Lately I have been thinking about the current state of the art market. It goes without saying that the art market is in for some rough times. I’m by no means an expert on the subject, but I must say that I could see this happening. The bubble did not burst in the way I had expected-- I don‘t think anyone could foresee these dire times, but I did stress the fact that certain aspects of the art world had been walking a fine line.
Today the bubble is gone. It popped months ago. The question is… what will be the result when everything is said and done? How will the various aspects of the art world restructure after having been dealt a hard economic blow? Many have taken a Darwinist view of the situation in that they feel that the ‘best of the best’ will survive this storm-- the best artists and art dealers. You can see this opinion expressed on art blogs, art forums, and elsewhere. What are your thoughts on this issue? Who are the 'best'? Do any of you view the recent chaos in a positive light?
The following is an excerpt from a post I made in 2007 titled I’d Hate to Burst Your Bubble:
“True, there has been record-breaking sales of art in 2007. It seems that the art market has finally overcome obstacles that had left the market in question for several years. However, I'm nervous as to how much longer this can occur before there is another slump. Slumps in the art market tend to trickle down the chain of art sales. When the market is good it is good for every artist- when it is bad... it is bad. When it is bad... even the most established artist can have a hard time selling his or her work.
Many younger artists, who are not really established yet, are fetching up to $20,000 for their works according to collectors who frequent fairs like Art Basel. This is due to the market at this time. If the art market were to fall it would cause many of these younger artists to get caught in the process- which could lead to young careers being stamped out before they even started. The current market is reminding people of the bubble of the 1980s market and history teaches us that it can burst at any moment.
I'm not suggesting that a young artist should not price his or her work high. However, young artists need to think in the long-term about their careers. Fetching a few high prices now is great, but what if the 'bubble' around the current art market were to pop? Where would that leave them? It is hard to go from fetching $20,000 to just a few thousand per piece. One would do that at the risk of offending collectors who had purchased their work for higher prices. In other words, I'd hate to burst your 'bubble'... just be careful.
The art market looks great at this time. A young artist can throw caution to the wind, right? Just remember that in the wind a bubble can only be carried so far before it finally pops. That is a situation that leaves a young artist who is not established with only one direction to go- Down. Don't get caught in the 'pop'.”
View the complete article from 2007 by clicking, HERE
Take care, Stay true,