picasso, Gauguin, Giorgio Moroder, Picassos and others. 

    Girl Before a mirror - Pablo Picasso - Art Market

       As a result, Moscow's major galleries have had to drastically change course, close their doors, and change their business model. The result had a negative impact on the quality of art in the city and on its economy. 

         This prompts me to ask whether the miscalculation of the widespread boom that I have described is related to the dramatic increase in wealth at the very top, which in my miscalculation means overall prosperity. In my analysis, instead, I describe a winner - let's say - of any boom that affects only the top players, with high collectors exchanging money, and affects a small group of galleries that represent very few artists. I have read that the rise in inequality can well understand the steep rise in the art market. 

        The study of the art market has always been embedded in art historical research and has manifested itself in the works of artists such as Robert Rauschenberg, Paul Gauguin, David Hockney, Pablo Picasso, to name but a few. The primary market is for works sold to the artists who create the works, not to collectors. This seems to me to be connected with a correction of some art market clichés: the "primary market" is the market for works that are sold for the artist who created them.

    Auctions are considered the only viable measure of the value of an object, because the pricing process can be observed openly and the results are generally accepted as objective. 

        To this day, Jeff Koons's Balloon Dog is the most expensive work of art by a living artist, and there are very few older masters, but it is striking that there is a striking aspect that goes beyond that. Of course, there are also a number of works that seem to be fixed in museum collections. If you are a contemporary artist who has created a single work, there may be no other way than to sell the art. 

    Art Auction - Jeff Koons

    This is because they have permanent employment and works that are still part of a private collection and therefore still appear on the market.

     

    Check out: ART INVESTING - BEGINNERS GUIDE

     

    Cited Sources

    Art Auctions Art Market Auction Houses Guide

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