A 1986 sculpture by Jeff Koons just sold for $91.1 million. Why is art so expensive? “The short answer,” Gaby Del Valle writes, “is that most art isn’t.”
The high-end art market is “driven by a small group of wealthy collectors who pay astronomical prices for works made by an even smaller group of artists, who are in turn represented by a small number of high-profile galleries.” A few newcomers break through, but first they’ve got to find a gallery to represent their work. Gallerists shop for promising new talent at MFA programs.
As Roberto Ferdman observes, “only one out of every 10 art school graduates goes on to earn his or her living as an artist. So spending, say, $120,000 on an art education is often more of an extended luxury than an investment in an adolescent’s future.” Galleries sell mostly to the ultra-rich, for whom spending a few million on a painting signals their good taste in luxury goods while also providing them with a potentially lucrative investment if the market goes up for the artist whose work they’ve acquired.