Art sales in New York, at galleries or at auction, are estimated at $8 billion a year. Yet the last significant change in the city’s auction regulations took effect more than two decades ago, when the value of transactions was less than half of what it is today.
Many in the art world insist there is no need for further scrutiny of a market that prompts few consumer complaints and is vital to the New York economy. But other veterans of the business say there is mounting concern that monitoring has not kept pace with the increasing treatment of art as a commodity.
“The art world feels like the private equity market of the ’80s and the hedge funds of the ’90s,” James R. Hedges IV, a New York collector and financier, said. “It’s got practically no oversight or regulation.”