When buying art—whether to fill a bare wall or add to a comprehensive collection of objects—do you ever wonder, “Is this really worth what I’m paying?”
You are not alone. Art–unlike pretty much anything else you buy where the cost is based on things like labor and parts, supply and demand–does not necessarily follow standard market rules. Or any discernible rules, for that matter. Sometimes it’s priced by the square inch but even then, if an artist really likes a painting, he might price it considerably higher. (And good luck finding out why.) This reality can leave collectors feeling a little queasy.
In the March 2023 issue of the Collector’s Notebook for Western Art & Architecture, I looked at how art is priced (Demystifying the Art Market). This month, I am going to try to add some context to the valuation of art and give you a few tools to bolster your confidence when making purchases. (You can read my original blog here.)
Art Dealers: King Makers
Dealers sell art, yes, but they actually play a much bigger role in building value—or more precisely, the perceived value—of art. In Michael Shnayerson’s book Boom: Mad Money, Mega Dealers, and the Rise of Contemporary Art, he sums up the market like this: “The meteoric rise of the largest unregulated financial market in the world—for contemporary art—is driven by a few passionate, guileful, and very hard-nosed dealers. They can make and break careers and fortunes.”
Whether you’re buying “contemporary art” ala Damien Hurst or not, the realities of the art market that this book sheds light on are ubiquitous. Art dealers around the world work behind the scenes to get their artists edit in magazines and newspapers and to shore up auction results (sometimes bidding works up or buying them at high prices to maintain or increase an artist’s value). Dealers also make sure their artists are discovered in the right art fairs and that important works are collected by prominent buyers. And they keep an eye on what museum curators are looking at, who they are planning exhibitions for and collecting because having your artists hanging on museum walls goes a long way in establishing value.
This behind the scenes work dealers do is a tried-and-true marketing strategy specific to the art world dating back to French art dealer Paul Durand-Ruel, who, in the mid-1800s, changed the course of art sales forever when he started paying his artists monthly stipends to produce work. He so believed in his artists when no one else did that he kept pushing their work out into the market until his efforts finally paid off—in spades. Those artists were the “Impressionists.”
Everyone knows the Impressionists today but back when Durand-Ruel was their dealer and biggest patron, their work was openly mocked. Sure, Monet, Degas, and Renoir probably would have taken off at some point, but having a strong dealer in their court undoubtedly hastened their acceptance.
The Backroom
All this to say, if you are concerned about value, look more closely at the dealers who are working with the artists you admire. Yes, dealers are pushing the artists they carry because it’s their business, but they don’t have to sell art they don’t believe in.
Next time you stop in a gallery, try this approach: ask which artist the gallerist is most excited about. This query may just earn you a trip to the backroom and storage racks to look at hidden gems. Be sure to keep an open mind about what you’re getting to see and listen for why they personally love that artist. You can apply that criteria to artists and the work you’re considering buying.
Here’s the best part. Gallerists, like seasoned collectors, are always on the hunt for the next big artist and pinnacle works of art—those “painter’s paintings” and “sculptor’s sculptures.” These tend to be atypical works. If you like one of those pieces, buy it. They are rare and may mark a turning point in an artist’s career. The downside is that, if you decide to resell an atypical piece, you may not find a buyer because the majority of people won’t get it. If that happens, you need to channel your inner Durand-Ruel and hang on to it.
Museum Curators: Taste Makers
On the other side of the valuation-coin are art museums. Heiress Peggy Guggenheim is an interesting person to consider because she straddled both worlds of commerce and philanthropy.
(left Peggy Guggenheim in Paris, c. 1940, photo by Rogi Andre)
She had, for a time during WWII, owned a gallery in New York City, Art of This Century, where she exhibited and sold works by Jackson Pollock, Max Ernst, Clifford Still, Mark Rothko, and others. She too paid some of her artists stipends to work and was the driving force behind the careers of many Cubists, Surrealists, and Abstract Expressionists.
But she is best known for her prescient collecting ability—or perhaps it’s the other way around. Maybe she didn’t discover talent so much as she created the market for artists she collected. In the most positive light, Guggenheim epitomizes the important relationship between collectors and museums. This is why we recommend anyone wanting to start collecting, and those wishing to refine or level up, join groups through museums that financially support curators in their quest to buy pinnacle works of art.
The Inside Track
In the museum world, selling art to pay for the costs of running the institution is verboten. According to the American Alliance of Museums:
A museum may transfer an object to another museum or sell it, but if a deaccessioned object is sold, museum professional ethics require the proceeds from the sale be used only to acquire new objects for the collection or provide direct care of the collection.
In other words, no pillaging the museum’s holdings to pay the electric bill.
Perhaps the more important distinction here, however, is that museums are not to be confused with commercial galleries. This doesn’t mean museum curators work in a bubble—they are aware of the market—but their buying decisions need to be driven by factors outside the market.
You Bought What?
So, how do curators decide what to buy? We asked Susan Barnett, Scarlett Curator of Western Art, Whitney Museum at the Buffalo Bill Center of the West, for a little insight. Her exhibition, “POP! Goes the West,” opens this month and her recent research into curating that show added some interesting context to common issues that arise.
“We’re always looking for artists with a fresh take on the West,” she says, and explains that she considers a number of factors before adding works to the collection. “What are the stories we’re missing in our collection? What artists are thinking about the West we live in today?” And, interestingly, she says she wants to be wowed.
The problem with obtaining those “wow” pieces are that they are either too expensive for most museums to buy or, if the artist is newer on the scene and still affordable, their work is unproven and more of a gamble. To the latter point, Barnett says, “Any artist doing something exceptional will be different and look risky.”
In the book, POP Art, a Critical History, Albert H. Barr, the first director of the Museum of Modern Art (MoMA) in New York City, is remembered as saying: “If one choice in ten that we make turns out to be valid in retrospect, we will have done very well indeed.” This line underscores the immense problem museums—and collectors—face when buying art by living artists, especially those doing work that doesn’t easily fit into known categories.
Getting it Right
But don’t let those odds stop you! In fact, this is where museum curators in their role as visionaries for a collection can offer you a peek behind the veil, as it were. But first, a caveat. Do not join a collector’s groups if you expect your own aesthetic to be validated by the curator. They have a goal to collect important work that, as Barnett puts it, adds to the story and that will, fingers crossed, continue to tell that story long after they’re gone. Your job is to be a financial partner who, in exchange, gains knowledge and some pretty great access to artist studios and the homes of rockstar collectors, as well as behind the scenes tours of museums. You also get privileged access to curators.
But this access is where things can get sticky. Curators want to keep their major donors happy, but they also need to maintain distance and take time to consider every new work of art introduced to the collection. Storage space is usually tight as are budgets. Curators have to make tough decisions which may mean saying no to good art that simply doesn’t add to the overall collection. Again, trust the curator, ask questions, and know that you are contributing to a bigger mission.
Circling Back
So, we’re back to where we started with the question of determining value. The best plan is to study the market from both sides, commercial and non-profit. Visit galleries and then look to see what museums are collecting. An artist should be able to slowly and consistently raise their prices and have a constant exhibition history; this indicates a solid, thriving career that you can feel good about. If museums offer an artist a show and/or collect their work, take this as a serious stamp of approval. And when faced with art that catches you off guard and stirs a reaction inside you, remember, most collectors hated the Impressionists.
To learn more about the art market, check out these blogs:
Pricing Art: The Gender Gap
Making Sense of the Price of Art