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Art World Beware

“Museums are in a really precarious place — and galleries — with the next generation of collectors”

While in my role at the AC, I am typically urging buyers to beware, this quote from co-chairman of the Museum of Modern Art’s Young Patrons Council William Palley in a recent New York Times article indicates it may be the art world should be on notice.

The article examined the question: Where are Young Art Collectors and Museum Donors? Palley’s quotes throughout the article explain further:

“[T]he commercial art world is very opaque and hard to navigate,” “Museums haven’t adjusted to that world of speed, agility and transparency. There needs to be a lot more,” and “It can feel very, very old school.”

Simultaneously, in recent years, scandals, criminal investigations, and seizures reverberating from the walls of world’s art fairs, to the blocks of auction houses, to the halls of trusted institutionshave shined a light on “old school” practices linked with crime.

Has the exposure of this behavior, long accepted as the norm, given future collectors and donors cause for concern?

Buyers are paying attention. In a recent wealth report, 87% of collectors rank provenance and forgery problems as their main concern, showing that collectors are paying attention to looted antiquities scandals making headlines worldwide.

Donors are also watching. The recent closure of the Rubin Museum of Art also raised questions of whether the public and donors, aware of the museum’s implication in stolen art scandals, have begun to withhold their support.

These sentiments align with my generation’s calls for transparency, equity, and justice from all types of institutions.

Indeed, as opinions on the art world shift among younger generations, so too do motivations for collecting, with the majority of collectors under 35viewing art as a financial investment. While this strategy may steer buyers away from the pitfalls of acquiring looted antiquities and towards fine art, the “opaque” practices of the art market make even  this a risky undertaking.

The U.S. art market remains unregulated, leaving consumers vulnerable to a number of risks in an environment where oversight is lacking and accountability is scarce. Unlike other American industries of similar size and scale (jewelry, pawn shops), the art market is not subject to standard anti-money laundering laws. In the absence of this formal regulation, buyers must completely rely on the self-regulation of auction houses, a system that is far from perfect, and which leaves consumers susceptible to stark consequences, such as unknowingly funding bad actors such as sanctioned Russian oligarchs or Hezbollah financiers.

Those who care for culture may have a natural instinct to collect it, or to support institutions who preserve and present it. There is nothing wrong with this attitude, which fosters an appreciation for art and culture around the world. But no one wants to buy stolen property, fund criminals, or support illicit activity.

Young collectors and donors clearly have the art world’s attention – and therefore power to drive change, making the art world work for them in the process. They can do this by:

• Supporting museums, auction houses, and galleries that uphold the highest standards of ethics and transparency
• Advocating for regulation of the American art market to safeguard against risk
• Ensuring acquisitions are not just legal, but ethical
• Championing contemporary local artists, buying art that is meant for sale while also supporting community

And to the art world – let this be another warning that urgent change is needed. If not – beware.