Some Collectors Still Feel Burned

One New York adviser voiced stronger reservations than her colleagues.

“The energy is always good in September and there is real excitement around the fall gallery shows,” said Candace Worth in an email this week, “though I would say there continues to be less urgency to be on the ground and get in early than in years past. Many wealthy potential buyers are on extended holiday, and many others are just settling in from summer vacations. Sales are definitely happening and you will see pockets of sold-out shows, but the urgency and the intensity has been tamped down. It’s still a bit of a rocky road.”

Worth also warned that the primary market remains tricky. “We are still in an era of caution, and, I would say that we are heading toward a continued, imbalanced buying pattern, where buyers might be more focused on secondary market than the primary market,” she said. “Once you go over a certain number, I think it’s going to be tricky for galleries to sell big primary market work without a proven record to support it. In many instances, the primary market has still not figured out its correct price structure. Some buyers are still burned from the downturn, and the primary market has not been able to do what it needs to do in order to give collectors confidence again—which is to lower prices. It’s a real problem. It’s a confidence problem.”