Larry Gagosian on Art Abu Dhabi Panel

The fifty-dealer strong Abu Dhabi Art fair was dominated on Friday afternoon by back-to-back panels on collecting and museum creation. The NYU Abu Dhabi panel, “Collecting Today,” attracted an overflow crowd and featured the usually elusive Larry Gagosian, Dubai-based collector Farhad Farjam and the executive director of the Qatar Museum Authority, Roger Mandle.

NYU’s Mariet Westermann moderated the two-hour event, noting “collecting offers a form of insurance against the destructive march of time.”

While the discussion was evenly spread among all the speakers, this re-cap focuses on Gagosian since he so rarely appears on panels.   He didn’t disappoint. Wearing a gray suit and purple tie, he spoke at length. He was candid, shrewd, articulate with a tinge of humor and toughness.  (NOTE: What follows is not a transcript, but taken from my notes and therefore not exact).

Ed Ruscha painting of oil well at Gagosian stand at Abu Dhabi Art

He didn’t hesitate to get personal, revealing his boyhood angst over a second-class coin collection, and his feelings of inferiority when he was one-upped by another kid. “A sense of competition and maybe envy in its rawest form is what drives a lot of collecting,” he said.

He told his own story, beginning with humble roots and a college degree. He had no money, parked cars for a living and was admittedly “directionless.” He soon saw another man selling posters and decided to do the same. He “got a little shop” and then graduated to hawking $100 to $200 signed lithographs. His start as a dealer was a “fluke” he says. “If this guy was selling belt buckles, I might be still selling belt buckles. I was very fortunate he was selling posters.”

Later Westermann commented, “Larry, one common perception is that dealers seem to make so much money.” New York dealer Tony Shafrazi called out, “Not all dealers–let’s be clear!”

Westermann persisted: “What is the value added that the dealer brings?”

Gagosian: “Most dealers, that’s all they do. They study the market. When you work that hard and apply yourself…I don’t think the dealer adds value so much as sees value.That’s what a dealer wants to do, to buy something for one price and to sell it for a higher price. That’s the fuel that allows us to do what we do. Whatever we do is by our own wits. I don’t see what is the problem there.”

Westermann: “How do you hedge that knowledge..how do you keep that proprietary?”

Gagosian: “You can’t. In terms of how the market works, you’ll be getting support for a position you’ve taken.”

Westermann: “What is the impact of the financial crisis?”

Gagosian: “I have been a dealer for thirty years. This has been a mild one for my business. My business is down from what it was a year ago, but when you compare to the early 1990s, there’s a bit less activity, but knock on wood, it hasn’t been as bad as people might think.”

The art market has become global, with Russian, Indian, Chinese and Gulf buyers. The early 1990s were over-leveraged. It was the perfect storm for a crash in the art market. [This time it has been] quite manageable for the most part…There haven’t been a lot of distress sales. Art is much easier to buy than sell. I don’t want to sugar coat…Its illiquidity means you tend to accumulate even through rough times. People hold on to art because you can’t just pick up the phone [to sell] as you can with other things. It has tremendous long term value.”

Question from the audience member about how to broaden audience and make art more accessible.

Gagosian: “I don’t necessarily think art is for everyone. It’s always going to be a bit of an elitist pursuit. Art is a difficult weird thing when it is good…I question whether you can force feed art in that way.”

Westermann: “Any advice for new collectors?”

Gagosian: “It’s hard to give categorical advice. You have to start with a passion for what you are looking at. I have a hard time starting with a collector who has no interest.” For those are have interest, Gagosian suggested educating oneself by visiting galleries, museums and reading art magazines, if “you are smart enough to understand what they are saying.”

Tip number two: “Start buying. You may outgrow your taste. Don’t be paralyzed. Don’t be too gun shy. Pull the trigger.”

In case the audience didn’t get the message he repeated: “Anyone who has an interest should immediately go to this fair and buy something.” Gagosian grinned. The audience clapped.