Unfortunately, today’s art market logic in general is highly dysfunctional and inefficient in the long term. Art collectors are brought to quick financial decisions, are aimlessly buying trivial art encouraged by short-term profits, instead of purchasing durable quality by considering the overall work and history of an artist with the help of independent advisors.
This false paradigm of low intellectual and cultural values versus high financial values affects the infrastructure of the complex culture and art industry in a negative way.
Overvaluation and price inefficiency of easily digestible and entertaining art spreads more and more. It is a situation which is detrimental to both the investors and the legacy of the artist and leads the entire art world astray.
In effect, in the longer term it will lead to losses for investors. There is a risk of overestimating the authority of “cultural experts” and their opinion just because they often increase the value of works of art due to personal views and tastes or other, often financial reasons.
In the field of contemporary art, it is also often the interest of agents who shop primarily for large institutional investors, which determines the dominant value of art. Through their acquisitions, the artistic reputation of the artist as well as the taste and the determination of the elitist character of the art market is being manipulated.
But, don’t be fooled. It does not reflect the real value of art, because a purely economic evaluation does not set the value. It should be democratic and therefore universal by a generally noticeable and recognizable quality in the consumption and appreciation of art by the broad public.