If you have been following the US election campaign, Saturday’s ADAA/MoMA panel on “Art Dealers and Auction Houses: A Cultural Divide” had a familiar ring to it. It felt like a presidential debate.

The teams of gallery and auction-house heavyweights – boasting “150 years of combined art-world experience” – exuded statesmanlike politesse. Some waxed doubtful about the gathering’s antagonistic premise, and none more so than Simon de Pury, who in his trademark, honey-dipped accent declared, “I find it amusing to hear about the so-called divide between auctions and dealers. We all have a great responsibility toward the artist.”

The jolly, why-can’t-we-just-get-along mood was breached only by occasional episodes of harpoon throwing, such as when Andrea Rosen compared auctioneers to sharks. “Sharks aren’t bad,” she offered, quoting an unnamed artist in her gallery, “They are opportunists. They take the fish that’s easiest to get.” But even Amy Capellazzo of Christie’s refused to take the bait.

Moderated by the unflappable Lindsay Pollock (an ArtWorld Salon friend), the discussion checked off various merits and weaknesses of the two art-business camps, and even lingered on their interdependencies. Among the more engrossing points was the one suggested by Michael Findlay, the panel’s ranking member by age, who cited “normal accident theory” to illustrate how galleries may prove more resistant in a recession. “The larger the system,” he said, “the more likely there will be catastrophic failure.” Comparing galleries to “mom and pop shops” that can be flexible in the face of a downturn, he concluded, “We may be the safest bet in the future.” Although he was making the comparison to auction houses, he could as well have been referring to art fairs, some of which, as Ian points out in the previous thread, may also quickly become casualties of a severe downturn.

The best came at the end, when it was time to opine about what’s around the corner. David Zwirner predicted that “Things will soften a bit, there will be a slight shakeout, but medium and long-term prospects are very good.” Michael Findlay suggested, “What will come back to the market is a degree of selectivity that has been lacking.” According to Andrea Rosen, “Some of this is already happening. I’ve learned a lot from opening my gallery during a recession. I already see a reorientation to meaning.”

“It’s impossible not to have the uncertainty in the larger markets effect our market,” said Amy Cappellazzo, adding that people are likely to gravitate to “what makes them feel safe,” such as painting. For Anthony Grant of Sotheby’s, the “market is so international now” and “the way people make money is so different,” that it has become difficult to make predictions. Simon de Pury got the last word: “It’s an issue of availability,” he said. “The only thing you can do, if you have money, is to build the best contemporary art collection in the world. The market is just beginning to be truly global … I feel very optimistic.”

What does your crystal ball say?

The ArtNet announcement that they are to shortly begin an online auction service is the latest in a string of online auction initiatives. This seems a logical move from one of the better sources of ArtWorld statistics and prices. But what does this wave of online initiatives mean for the big boys? Obviously consignors of major works will still want the profile and prestige of the established offline auction houses, Sothebys, Christies et al, but if more bread and butter work starts to go through online systems, whither then the profit margins of the major houses?

And what if the new players start to gain traction in the market place? It should be easier to track prices online in real time across a number of different online sales platforms than it is now. And of course let us not forget that the biggest benefit of online transaction systems is the better access it gives buyers to product; access when they want it. This, beyond the help it gives sellers to put works forward in convenient and price efficient form, is what decides the success or otherwise of any online sales system. And of course if middle and lower level consignors start using online channels we may get better visibility on pricing and trends in a chunk of the market that is usually hidden from public view.

It is easy to be sceptical of online transaction systems. One always assumes there are some items that people need to see or touch for themselves before committing to a purchase. I certainly felt that way when I first heard about eBay selling cars or artworks online. But look at the success they have had. This may start at the bottom end of the market but, as with so many other sectors, quality of products offered rises with reach of market. I think we are witnessing the first steps of a paradigm shift in the Art World market place.

It is also potentially another worrying development for the traditional galleries. They are already losing footfall to people who prefer to see more-work-in-less-time at the fairs and biennials. An effective new online market place could also take footfall from them (or direct it elswhere) and, potentially, encourage more bright young artists to avoid galleries and promote directly online. All such artists would need is one respected critic to validate their work and they could sell “direct from the studio”.

Interesting times. Thoughts?

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A report from new AWS contributor Leif Magne Tangen

The debate about the power of the collector has been going on for some time now. An interesting project in Leipzig will certainly raise eyebrows again in this regard.

The Museum of Contemporary Art (Galerie für Zeitgenössische Kunst, or GfZK) is opening its 2008 winter season with an ambitious project: Over the next two years, the museum will invite 11 collections, collectors and galleries to display their collections of art in any way they see fit. No interference. No questions. No veto.

The title of the project says it all: Carte Blanche.

In fact, there is nothing new about collectors being given freedom to do what they want in a museum. We have a prime example only 200 km away from Leipzig, in the Hamburger Bahnhof Museum in Berlin. Parts of that public institution now house two private collections, the Sammlung Marx of Erich Marx and, since 2004, the much discussed Friedrich Christian Flick Collection.

Are museums are losing the battle for artists? Today we have more large private collections of contemporary art then ever. We have private galleries that are larger than some museums, doing blockbuster shows. Meanwhile, museums are re-selling parts of their collections and private collectors are hiring curators and consultants to “direct” their collections. Collectors are even building their own museums.

Leipzig director Barbara Steiner says in the introduction to the Carte Blanche project:
“In view of the most recent developments, the often undue influence of collectors, gallery managers and other enterprises on facilities funded by the public purse seems less of a problem than the tendency for private individuals gradually to lose interest in these museum.” She wants to find out “whether new partnerships between public bodies and private supporters can be created at all, how such an interaction might look, what the consequences of such forms of cooperation would be for the development of art and its institutions, also when considered against the background of the establishment of our institute.”

Is there an American view on this? Will private influence destroy the public sphere? Is there too much influence already from private collectors in your view?

p.s. Full disclosure (before I get hunted down by Tyler Green): one of the artists featured in the opening show and in a double solo show later this year, Mark Lombardi, is represented by Pierogi. I work as a director of Pierogi for their Leipzig gallery.