Auction Houses: The tail wags the dog...
Posted on August 31, 2008 at 9:14 PM.
The large secondary market in art indicates that the exchange of assets is becoming healthier in terms of transparency and liquidity, irrespective of the stage in the growth cycle. The current global footprint of auction houses like Sotheby's and Christie's illustrates the point.
Christie's primary market acquisition of the gallery chain Haunch of Venison and their selective auctioning of blue-chip artists can be compared to the behaviour of large financial markets. The main houses making markets in financial instruments such as stocks and bonds will often use their power to dictate terms for new releases in the primary market. The tail wags the dog.
These dynamics will affect all levels of the marketplace because they are setting the trend for future transactions and the distribution of power.
Initially these moves are only likely to threaten those art market players dealing in the upper echelons, those who promote the big stars. Dealers at this level are typically pioneering, resourceful and thrive in moments of adversity. New doors will open for those looking to collaborate and the art market will continue to evolve.
Some upcoming events in September will yield fascinating insight into the current clout of the secondary market and the status of the contemporary market in general. They include Damien Hirst's auction Beautiful Inside My Head Forever and the prestigious Sotheby's selling exhibition at Chatsworth called "Beyond Limits" - PRIVATE VIEW VIDEO (Wonderful piece by Dali), which showcases leading work by contemporary and modern sculptors in the grounds of Chatsworth, in Derbyshire.
Now gathering momentum, it is in its third year, and another good example of how auction houses are finding alternative ways to make money in the art world. Last year it received particular interest for the Marc Quinn Kate Moss sculpture in the show, and the year before that for a vast Hirst flayed figure.
Richard Hudson's new work "Love Me" will be part of this year's show. Not only has Hudson enjoyed a stratospheric rise to fame - exhibiting internationally within ten years of beginning to make art - but his stellar list of collectors already includes Lili Safra, Elton John, Michael Douglas and Catherine Zeta-Jones, Claudia Schiffer, George Michael and Kenny Goss, Tamara Mellon, Swarovski, Baron Thyssen and Espirito Santo.
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