The Art Market (in Four Parts): Galleries

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Andy Warhol said being good in business

is the most fascinating kind of art in

the art business galleries build and

protect an artist's market say you were

gonna buy a $200,000 painting I think

you should take that money tie it up and

hang it on the wall galleries and

dealers sell art straight from an

artist's studio the primary market or in

the secondary market which is art that's

been sold and owned before in the art

market the more history something has

the more valuable it can become people

feel reassured if something's already

been bought there are three reasons that

people play out genuine love it for

investment or to raise their place in

society so you want to take your 200

grand to a gallery to buy a new painting

by a hot artist people often confuse

quality and price it's always

counterintuitive you see when you like

but you're told it's not available by a

dealer that sells it to a prestigious

collector with museum ties the next day

but why Warhol's galleries Leo Castelli

was the first to value who and artwork

sold to more than how much it sold for

where it's going is very important being

placed in a prestigious collection is

always helpful for an artist career most

successful galleries have built on the

Castella model understanding that a

museum can allow an artist to outlast

market shifts and trends when it happens

you feel you've done something really

good for the artists you work with today

there are galleries whose success hinges

on long-lasting and personal

relationships with their artists it's a

tough tough business and realize that

Valerie is the winner in Portland and

some of them grow to be mega galleries

the artist is no longer the brand name

the brand name is the gallery there's

competition between galleries - you just

have to realize that if you have two

biggest success they're gonna leave

there are even artists who don't think

they need galleries like Damien Hirst

who cut out his galleries by taking work

straight from his studio to auction in


there was a big question whether his

dealers would support it to sell

everything is really a very exciting

kind of moment or maybe need you I don't

want to compete with corrosion I want to

be in the middle to develop artists

before they get carried off by the big

boys this is Stefan simcha wits can I

stop you for a second he's been

criticized for investing in the work of

young artists and practicing in our

world equivalent of the pump in don't

you listen to this and I'm of

course the flipper dojo is Stefan Simba

quits the Donald Trump of the art world

his model doesn't sit well with

galleries who prefer to buy back or find

new buyers for work that collectors want

to sell in most cases the bull give me

the opportunity to sell it and sometimes

they can and sometimes they can't

this is how they protect their artists

market and if I can it goes to auction

and at least I had the opportunity when

a gallerist loses control of an artist

market the results can be devastating

and then suddenly of the ocean prices

fail and that Korea is heavily damaged

this is why the long-term approach

fostered by gallery Giants has nurtured

so many careers but the model is less

and less viable for galleries that can't

afford to keep inventory losing their

prime artists to over galleries and

they're losing sales on the bottom to

the Internet galleries are recognizing

the need to have an online presence

where the world of Instagram quick fast

yes we are impatient some see more value

in the online art market than others the

value of art that people will buy on the

Internet is going up couple of years ago

we would have said nobody will buy it

anything over five thousand dollars now

it's over twenty five thousand dollars

the off business has failed in upgrading

itself in the 21st century Picasso said

that art is the currency of the infinite

you know and that's the beauty of art

that does evolve then he said I'm rich I

should know for me as a gallery's what

matters is to show art of exceptional

quality and one that I can stand proud

today and then in ten years from now

Gilliard and running a gallery is an

increasingly costly business if you want

to compete you have to innovate find new

collectors expand through technology or

discover the next great artist as for

the value of what's on the wall only

time will tell