The Previous Downturn in the Fine Art Market

Richard Polsky wrote for Artnet magazine and has a very interesting article on the last downturn in the art maket during the early 1990's. Polsky estimates during the early 1990's New York City lost nearly 40% of its fine art galleries and what he calls blue chip art declined nearly 2/3 in value. Those are some rather sobering numbers.

He notes that during these lean years, dealers became more collegial and easier to deal with, they perhaps lost some of their swagger and attitude. I read an article earlier with a similar comment about Art Basel Miami. Dealers became more interested in talking with customers. Interesting, how history can find a way to repeat itself.

Polsky states Trying times produced a spirit of community and cooperation. And that’s precisely what’s starting to happen now. I can already sense a return to civility. A recent conversation with an auction house department head was very revealing. He sounded almost jubilant. Why? He was relieved that the pressure was off. No longer would he be abused by consignors, demanding a zero percent seller’s fee, a piece of the buyer’s premium and, while you’re at it, how about a guarantee plus the lion’s share of the upside?

Another accurate barometer of the times is the thickness of art magazines. When dealers are flush they advertise. When the worm turns, the first thing they cut is their promotional budget. That also means less lavish dinners after opening receptions and less expensive catalogues and announcements. In fact, the transition to sending show notifications out via e-mail, saving on postage and printing, is well under way. The current market turndown will probably complete the process. For that matter, look for galleries to schedule fewer exhibitions next year.


The article states that well established and known artist will continue to do well and hopefully prosper, new artist will struggle, that consignors may not consign quality art in a down market but there are always estates to fuel the auction houses.

One very interesting point Polsky makes is the renewed interest auction house specialist now have in talking about potential consignment. As appraisers, I am sure many have had bad experience in dealing with some of the large auction house specialists.

The other good news of the article is, that after a rather extended downturn from about 1990-1995, the market did turn around.

To read the Artnet article, click HERE.