Art Collecting Today: Market Insights for Everyone Passionate about Art

by Doug Woodham

An insider's guide to buying, collecting, and selling art from an insider of Christie's
Grounded in real-life stories, Art Collecting Today is the essential practical guide to today's art market. A lightly regulated industry with more than sixty billion dollars of annual sales, the art market is often opaque and confusing to even the most experienced collectors. But whether a seasoned collector, an uninitiated newcomer, or an art-world insider, readers will learn within these pages how the art marketplace works in practice and how to navigate it smartly. Those who may have been put off by art-world practices will finally feel they have the knowledge needed to participate freely and fully, and collectors will be able to pursue their passion with more confidence.
Important topics covered

Informed by close to one hundred interviews with collectors, lawyers, art advisors, gallerists, and auction specialists in the United States and Europe, as well as by the author's own experiences, Art Collecting Today offers a lively and thought-provoking analysis of the day-to-day workings at play today in the fine art marketplace.

Genres: Art, Nonfiction, Business

208 pages, ebook

Published April 4, 2017

Reviews

[Daniel · Rating 2 out of 5]

This review originally published in Looking For a Good Book. Rated 2.25 of 5

As someone who has a relatively decent collection of original art and limited edition prints, and as someone who has been 'collecting' (casually, for certain) for probably three or even four decades by now, I am certainly interested in learning more about what I should or should not be doing. I am clearly the intended target, given the sub-title: Market Insights for Everyone Passionate About Art.

I was intrigued by the title but I didn't really know what this book was going to go in to and so requested this out of curiosity. Mostly I found that this book does not apply to me. This book is not for someone passionate about art but for someone - someone with money to spend - who is passionate about collecting.

While there is the adage to collect something that interests you, this book tends to focus a little more on whether or not the pieces that interest you might be worth more money in the future and how to find those pieces. It also deals with tax laws and auction houses. Those are items of interest for the art collector who has the money to burn on valuable collections. I'm that person "passionate about art" who wants to know how to find the appealing, affordable-on-a-lower-middle-class-income and not get ripped off. Tax laws for valuable art collections? That's way out of my league.

In his introduction, Woodham writes "I wrote this book to help open the world of art to more people" but I think the book does the converse. I'm now less interested in getting involved in serious collecting.

There's a world of fantastic art out there and I've found web sites where extremely talented 'new' artists are posting work for sale and I've made some purchases of really fantastic pieces at great prices (in my mind). This sort of art collecting is not addressed in Woodham's book at all. Why? Perhaps because it's not a big-money item that will reap a larger reward a few years down line. Yet that's not what the sub-title or the introduction in the book suggests he's after.

There seems to be some confusion on the focus of the book and ultimately this small-time, little-money art lover is not the intended audience for this book.

Looking for a good book? If you have money to spend on big-ticket item art collections, then Art Collecting Today by Doug Woodham is probably a valuable resource. For the rest of us, this is mostly a pipe-dream.
I received a digital copy of this book from the publisher, through Edelweiss, in exchange for an honest review.

[Lino Matteo · Rating 3 out of 5]

Art Collecting Today
Doug Woodham
2017
Saw an interesting review of this book and put it a ‘gift’ list. And while I am not disappointed in receiving the book; and I did learn things from the book, I was somehow expecting more.
Worthwhile and interesting read but left me with the desire for more. Wonder if there is an “Art Collecting for Dummies?” Will have to check it out.
Perhaps I was expecting more of a Lovejoy scenario?
Yes, reading the book in stops and starts was not completely fair to the book. But life is what life does.

