The document discusses the primary and secondary art markets. In the primary market, galleries work directly with artists, splitting sales 50/50. In the secondary market, galleries sell existing works without the artist's involvement or compensation. The highest auction prices for works by artists like Picasso, Warhol, and Bacon are listed, with prices ranging from $86 million to $140 million. The document also notes that many private secondary sales are not public and that building relationships is key to sourcing works in the secondary market.

1. Secondary Market
Sourcing Strategies and Building Trade Relationships
by Kimberly Brown
Primary Market
 Gallery works directly on behalf of the artist
 Gallery and artist split sales 50/50 (usually)
 Gallery helps manage and shape an artist’s
career
Secondary Market
 Gallery does not involve the artist (usually)
 Gallery does not have to split proceeds with
artist (with exceptions)
 The work becomes more of a commodity,
something that is actively bought and sold
between dealers
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2. When Primary and Secondary
Meet
 Damien Hirst /
Sotheby’s
 Held the day after
Lehman Brothers
collapsed in Sept 2008
 Sale totaled £111m
 Golden calf £10.3m
Highest Prices Achieved
Number 10
 Francis Bacon
Tryptich 1976
 Sotheby’s New York
May 2008
 $86.3m
Number 9
 Gustav Klimt
Adele Bloch-Bauer II,
1912
 Christie’s New York
November 2006
 $87.9m
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3. Number 8
 Titian
Diana and Actaeon,
1556-1559
 Private sale, February
2009
 $91m
Number 7
 Pablo Picasso
Dora Maar au chat,
1941
 Sotheby’s New York
May 2006
 $95.2m
Number 6
 Andy Warhol
Eight Elvises, 1963
 Private sale 2008
 $100m
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4. Number 5
 Pablo Picasso
Garçon a la Pipe,
1904
 Sotheby’s New York
May 2004
 $104.1m
Number 4
 Pablo Picasso
Nude, Green Leaves
and Bust, 1932
 Christie’s New York
May 2010
 $106.5m
Number 3
 Gustav Klimt
Adele Bloch-Bauer I,
1907
 Private sale via
Christies, 2006
 $135m
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5. Number 2
 Willem de Kooning
Woman III, 1952-53
 Private sale 2006
 $137.5m
Number 1
 Jackson Pollock
Number 5, 1948
1948
 Private sale, 2006
 $140m
Top 10 Contemporary Houses
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6. London Contemporary Art Sales
Private secondary sales
 Many works not sold
publicly
 Galleries involved in
both primary and
secondary
Sourcing Secondary
 Building the right
relationships
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7. Top 50 Selling Artists at Auction
in 2010
 Number 1:
Jean-Michel
Basquiat
 €30.9m over 70 lots
 Interestingly,
Chinese artists take
40% of the list
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