Making Money...The business of art

I just read an article in the business section of the June 11th edition of The WEEK in which it briefly states that "Art is on the Upswing." According to the write up "the market for fine art dropped off a cliff last year...but in 2010...auction sales for old masters and contemporary art have bounced back (from the 35% fall in the first quarter of 2009." This is according to report in the MEI Moses All Art index which analyzes art sales and auctions. Bottom line is that this new influx of sales indicates that there "could be more upside later this year." The article goes on to suggest that although sales are up, investing in fine art is still a tricky thing. Apparently (and this is something that I did not know). "Besides being subject to violent price swings, art is highly illiquid and expensive to transport, store and insure. Art purchasers must pay sales tax, while sellers incur a 28% capital-gains tax--nearly twice the current long-term rate for traditional investments."

So what do I conclude...what does this mean to me as an artist trying to make a living from her work? Well, first of all, as an emerging artist I am not in the category of the old masters or for that matter in the premier list of contemporary artists (that is on my goal sheet). But what this does to my business is that, like real estate, buying and selling art fluctuates with the market (we all have an inkling of how this works). If investors have no money then investments decline. But art is not a house that you can live in, you are not purchasing a stake in a company that borrows your money and then compensates you for your investment. The value of the work that I do is determined by what people are willing to pay for it not necessarily for services rendered. We all say how art is an investment, how it has value and how that value will only increase with time but in reality the value that I want to give to someone is the emotion of owning something that speaks to their soul, that brightens their walls, that sparks imagination. Can you really put a 28% capital gains tax on something which should place its value on the amount of JOY it brings to owner and seller? Wow, that is a steep price to pay for a little piece of heaven! Why don't we do that same for Jimmy Choos or for that Dooney & Burke bag that cost more than some of the pieces on my gallery walls? Do they not bring JOY to the wearer? And why can't we base the value of our work on amount of hours and materials used? Isn't there a way to determine value without the "violent price swings"?

The sad part about all of this is that the artist (while still alive and working) never seems to achieve the financial compensation that he/she deserves. Part of the mystique of being an artist is that the labor is truly one of love or obsession. Think about Van Gogh whose portrait of Dr. Gachet sold in 1990 by Christies for $139M. Considered one of the most famous Dutch artist (after Rembrandt), he had very little success throughout his career and only achieved recognition 11 years after his death following a show of 71 of his 1001 paintings in March of 1901 in Paris. What does this say about our chosen work? If the work is valued by someone, shouldn't success be appreciated during our careers, why must the artist be punished and labeled as starving? Our work is just as important as anyone providing goods and services, the only difference is that our work attempts to feed the spirit.

This is a difficult debate and could go on forever. I am not well versed in all matters having to do with markets and finances. What I do believe is that my work and the work of the artists that I know IS valuable but not for the reasons the market leads us to think. The value is soulful and indicative of an appreciation for a craft that is well done. My question is...how do we market and place a value on a job well done when we are competing with stocks, bonds and real estate?