How Two Companies Dominate The $67 Billion Art World
The global art market was valued at $67.4 billion in 2018, the second highest year ever. The United States, United Kingdom and China are the three largest art markets in the world. Their sales combined make up 84% of the global art market. The auction house is one of the biggest drivers of the art market. Sales at public auctions exceeded $29 billion last year. Two auction houses-Christie's and Sotheby's- compete head to head each year capturing more than 40% of global auction sales.
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How Two Companies Dominate The $67 Billion Art World
Literally 90% of the comments:”art auctions are used for money laundering”.
Because it's true...
Truth hurts?
They’re just copying each other’s comments. 80% of them wouldn’t have commented that if they didn’t see the top comments..
they are just comment laundering
i mwan its kinda true
When you have so much money that you don't know where to store it anymore.
Just let it hangging on the wall...
F Fuentes also the best way to launder money
@@johndoew9777 Because we all know that your beloved Trump is a poor man
@@johndoew9777 Hillary's not the one who uses Foundation money to buy portraits of themselves to hang in their cuntry clubs.
How about Picasso? Or is it the buyers who are laundering it? I don’t get it?
Imagine being so rich you have the two biggest auction companies rock paper scissors against each other. Those are some mega balls of steel.
Good point, if you look at it from an acquisitions point of view and trending markets, my prediction is that the two auction houses will someday merge, and then they will really be a much bigger combined monster to be reckoned with
I wonder how many assassins would come after me if I stole all the art in one of their auctions
Nah they won't send assasin to you they just called the authorities and you will be charged with grand larceny
Tom Cruise will come after you
Serial number : 11.1.1.1
They would just pay someone $50 to paint them again and pretend they're legit.
You just got yourself on the FBI watch list buddy shouldn’t have said that 😂
Art is just a way to launder money.
So are cars houses and trading cards.
explain
That shows you dont know how money laundering works.
@@yugiohpokemon5285 your stupid... i asked to explain because i dont know... you could explain it to me.
Expensive art*
Shout out to the Asian guy that had them play rock, paper scissors. Priceless. Good educational video.
it adds more to the story of the art
Dude just say Japanese guy. Asian is a broad ass term.
All these people have really weird smiles at the ends of their sentences. Like they know it’s a lot of bs
YES that lady at 8:37 made me want to smack that weird ass smirk off her face
ItS ArT ThOuGh
Facial punctuation.
basically they do nothing to get high fee....
Its the smile of satisfaction, comfort and prestige. Its a good place to be at when you can smile that way.
I swear some of these expensive art paintings look no different than goodwill paintings for $5
I know - it's mainly hype. Just like the music industry.
About materiality and matketing.
🤣🤣🤣
It’s often not only the painting itself, but more the story behind it what makes it popular and therefore expensive. Think about banksy who hates these auctions, however his painting was sold for a million pounds.
Lol nope.. do u paint or draw
I'm addicted to binge watching CNBC and Business Insider
Isaiah Lali try alcohol
Some of the best content to be honest
Then that means You addicted to Fake News ~ Please get some help
Get back to work you lazy bum and explode more rockets! :-)
@@seanrenner25 You mean some of the best click baity content?
"The world is generally a much richer place then it was a few years ago." I've never gotten a sense of this in my neck of the woods.
but it is, the issue is that poor people are just a bit less poorer while the rich are much richer than before
@@calamorta I don't know where your from, but where I am from the poor are pooree and the rich are even rich than usual. I feel the poorest I've ever felt in my adult life.
Doesn't matter how it feels to you. The math checks out.
@@calamorta Nah. Globally the richest people are feeling the heat as jobs move to poorer countries. The global poor have never been better. Only unskilled labor in rich countries are feeling left out.
@@flakgun153 Would like to see your math. My math says wages have not gone up in over 50 years.
The fact that he says the buyers are coming from whatever sector of the economy are doing well says it's obvious they only use these as vehicles to move cash and dodge taxes. They aren't interested in the art. You don't have to have money to suddenly be interested in art.
Rock Paper Scissors is a genius marketing ploy for the individual. You know the piece is valuable and so you decide its fate on luck sparking controversy, free press coverage, etc. Very smart.
I used to work for Sotheby’s in HK and I have to say, it’s quiet snotty and had a sense of elitism when you’re in high art appraisal & auction market.
Hey. A Little chat please. I'm on instagram @thinline_studios_of_art. Thanks
That sounds about right.
Two decades ago Christie's and Sotheby's were found guilty for price fixing and they're still at the top of the game today.
Conclusion:- Its not about what you sell, Its how you sell and to whom you sell.
Pranjal VW no this is money laundering
@@ziyaazmak yup
It's only when it comes to art people have that objection that it is elitist but are fine with it in any other industry. Everyone assumes you are a moron in you want to dig a little deeper in your understanding of what captivates you/moves you etc. It's also often people who have no interest in art (and thats fine) who are suddenly experts on what is percieved as "good" and "bad."
