The art market has its own language. Understanding a small set of core terms makes conversations with galleries, auction houses, and advisors much easier. This lesson covers the most important words every collector should know.
The primary market is where an artwork is sold for the first time.
This is where most collectors first buy works by living artists.
The secondary market is where artworks are resold.
Secondary market activity is closely watched by collectors and galleries.
Provenance is the ownership history of an artwork.
Clear provenance increases trust and long-term value.
A catalogue raisonné is a complete record of an artist’s known works.
Inclusion strengthens credibility.
A condition report describes the physical state of an artwork.
Condition directly affects value.
The hammer price is the final bid at auction.
The total cost is always higher than the hammer price.
The buyer’s premium is a fee paid to the auction house.
Collectors must factor this into bidding decisions.
The reserve price is the minimum price a seller will accept.
Unsold works can signal weak demand.