A closer look at the art market’s inner workings

Going beyond the clichés and common presumptions about art and money, a new book by Noah Horowitz takes the discussion to a more fundamental level. His ‘Art of the Deal’ examines the intricate relationship between the contemporary art market and the value of its objects. The author tackles more 'immaterial' genres that, in spite of their popularity in galleries and biennales, probably receive far less attention from auction houses and collectors: video and 'experiential art' (installations, performances or any form, which focuses on experience and social interaction.)

An introductory write-up to the book mentions: “The Prices of works have been driven to almost unprecedented heights. Conventional boundaries within the art world have collapsed. The author takes a look at the globalization phenomenon and its impact on the art world, evaluating the changing face of the business, giving the clearest analysis yet of how investors speculate in the market and how new art forms like installation and video have been drawn into the commercial sphere. By examining these developments against the backdrop of the deflation of the art bubble in 2008, he demystifies the process of collecting and investing in today's market.”

An art historian and art market expert, Noah Horowitz is also a member of the faculty of the Sotheby's Institute of Art, New York and director of the VIP Art Fair, the first-ever exclusively online art fair. According to him, art market is not much different from other international markets, when it comes to behind-the-scenes activities and investing tactics involving a network of an investment consortium of collectors, art museums around the world, dealers and auction houses, with art buyers completing the chain.

All the players can work together at times to transform little-known works into gems. This process is possible because the art market fuses two contradictory aspects: on the one hand, huge sums of money involved; on the other, objects with no tangible, easy to assign value as an asset. The author deftly underlines the 'experiential streak' that drives the global art world, even while demarking the boundaries between prestige buying and investment in art for sound financial returns. He exposes the contemporary art market’s inner workings, explaining how this unique economy came to be, how it functions, and exactly where it's headed.