The Role of Art & Antique Dealers An Added Value
From the 1950s through the 1970s, dealers in many of the larger art markets around the world were fortunate to be able to access an abundance of objects at relatively low prices. However, various changes in the market since then have turned the tables, and dealers must now compete with each other, auction houses and often their own clients to secure the best pieces.
Apart from competing with the trade and individual buyers, some dealers also remarked that museums were responsible for taking many high end works out of circulation, and tax incentives imposed by governments encouraged institutional retention. Various repatriation drives by countries such as China with very tight export restrictions have also reduced circulation in specific categories of art and antiques.
The only sector that appears to have gone against the trend is the Contemporary market, which by definition has a replenishable supply of works produced by living artists. In some areas of the Contemporary market, dealers noted that the recent boom from 2005 through 2008 brought forth more artists than usual “thinking they could make a living”, resulting in some oversupply for middle-income buyers, many of whom have dramatically reduced expenditure due to recessive economic conditions.
Although supply has diminished in places, dealers are often very resourceful at searching for and accessing inventory, and this quality is one of their key competitive advantages. Dealers source stock from each other, privately, at auction and online, and several commented that they have shifted to sourcing more internationally and more online over the last five years. Many felt that once there were condition reports and other guarantees in place, online transactions could be highly successful between members of the trade.
The majority of dealers collaborate, or have collaborated in the past, with other dealers to buy works that are too expensive to buy alone. Partnerships allow shared risk but diluted profits, and are often done with close business partners or within association networks. While most dealers have been engaging in these practices for at least the last 20 to 30 years, they described the agreements as becoming more formal and transparent in recent years. Many co-purchase agreements require strict legal documentation and terms agreed in advance of any sale.
Despite complaints about difficulties in sourcing supply, dealers also cited searching for new stock as one of the most exciting and challenging part of their jobs. Some stressed, however, that they needed to be free from the confines of a shop and its administrative responsibilities to be able to fulfil this role successfully, particularly with regard to freedom for international travel.
Finally, there was a minority of dealers who claimed that they did not search for art or antiques to sell at all, but buyers came to them. This tended to be very well known and long-established dealers who were market leaders in specific genres.
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Historical & Future Perspectives
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