Managing Relationships Chapter 1.1: The Lemons Problem

Photo Credit: foter.com

Photo Credit: foter.com

Congratulations on your new adventure! Collecting art is fun and exciting. I have no doubt that you’ll find your journey in the art world very rewarding. Before you start touring the art fairs and galleries, however, I’d like to provide you with some practical pointers on how to find your way around.

Unless you are a seasoned art aficionado you are possibly not yet familiar with the idiosyncrasies of the global art market. As a new collector it’ll probably take you a while to get used to the way in which art is valued (intellectually, art historically and aesthetically speaking), appraised (financially) and traded.

As you spend more time in galleries, auction houses and artist studios you’ll start to understand art jargon. You’ll recognize different periods and artistic movements such as Post-War, Abstract Expressionism and contemporary. You’ll learn to discern between artworks that are considered masterpieces and those that are regarded as merely decorative . You’ll get to comprehend the risks that pertain to collecting art, particularly in the secondary market: title and authenticity. Most importantly, however, you’ll find out that the art market is highly opaque.