The art market in the world is a complex system. Whether you are an aspiring seller or simply an art enthusiast, there are 10 key points to understand regarding artworks, artists, and their audience which add a commercial aspect to art. An artwork is unique, exclusive, and rare. It conveys a message to its viewer. It's important to differentiate an art object from a valuable object. Art is an ephemeral fluid from which the artwork crystallizes.   The human brain has three levels of nervous systems - reptilian, limbic, and neocortex which correspond to spontaneous, emotional, and thoughtful processing. An effective art dealer must utilize all three systems to comprehend and persuade the art enthusiast.   Contemporary art pushes boundaries beyond traditional concepts of beauty. It can elicit strong positive or negative emotions by challenging reality. There can be a disconnect between the artist and the public as artists highlight uncomfortable truths about the world. While the message may not be obvious, it is impactful. Contemporary art allows us to interpret reality freely and artistically. Initially art was free from constraints but now it also criticizes and reflects on society. Contemporary art is inclusive of varied meanings and forms as long as it fits within the art world, though it is not made to last.   Previously economists avoided determining art prices since art is unique without equivalents, competitors, or substitutes. Its price depends on wealth and collector whims. However, art has several dimensions: beauty, function, artistic merit and valuation. Its value depends on these factors and what people will invest considering its exclusivity and rarity. An artist's signature heavily influences price, as their reputation is inseparable from the work. This has transitioned the market from focusing on the work to the artist's brand. Instead of a restricted academic jury, now various players like critics and dealers influence value.   Art purchases may be impulsive and emotional or decorative and functional. While art and decoration complement each other, art later took on more intellectual appeal. Buyer motivations also include social image, mimicry, and standing out. These can lead to collecting works or speculative investments. Building a collection is a constructive, strategic approach.   Art can become a growth market driven by profit-seeking investors. Supply and demand dynamics at auctions are disrupting artist status. Aesthetic considerations now must meet buyer expectations. While artists previously focused on self-expression, they now face economic constraints.   Key art market players include auction houses, galleries, consultants, museums and online markets. By historicizing and rationalizing art through publications, exhibitions, and collections, these actors increase an artwork's value.   Art exchanges happen at galleries, between individuals via brokers, and at auction houses. Dealers should be knowledgeable, connected, and discerning. The internet is a new exchange medium, though it increases competition and sales tax. Consignment agreements are an option for sellers lacking cash. Art follows money in location and price. Patronage mutually benefits artists through exposure and companies through social capital.   Art and luxury connect through their exclusivity and rarity. While art is not necessarily profitable, luxury is. They share a wealthy clientele. Artists collaborate with luxury brands for recognition, but must balance accessibility with maintaining the value of their work.
© Fine Art Expertises LLC