libertyblitzkrieg.com /at 9:52 am
Earlier today, Bloomberg published a fascinating article on the collapse of what is known as the “emerging art market.” Namely, a slice of the art world where spraying a canvas with paint from a fire extinguisher had been commanding six figures a pop. Well all of that is now over, as the space has experienced a stunning collapse.
Art dealer and collector Niels Kantor paid $100,000 two years ago for an abstract canvas by Hugh Scott-Douglas with the idea of quickly reselling it for a tidy profit. Instead, he is returning the 28-year-old artist’s work to the market this week at an 80 percent discount.
Such is the new art season. At auction houses in London and New York, sellers are preparing to bail on their investments after the emerging-art bubble burst and the resale market for once sought-after artists dried up.
“I’d rather take a loss,” said Kantor, who is offering the Scott-Douglas work at the Phillips auction in New York on Sept. 20. “I feel like it can go to zero. It’s like a stock that crashed.”