The art world is experiencing a significant cooling period, with gallery closures, bankruptcies, and lawsuits becoming increasingly common. Two prominent industry figures have offered contrasting perspectives on the current market struggles and what they mean for the future of the art trade.
Art advisor Ralph DeLuca has shared his analysis of the market downturn in Cultured magazine, writing from his vintage villa in Los Angeles. DeLuca suggests that many dealers and advisors may be struggling because they're trying to live like their ultra-wealthy clients. "Those of you who know me—or follow me on social media—are aware that I don't spend my summers in the Hamptons or Aspen like my clients, or globetrotting all over Europe like an A-list celebrity," he writes.
DeLuca, who grew up in a lower middle-class family, believes this lifestyle disparity is contributing to the industry's problems. "I have never lived that way and strive to live below my means as much as I can while still enjoying life," he explains. "Frankly, clients don't want their vendors—yes, that's what we are—living like they do, especially as people who are working on commission." He theorizes that the pressure to maintain lavish lifestyles may be driving some of the recent financial difficulties plaguing galleries and art businesses.
Beyond financial pressures, DeLuca also addresses changing collector preferences. He suggests that art heavily focused on identity politics—what he calls "art as a message, art as a virtue signal"—no longer resonates with collectors as strongly as it once did. According to DeLuca, collectors are increasingly motivated by passion and connoisseurship rather than "guilt, greed, and virtue signaling." He questions whether, in today's less overtly progressive political climate, collectors are simply feeling less desire to support certain voices or align with specific cultural moments.
Taking a more optimistic view, Artsy's Maxwell Rabb argues that the current market struggles present an opportunity for positive change. While acknowledging that the U.S. market is indeed in a recognized downturn, with top-level auction and dealer sales declining for consecutive years, Rabb sees potential for industry transformation. "Some people who bought 200 works a year now buy 40," said Clearing gallery's representative. "That's an 80 percent drop, but it's still substantial. There was a lot of fluff."
Rabb emphasizes that the situation is more nuanced than simple decline. "The art world has an enormous capacity for reinvention," said ADAA director Kinsay Robb. "We're all creative. We're representing creatives. We're creative in our own ways. This is an opportunity for some exciting change to take shape." This perspective suggests that rather than viewing the current challenges as purely negative, the industry might use this period to restructure and improve.
Meanwhile, other significant developments are shaping the art world landscape. Sotheby's has secured the collection of Chicago patron Cindy Pritzker, highlighted by a Vincent van Gogh work, while Christie's won the even larger estate of Patricia and Robert Weis, which includes pieces by Rothko, Mondrian, Picasso, and Matisse. These major acquisitions demonstrate that despite market challenges, significant collections continue to change hands.
In other art world news, People Inc. announced the sale of the monumental sculpture "Plantoir" by Claes Oldenburg and Coosje van Bruggen, though the company declined to disclose the buyer or sale price. Archaeological discoveries are also making headlines, as a cow's tooth buried alongside Stonehenge has provided new insights into how the ancient stone circle in Wiltshire, UK was formed.
Recognition for cultural contributions continues as well. ARTnews Top 200 Collector Francesca Thyssen-Bornemisza and Stella Rollig, director of the Galerie Belvedere, received state orders from Ukrainian President Volodymyr Zelenskyy for their work on the traveling exhibition "In the Eye of the Storm: Modernism in Ukraine, 1900-1930s."
Egypt's tourism sector is also undergoing significant changes with the opening of the Grand Egyptian Museum. While the Egyptian government is implementing modifications to enhance visitor experiences around the pyramids, local vendors and tour guides express concern that these changes threaten the livelihoods of nearby communities that have depended on generations-old tourism practices.
As the art world navigates these challenging times, the debate between DeLuca's cautionary perspective and Rabb's optimistic outlook reflects broader questions about the industry's future direction. Whether the current downturn represents a necessary correction or an opportunity for innovation may ultimately depend on how successfully the art world can balance financial sustainability with its creative mission.
