The Secondary Art Market - A Useful Notion For the Art Investor

As there are secondary markets in the trade ofthe Vanity Fair that is art collecting.
goods or wares, there is a secondary market in theIt is evident that the prudent art investor better
trade of art. The great difference is that art doesn'tturns to the secondary market where value is
depreciate with age, even if subject to wear, andestablished and not arbitrary or ethereal. The
that prices on the secondary art market aren'tsecondary market implies that a certain time will have
determined by singular usability but by their universalpassed between the act of creation and the present
desirability. What we understand by a primary and aproprietary transaction. This is of course not true in
secondary market in the art trade is important forall instances but can be used as a convenient rule.
our appreciation of the monetary value of a work ofThe artificial hype that may have been created
art.around the artist at the moment of his introduction
When an artwork comes to the market for the firstto the art world, or during his ascendance in the
time at a gallery or any other art exhibition we speaksame, or at his height, will in most cases have waned
about the primary market. This is the moment whenor stabilized and there is room for a more neutral and
the price for the artwork is established for the firstsober evaluation of the work itself.
time. The artist, or the gallery owner / dealer inBut also for the art collector is the secondary market
conjunction with the artist, establish a selling pricea safer bet. Though subject to the prevalent
based on art market indicators at the time ofZeitgeist, the secondary market is not so trendy and
presentation. As with any commodity market, thedoes not explore, to the same extent, the eventual
mechanism of "supply and demand" defines thismomentary personal celebrity of an artist. Not dealing
pricing structure.with the artist is an expedient way ofnot getting
Once the artwork is purchased on the primarybiased be his/hers personality or circumstances and
market and the buyer, whether a private collector,to focus on the work of art itself. Artists are
an institution or a dealer, decides to resell it, it entersmoreover always unequal in their production and
the secondary market. Most items sold throughoften bad judges of their own work. In first instance,
auction houses form part of the secondary market,giving all one's attention to the individual work and to
as the artwork has already been purchased at leastthat work's precedent and aftermath, instead of to
once. Secondary market trade means trade in artthe maker's person or ideas, is essential for sound
that is not coming directly from the artist.judgments on Art.
As in many other trades there is a great amount ofSome actors on the art market would like to reserve
speculation in the commerce of art. Some pricesthe term secondary market for a highly specific trade
asked on the primary market inevitably raisein prints. The term is however far too useful to be
dubitative questions as to longevity. However, suchlimited to such specific usage as its logical
considerations matter little for the primary market'sconnotation, i.e. what is intuitively understood by the
dynamism; strongly sustained by marketing artifact,expression, is of particular importance to investors
sales technique, fashionable trends and not least, byand collectors alike.