Kelly Crow’s very well reported article in the January 4th edition of The Wall Street Journal should be a wake up call for those racing to acquire their Warhol at any price and to those who take delight in the few they own. Why enter a market which is dominated by one goliath of a player who is on record as having virtually unlimited buying power and has stated his desire to own the best works without regard to price? The simple answer is it makes no sense at all.
The Mugrabi family has been collecting the artist’s work for more than 20 years. And they avowedly bring to the art market an attitude of unabashed commercialism, not one of connoisseurship. Often quoted in art market and Warhol-related articles, the family and its representatives speak about Warhol’s works in the language of commodity traders, not traditional art collectors.
So, what does the Mugrabi domination of the Warhol market mean to the average collector. I think it means, you better love what you buy, and buy it only because you love it. In the business world, one can’t make reasoned economic judgments when competing with a dominant and aggressive monopoly, and the art market is no different. There is little reason to believe that, over the long term, you will sell your dearly bought works at a significant profit.
One might reasonably assume that the Mugrabi’s already own a very significant percentage of the best quality Warhol works and that they will aggressively pursue those that come to market. This is likely to mean that better works will only be available at premium prices, prices which may be justified only when the buyer can amortize the excess of cost over value, over a large inventory of works by the same artist.
It takes a lot of chutzpah, or considerable naiveté, to knowingly compete in a rigged market. When Mr. Mugrabi sits front and center at an auction and challenges other bidders to bid against him for works he wants, he is clearly sending a message. And those not physically present in the auction room can now benefit by reading the Mugrabi message in Ms. Crow’s article.
My best advice to those who think they need a Warhol in their collection? Buy the one you like and then spend a bit of time studying the work of other artists and find someone whose works move you. The trophy for Warhol Collector of the Decade has been awarded and there’s no fun in coming in a distant second. The second half of the 20th century produced at least a couple of other artists arguably of Warhol’s talent and stature. Find them and enjoy your collecting!