Kind of amazing that France and Italy have such a small amount of global art market share, both widely fostered and birthed multiple forms of art. And since when did the US become so artistic 😅
Especially when the US have less than a handful of great artists. The answer? Capitalism.
We have more money. (not me) because we have been free.
*Gotta ask my mom where she kept all my paintings what were on the fridge.. looks like I'm on my way to becoming a millionaire*
New headline: How two criminal front organizations dominate the 67 billion dollar art trafficking industry.
That's the real headline right there.
It's probably the same with the diamond and precious stones companies, all descended from colonial-era operations...
My kindergarten painting could prolly make a couple 100 stacks
If you have a name and famous in art world why not...
Yes, that’s the point, art is subjective.
try it... its actually super hard...
Et Cetera sry you are nor dead nor famous... pock up the sythe peasant and let the aristocrats do their thing
If a famous artist sell you kindergartens artworks as his/her and create a story for each art, the artist can make millions. Hahaha
Actually there is a lot of beauty and time and effort put into something and people are willing to pay a lot of money for it.
@OMEGALUL Clap Then why don't they? Why don't you? Easy money, right?
it`s not an art market, it`s an asset market.
exactly
@vlad wick Yeap. Art World is a creative scam, a way to transfer wealth and avoid taxation.
Ass
It's only in the art market where people are annoyed with people making money. But in ANY other market people don't have a problem with companies making money.
@@phanders6236 because Art is useless... that's what Oscar wilde said!
What they didnt tell you in this video is that many of the purchases are done to hide large sums of money. A buyer will get the artwork and stash it in a warehouse somewhere to be sold at a later date. Its great for these big auction houses who make a fortune off iconic artists but bad for the public who loose the chance to experience the work in person.
Came here because the art in the thumbnail looks like every painting hanging in any taco bell ever. Ok bye
Ha! Great
You look like every girl hanging at Starbucks ever.
@@ollonnn LMAAOOOOOOOOOOOOOOOO
Great story here. Intriguing to hear about how art auctions have changed recently.
Rock/Paper/Scissors is quite a useful skill.
High years of art sales are indicators of a coming recession
Alexander Nunne that makes sense cause they know what we don’t
Lol yeah actually. Me and my husband bought a painting that was priced at 150. But it was on sale 3 times over, ended up paying a little less than 60 bucks. Somethings not right with the economy. I mean, more than 200 for a painting? Pshhh, but still, art isn't valueless either.
@Hiyashi Falcion how did you get for less than 60 ?
@@Q_QQ_Q it was on sale at the store for like 60 percent I want to say. The thing was, it wasn't just an abstract paintsplotch or something stupid like that. It made sense to spend 100 bucks on it (it's a stylized map of the earth with nautical stuff and lots of bright colors)
@Hiyashi Falcion but is it worth it ?
That Sotheby’s chick looks like she is really difficult to deal with.
And that upspeak is so annoying.
cause she's a wealthy successful woman and people hate that
"For charity " Biggest lie you've ever heard about these auction things,,,
love this documentary format... made me subscribe
I'm a simple man, I hear money and laaundry, I click
Boomers influence has made pop art ridiculously over valued.
@buntovnik bez razloga value is set by the seller, you know how cheap it is to create computers, clothes, cell phones, and designer bags? like 1% of how much they sell them for
Your food also overvalue
@buntovnik bez razloga well without money as a motivational factor, why bother developing newer and stronger models of technology? why would anyone want to get into that industry and try to get a backbreaking degree in computer engineering only to sell their products for pennies and make as much as a cashier nothing to do with greed, if healthcare and medicine was free, most people wouldn't want to be doctors and we'd have less
@@synecdoche8783 you are correct about bags and clothes. But electronics is a bit different. Companies spend hundreds of billions of dollars each year in research and development. Which, may not even be used in the actual device. So, companies like apple are overpriced but not nearly as much as branded clothes
I dont see the point of art
That thumbnail looks like something I made in my 1st grade art class
Cool! You're rich now.
then actually sit down and try to draw like ur in 1st grade art class again... as an adult but also use a color wheel to get every colour to pop in unison
@J H nah it was lost to time
Replace "art market" with money "laundering market"
That chinese bronze piece was the one the lady brought in to antiques roadshow. It ended up selling for 2million on an estimate of $100-150k.
I love how all these auction houses and the people within them seem to think that they benefit and evolve the art world... what a mindset to have! Shouldn't art be public and not looked away in some big mansion?
It is unfortunate that so many art pieces are hidden away in corporate buildings and personal collections.
It is - go to a museum.
