Lists exist solely so galleries can strategically place works, first with museums (which boosts an artist’s fortunes) then foundations, and, finally, important existing collectors. Such lists may also place restrictions on whether and when you can sell at auction, limiting the buyer’s flipping potential.
Punters are not difficult to spot, says gallerist Josh Lilley, who represents star red-chip artists such as Tom Anholt (whose work sold out at Frieze Seoul) and the American sculptor Kathleen Ryan, whose prices have risen from $5,000 to $400,000 in seven years. Lilley manages his artists’ careers closely and seldom loses one of them – unusual in today’s red chip frenzy, which sees galleries trying to lure away competitors’ talents.
A newbie collector who wants to buy a particular artist may have to undergo an inspection of their home on grounds of aesthetics and/or credentials. They may then be forced to buy several other works by less prized artists in order to show ‘good will’ before being allowed to spend money on the one they were actually interested in. And even then, they may have to commit to buying several works by the same name, not just one work. ‘What you want’, says Lilley, ‘is a sell-out show.’
When this happens, the poachers inevitably circle. ‘Some artists can be tempted by a larger gallery with more space and bigger budgets,’ says Lilley. This can work, he says, ‘for short-term gain’.
Artists also play the list game. The American artist Lauren Halsey, 36, for example, chose to publish her requirements online on Art Net: certain works could be sold only to people of colour or to public collections.
The rise of red-chip art coincided with the tech bubble. Now that interest and inflation are both sky high, and money is expensive to borrow, will it also burst? Overnight success can lead to what Caspar Jopling of White Cube calls ‘the shooting star effect’. ‘If an artist gets too hot too fast, they can see prices plummet to zero, as they did for the members of the “zombie formalism” group,’ he says. Made using paint-filled fire extinguishers, or with dirt from the studio floor, works by this group initially sold for as high as $400,000. ‘Now it’s zero,’ he says.
