This article is part of Rosemont Art Advisory monthly newsletter. If you want to receive our newsletter, please contact Karolina Blasiak: k.blasiak@rosemont-mc.com
IIn these exceptional troubled times, with part of the planet living in confinement in response to the life-threatening nature of Covid-19, as the entire world comes to a standstill, it might seem inappropriate to talk about the trivialities of the art market. That said, this market is a vital source of income for the artistic community and a significant source of pleasure for the community of collectors.
Firstly, our thoughts are with those affected and those who have friends or family members directly affected by the situation. We are also closely monitoring how COVID-19 is impacting our partners in the art industry and the artists they support.
We are making efforts to help the art ecosystem continue operating during this challenging time.
We are given an individual and collective opportunity to demonstrate the best that humanity has to offer, to overcome problems through creativity and critical thinking, to overcome uncertainty through perseverance and leadership, to overcome fear through compassion and kindness.
During the onset of the crisis, and the repercussions of Covid-19 halting movements and markets, investment in art is still a quiet haven for investors who may be rightfully in fear of decline and turmoil in other investment areas, such as real estate, and the stock market.
Let's not demonize art prices, they are still very accessible worldwide, through auction sales, private sales, galleries and dealers, and trusted art advisors. There are many paintings at auctions that are affordable for most of us.
Market analysis indicates there is a bull market. Is this the best time for the art market since 2000? That collecting art is the tip of the iceberg of luxury goods and luxury market prosperity is a reflection of the economic condition of us all.
This condition has been constantly improving, thanks to which the number of collectors has been growing. There is time and place for intellectual development, promotion of art and participation in culture, there is time for alternative investments. Even in the last two or three weeks, during the crisis that is beginning, investment in art is still a quiet haven for investors who may otherwise be afraid of declines and turmoil.
The form of art and cultural institutions on the market has started crystallizing recently. While it is surprising that it has taken so long and that this is only happening now, we continue to focus on strong substantive selection of collectible objects and experienced expertise, which was, is and will be a rock for everyone. This is our role in this market to deliver education and impartial advice.
Previously the knowledge of art and passion for collecting were inherited. The modern collector can start from scratch, what is more, he easily educates himself, inspires, chooses. We are here to verify this knowledge and explain the mechanisms. He can buy the work anywhere, while I can confirm the legitimacy of buying in a reputable institution, because only this guarantees the safety of the collection. With us, every choice is qualitative while the choice of style belongs to the collector. We give this comfort by diversifying the offer, searching for and choosing works on request.
Art Market technologies are likely to redefine many aspects of the art world going forward. New software, blockchain, AI are offering new possibilities for artists, also for collectors, as new initiatives appear in the areas of creation, conservation, fractural ownership and collection management. Augmented and virtual reality will also have a major impact on our way to experience art as a whole. E-commerce has seen a spectacular increase in art transactions over the last decade; online sales now account for 9% of the value of global sales of art and antiques. However, a survey done by Clare McAndrew of just over 70 companies engaged in art e-commerce in 2018 showed that most online-only outlets still sell the majority of their works in the segment of $5,000 and below, with less than 10% of transactions reporting price points above $250,000. It is likely that online turnover is going to increase even more, but so far it has mainly affected the transactions of lower value, i.e. less than $10,000. Rosemont Art Advisory is specialised in the high-end of the art market, where most of the transactions still happen offline, even though some transactions can happen through the simple exchange of a digital image, most collectors still require to experience the artwork ‘in the flesh’.
It shows with what fantasy and courage the largest investors, the largest collectors approach this market. Picasso is a phenomenon that has pulled the whole market up, but it is not the only artist who so phenomenally increases its value. Art should be chosen based on your own intuition. All those who noticed the potential of contemporary art even a few years ago are winning today. However, those who bought the works of Picasso, Monet, Sisley, always win.
For more information, please contact Karolina Blasiak at k.blasiak@rosemont-mc.com