Have you ever wondered if reselling art soon after purchase undermines the artist or smartly leverages market trends? 

The practice of ‘flipping artwork’ is a hotly debated topic in the art world, dividing collectors depending on which side of the fence they belong to.

For some art collectors/investors, artwork flipping is a means to diversify their wealth portfolio. 

However, flipping art can be disrespectful to the legacy of younger and emerging artists who are still alive, as it involves trading artworks in markets outside the artists’ control for financial benefit after the initial sales.

What Is Art Flipping?

There is a thin line between collecting art and flipping it. 

Collecting art is fueled by a passion for art over the long term. 

Collectors curate their collections often beyond monetary value, but rather by time invested in research and their involvement in the art community. 

On the other hand, acquiring art solely to sell it in the secondary market within a short period, typically between five to ten years, to make a profit, is known as flipping.

Profitable Art Flipping Examples

One notable instance of collectors profiting hugely from flipping art involves multidisciplinary artist Lucien Smiteash.

He gained significant recognition when his painting Hobbes, The Rain Man, and My Friend Barney/Under the Sycamore Tree sold for $389,000 at a Phillips auction one November evening in 2013. 

It was Smith’s first painting to appear at an auction and was listed on the Phillips website with an estimated value of between $100,000 and $150,000.

This record-breaking sale surpassed expectations, as just months earlier, Smith’s artwork had been selling for around $24,000.

Dan Colen is another young artist who has had several artworks on the flipping market in recent years.

In 2009, his oil on canvas painting, Untitled (Blow Me), an animation-inspired piece, reached a sale record of $386,500 at a Sotheby’s auction in New York. 

This sale exceeded the official estimated range of $100,000 to $150,000 and surpassed a previous year’s estimate of $15,000, which had been set at a Phillips auction. 

Through flipping, collectors have driven the prices of Cohen’s work on the auction block above $1,000,000, with record sales reaching as high as $3,077,000 for the painting Boo Fuck’n Hoo, created in 2006. 

Javier Peres, an art dealer specializing in launching fresh talent, claims to have sold the Cohen painting in 2006 for just $22,500.

The Case For Flipping

Art as an Investment

While flipping is generally frowned upon in the art world, it is important to note that it can equally serve as a form of investment. 

However, these trading practices can negatively impact the careers of emerging artists.

This sentiment is evidenced by ArtNet’s market analysis of contemporary German artist, Anselm Reyle’s hard fall from grace. 

In 2008, his work was valued at approximately $6,000,000, but by 2013, that value had fluctuated between $1,000,000 and $2,000,000, marking an 80 percent decrease following the global economic crisis.

On the flip side, it is also important to consider how volatile market trends can impact the legacies of artists and the practice of art flipping. 

The value of an artwork can rapidly appreciate when flipped on the secondary market.

This often motivates collectors to flip pieces for immediate profit, particularly for short-term holds as the art market expands. 

This approach allows them to maintain liquidity and reinvest in other artworks.

It has afforded artists like Smith and Colen visibility and value due to flipped pieces entering high-profile collections.

Consequently, they shot to fame when the prices of their artworks surged in the art market.

However, the fame is not always sustainable when the value of an artist’s work is not allowed to appreciate naturally in the market.

Market Realities

The practice of “flipping” art, particularly in the fast-growing African art market, is often seen as inevitable due to several interconnected factors that drive demand and market dynamics.

Between 2013 and 2023, the African art market saw a 46% increase in sales.

The year 2021 saw a peak of $101.3 million in artwork sold by African-born artists.

This rapid growth has made the African art market attractive to many collectors around the world. 

The development of ultra-contemporary art has been key, with famous artists like Amoako Boafo and Njideka Akunyili Crosby increasing attention. 

Sales for this category climbed from $16.2 million to $40.6 million between 2020 and 2021. 

These factors taken together have increased the market demand for works by African artists at auction, driving many collectors to indulge in the flipping practice to turn in quick profits.

The Case Against Flipping

Reselling an artwork too quickly can diminish the artist’s credibility or disrupt their market value. 

Collectors flipping for profit may overlook the cultural or emotional significance of the piece.

This can lead to a commodification of art that reduces it to a financial asset, devoid of its original intention and artistic merit. 

For example, Amoako Boafo, a 36-year-old Ghanaian artist known for his vibrant colors and textured finger painting, has spoken out against the practice of flipping art in the cultural context and market dynamics in Africa.

He believes that through this practice, collectors sideline artists from profiting from secondary sales.

As the African art market grows, he is determined not to fall victim to exploitation.

Since gaining fame, Baofo has seen his work being resold quickly for significant profits.

In response, he has bought back his artwork and established a studio in Accra, Ghana, to protect and support fellow artists.

Finding the Middle Ground

When it comes to ethically reselling art, one important approach is to hold the artwork for a significantly longer period than the typical flipping duration. 

By keeping an art piece for at least fifteen to twenty years, you show respect for the artist’s process and allow the value of the artwork to be appreciated more naturally. 

It’s also essential to maintain transparency with the artist or the gallery.

If you’re considering a resale, contacting the artist or their representing gallery can show courtesy.

This establishes a positive relationship that can be mutually beneficial. 

Galleries often have insight into the current market value and may even wish to repurchase the artwork to maintain the integrity of the artist’s market.

This allows the artist to benefit from the resale, which includes agreeing to a percentage of profits that goes back to the artist or their gallery. 

Some auction houses have introduced resale royalties that support artists, which is a great way to ensure they gain from the future sales of their work.

Keeping a clear record of the artwork’s provenance is also key. The provenance is a record that carefully documents an art piece’s history.

This transparency helps build trust and adds value to the piece as it changes hands. 

Ultimately, ethical collectors focus on emotional, historical, or cultural significance rather than solely investment potential when purchasing art. 

Acquiring art for its deeper meaning enriches a collection and honors the creative spirit behind the work.

Conclusion

The opposing perspectives surrounding art flipping highlight the inherent debate between two opposing forces which are: the pursuit of financial profit and ethical responsibility. 

While flipping art can increase visibility and generate immediate returns, it has the potential to endanger the careers of emerging artists and reduce artworks to mere commodities. 

On the other hand, investing with respect for the artist and their creative process offers a middle ground for collectors.

So, where do you stand? Are you a long-term collector or a savvy art flipper?

Do share your thoughts with us by leaving a comment!

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