Responsible Art Market — Risks in the Contemporary Art Market and a Focus on Data & Analytics
The Responsible Art Market Initiative (RAM) is an organization raising awareness of risks faced by the art industry and providing practical guidance on establishing and implementing responsible practices to address those risks. Earlier this fall, RAM hosted its New York Regional Committee Conference two-part webinar series, where panelists explored the complexities of compiling and interpreting analytics in the contemporary and emerging art markets.
APAA member Suzanne Gyorgy served as the moderator for the first webinar, From Data to Insights: Shaping our Understanding of the Art Market, and APAA member Erica Barrish was a panelist for the second webinar, Where Analytics Meets Intuition: The Intricacies of Making Informed Decisions in the Emerging Art Trade.
Suzanne Gyorgy
Erica Barrish
APAA sat down with both women to better understand the importance of RAM and what contemporary leaders in the art market should know.
Please share your involvement with RAM and why you chose to participate in this series focused on data & analytics.
Suzanne Gyorgy: I was introduced to RAM several years ago when invited to speak at their annual conference in Geneva. As RAM expanded to New York, I was delighted to have been asked to join the RAM New York Committee and join the work of providing education in identifying risks in the art market and guidance on establishing and implementing responsible best practices.
Erica Barrish: Through Suzanne Gyorgy I was introduced to RAM. Understanding how important is to be transparent with collectors and mine data points, I was delighted to learn about the organization and how they could complement the services my company provides to support our client’s collecting interests.
What were your biggest questions going into your respective panels? Were your questions answered?
SG: The use of data is an increasingly important factor for art market participants to use in gaining greater insight into today’s market. The panel highlighted the need for trusted data sources that provide data to make fully informed decisions. The panel welcomed the fact that today’s art market participants have increased access to reliable, trusted auction and private market data to better understand market performance, forecast trends, and manage risk amid market changes.
EB: The question that was raised is about transparency of information provided to collectors regarding pricing both privately and at auction. Also, the question that was addressed is how prices are set on the primary market and how collectors gain access to artworks of great demand on both the primary and secondary market. Finally, it was interesting to note, how collectors navigate trusted sources and reliable venues for sales and ethical business practices.
What was the most interesting or surprising thing you learned?
SG: Not surprising, but affirming, that panelists Anders Petterson, Nanne Dekking and Magnus Resch all share a deep passion for the art world and art market. They share a motivation and drive to ensure that their data is collected with transparency, well-maintained, and audited to provide effective market facts and analysis to aid in establishing a strong platform for market growth.
EB: Few people have access to databases that provide sales information on the private market. Most sales prices are accessibly only through Artnet, Askart, Artprice and Arthur Analytics. The financials of how the industry conducts themselves is still a bit cryptic and nebulous thus, transparency is essential particularly when a market feels overheated or underperforming.
What are 1-2 learnings or insights everyone should take away from the webinar?
SG: My hope is that from these panels’ collectors, art advisors and art professionals learn to embrace sources of reliable art market data as a tool to gain additional insight into varied aspects of the global art market. We all agree that data does not replace the magic of standing in front of a work of art, a passion for the arts and years of expertise, but it is a powerful tool when used well to educate and strengthen the art market while bringing increased efficiency and transparency.
EB: It is important to seek guidance from professionals embedded within the industry that have a considerable amount of experience and access on the primary and secondary market. The auction market is only one of the many venues by which one can engage in the art market. There are, however, reputable galleries and private dealers that can demystify the process of collecting and market transparency.
If someone wanted to go deeper into this topic, where should they look?
SG: www.arttactic.com and Art Tactic’s Art Market Podcasts, www.magnusresch.com, www.artory.com
EB: If an individual is interested in becoming more deeply informed on the mechanics of the art market, they should engage assistance from an experienced, vetted, and reputable art advisor with deep international expertise and experience. Moreover, if ever needing a network or referral, it is best to speak with one’s wealth advisor, lawyer, accountant or insurance broker for a referral. I would encourage individuals to interview candidates, speak with their references and take time to learn before buying art. Collecting is fun but one should be educated before starting to acquire artwork.
