Fakes say some interesting things about the economics of art
There is, however, a type of person who seems to sait perfectly well what that quoi is, and can turn it out on demand. In 1945, for example, a Dutchman named Han van Meegeren faced execution for selling a national art treasure, in the form of a painting by Vermeer, to Hermann Göring, Hitler’s deputy. His defence was that it was a forgery he had painted himself. When asked to prove it by copying a Vermeer he scorned the offer. Instead he turned out a completely new painting, “Jesus Among the Doctors”, in the style of the master, before the eyes of his incredulous inquisitors.
Göring, who was facing a little local difficulty at the time, did not sue van Meegeren. But that has not been the experience of Glafira Rosales, an art dealer in New York who admitted this week that she has, over the past 15 years, fooled two local commercial art galleries into buying 63 forged works of art for more than $30m. She is being forced to give the money back, and is still awaiting sentence.
A load of Pollocks
Ms Rosales is guilty of passing goods off as something they are not,
and should take the rap for the fraud. But although art forgers do a
certain amount of economic damage, they also provide public
entertainment by exposing the real values that lie at the heart of the
art market.That art market pretends that great artists are inimitable, and that this inimitability justifies the often absurd prices their work commands. Most famous artists are good: that is not in question. But as forgers like van Meegeren and Pei-Shen Qian, the painter who turned out Ms Rosales’s Rothkos and Pollocks, show, they are very imitable indeed. If they were not, the distinction between original and knock-off would always be obvious. As Ms Rosales’s customers have found, no doubt to their chagrin, it isn’t.
If the purchasers of great art were buying paintings only for their beauty, they would be content to display fine fakes on their walls. The fury and embarrassment caused by the exposure of a forger suggests this is not so.
Expensive pictures are primarily what economists call positional goods—things that are valuable largely because other people can’t have them. The painting on the wall, or the sculpture in the garden, is intended to say as much about its owner’s bank balance as about his taste. With most kit a higher price reduces demand. But art, sports cars and fine wine invert the laws of economics. When the good that is really being purchased is evidence that the buyer has forked out a bundle, price spikes cause demand to boom.
All this makes the scarcity and authenticity that underpin lofty valuations vital. Artists forget this at their peril: Damien Hirst’s spot pictures, for instance, plummeted in value when it became clear that they had been produced in quantities so vast nobody knew quite how many were out there, and when the market lost faith in a mass-production process whose connection with the original artist was, to say the least, tenuous.
Ms Rosales’s career is thus a searing social commentary on a business which purports to celebrate humanity’s highest culture but in which names are more important than aesthetics and experts cannot tell the difference between an original and a fake. Unusual, authentic, full of meaning—her life itself is surely art, even if the paintings were not. (The Economist)
15 comments:
The main idea of this article is that while art forgers do their fair share of economic damage, they also provide public diversion by exposing the real values that lie at the heart of the art market. These real values include a few basic truths. Purchasers of great art don't purchase such paintings simply because they're beautiful. Expensive paintings are valuable because they are meant to say as much about their owner's bank account as their taste. Art, like other luxuries, invert economic laws. The more paintings there are, the less valuable each of them is, and so demand decreases.
The first entry, listed as anonymous and unsigned, was completed by Kaitlyn Szilagyi
What's the point of buying art? It is an inanimate object that doesn't provide much use to your home. Then again why buy a $100,000 BMW as opposed to a $15,000 Toyota if they are poised to do the same task, getting you from point A to point B. Purchasing art is an expression of your bank account. Purchasing cars and other luxuries are amongst the same idea. For those who can afford it, the cap does not stop at the high end BMW’s. It leads to the possession of rare unacquirable automobiles that are few to be seen and paintings that belong in an exhibit. In the article, they discuss fraud art pieces and how they tend to stimulate the economy in a negative manner. Too much of one thing makes the item undesirable which lowers the value and want for that specific item. Those pieces out there that are replicas too have an effect of a tarnished economy.
-Mitchell Borrero
Art forgers do a fair share of economic damage but the article also states that the fact that there are very "exclusive" or "positional goods" that create large economic spikes. In art the price of an item is very high because usually there is only one or maybe a few. Since there is only one price goes up and the people who can afford them get them to show off how rich they are. But if there are many the price goes down and many more people can afford and buy them which in turn changes the value and flaunting your bank account won't work if you buy one of these. Forgers may cause economic damage but at least they get to spread the beauty of art while doing it, meanwhile the expensive art paintings create economic spikes and are viewed by little.
-Anastasios Papaioannou
These paintings expose how we react to hearing something is limited. The word “limited” alone will make people pay more than they should. These paintings can be related to owning a Bugatti rather than a Honda. Although they serve the same purpose, the more expensive product that is limited is often more desired. Glafira Rosales took that logic and used it against these art galleries by creating fake paintings. This is a major problem with the tastes of people. Although they look nearly identical, so much so that even experts cannot tell the difference between real and counterfeit paintings, people lose interest in something purely because there are a vast number of these things whether it is cars, clothing, or paintings.
-Kris Boyle
It is certainly understandable why one of a kind paintings are so valued among wealthier individuals; they showcase wealth and exclusivity. However, as mentioned by the article entitled “In Praise of Art Forgery” published by the Economist, these precious works of art are very imitable. Because good imitations are not easily distinguishable from the real products, this makes me question whether it is worth taking the risk of buying an expensive painting. An art dealer can say they are selling me a legitimate Picasso for instance, and I would have no way of knowing if that painting was genuine. The risk is that I lose an incredibly large sum of money for something that is nearly worthless if it turns out to be a fraud. While wealthier investors may still desire to purchase these works of art despite the risks involved, I can’t imagine that the risk of buying a fraud is helpful to the demand of the art market. Although I never been really much of an art collector because of the lofty costs and lack of interest, I can definitely say that the risk of buying a fake deters me further from buying any pricey piece of art.