Notes:
Xii: Over time, I realized that collecting was a great predictor of business acumen.
Twyla, backed in part by Google Ventures, which is creating ways for new collectors to connect with artis and buy editioned work by them
Advise clients on legacy planning associated with their art collections, including helping them to assess alternative disposition strategies.
If you have questions or comments about the book, then please contact me at dougwoodam.com
1: Rather than being fixed and immutable, emotional responses to an object can change as a person looks more, learns more, and lives his or her life.
22: Approximately $64 billion of fine art and antiques were sold globally 9n 2015…
23: How many artists sell at auction? 59000 living and deceased artists was sold at auction in 2015
24: Forbes list of the 400 richest people in the USA….in 2015, one needed 1.7 Billion.
34 million people are millionaires.
Conventional and social media have also enhanced the sense of exclusivity of owning art.
26: Less work being sold because of the traditional 3Ds (Death, divorce & debt related)
28: Galleries then market the artist’s work to collectors, museums, and art-world influencers.
But like other businesses, galleries live and die based on sales and their ability to manage their infrastructure costs.
29: Given the costs and risks associated with representing an artist, scale is now more important than ever before to running a successful gallery.
 There are at least 3 biz ideas for LN in the above. Comment for artists – words to go with the images. Hmmm…. Use a 2 & 20 approach
32: Auction houses will sometimes agree to offer a guarantee, either alone, or in partnership with a third party.
35: Exhibit 2.1: Top 25 living artist based on auction sales
 An example of the type of content that can be created…perhaps locally
45: Passion and emotions
(Picasso) breakthrough came in 1907 when he completed Les Demoiselles d’Avignon
51: As one critic described it at the time,”…nowhere are the profits so immense, or realizable in so short a time, as in the art market.”
58: Wisdom from seasoned collectors:
• Find an area of focus
• Develop visual acuity
• Buy with your eyes and ears
• Stretch for A works
• Upgrade
• Support a museum
60: Wit and witticisms from the manuscript:
• There is plenty of information but not enough knowledge in the art market
• Buyers are over informed but undereducated
• Rarity is common; quality is rare
• Your taste grows with knowledge
• The most expensive is not always the best, but the best is always expensive
• Success breeds imitation, and imitation breeds mediocrity
• Some people acquire reputations much greater than their achievements
• One price is a record; two is a trend; three equals a market
• It is not difficult to have new ideas; it is more difficult to get rid of old ones.
• People with happy private lives and backgrounds rarely become obsessive collectors
61: The punch list of questions he sues to help him make (the buying) decision include:
• What makes this object special?
• Is it good enough for you?
• It is beautiful or only important or rate?
• Why do you want to buy it?
• Does it fit into the collection
65: When bankers get together for dinner, they discuss art. When artists get together for dinner, the discuss money. ~ Oscar Wilde
71: As you read case studies, please use Google Images to look at examples of each artist’s work.
73: Unlike other markets where an increase in price tends to decrease demand, in the art world, a big price increase at auction can do the opposite
 Sure, as there is limited supply a big price move can signal a new price plateau
86: Putting a price on an artwork
1. Is the artist a major innovator in an important style or time period?
2. Is the artist relevant to current collections?
3. Is the work authentic with a good provenance?
4. Is the iconic relative to the artist’s other work?
5. Is the work in good condition?
6. Is the estate represented by a good gallery focused on burnishing the artist’s reputation and managing scarcity value?
7. Is there a liquid market for the artist?
93: Buying from galleries
• Focus on a small number of galleries
• Good relationships pay dividends
• Vet potential purchases with those in the know, but keep the feedback confidential.
• Be mindful of condition, authenticity, and title issues
• Negotiate in good faith, leveraging public and private information
• If using an art advisor, remain the primary point of contact with the gallery
98: Auction houses – more similarities than difference
1. Bidding in the auction room
2. Bidding on the phone
3. Bidding online
4. Bidding by absentee bid
5. Bidding via n agent
103: Avoiding the scoundrel’s corner
109: Distinguish between different types of expert opinions.
111: Easy access to information on how an artist’s work performs at auction, including
• Artnet
• Artprice
• Askart
• Artvalue
113: Buying is easy, selling is hard
146: …it is important to remember that only three things can be done with the collection during either the collector’s lifetime or posthumously: sell it, donate it, or gift it. You can’t take it with you.
148: (Limited edition prints) is an affordable way to buy art by important artists.
151: “As you grow older, you will discover that you have two hands, one for helping yourself, the other for helping others.” ~ Audrey Hepburn
162: Some collectors like being offered the opportunity to be a guarantor, because it can be a way to lower the all-in cost of acquiring that object. If the guarantor does not bid, or he bids but is not the successful bidder, then he also gets his portion of the upside.
165: Temples of delight, the Economist, December 21, 2013
169: art forgers are skilled not only in painting fakes but also n creating fake documents and narratives.



~ Doug Woodham, Art Collecting Today

[Charlie Mcdonald · Rating 4 out of 5]

A couple of quick quotes summarise the strength of this book :

"Find an area of focus. Pick at least one focus area. Because looking and learning is so important, collectors risk being taken advantage of by the marketplace if they flit from one area to another. the art market is truly a buyer-beware marketplace; focus helps level the playing field for collectors."

And how to successfully invest in art :

"it is a masterpiece by a very important artist in a sector of the market especially popular today with active collectors in great condition and trading in a liquid market."

