The Psychology of Buying Art

Yael I. Friedman of Art Info has a very good article on buying art entitled Think Twice Before Buying. The article asks the question as to why so many collectors and art investors seem to buy without proper research and guidance. These buyers tend to be more sophisticated and suspicious when purchasing other investments, but appear to be lacking when art is brought into the investment equation. Some of the answers are an emotional attachment along with ego as a driving force as many collectors like to think they are "in the know". A very interesting article, as is the whole industry which attempts to take advantage with fraudulent art and misrepresentation. It is comforting to see that scholarship and connoisseurship which is now developing to counter the surge in fraud and misrepresentation.

Friedman states an ARTnews investigation concluded there is more fake than real modern Russian art on the market, the New York Times looked into the ongoing problem of art authenticity in Vietnam, and a recent lawsuit filed in Oakland County, Michigan, formally accused Park West Gallery of selling fakes to unsuspecting customers on a cruise ship last year. While these examples illustrate the rising recognition of unscrupulous behavior by the perpetrators, they also raise a question: Why are individuals of means, often extraordinarily savvy in their other financial dealings, so vulnerable when it comes to the acquisition of art? What is it about art that causes buyers to take such leaps of faith, often only to discover that simple research could have easily uncovered any snags or malfeasance?

Friedman continues in the meantime, art buyers, both the experienced and the uninitiated, must strive to overcome the emotional gratification that often blinds them to the pitfalls of their purchases. Phyllis Rogoff, a qualified appraiser who has worked in the art world for almost 30 years, exclaims she is “shocked at the lack of research. They want to be able to say ‘I have a piece like this.’” She finds that gallery openings are especially successful at exploiting this susceptibility and notes that “people get caught up in them — it is equivalent to auction fever.” She recalls an instance in which a client knew that Rogoff could negotiate a 20 percent price reduction on a painting he wanted, but “he was there at the opening with his wife, drinking champagne, and got caught up in it and bought it then.” The “glamour” factor, Rogoff emphasizes, is not to be underestimated.

To read the full article, click HERE.