Conference Presentation, Panel, Fireside Chat
The Art of Art Collecting
- Attendees are expected to gain a more balanced understanding of art's investment characteristics following the session.
- The art world is predicted to undergo substantial changes due to global scale and economics, with only a few artists expected to survive and succeed out of hundreds.
- Estimates suggest that only 10 to 14 memorable artists emerge per generation, with young artists facing odds of at least 100 to 1 to reach this tier.
- Pressure to replicate popular work is anticipated to negatively impact artists' creative progress, while the supply of memorable artists is not expected to increase.
- Museums in the United States are currently expanding, specifically noting three new institutions in New York, leading to anticipated challenges in sourcing high-quality works to fill them.
- Global demand for new museums is growing rapidly, with 60 new institutions building to collect contemporary art, a figure far exceeding the initial expectation of five or ten.
- Specific expansion plans include the Met taking over the Whitney's former Breuer building for a modern and contemporary wing, with an estimated cost of at least $500 million.
- The MoMA expects to increase its gallery space by 40 to 50 percent, and the Whitney has already opened a new downtown museum with significantly expanded capacity.
- Museums are shifting toward an entertainment model with daily attendance targets of 10,000 people, a demographic that includes many young visitors.
- An African art market is expected to become more global, with artists gaining representation in US museums through dealers and reaching price points that allow for a living wage.
- Historical market performance is cited where a fund purchasing El Anatsui in 2011 achieved a 78% gain within two years when selling at Sotheby's in 2013.
- Overall auction sales are expected to reflect a 5-7% growth rate over the last 10 years, exemplified by Indian art sales rising from $300,000 to $6 million per auction.
- It is predicted that as money becomes a primary issue, the general quality of artists' works may decline, and it is becoming harder for artists to produce original work.
- Collectors are expected to collaborate with museums to ensure significant portions of net worth represented by art end up in institutions, rather than remaining private.
- Future relevance of artists will be determined by art history 30 to 40 years from now, while the specific nature of art in 50 years remains unknown.
- Competition between public and private museums, such as Eli Broad's collection and public institutions, is predicted to be positive if it benefits artists and audiences.
- Museum expansion is expected to be triggered by the desire of artists to create new work and must serve both the artist and the audience to be considered successful.
- Institutions are expected to become more aggressive and experimental, particularly as the Met shifts its focus to modern and contemporary art.
- A 15-year rule for collecting is anticipated to ensure investors are buying real companies rather than engaging in venture capital practices.
- While museums may compete with entertainment sectors, some institutions plan to remain independent from commercial forces to protect integrity and focus on deep aesthetic and historical value.
- The face of the museum world is predicted to change radically due to shifts in accessibility and social behavior, though time will determine the capacity to manage art viewing.
- The Leonard Lauder gift at the Met is expected to broaden the audience for Cubist work, while the Met's ambitions are predicted to substantially increase its overall impact on art.
- Philippe Rigollet expects the opening of Eli Broad's collection to benefit the audience and building attractions, while Eric Schmidt anticipates Broad's Jeff Koons and Michael Heiser collection will be complementary to his own museum's holdings.
- Charles Saatchi has recently held a show in the UK, and the Tate Modern possesses an African acquisition fund, contributing to the growing global market.
- The rise and fall of the art world is viewed as a process where only a dozen artists per generation achieve the prominence discussed by the panelists.