This is must read book about how to buy art wisely that should be read by anyone who wants to collect before they buy anything.

Too often people overpay or get scammed or just buy what they like without considering the purchase as an investment. This book outlines better strategies and by means of case studies and examples arms the reader with better approaches.

I'll never look at my friends' home decoration the same way again.

I also liked the case studies of CJ Hendry to illustrate the power of social media - the author is savvy with the latest trends.

[Anjan · Rating 5 out of 5]

Excellent introductions into the mechanics of the art market written in concise and nuanced prose. Woodham takes the time to introduce the reader to the players in the art market. He describes incentives and relations btw players. He will then walk through examples of his models in action. Consequently, a reader can use the tools provided to craft his own models/predictions. This is very much an econ book leading with a "collector" theme.

Lots of great names are discussed, and he walks through how the market processed their works.

I learned a few new names I need to check out.

Bonus: I feel like I can learn how to write better if I copy the organizational structure and word choice of this book. Very persuasive writer.

Author worked at McKinsey, If McKinsey consultants provide subject briefs as well written as this book, then I can understand why one would hire a consultant.

[Scott Holstad · Rating 3 out of 5]

Not bad, but not necessarily what I had expected or hoped to find. Decent for collectors, especially those new to the game, so recommended. I guess I was just looking for something a little different.

[Alexandra · Rating 4 out of 5]

Great summary of how does the art World work

With his vast experience in the art World Doug Woodham, gives good advices in a very simple way with tangible examples. He breakdown complex themes as taxes laws, art deals, and sales comissions, in an easy way.
If you like to understand the basics in the art World, or Start your own collection this book is for your.

[Ethan J · Rating 5 out of 5]

awesome introduction to art collection in general, the author is very knowledgable about the topic and i learnt a ton

[Jonathan Spencer · Rating 5 out of 5]

Surprisingly enjoyable and informative

[Gabriella · Rating 4 out of 5]

A good interesting tool.

[Alex Song · Rating 4 out of 5]

It was a pretty good introductory text. It's a finance book and not an art book.

[Karl · Rating 2 out of 5]

'To sell it, the best approach was an exhibition of the drawings at a gallery with a catalogue by an important scholar that was designed to attract connoisseur collectors. The primary selling narrative was about the quality and importance of the objects, with a secondary theme touching on the determination of the couple to find great works' (Woodham: 120)

This book describes how the art market works, although the book only considers galleries, auction houses and art fairs. The book gives a handful of tips to collectors, from how to price an artwork to how to promote better an artwork for sale. Artists can learn a few things too, as well as art historians.

As for art historians, the book can be useful as it explains how artworks by Kahlo are being subject to certain rules and regulations in Mexico. Or the Italian law affecting paintings that have been in Italy for more than 50 years. However, all that could have changed now, since the book was written in 2017.

This book is definitely more suitable for collectors, who for most part will take advantage of all of the calculations and analysis the book includes, such as the list of living artists with the highest number of followers on Instagram.

Some facts are obvious as soon as you read them, like the one that says auction houses don't offer alcoholic drinks so to avoid any contested overbid later on. The author doesn't hide how shady the art market can be and he even offers collectors some advice so they aren't fooled by scums. And this is nice.

[Joe]

Loved this. Insightful and with an ever so slight gossip tinge. I am thinking about my collection differently after reading.

[Alaina Sloo · Rating 3 out of 5]

Whether you already collect art for the love of it — at any financial level — or have spent years in museums and want to satisfy a desire to own some of your own, chances are good you’ll reach a point where you wonder if you’ve spent your money wisely and/or how you should consider spending it on art in the future. Because you recognize how many wonderful artworks speak to you AND that as the years pass, you change, and the art that interests you changes too. So you probably begin to wonder about the market for art and how to make the best choices for yourself.

This is a useful book is you are one of those people, although not a complete one. Although some sections of the book seem to be about wealthy collectors, I found them useful for me, too. In a way, understanding how weighted toward masterpieces and wealthy collectors the financial system of the market is allowed me to think differently about whether I wanted to build a collection that could be sold some day, or whether I would be happiest just enjoying the art I like and consider the cost the way I consider the cost of a pair of shoes or a vacation or a car: an investment in my current happiness, not a long-term financial investment.

And there was a lot to learn. The author discusses the wisdom of having a clear theme to a collection with lots interesting examples. And even though I decided I’m not the kind of collector who wants a highly focused theme, the thought exercise made me clearer on what I cared about and why, at a time when I was having doubts about my direction.