Collecting smART

I recently attended an exhibition of Salvador Dali’s etchings and other works. The opening reception was well attended so we formed groups so that everyone had an opportunity to admire the work. Among the buzz, I overheard a conversation between two collectors. The comment that caught my ear went as follows “when you buy a Dali you’re just moving money from one investment to another.” This statement got me thinking about the economy of art and I asked myself, “What kind of artwork is popular and why do art collectors buy?”

To answer my questions, I set out to conduct an informal survey of collectors. To get started, I had to define my scope and decided to focus on a geographical area and a social economic level. Given that Los Angeles, California has one of the most thriving art scenes in the country, I decided to focus on the LA art scene for its heavy concentration of artists and galleries. For social economic status, I selected collectors who had purchased artwork ranging in price between $10,000 to $50,000.

When this group of ten collectors were asked the second question, why do you collect art? The answers were much more consistent and defined. In summary, these collectors purchased artwork when they experienced the following 1) Connection with the artist, 2) Perceived value retention and 3) the overall experience during the acquisition.

In discussing their artwork, each collector relayed fond memories and high respect for the artists they collect. Each described a connection with the artist that superseded a commercial transaction. They felt they had a very real understanding of the artist and their inspiration for the work. This connection was very powerful motivator for all of them.

Another driving force for their acquisition is their belief that the amount they paid for the artwork was fair and likely to retain its value. This group defined their perceived value based on the reputation and experience of the artist and art gallery. All collectors reported that purchasing artwork from a gallery was their preferred method of acquiring art because they believe the art gallery will regulate the pricing for the artists they represent. This collaboration between the artist and gallery in establishing and protecting the value of the artist and artwork, reassures these collectors that the price they are paying will not dramatically go down, this makes them more likely to invest in the artwork.

Lastly, each collector described a setting for their acquisitions that was “perfect” for collecting. Emotional factors such as being treated as highly valued patron of the arts with open access to the artist and their work all contributed to an experience that each collector reported as something they would never forget and a large reason for purchasing their artwork.

What started as a curiosity about what drives collectors to purchase art has concluded with a deeper understanding for the business of art. What it reinforced for me is that art collecting is a thriving business but uniquely sensitive to many factors; the most significant being that a gallery and artist need to establish a strong foundation of trust among collectors to be successful. Regardless of the artwork they carry trust was the ultimate driving force.

I want to send a big thank you to all the collectors who took the time to chat with me about art collecting for this article — you know who you are! You’re sincere and honest opinions about the economy of art vs the love of art really resonated with me.

References

Beard, Evan “The Four Tribes of Art Collectors” January 2018

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