-Anthony Riccio
This article explains how us as consumers are so into flaunting our wealth. The art market is such a small part in the big picture, yet at the same time proves a major point. People are easily fooled into purchasing fraud merchandise because they so badly want to own something that others can't. For retailers, having an inelastic good is the epitome of perfect because they can charge as much as they want knowing that people will pay the price. As long as consumers are aware of the quantity of something, the demand will fall into place. The more there is, the less the demand will be. The less there is, the higher the demand. For example, if suddenly there were 1 million more Mercedes on the road, the demand for them would decrease just as if there were 1 million less Mercedes on the road, the demand would increase.
-Brittani Muller
The art market as we know from the reading is based upon the idea of positional goods. Positional goods are “things that are valuable largely because other people can’t have them”. Art is a positional good because of the inimitability of the product, but since forgers create and sell their own counterfeits. It diminishes the value of the original work because the tenuous connection to the original piece, as well as the fact that professionals can’t even distinguish the difference between the counterfeit and original work. In actuality forgers prosper on their counterfeits but depreciate the value of the aesthetics of human culture.
-Paul Iasiello
What this article really shows is that there are certain items that people buy such as a famous work or art created by a renown artist not only for their aesthetic beauty but to set themselves apart and show off the fact that they have plenty of money. The main point in buying an original piece of art instead of a fraud or a piece that was mass produced is exclusivity. The more exclusive the good is, the harder it is to get and therefore it will be worth a large sum of money and it will set you apart from most people. This is made perfectly clear due to the fact that famous works of art could be forged and look identical or at least extremely similar to the original yet that forged piece is virtually worthless while the original is worth a ludicrous amount of money. Hence, people who forge famous works of art do have a negative affect on the economy although what they do does require a great amount of skill and talent. The bottom line is their work isn't original and they don't have the famous name that art connoisseurs are looking for.
-Michael Scalia
As much as producing a forgery may be entertaining for the public, I feel that it is completely wrong. People who buy these unique goods such as art, buy them as a wealth status. However, some people buy them as investments. Even though the world may never see some of the most beautiful and most rare pieces of art, it does not matter. Nobody will ever know about them if they are in a private collection anyway, eliminating a cause for emotion. If someone has enough money to purchase such an expensive item, then they have every right to flaunt their money because they earned it. It is basic human nature to want to feel accepted and possess some status form.
-Benjamin Stark
Who needs a 12 bedroom mansion when its just you and your spouse? It just shows how much people have in their bank account. I don't see why forging art is such a big deal. Although it does drop the value of a painting because there is more produced, money is still being put into our economy. Of course nobody wants fake art but in reality, the majority of those who buy expensive pieces can afford them because of the income they are receiving. Im not saying forgery is good because it's not but i see it as a positive way in the economy because money is still being dished out.
-Vincent Barbetto
It may seem that the name of a prestigious artist is more valuable than the artist's famous works. In the world of forgeries, the mere name of an artist is what helps them sell. This week, New York art dealer, Glafira Rosales, admitted that she has convinced art galleries into buying 63 pieces of art work, all forgeries, for over the past 15 years. These 63 forged works add up to more than $30 million. While still waiting for her sentence, she is being told to give the money back. Many believe or, at least, try to pretend that famous artists and true works of art cannot be easily imitated. Possessing a famous, and expensive, piece of artwork can hold a certain social status. The more famous and valuable pieces of work a museum owns, the more prestigious that museum can be considered. The status of owning the only real copy of a famous piece of artwork holds a certain social status of its own. Mass-production of items leads to the items becoming less valuable and doesn't hold as high of a demand as an item of limited quantity. The status of "owning the only original copy," is high. Museums and art institutions who do not clearly try to differentiate the original from the fakes do not seem to hold any artist merit or true appreciation of art.
-Caterina Amedeo
Paintings and other art is so expensive and valuable, because people feel that the art really has a deep meaning beyond just what you see. they also feel that because it's done by hand instead of mass production, it is even more valuable. it works on supply and demand in that sense. the other reason is that art shows class and culture in people, which makes it a status symbol. people will do a lot to show off. when someone produces fakes, that upsets the people who have the real ones. now their piece looks a little less exclusive to see. it hurts the value substantially. if you took a high end car like Rolls Royce or Ferrari, they are hand made cars. if one day they decided to use an assembly line to make them, the price would cut down so far it would be unbelievable. that's how our society is. we all want something that is one of a kind, and some people will pay through the nose to show they have it.
Benny Villani
This article shows how much of a big crack we have in our society. People with many can afford these immensely high priced goods instead of donating that to the poor. Even if you're a person who doesnt believe too much in charity, why not just invest the "$30 million", as stated in the article. High positional goods are very big in demand in a certain income group. Almost 5% of Americans, who posses most of the country's wealth can manage to obtain useless products like this but of course just the sale of one product can be very profitable. So the market isn't too big for transitional goods but the overpricing of the good makes up for the small target group which generate low quantity sales. Also the market isn't equal when you have fake or forged goods being sold at the same price as the original. On top of that even experts cant determine the authenticity of the product which poses an even bigger threat to the market of art. The people who play fair dont deserve this. I think government intervention in this market can be an option just to the extent of regulating the market so everyone plays fair in the market.
-Asfand Khan
This article differentiates the rich from poor by depicting the arts. Arts are considered artifacts and masterpiece that may even sell for millions because its hand made and this is just to show how people will spend all this amount instead dishing out the money to those who in need. For instance in this article there were 63 forged art pieces which were sold at 30 million.
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