a broken market
Post #502 • March 25, 2005, 8:28 AM • 73 Comments
Felix Salmon, in a post entitled A Broken Market, does something that I'd like to see more of: apply real-world economic analysis to the art world. He concludes that caveat emptor, by way of advice, doesn't go far enough when it comes to buying art.
I have no critique of this (Salmon is a financial journalist, while I'm a finacial, um, what's the opposite of prodigy?) save one: he recommends buying multiples, presumably because they follow more rational market behavior than originals (and because they're cheaper). This ignores a huge middle tier of the highbrow art market in which one can obtain good works for less than what constitutes a month's income for a middle-class wage earner. The works may be less likely to appreciate than the big-ticket items in the upper tier market, but they're much more likely to gain value than multiples, and in the meantime one can experience greater pride of ownership.