Wolfgang Beltracchi had fun with these characters 🤣🤣🤣
Art should be treated as a priceless historical artifact, it should be in museums for everyone to see. Like what.. You buy it for investment and probably look at it twice a year? It's waste that everything is just hidden in your basement and everyone can't even see it.
@MysteriousOklahoma Examples?
The fact that you can hire reproducers to make the exact same thing so easily tells you exactly how much the art is actually worth
The story of art investing is also a dimension of history, though.
The beat in the background in the begining reminds me of "teach me how to Dougie"
Sotheby’s and Christie’s sound like they could be café chain names
You see art, I see money laundering
art, what a joke ! the only art was by Raphael, and Michelangelo and the other 2 ninja turtels :))))))
you are not looking deep enough
CNBCs channel has been on point lately! Interesting, unique stories.
Low cost, high returns business.
The VC of Sotheby's is too cute in an Art Industry ;)
The Extremely Rich: This speaks to me. I've never seen anything so magnificent! Art Dealer: Yes, and for only $698 million this 4x9 Post-It note can have a home in your heart! 😘 T.E.R. : 🤔🤔🤔 I'll give you $700 million and not a penny less! A. D. : 🤑 DEAL!!!!!! 😍 Me: Cool, so universal health insurance is feasible and saves money overall, we just need to raise the taxes of the bazillionaires. T. E. R. : That's unaffordable. Me: 😡😡😡 You just paid hundreds of millions for Windows '98 clip-art! T. E. R. : So?
There are millions of people in Africa and other developing countries dying from lack of access to fresh water or food. Should the government raise taxes on you to feed them? Billionaires and millionaires who legitimately earned their wealth deserve to spend it however they'd like. Instead of spending $1k on an iphone or $2K on a laptop, you could've used that money to help hundreds or thousands of dying kids in Africa. Why didn't you do it?
@@beamboy14526 "legitimately earned their wealth" :)
I knew I saw the bronze statue at 5:43 somewhere! It was on Antique Roadshow : Best Moment: Early 15th-Century Chinese Bodhisattva Gilt Bronze (2018). Paid 100$ in a garage sale, valued at 100,000-125,000$. Made 1,300,000$ at Sotheby's.
I hate that this is called 'art' by media. This is 'money laundering'
lol
Very original comment
14:03 that smile when talk about alot of money...
Looks like kindergarten drawings are a billion dollar business
Art is such an interesting investment. On the surface it looks like a super safe and smart investment. But, as they mention, tastes are always changing... how to take that into account? Seems tricky... but fun.
It’s so many talented artist all over the world in every single market!!!!!
Videos like these make me wanna steal paintings from a kindergarten and sell them for a million dollars.
A banana duct taped to the wall sold for $120,000,000. The banana was later eaten, there's no moral to this tale...
$120,000 not $120,000,000
wow 100 M for just one painting. this is exactly what is wrong with the system
It's a really good painting. The system works.
I like this art money
Well you forgot about "salvator mundi" i guess
Amazing art 😊
Fun, interesting thanks for uploading!
Imagine buying a painting for $5000000 to hang it in your living room instead of rebuilding 10 schools or helping out 100 families financially. I know the money laundering thing, but some people there just do it for fun. They called that fun . Astonishing. Human nature is fascinating.
Perhaps this world's poor will be enjoying a feast while these "humans" are caged in the after life, you never know, you can't escape cosmic punishment.
Socialism? No, tanks
They spend alot of money to make even more money.
You're right...we see the ills of "human nature" all around us...looking for the "human beings" that truly appreciate what it means to live life.
@@sharongillesp That's a trait we subconsciously or consciously sometimes tend to search in our partners. But now that you mentioned it , in art too. We love songs, sculptures and paintings that mean,feel and show something , and are not just plain beautiful or executed.
I have found the Art World an ever-increasingly unscrupulous place. It's most evident in the high-end market which in turn sets trends and $$$ over the whole market and sets an over-inflated value of what we view.
Years ago, one of my artists (Captn Budd, now mostly blind) had art in Center Art Galleries, Honolulu. That gallery was accused of having fraudulent Red Skelton art. They closed and gave him back his art framed.
@@GalleryCoronado There are always exceptions, I speak mainly of the Top end art market.
Wow very lucky.@@GalleryCoronado
Money launderers love these Guys....side smirk smiles throughout this video.
Maybe I can try to sell my Art here.😂❤️
USA:I am at the top of every segment. China:I am gonna end this Man's career. 😎😎😈😈😈😈
Do these auction houses only sell items that are by well known artists? I have an EP MGil painting I want to sell, and one I want to sell by an artist I cannot identify but have info on the back saying he was a cousin to a famous theater actress in the 1800. Then I have some pottery, like newcomb ext. but how do they decide what they’re going to sell? Would Sothabees or Christie’s sell my stuff too?
