HOW DID THE CONVENTIONAL ART MARKET BECOME TOXIC?

13.09.22 10:18 AM Comment(s) By Marcel Émilien

The modern art market is a far cry from what it used to be.

In the past, art was bought and sold for its intrinsic value. Today, the market is driven by speculation and greed. This has made the market toxic for many collectors.


Back in 1968.

Oh yes, the conventional art market is a baby!


Medias wrote so much about international artists successes and awesome sale records that we forget how young the art market (As we know it today) is.


The story starts at New York (US) in the end of the 60’s. Leo Castelli, a New York galerist, is recognized as one of the most progressive art dealers. He provides his artists with full support, ranging from technical needs to public relations, and is the first dealer to pay his pupils even when they weren’t creating new works.


Thanks to establishing close relationships, Castelli managed to gather around him a group of loyal artists who included Andy Warhol and Jasper Johns.


But at this point, the market is suffering from both a lack of new buyers and a lack of fresh supply.


What did Castelli do that was so different. He had a vision and he sticked to it. In a time when people were only slowly starting to get interested in art, he had the great idea to bring art closer to them. He did it by placing art in unusual places, such as gas stations, and by lending artworks to films and television shows.


By doing so, he made people see art in a new light and created a new market for it.


The success of Castelli’s gallery quickly attracted imitators and the art market began to grow. However, this growth was not without its problems. As the market grew, so did the speculation. Artworks were increasingly bought and sold not for their intrinsic value, but for their potential resale value. This led to inflated prices and a general feeling of unease among collectors.


The problem was exacerbated by the economic downturn in the early 21st century. As the market crashed, many collectors were forced to sell their artworks at a loss. This made the market even more toxic and led to a further decline in confidence.


It is clear that the art market is in a state of crisis. The speculation and greed that have driven it in recent years have made it toxic for many collectors.


A Hiscox recent research shows that:

   


❌ 67% of collectors have no confidence in galleries because of the lack of transaction transparency during the acquisition process.


Bad news for the art market elites.


At this point, the art market could strongly crash (Again)!

However, some could see this situation as an opportunity to reboot the market and return it to its roots. By focusing on quality and transparency, the art market could once again become a place where art is bought and sold for its true value.


Does it sounds as a good news for you?


We do not need an art market structure to appreciate art. Neither for discussing art between collectors, enthusiasts and artists. Today, you can have a direct access to an artwork from the creator (The Artist). That is faster to acquire it, and all the money goes to the artist pocket (And some for government taxes).


A return to the roots of the art market would be a good thing for all of us, don’t you think?


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I would be honored to discuss with you about your art collection around a cup of tea (I mean "virtually", we are in 2022).

   


Ressources:

Aleksandra Mainka-Pawłowska (contemporarylynx)

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