More on Art Prices

With the important Art Basel Miami fair wrapping things up, there are many articles in international, national, regional and local papers about art fairs, sales, prices and art as an asset.   The Miami Herald has an interesting article on the prices of contemporary art and how an artist might price his works, through gallery sales, dealers, fairs and auction.

The art states new artists might first exhibit and sell work through lesser known galleries and non profit spaces, and work their way up as sales and prices increase.

Overall a common sense based article, but one that also shows there is interest in how art is prices, especially at the top end of the market.

The Miami Herald reports

What would possess someone to drop hundreds of thousands of dollars for work by an up-and-coming artist?

The answer: The artist’s museum exhibition history, of course. Also his gallery representation.

Don’t forget his popularity with in-the-know collectors. And the price his work last fetched at auction.

“This is just like any other business,” said Miami art advisor Lisa Austin. “You do your research.”

While many serious art collectors insist they buy pieces that appeal to them aesthetically — not financially — they have company from investors seeking a place to park their money other than real estate or the stock market. International buyers flush with cash are also crowding the field and driving prices up, experts say.

“Art is an asset class that the wealth management community is beginning to embrace not only because it exhibits performance, it doesn’t seem to have anything to do with the stock market — which is very advantageous,” said Jim Hedges, president of art financial advisory firm Montage Finance. “Increasingly it’s become a currency for people who are operating in different parts of the world.”

The path of an artist from starving newcomer to international superstar typically begins with reasonable prices at lesser-known galleries or nonprofit spaces, said Robert Manley, head of the New York Post-War and Contemporary Art department at Christie’s. The artist might move on to better-known galleries and see their work increase by 10 percent or 20 percent with each exhibition, he said.

“As the works get sold, the market starts to be created,” Manley said. “And very quickly, the laws of supply and demand kick in.”

When demand grows to the right level, an auction house such as Christie’s might step in and let the bidders dictate the final price — which could change the game altogether.

“At auction, listen, anything can happen, and sometimes [prices] can be pushed to almost unsustainable levels,” Manley said.

When that happens, early adopters of some artists can find themselves priced out of future sales.

To read the full article, click HERE.