Comments on: Ban New Art From the Big Auctions? http://artmarketinsider.com/2007/04/ban-new-art-from-the-big-auctions/ Your backstage pass to the art world Thu, 28 Aug 2008 12:09:49 +0000 http://wordpress.org/?v=2.0 by: Missy Sullivan http://artmarketinsider.com/2007/04/ban-new-art-from-the-big-auctions/#comment-16491 Sun, 08 Apr 2007 18:24:43 +0000 http://artmarketinsider.com/2007/04/ban-new-art-from-the-big-auctions/#comment-16491 Precisely the problem, as I see it....too many folks involved in the art world today are thinking like speculators, a situation that directly caused the last big art market crash. Values are being determined less by rational (and lasting) criteria of quality, condition, rarity, provenance, etc--and far too often by hype and hubris instead. Most artists don't mind being treated like the next big growth stock as long as the money keeps coming. But if they get pumped and dumped at auction enough, their long-term viability will be eroded. Art is not a commodity. So many of these hedge funders think they have the art game all figured out, but very few of them lived through the last crash and I suspect that many of them lack the connoisseurship skills to survive the next one. Precisely the problem, as I see it….too many folks involved in the art world today are thinking like speculators, a situation that directly caused the last big art market crash. Values are being determined less by rational (and lasting) criteria of quality, condition, rarity, provenance, etc–and far too often by hype and hubris instead.

Most artists don’t mind being treated like the next big growth stock as long as the money keeps coming. But if they get pumped and dumped at auction enough, their long-term viability will be eroded. Art is not a commodity. So many of these hedge funders think they have the art game all figured out, but very few of them lived through the last crash and I suspect that many of them lack the connoisseurship skills to survive the next one.

]]> by: Ron Ratney http://artmarketinsider.com/2007/04/ban-new-art-from-the-big-auctions/#comment-16441 Sat, 07 Apr 2007 21:11:47 +0000 http://artmarketinsider.com/2007/04/ban-new-art-from-the-big-auctions/#comment-16441 I fully agree with you but you are thinking like an art critic, collector, dealer or journalist; not like a stock market speculator. A young artist who seems like an up-and-comer is like an initial public offering (IPO). If the artist looks as if he/she has a good future, you want to buy in the early stages of his/her careet. Later new works will sell at obscenely high prices and your initial investment will have sky-rocketed. Of course many IPOs don't thrive, they bomb and the same thing will happen with art from six-day-wonder artists. In 10 or 20 years, the original buyers will find they are stuck with expensive works by artists considered to be second rate and whose works aren't even worthy of wall space. On the other hand, we may be observing the development of a new tier in the art market; one populated by celebrities and investment speculators with more money than they know what to do with. They will form an incestuous community that will buy works from untested artists at ridiculous prices and entertain themselves by buying and selling them from one another. Its all innocent fun but unfortunately there is potential that their activities will hyperinflate art prices generally and make it impossible for ordinary people to enrich their lives with good art at sensible prices. Ron Ratney I fully agree with you but you are thinking like an art critic, collector, dealer or journalist; not like a stock market speculator. A young artist who seems like an up-and-comer is like an initial public offering (IPO). If the artist looks as if he/she has a good future, you want to buy in the early stages of his/her careet. Later new works will sell at obscenely high prices and your initial investment will have sky-rocketed. Of course many IPOs don’t thrive, they bomb and the same thing will happen with art from six-day-wonder artists. In 10 or 20 years, the original buyers will find they are stuck with expensive works by artists considered to be second rate and whose works aren’t even worthy of wall space.

On the other hand, we may be observing the development of a new tier in the art market; one populated by celebrities and investment speculators with more money than they know what to do with. They will form an incestuous community that will buy works from untested artists at ridiculous prices and entertain themselves by buying and selling them from one another. Its all innocent fun but unfortunately there is potential that their activities will hyperinflate art prices generally and make it impossible for ordinary people to enrich their lives with good art at sensible prices.

Ron Ratney

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