Definition of Primary and Secondary Art Market

The primary art market refers to when an artwork comes to the market for the first time at a gallery or any other art exhibition. This is the time when the price for the artwork is established for the first time.

In technical terms, similar to the maker of a design product, a sail boat, or jewelry, the gallery/dealer, in conjunction with the artist, establishes a selling price based on the cost of research and development/creation of the product. The age-old truism from the economic theory on “supply and demand” defines this pricing structure. When the demand grows for the works of a particular artist’s work, whether paintings, sculptures, photographs, or graphic prints, the value and the price of the art increases. Generally, speaking, the greater the demand, the higher the price the artwork would command on the primary market.

Once the artwork is purchased on the primary market and the purchaser, whether a collector, a business, a foundation or a dealer, decides to sell it, it enters the secondary market. For example, most artworks at an auction house form part of the secondary market, as the artwork has already been purchased once.

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About Art Collecting and Investment

Providing news about art collectors, collections and investments. Including the how to's, the why's and the where's of art collecting. Wanda Pepin, Christina Madden and Elaine Frenett are all professional artists who keep up on the world of art, while creating amazing works of art themselves.
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3 Responses to Definition of Primary and Secondary Art Market

  1. Pingback: Tweets that mention Definition of Primary and Secondary Art Market | Art Collecting and Investment -- Topsy.com

  2. Adrian says:

    i’m trying to find out the difference between the primary art,secondary art and tertiary arts-not the art market
    Primary art is sculpting painting and perhaps writing whereas secondary art is like photography – why can’t I find more information about this on the web?

  3. Pingback: Is Artmarketing an Oxymoron? – Digital ArtLords

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