A Case for Contemporary Art at Auction

Working in an auction house offers a unique perspective on the art market.

Unlike galleries, which typically represent a stable of 10 to 20 artists, the auction world exposes us to an extraordinary breadth of artworks, spanning different periods, movements, and media. Every day brings something new—an artist we have never encountered before, an unusual composition, or a piece with an intriguing provenance. And beyond the art department, there is always something fascinating from other categories, with colleagues eagerly sharing curious finds and passion for their category.

But the auction world is not just about beautiful and rare objects. It is also about people. The secondary market exists because circumstances change—whether through estates following a passing, sales due to divorce or financial necessity, or collectors refining their holdings. Each consignment carries a story, often tied to significant moments in people’s lives. This gives auctions a profound role in the circulation and redistribution
of art.

The auction market is often viewed with skepticism by contemporary artists and gallerists, some fearing that sales results could devalue their work. However, I would argue that auctions present an opportunity rather than a threat. At Leonard Joel, for instance, we engage a broad audience—far wider than many galleries. Artworks in our sales are seen by thousands of collectors, art enthusiasts, and dealers, many of whom might never set foot in a contemporary gallery. Exposure at auction can introduce an artist to new collectors and, indirectly, stimulate interest in their primary market.

The introduction of the resale royalty scheme ensures that artists receive five percent of the resale price, a crucial acknowledgment of their ongoing stake in their work’s value. While this does not equate to a complete benefit from every transaction, it represents a key step in supporting artists beyond the first sale. As of August 2024, eligible artists have benefitted from a share of $15 million in royalties since the scheme’s implementation, of which 65 per cent are First Nations artists.

The primary market is a crucial space where artists, galleries and dealers work directly with artists, providing the essential support they need to develop their practice. Unlike the secondary market, which resells individual works, the primary market is dedicated to showing and selling new bodies of work. This allows artists the financial and creative freedom to explore new ideas, experiment with different media, and push their practice in new directions. Without this support, many artists would struggle to take risks or evolve their work. The personal relationships between galleries and artists are fundamental—not just in terms of sales, but in fostering an artist’s long-term career. It is about mentorship, encouragement, and providing a platform for artistic growth. Auction houses focusing on secondary sales allow galleries to do just that, a focus on the promotion of new work.

Ideally, we would see a more unified approach—one where artists, galleries, and auction houses bring works to a broader audience and work collaboratively to celebrate contemporary art. This is why we are the only auction house in Australia holding an auction dedicated purely to contemporary art: Centum. Centum explores a different space in the market, one that embraces the possibilities of a more open and fluid exchange of contemporary art.

Artists and galleries owe buyers a market that allows them to pass on their artworks when they need to deaccession their collection for personal reasons. Collectors who have supported artists in the primary market—by purchasing their works and supporting their careers—should not be left without an avenue to sell when their circumstances change. The secondary market is not only inevitable but essential; without it, buyers might hesitate to invest in contemporary art in the first place. Having a structured and reputable auction market provides collectors with confidence, knowing there is an option available when they need to resell.

I hope for an art market that fully embraces the role of secondary auctions, where galleries and artists come together to support the contemporary art auction space. Instead of seeing auctions as separate or adversarial to the primary market, I envision a future where they are viewed as complementary, as a platform that extends the visibility of artists beyond the dedicated but often small circle of collectors tied to a single gallery
or artist.

By Wiebke Brix, Head of Art

Top Image: Del Kathryn Barton (born 1972) Dawn 2009, synthetic polymer paint, gouache, watercolour, pen and ink on canvas. $25,000-35,000. © Courtesy of the artist and Roslyn Oxley9 Gallery, Sydney

March 2025