TasmaniaChrismy said:
Why does super-expensive paintings still available with increasing price trend?
The words like manipulation or cartel are thrown about in relation to PMs but that is *nothing* compared to art dealers. Pump and dump is the art world and when a few major dealers have bought up works and are ready to prime the market they let the big spenders in first an out first and the small fry get burnt.
There are no rules in the art world, no regulations whatsoever.
http://fortune.com/2015/09/24/art-fakes-lawsuits/
"In the high-stakes art world, a fear of lawsuits is putting a muzzle on authenticators. "
www.forbes.com/forbes/2008/0407/088.html
Pump And Dump
"Creating that next hot artist is an "idiot's game," says Liang Changsheng, art director of the Contemporary Artwork Auction firm in Beijing. "First get critics to write about him," he says. (The critics are paid by artists, auction houses and galleries for this service.) "Then organize exhibitions to introduce his work." (That's paid for, too, even at the most prestigious national museums.) "Then you can put the work in auction with an establishing price and buy it back yourself in order to set an example for the public. Of course it would be better if some other bidders join in.""
http://qz.com/103091/high-end-art-is-one-of-the-most-manipulated-markets-in-the-world/
High-end art is one of the most manipulated markets in the world
"To understand why, you must first understand the economics of art galleries in America and Europe. Almost all primary art salesart bought from the artist as opposed to another collectoroccurs through art galleries. Galleries set taste and pricessets is actually an understatement. Galleries manipulate prices to an extent that would be illegal in most industries."
My personal take after 30 years in buying and selling art is this. Behind the galleries are the dealers. If you want to be able to get the return on your own pieces you want....get to know them, indeed even a 'friendly' shill bidder for them at the big stakes auctions.
The auction houses are as bad as the dealers and even more desperate.
*Never* pay a lot of money or art unless you personally want it to keep forever and always assume it is worthless in the market.
That said. If you know dealers are buying up stock....you can be fairly certain they will pump it when the time is right. See basquiat. See Warhol believe it - no one gave a toss what he was painting in the 80s. You think dealers don't pump junk and make brands?
When some turkey walks in to buy art they are read and taken, maybe even with a a few primers that do actually appreciate....until suddenly they are left holding.
Don't even dream of putting serious money in art until you have been watching how the major dealers operate and what their agents are buying for years and then follow their lead. There can be a 15-20 year pause before the pump and 40 years to the dump.
But art is the most manipulated criminal and fraudulent market on the planet. It makes PMs look like the pinnacle of honesty.
http://www.dailymail.co.uk/news/art...-pity-credulous-saps-spent-fortunes-tosh.html
At last, the real shark is exposed: As prices for Damien Hirst's works plummet, pity the credulous saps who spent fortunes on his tosh
http://www.wsj.com/articles/betting-on-a-hirst-comeback-1442513594
Betting on a Damien Hirst Comeback
Efforts by powerful brokers to buy up artist Damien Hirst's work offer a real-time glimpse into the maneuverings that influence art-market prices.
There are artists that come along...very rare....very very rare that a very broad spectrum of the public genuinely like, are the first to do something and establish a place in history for some reason. It's nice to own them.....but don't buy once the papers have mentioned their names....the dealers have already begun their manipulation.
