Navigating the Primary and Secondary Art Markets
Picking a piece of art to buy might be based on instinct or preference. However, before selecting a work of art, you must first consider where to acquire it. As a constantly evolving industry, the art market can be challenging for beginners to navigate.
When looking to buy or sell a piece of art, you have two main options: The primary and secondary art markets. You would typically go to the primary art market for pieces of art that have never been on the market before. This is where the very first sale of a piece of artwork occurs, often coming from the artist shortly after creation or sometimes through a gallery.
Art found in the primary art market is majorly the work of living artists. Pieces made by late artists usually rise in value and are put up for auction on the secondary market. For the average piece of art, its price is declared for the first time on the primary market. When pricing artwork in this market, factors like the artist’s exhibition history, the success of their career, and the proportions of the piece of art determine the price; as the demand for a particular artist rises, so does the price their work could go for on the primary market.
If you’re looking to resell after buying a piece from the primary market, the secondary market would be your answer. Therefore, the secondary market deals with the resale of art, at least in most cases. In some cases, where the gallery has much inventory and there is a lack of demand for a piece, they can send it straight into the secondary market.
When works of art are put on the secondary market, the factors determining how much they would cost differ from the primary market. Because the pieces have already been on the market at least once before, one must consider their condition, origin, valuing history, and significance among other artwork in the collection. Affiliations with top galleries or influential collections usually have a favorable impact on the price.
Buying from primary art markets means funding the creator of the artwork directly. It could also be a shrewd investment opportunity, considering the price the art is sold for is likely at the lowest it will ever be. If the art or artist goes on to do well, the value of the piece increases. You can also boast of contemporary pieces of art that have never been owned before.
The secondary market gives a clearer look into the potential value of a piece of art. Although the price will likely be a considerably higher down payment, the art you buy might be a more profitable asset. When a piece of art is sold at a gain, time and time again, collectors will likely feel more confident that the investment will continue to thrive. However, you might not need to consider this if your principal aim is to profit from selling a piece of art; collectors can profit from their sales in both the primary and secondary art markets.
