As part of my personal study of the art market, I like to see if I can predict trends and spot opportunities within this realm.
I identified 5 things that are poised to cause a complete shift in the art world as we know it. Continue reading to learn about what I suspect will completely transform the art market.
Cryptocurrency – Cryptocurrency and blockchain technology will continue to be a factor in the art market. Both the legal and black markets will thrive due to the fact that cryptocurrency makes it easier to exchange value without dealing with traditionally recognized currency. Blockchain can be repurposed to assist with provenance research and the public nature of its design will continue to transform how art is traded and sold.
The Push for Diversity in Museum Leadership and Galleries – After the Brooklyn Museum faced tremendous backlash over hiring a White curator for its African Art department, a spotlight was shone on the lack of diversity within the museum world. Since then, there have been numerous discussions over how the art world will rise to the occasion and foster a more diverse environment. Even the New York Times has asked questions about the ethnic makeup of the world of art dealing. Obviously, there is a lot of potential here and the museums and galleries that take the lead in this regard will position themselves to stay current and relevant in these ever-changing times.
Elimination of Section 1031 Provisions – With the implementation of the Tax Cuts and Jobs Act in 2017, Section 1031 of the tax code eliminated the loophole that allowed art investors to defer the realization of capital gains for an indefinite period of time. This has sent investors scrambling to devise a new tax strategy when it comes to the sale and later purchase of art. Fortunately, there are some preliminary measures that will offer an alternative to Section 1031, though it will take some creative accounting and subject matter mastery to execute properly. It’ll be exciting to see what other innovations come along that will benefit art investors.
Virtual Art Galleries – In this increasingly digital world, it should be no surprise that the virtual art gallery will account for a healthy portion of art sales. Virtual galleries appeal to a previously unexplored group of patrons: this virtual space combines the collectors that want to enjoy art but are too busy to go browse a gallery in person with the art lovers that may have initially been intimidated by going to a gallery in person. The flexibility and ease of purchase will continue to appeal to many art enthusiasts, and I imagine that this form of art vending will continue to grow in popularity. A few of the most popular online art vendors can be found by clicking here.
Barack Obama as painted by Kehinde Wiley; Michelle Obama as painted by Amy Sherald
Renewed Interest in Artists of Color – Artists of color are not unpopular but have largely been ignored or relegated to “supporting” roles in art museums and galleries. However, there has been a renewed interest in artists of color, especially since these artists have many influential fans and collectors. Barack and Michelle Obama both chose Black artist to create their official Presidential and First Lady portraits. High profile collectors are seeking to carve a space for these artists that will allow the artwork to shine in its own right. Pamela Joyner has graciously allowed her personal collection to be exhibited nationwide in the Solidary and Solitary exhibition. In a recent article on Artnet, Tina Knowles Lawson gives a tour of her art collection. Collectors aren’t the only ones bringing artists of color into the spotlight. Within the past 10 years, there have been more retrospectives featuring artists of color than ever before. A retrospective of Howardena Pindell’s work is slated to exhibit at Virginia Museum of Fine Arts, and it’s already gathering lots of buzz.
Those are my predictions for the changes that will transform the art market. Do you have any predictions that you think may affect the art world as we know it? Let me know in the comments below: I’d love to hear your thoughts!