I recently listened to Freakonomics Radio’s three-part series on the art market. In it, host Stephen Dubner interviews a number of people with big names in the art world - Glenn Lowry of MoMA, David Zwirner of David Zwirner Gallery, Amy Cappellazzo of Art Intelligence Global, and Tscabalala Self, contemporary artist. They discuss the bizarre intricacies of this opaque market, including everything from artist resale rights, pricing, auction protocols, and more. A lot of opinions are shared, some of which I agree with…but to me, the most interesting topic of discussion was that of “access”. Why is art world access limited? Who gains access and who doesn’t? And why? Here are our answers, as well as how we help our clients navigate.
First, the art market is segmented; museums, top-tier auction houses, all other auction houses, blue chip galleries, emerging art galleries, secondary market private dealers, and artists-without-gallery-representation all operate very differently. Accordingly, access to each varies. For this post, we’ll focus on access within the primary market gallery world selling work in the $20k - $100k range because this is where many of our business operations live.
Tschabalala Self: Out of Body
ICA Boston
Yes, access in this segment is limited in a few ways: pricing is an obvious barrier to many, and understanding available inventory is not straightforward. Pricing and availability is rarely posted online, gallery websites do not include updated information, and requesting this information from a gallery often doesn’t yield a comprehensive listing – Some works that are available are intentionally excluded while others are marked as “on reserve” or “not for sale”. WHAT??
There are two reasons for this: 1. In this specific niche, where already-established artists may be on the brink of securing an important place in the international art market, demand exceeds supply. Good art is unique and comes with a specific voice and cultural relevance that no other object has. 2. Primary market galleries’ job in this niche is to leverage artist careers. They do this by carefully releasing work, increasing artist exposure at important institutions, fairs, and shows, and ensuring that those who buy the work believe in it. After all, artists create to express themselves and few things are more meaningful than having that work be heard, respected, and understood long term. When demand exceeds supply and galleries are working to further their mission, access to works is inevitably limited. Priority goes to institutions, important collectors who serve as tastemakers, and loyal clients or advisors.
We’re fortunate to fall into category 3 here because as advisors, we buy a lot. Last year alone, our sales totaled ~$1.5 million with galleries and artists across North America. Galleries give us previews of works not yet released, show us works in their storage areas, and bump us up on artist waitlists because they know we represent a solid client base and exponentially more future sales than a new buyer off the street. Our clients reap the benefits of not only having our guidance on where to seek out compelling art options and our trained eye, but also a much broader pool of artworks that are less accessible to others. Plus, with our three offices in New York, Toronto, and Minneapolis, we have more eyes on more markets that don’t necessarily intersect. That translates to compelling discoveries and a heightened ability to matchmake clients with specific works that yield emotional dividends in the long term.
So there you have it: a window into how access is limited, and why, as well as the ways we help you break through those barriers. We’d love to hear your thoughts on the topic and answer any questions that arise from this or the aforementioned Freakonomics podcast. Ask away, as our mission has always been to provide transparency and approachability for people interesting in acquiring meaningful contemporary art.
