10 things Georgina Adam thinks you might not know about the art market

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As part of Art 15’s extensive talks program, Georgina Adam, editor-at-large of The Art Newspaper, led the discussion “10 Things You Didn’t Know About…The Art Market Today” in order to shed some light on the confusing corners of this mysterious market for some of the fair’s less-seasoned collectors and connoisseurs.

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Photo by H A P P E N I N G
Here is a quick overview of Adam’s top ten art market facts:

1.     There isn’t one art market. 

Whilst the headlines are all about contemporary art’s record-breaking auction prices, the ‘booming’ art market is not one homogenous lump: Old Masters sales are down by 2% this year; Russian art sales are also seriously slumping, proof that the art market is not immune to external socio-economic shifts.

Adam also highlighted the reason for the contemporary and postwar art scene’s success: with the polarization of wealth on a global scale, the super rich are looking to go that much further, creating their own museums, which due to supply and demand concerns are inevitably filled with contemporary art.

Furthermore, the nature of wealth has changed, with more self-made men (and women) making their money younger, they are looking to invest in the art of their time. Adam also underlined the way that contemporary art is blurring with luxury and celebrity brands, bringing its attention to a wider market. She expressed concern for this growing trend, yet told us, "I predict that the blurring of art and luxury goods will endure and amplify."

2.     The astronomical prices paid for artworks are a tiny percentage of the market. 

Citing key figures from this year’s TEFAF report: lots over €1 million constitute 0.43% of the art market.

3.     The auction room isn’t transparent. 

Whilst the auction room might seem more transparent than a private transaction, with sales results published and open bidding, Adam went over the little symbols you find in an auction catalogue. These indicate that some sort of pre-arranged financial deal has taken place, usually referring to third-party guaranteeing. She also highlighted the fact that recorded sale prices might not be a true figure of the amount handed over.

4.     When someone tells you a work is not for sale it is probably not true... 

it is just not for sale to you, or during a ‘non-commercial’ biennale.

5.     National growth markets are not all major players, except China! 

The leading international markets are still represented by the US, UK and China.

6.     Chinese buying is still mostly focused on ‘cultural relics’ not contemporary and Modern art (as the press might have you believe). 

However when Chinese buyers do acquire European art, they often go for ‘brand’ name artists such as Monet or Van Gogh.

7.     No one is sitting on a trove of stolen art somewhere. 

Yet stolen art still retains some inherent value so it is often used as collateral in ‘dirty money’ deals.

8.     The art market is not completely unregulated,

transactions involving artworks still have to abide by commercial law and even if an auctioneer is taking ‘chandelier bids’ he is obliged to state his intentions prior to the sale.

9.     But the art market is nonetheless opaque and secretive.

Many dealers and sellers like to maintain an extraordinary level of confidentially which can be problematic for the use of art in money laundering.

10.   Biennales’ may officially be non-commercial, but it is more complex than that.

Collectors may finance the appearance of an artwork at a biennale which will then enter into their collection upon the end of the event. Equally galleries may support their artists’ participation, as biennales are a huge measure of validation, pushing up artists’ credibility and prices.
 
*Extra fact: the Venice Biennale started out as a commercial selling show.*
 
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Photo by H A P P E N I N G