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PRIMARY AND SECONDARY ART MARKET
The Primary Art Market
The primary art market refers to the first sale of an artwork, either via a gallery or directly out of the artist’s studio. The primary art market presents works by artists that are currently alive and marks the time when the price for an artwork is set for the first time. The price is based on the artist’s exhibition history, sales history, career level, and size of artwork. The greater the demand for an artist, the higher the price on the primary market.
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The Secondary Art Market
Once the artwork is purchased on the primary market, it enters the secondary market. Thus, the secondary market refers to art that has been sold at least once before. In simpler terms, the secondary market deals with resale, typically with artworks by artists who have a substantial reputation. For example, most artworks sold through auction houses form part of the secondary market. Prices for artworks on the secondary market are determined by factors such as condition, provenance, and the significance of a work within the artist’s oeuvre. If an artist is related to a reputable gallery or is represented in an influential public or private collection, it can have a positive impact on the price.
Banksy’s famous shredded piece, renamed as “Love is in the bin”, made history in an October 2021 auction at Sotheby’s as it was estimated to sell between £4-6 million but realised a whopping £18.5 million.but realised a whopping £18.5 million.
