The New Zealand art market is thriving and the global art boom continues. But where should you look to buy?
Dealer galleries work directly with artists and represent what is known as the primary market space. This refers to where the first sale of an artwork happens. The secondary market, most commonly auction houses, deals with resale and typically with artists who have a substantial reputation.
Buying from galleries (the primary market) is possibly the best bet for everyone involved: the artist receives the major cut of the selling price and, for a collector with an eye on the future, the work will probably never be found at this price again, especially for emerging artists. Buying from the primary market is a mark of confidence for an artist, you’re supporting their career, acknowledging that they have something interesting to say, and putting money back into the artist so they can continue to make work and develop their practice. For the gallery involved it is something similar.
While galleries do take a commission – which is how they stay in business – much of the work that goes on behind the scenes to help develop an artist’s career is supported by the gallery. Those catalogues you see? Paid for by the gallery. The frames surrounding a young artist’s work? Probably paid for by an advance from the gallery. The galleries do it because they believe in the artist and their practice, they’re in it for the long haul. Most dealers are happy to enthusiastically talk about their artists’ work if you drop in, giving you background and also the inside track on why they believe in the practice. Build a relationship and they’ll work to find you the perfect piece. You’ll also often get a chance to meet the artist and talk with them about the work you’re buying. If you’re a collector and want to support the critically important foundation layer of art practice and those who help broker it into the mainstream, then the primary market is where you want to put your attention, and therefore your money.
Auctions, or secondary market spaces, are more complex. While the law has recently changed to offer artists a 5% royalty (less deductions) by the end of 2024 when their work is re-sold, this remains the worst deal for the original creators. The benefit for collectors is in being able to access works no longer available through the primary market, especially if you don’t mind paying for the privilege. If you have your heart set on acquiring a particular artist’s work, sign up to auction house mailing lists to hear about upcoming auctions and receive links to online catalogues. Check if they will send a print catalogue also, these are often lavishly illustrated and great to have around to look through and compare. Some of the works considered highlights of each auction will have a short essay. Typically commissioned from respected art world critics and curators, these can offer some context and a key to unlocking the work, artist, and where the work sits within an artist’s practice.
As always, be smart. Look online to see what comparable works have gone for at previous auctions. If you can’t get to a viewing, send someone along to check the condition of the artwork and frame (if applicable), looking out for any damage. Consider the scale of artwork and if the colours have been faithfully transmitted in the print or digital catalogue. You can request a condition report, but as the buyer the onus is on you to be satisfied before purchase – auction houses sell ‘as is’. In the case of editions, check with the artist’s gallery first, even if the work is several years old. I’ve seen works go for far more at auction even when I know that the gallery still has an edition or two left and is selling them at lower prices. Decided on an artwork? Bid in the room or online, but make sure you’ve registered and have all your details in place well before the auction, and bear in mind a buyer’s premium is added to the hammer price. Remember that, as was the case with the recent BNZ collection, prices can go well beyond their estimate. The auction market is a parallel art world within which hope springs eternal, but try to remain a follower of art, not simply the market.
Kelly Carmichael is director of Starkwhite Queenstown, and a nominator and researcher for the International Award for Public Art.
