There have always been suspicions and doubts about how the art market works. Some people call it a scam, and the system is manipulated to store money, and the prices are insanely high due to the monopoly of the big art galleries and elite collectors. The original worth of the paintings and the fine art pieces are kept hidden from the original buyers, and the galleries tend to offer different prices depending upon the financial status of the buyer.
Some art galleries only sell their fine art to the elite and rich buyers. The other side of the market is the manipulation of the fine art masterpieces to launder money. A create containing a $100 painting was captured at Kennedy International Airport, and upon the investigation, the art was found to be worth $8 million. Many other paintings have been used by money embezzlers to launder money into different countries. The authorities captured several artworks by prestigious artists.
The value of the art is not dependent upon the aesthetic value of the work but the price tag decided by the art galleries and the rich collectors. The fine art pieces are generally bought from the artists and then sold at insanely high prices by making the art desirable by the fine art market. Galleries are the forces behind setting the prices and the demand for the art work. These galleries are backed by rich elites, and the manipulation of prices may be illegal as per the state laws.
If the fine art marker is controlled by someone with financial interests behind the sale may create a worrisome situation. The price manipulation in any market creates shortage, distortion, and inefficiency. Even the legit fine art market generates tens of billions of dollars in the global market, and the estimation of the shady deals is beyond the expectations. The regulatory authorities are trying to stop the price manipulation, but there are no hard and fast rules to put stop these scams. Although the value of art is a matter of taste, the scams are obvious.
The biggest scam happens with the artists because galleries have strict control over the prices. The reputation of the fine art gallery is associated with the high prices, so if the art does not sell at a high price, the galleries won’t lower the price. Instead of lowering the price, fine art galleries tend to drop the artists. Lowering the prices will send a bad signal to the rest of the buyers. The same goes for auctions where the organizers raise the prices by planting their own men in the bidders. These hired men bid more to motivate others and to sell the art at an exceptionally higher rate. So, there is no doubt about the legitimacy of fine art, but expensive art galleries, money launderers, and elite buyers are the major players in the fine art market manipulation. The fine art market has now become a money-driven market that needs strict regulations and laws to stop the manipulation.