Great article about art market challenges during this unprecedented time by Katya Kazakina for Bloomberg: “Buyers demand discounts of as much as 30% on new works and 50% on the secondary market, according to art dealers. Temporary reprieve, including government rescue loans or rent reductions, will go away. And art fairs, one of the largest sources of revenue for galleries, aren’t coming back soon. The Art Basel show, where more than $3 billion worth of art is usually up for grabs, canceled its annual edition in Switzerland.
“People are nervous and anxious,” said Heather Hubbs, executive director of the New Art Dealers Alliance, a New York-based industry group. “There are still so many unknowns.”
Summer months are traditionally slow. And while online sales were a lifeline during the lockdowns, they won’t be enough to prop up an industry that thrives on in-person encounters with art. More than 150 U.S. galleries said they anticipated a 73% average drop in second-quarter revenue from 2019, according to a survey conducted April 15 through May 4.”