London-based art dealer Charles Beddington recommends one recession-proof strategy for art galleries is to deal in Old Master paintings as that is a steady market.
He advises, "This should be coupled with a warning not to be greedy. During economic downturns one can often acquire works at auction with significantly less competition than during periods of greater confidence, and one can therefore sell them for lower prices with the same profit margins. A large part of my business is in buying at auction and selling to collectors, although admittedly many of my purchases are incorrectly catalogued at the moment of acquisition."
He sells paintings on a commission basis for private collectors, and advises, "During periods when auctions have a high failure rate those vendors who need to sell are more inclined to opt for private sales, and are naturally encouraged by commission rates which are still profitable at a third or half of the differential taken by auction houses. This approach certainly works for me - I believe that I have sold more paintings during the last six months (February - July 2010) than in the same period in any of the twelve years that I have been in business."
