The Economics of Art: The Buying and Selling.
Let’s examine some truths about the art economy. The fact that money changes hands as art moves between artists, dealers and collectors requires that it be examined, at least at some point, from a purely economic standpoint. In addition to enriching and adding beauty to our lives, art is also a commodity; it is bought, sold and traded in the marketplace much like all other articles of commerce. When considering the financial commitment of investing in a new work of art, consider these two points:
• Some art is worth more than other art, and it takes a knowledgeable dealer or collector to discern the difference. Certain works may be historically significant,unique in special ways, the products of pure genius, or masterworks by greatartists. Many factors come together to determine the value of an artwork, andthey may not always be apparent to the untrained eye.
• Art prices can fluctuate over time and will likely not remain constant. Changes in value can be the result of general outside forces such as taste, fashion or overall economic climate.
Dealers and collectors respond to these phenomena by evaluating dollars and cents as well as aesthetics when they buy. Beauty, visual appeal and critical acceptance are considered in varying degrees right alongside asking price and demand in the marketplace. Some individuals place major emphasis on the money aspects of art; others buy, sell and collect primarily because they love art and don’t care that much about money. No buying pattern is right or wrong, better or worse.
Jerald Melberg is the President and Director of Jerald Melberg Gallery, which he founded in 1983. Representing living artists and important estates, the gallery is located at 625 South Sharon Amity Road. Visit www.jeraldmelberg.com to find out more, or call 704-365-3000. The gallery is open Monday - Saturday 10 a.m. - 6 p.m.