The Difference Between “Primary” and “Secondary” in the Art Market
When collecting contemporary art, you will encounter situations where the terms “primary” and “secondary” are used.
“Primary” and “secondary” both refer to places of purchase. In some cases they are replaced with terms such as “primary gallery” or “secondary gallery,” while there are also expressions like “the secondary market such as auctions.”
The art market can be broadly divided into two categories: the primary market and the secondary market.
So, what kinds of artworks move through each of these markets?
What is the Primary Market?
The primary market is the first market in which an artwork enters the world.
The latest works by living artists are basically released through the primary market.
In the primary market, works are exhibited and sold simultaneously at galleries, art dealers, art fairs, department stores, and commercial facilities.
Many art fairs charge admission, but most galleries and art dealers are free to enter. You can actually see the works in person and consider purchasing them.
What is the Secondary Market?
The secondary market is where works that were once sold in the primary market leave their owners’ hands and are resold — a market where such works are gathered and traded. Many of the works sold on this market appear at “art auctions,” where sellers request appraisals from art auction houses to consign their works. Internationally, art auctions held by Sotheby’s, Christie’s, and Phillips are well known. In Japan, SBI Art Auction, Mainichi Auction, and Shinwa Auction are prominent.
Recently, many artworks are also being sold on CtoC marketplaces such as Yahoo! Auctions and Mercari. Artworks consigned through art auction houses are appraised before being consigned, but Yahoo! Auctions and Mercari are venues where individuals can list items directly, so there is a possibility of encountering forgeries. Caution is required.
Art auctions actually hold “preview exhibitions” where you can view the consigned works in person.
The secondary market may evoke the image of resold goods, but the concept of “used” does not apply to artworks, and there are opportunities to buy at unexpectedly low prices or to encounter the work you have been searching for.
Once an artwork enters the world, it is treated simply as a single “work,” regardless of whether it is on the primary or secondary market. Throughout art history, works have been passed from hand to hand, like a baton.
Whether primary or secondary, we hope you thoroughly enjoy your art collecting.
