Ahead of Art Basel, prominent art consultants express concern that the art market has become chaotic and unpredictable
In the dynamic world of art, two prominent figures, Philip Hoffman and Allan Schwartzman, have been shaping the landscape with their insights and expertise.
Philip Hoffman, founder of The Fine Art Group, has been a driving force in the art investment sector. His company, a 20-year-old London-based firm, has been instrumental in navigating the art market for clients seeking to invest in blue-chip art.
Meanwhile, Allan Schwartzman, an art advisor and founder of Schwartzman & Associates, has been making waves in the industry with his curatorial work and advice. Schwartzman & Associates was a partnership with former auction house executive Amy Cappellazzo and investment banker Adam Chinn before it was acquired by Sotheby's in 2020 for $85 million.
The art market is currently experiencing a bifurcation, with blue-chip artworks continuing to attract strong demand and pricing at the top, while emerging markets and contemporary art sectors show volatility but also offer opportunities for new collectors and investors.
Blue-chip art, with its status as a "safe asset," is sought after by museums, major collectors, and institutions. However, works at the mid-level by the same artists have become increasingly difficult to sell. In contrast, the market for emerging artists has seen a rapid activation of a resale market, with prices skyrocketing.
Schwartzman notes that when demand for an artist is high and collectors cannot access the primary market, works by that artist can bring extraordinary prices at auction, often 20 times the primary market price. This trend is reflected in the prices achieved for works by artists whose value has increased significantly over the years. For instance, artists whose work was selling for $75,000 one year ago can now sell for $800,000 at auction or $3 million two years later.
The buyers for these high-priced emerging artists are often serious collectors, not primarily speculators. This shift in the market is also evident in the rapid appreciation of the value of the dollar, as shown by the prices being achieved for these emerging artists' works.
In the midst of various factors such as markets, crypto, the war in Ukraine, the January 6th hearings, inflation, and the threat of a recession, there has been a big appetite for buying blue-chip art as a potential inflation hedge. Despite economic turmoil and inflation, some clients are willing to pay double or triple the estimate for great pieces.
Despite the challenges, both Hoffman and Schwartzman remain optimistic about the future of the art market. Their companies, The Fine Art Group and Schwartzman & Associates, will work together on multiple aspects of their dealings, offering a unique synergy in the art world.
As the art market continues to evolve, the insights and expertise of figures like Hoffman and Schwartzman will undoubtedly play a crucial role in shaping its future.
- Philip Hoffman, having founded The Fine Art Group, has been a significant influence in the art investment sector, guiding clients to navigate the complex art market and invest in blue-chip art.
- Allan Schwartzman, an art advisor and founder of Schwartzman & Associates, has made notable contributions to the industry through his curatorial work and advice, providing valuable insights to collectors and investors.
- The art market is witnessing a bifurcation, with blue-chip artworks maintaining strong demand and high prices, while emerging markets and the contemporary art sector show volatility yet offer opportunities.
- Blue-chip art, known for its status as a "safe asset," is sought after by museums, major collectors, and institutions, while mid-level works by the same artists are becoming increasingly difficult to sell.
- In contrast, the market for emerging artists has seen a surge in the resale market, with prices for their work skyrocketing. Works by artists who sold for $75,000 a year ago can now sell for $800,000 at auction or $3 million two years later.
- The buyers for these high-priced emerging artists are often serious collectors, not primarily speculators, and this shift in the market is also reflected in the rapid appreciation of the value of the dollar.
- Despite factors such as markets, crypto, geopolitical conflicts, politics, inflation, and the threat of a recession, there has been a strong appetite for buying blue-chip art as a potential inflation hedge.
- Despite the challenges, Hoffman and Schwartzman remain optimistic about the future of the art market, working together through their companies, The Fine Art Group and Schwartzman & Associates, to offer a unique synergy in the ever-evolving art world.
