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TIES

INTRODUCTION TO
MARKET OF THE ART

- A conceptual revision responsible for Dahlia Haymann, Cultural Agent. Chile.

n the actuality, the art has turned into an object with economic value up to the point of which some artists realize works with commercial criterion and some collectors spend sums much raised in buying works as investment of his capitals knowing that the gold or other means of investment can rise or go down, but the art supports his value in ascent. The buy of these objects of art fulfills, therefore, the law of supply and the demand.
To this mechanism we name him:

MARKET OF THE ART.


We define to the "market" as the virtual ambience where they operate supply and demand of a product, adding that the product art is the only and unrepeatable because it contains creation, which is the highest aggregate value that exists in some product.

On the other hand, we must understand the essential thematic essentials of the value of the art. An art object out of the commerce or market, also contains a potential or value attribute for being interesting, useful for something, for liking to the need for someone. "Value", it is the quality contained in the object that likes or satisfies to the need interest or desire of a person. While the "Price" is a stipulated agreement, being then, not more than the commercial value of an object.

Until the 50s, France was a world leader in the ambience of the market of the art, but this leadership disappeared forty years ago. Since then, London and especially New York they occupied the place of Paris, adopting a more offensive strategy and adapting itself to the "new economy" that has come to this sector.

Nevertheless, the most conservative critics consider to the Market of the Art like pernicious for the free development of the artistic creativity. In this sense perhaps it is necessary to find a major definition of the government bonds as collector and, consistently, operator on the market of the art, attending on the problems that raise the different existing routes so that this one could proceed to the work acquisition.

On a global scale, who move the market of the art are such agents like the private collector, the art dealer, the dealers, galleries, museums, in addition to the proper artists, houses of auctions and houses of auctions, where the competitiveness and the speculation reigns.

At present, three big companies lead the market of the art. These commercial auctions societies are of Anglo-Saxon origin and it is Sotheby's, Christie's and Phillips, who monopolize almost 95 % of the business volume of the international sales, where Great Britain represents 28,75 % and the United States, 49,8 %. Two principal houses of auctions, Christie's and Sotheby's, had a business volume of approximately 4.500 million euros in 1999. It is necessary to specify that this quantity includes in the same category the sales of art, furniture, jewels, of motorcars or real estate.

As regards the artistic objects that sell worldwide, France is related mainly to furniture, books, objects of decorative art and primitives art. The jewels submitted to a tax less raised in Switzerland, it has placed to this country like leader of the above mentioned area. On the other hand, New York is the favorite city of the collectors of contemporary art. As for the Latin American art, there has transformed in the area leader of the Latin-American countries.

NEW INVOLVED

New protagonists have joined the business of the art and that might help to raise even more the market: there are the called "Investment funds in Art". For example. The railroad public enterprise of Great Britain that in 1974 advised by Sotheby's invested US$ 75 millions in works of art, then, in the 90s´ they sold big part of these works with an average comeback per year of 13,1 %, which if they had waited another 5 years to sell, had had a comeback of 20 %.

Others, there are the fund investment English Fine Art Fund thrown the year 2004 in charge of the ex-director of Christie's who hopes to assemble a few U$$350 million to buy art and then to increase this capital from his commercialization, and the Dutch bank ABN transforming the art into new investment instrument.

CONTEMPORARY ART TO THE RISE

On a global scale, during 2004, the auction houses distributed more of US$3.500 million profit. More 37 % as regards the previous year, and there was a revaluation of the works belonging to all the periods, although the most significant for the market keep on being the impressionism, the modern art and the contemporary art and Old Masters (big teachers) in this order.

At a historical sales level, the contemporary art auctions closed in the houses Christie's and Sotheby's, as they informed from London during March, 2005. The final sales added $ 74.5 million dollars, higher number reached until now in the auctions of this type of works.

Last year the sales of contemporary art and of post war (called like that to the style that frames the realized artistic work later to the Second World war) they came to 41 million dollars. The rise in the million harvested dollars was achieved although the number of lots offered (objects) raised only from 104 to 119.

We know that the market of the contemporary art is defined at the same time that it takes place, but this is the fascinating of the market, which interacts straight with these variables.

CONCLUSION

As conclusion, we can say that contemporary art is not a style defined inside one "art steal" but it is the artistic work that expresses a situation in particular of the society and of the individual, and it will be changing in accordance with every person and place.

As for the current situation of the economic movement of the contemporary art, we can say that it is given by four market scales:

1. - International - auction houses: The market is controlled perfectly by the multinationals of the art. They have value scales and it is the world modality in the price of an already consecrated work and they satisfy the collectors.

2. - National, International Gallery owners and Fairs of Art: most of the sales is realized between the same galleries, which invest in artists about to consecration. They realize the search across the proper artists or international fairs like the Biennial one of Sao Paulo, Arch (Madrid), Basel (Miami), ArteBA (Buenos Aires) etc.

3. - Independent: Represented by Dealers, collectors, artists' representatives, auction house, individuals, art groups, between others. In the last years this group has extended especially the couples newlyweds or young people of high charges with world largeness, who acquire pictures as investment and decoration. It is defined as a market based on social tastes that determine the offer and the local demand.

4. - Experimental: it is the market that they have generated for the artists in search of new circuits, some about to consecration (quarters, emergent galleries, between others) and others are results of the new technologies like Internet, which has turned out to be an interesting shop window so that hundreds of artsitas in formation or experimental character and also they have taken a commercial caráetre, being the clients direct persons, donors, patron or any other type of sponsors.


Cultural management n has been published this article about Dahlia Haymann in the Latin-American Portal of Cultural management across of his Bulletin. 12.

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