As an artist watching this i see these two auction houses as the destruction of art for the average person. Original art does really bring a source of power into your home like nothing else. You can have a sparse home with one powerful work of art that enlightens the viewer everyday.
Just because I can't afford an original Picasso, doesn't mean I can't support local artists by purchasing or commission a piece directly from them. Personally, I think those top five auction houses serve a different clientele but they've never taken away the ability and privilege to own art. Of course that's not to say that the people who can afford Christie's and Sotheby's won't also purchase art from an up and coming artist (like yourself).
"When economies are failing, art auctions are booming" --- Pedro Parker, phd.
Link to thesis?
They suffered a 20% drop during the pandemic.
@@xy_77 Well, Economies thrived and bloomed. 2020 was generally, a profitable year. Don't consider the average man, think about the upper strata. Many industries did better than usual. There was a lot of money in circulation.
@@kamu747 The auction houses lost more than 20% in profits.
Art is expensive because rich people literally have nothing else to spend it on.
BINGO!!!
And I sell my Art By Time = $1 = 1 Min
No need for a Auction
"Selling between two auction house is not an easy decision" That's a problem I wish I had.
2:39: most awkward pen hold in history?
Richie Lee lefties hold pens weird
@@niagaradrones that's not a left hand
Mickyle Dud it absolutely is, the image is flipped.
John Roscoe if it was flipped he’d be signing right to left
John Roscoe and all lefties do is tilt the paper, being lefties barely has anything to do with how you hold the pen (source: me and my parents are all lefties)
I think, that there should be =as much support, as poss_ABLE, for: "Artists, from: across:_ Africa, Ireland, ASIA, "Indigenous_Australasia", "The [very]_Native_AmeriCAN_ ART-ists" -etc. -M.K.S.
Old school crypto currency
Soon enough, once artists wake up and realize you can just market yourself on social media.. these companies will soon and hopefully crumble. Just imagine those $67.4 billion dollars being distributed among all of the artists around the world.. the poorest artists will still make a living! Not all 7.8 billion of us humans on Earth are artists! But like I said.. artists gotta stop being so romantically tied and wake the fudge up. It's much easier to market yourself as a brand rather than wait and "sell-out." It's hard to even get to the point of selling-out!
Using art for money laundering and avoiding tax. What a disgusting scam.
Stick to the status quo then 😆
Kind of random but can anyone help me identify the music track playing from 12:44 till the end of the video?
Whoa Picasso! ❤️
Money laundry at its basic.
It’s a vase for 300K, how I get the eye with the skull because it looks amazing.
Art is in the wallet of the beholder.
Could i get Sotheby's blueprints real quick, please, theeeeeeeenks
3:18 what's the artist?
How big are counterfeit market for this ?
1:54 talks about the process of consignment
They belong in a museum!
well not all of them...
Maybe but some people want to build their own private museum.
And so do you
Wow!!! That's a lots art-selling.
why isn't there an auction on artists?
These art companies should be tagging themselves as tech companies called WeArt
Walt Disney couldn't draw a mouse.
The Sotheby’s and Christie’s interviewees seem very smug
I got that impression as well.
especially the Christie's guy. lol
Your closed captions, which I note are not KZhead's automatically-generated ones... are *_terrible._* 😞
OMG YES
Never loose w/good paintings
How would you go about submitting some of your work to some of these auction? I'm an abstract 3D cosmic artist here, in Florida
Leonardo da vinci must be proud of a great artist we have in Adam neuman founder of WeArt
Money. Laundering. Plain and simple.
Prove it
@@yugiohpokemon5285 Anyone who proves it will end up dead. Rich people don't care about art. Rich people care about money.
@@yugiohpokemon5285 I don't typically like using Adam Ruins Everything videos, but this one is good. kzhead.info/sun/gbedkqWLe5atiGw/bejne.html
@@SpaseGoast adam is wrong moat of the time he actually had to re edit certain videos lol but its worth whatever someone is willing to pay just like everything else.
@@oisiaa maybe thats why their rich. Rich people also tend to donate more money than most average people.
Buying a famous work of art in a highly publicized auction to launder money is a thing of the past. There are much more efficient and anonymous methods out there today. Decentralized exchanges can transfer hundreds of millions of dollars in digital currencies with no trace and in total privacy.
Protip: Art actions are one of the many forms of money laundering
Chris Gouger glad to know
I will get my own Art Gallery here in Jamaica soon
where can i get some coupons?
I’m just waiting to see the ozark version of this
any1 who recieved this recommendation during the pandemic while on lockdown? 🖐
The history part is great. But immediately after hearing the lady said the art world is transparent I stopped the video and skip the rest.
Was anyone else force subscribed to this channel all of a sudden???
Me
MFW the video’s longer than the time it’s been uploaded
This doesn't make sense