MONEY BACK GUARANTEES IN THE CONTEMPORARY ART MARKET (September 16, 2012)

I dreamt that unsatisfied buyers managed to force the introduction of money back guarantees into the contemporary art market. After many complaints about the sizable drop in value of their purchases, they cornered the gallerists from all sides. They wanted their money back or else. Faced with claims of false marketing of their wares, which were supposed to increase in value over time, the gallerists eventually caved in. As a consequence, the selling price of contemporary art works dropped considerably. When I woke up in the middle of the night, I wondered who would be hurt more by such guarantees—gallerists or artists. I was asleep again before I could come up with a meaningful answer, though. Of course, the artists would be hurt more, but many gallerists would leave the contemporary art market as soon as possible. Given the state of the world economy, the value of contemporary art cannot go anywhere but down. Although there will be some exceptions, they will be few and far between.