A Force Brewing

Perhaps we should be grateful that world events occasionally derail us from the deeply grooved course of modern society so that we are forced to consider our own journey. We seek a reference to gauge the nature of our own experience and art has a vital role in this process.  The economic disruption and disillusionment of recent times has increased our awareness of this quality and refocused our attention on the art that is personally meaningful.

As a dealer observing the ebb and flow of the American art market, I detect a fundamental change in the way collectors perceive the value of art. Many have begun to challenge concepts that have forever been held sacred such as the steadfast belief in allocating the majority of savings for the acquisition of stocks and bonds. The collapse of revered financial institutions and the revelation of widespread deception have cast a shadow over both the assets and custodians we so willingly entrusted with our resources. Even collectors that have not considered art as an investment have discovered that their confidence in art, as measured against a broad spectrum of assets, is increasing. The result is a greater willingness to commit capital to art and a desire to acquire the best examples.

This pattern was first identified in the final quarter of last year and has continued with growing momentum in the first quarter of 2010. Whereas the ratio of higher-priced (over $100,000) to lower-priced paintings sold has historically been approximately 25% for our gallery, it has increased to nearly 50%.  It appears that buyers in the middle range have not yet recovered, while those with the capital to acquire at the upper end have been active participants. What is difficult to measure, but apparent in my interaction with clients, is the desire to step-up to the next level, even if the additional capital is a strain. Collectors have faith in art as a transparent asset that they understand and cherish. Paintings that hang in the home can be admired and shared. Brokerage statements are filed and forgotten.

This heightened receptivity to art is not without precedent. Scholars have observed increased interest in various art genres during the world wars and the Great Depression. I do not suggest that this crisis of financial integrity is on par with such catastrophic occurrences; however, individuals that grew complacent and secure have been jolted and unsettled by current events. Now, these same individuals seek art for its intangible value. Some might view such behavior as escapist; others see it as a return to what is real.  The psychological attraction may remain mysterious but it persists over the span of centuries. I think that, when given a glimpse of a fragile world, we seek something unalterable, a trustworthy reality or a simple truth.  Who we have become has been determined by the gaunt character of modern life. But who we are resides in the dreams lost to “a life frittered away by detail”; dreams which can be summoned by our response to art. This potent force does not exist in any specific work of art but in the relationship one has with it.

What meaning does it recall? What aging ideal, perhaps abandoned long ago, does it breathe new life into? How might it change us?  We are reminded that art’s impact on intellect and emotion is the principal determinant of its value. Its relevance is renewable and its worth is incalculable within the context of sterile financial instruments.

So this is the nature of a force now brewing. The wisdom of embracing art as a beloved possession and an asset is gathering momentum and the earliest indicator is the meaningful uptick most galleries are experiencing. Art shows have drawn great attendance and our last two gallery openings have overflowed with enthusiastic collectors. A culture that seeks ideas and ideals is something to take strength from. Once set in motion it is likely that this degree of intensity will generate fresh enthusiasm, as will the realization that the first rule of economics is driving the art market. And every bit of snake oil Wall Street can muster, every derivative, ratio, and projection has not a fraction of the truth of supply versus demand.

For questions or inquiries, please visit our website at

http://www.questroyalfineart.com/

or contact us by email at gallery@questroyalfineart.com