Why provenance is important to art collectors

The Federal Bureau of Investigation recent raid on the Orlando Museum of Art showed the power of provenance, or a record of the history of ownership of a work of art: according to the affidavit used to obtain the search warrant, the origin stories of 25 Jean Michel Basquiat the works, which were also not authenticated by their heritage, were not verified.

Provenance, if done right, is an important part of ensuring works are authentic. In some cases, like anything several hundred years old or older, it can be a compelling way to give it that metaphorical stamp of approval.

What is provenance?

Provenance can consist of a number of documents, from historical sales invoices between owners and galleries, to documentation in exhibition catalogues, photographs of art in people’s homes, or photos of work with the artist and previous owners.

“It’s the foundation of trust in the art market,” said Max Kendrick, co-founder of Fairchain, a blockchain-based provenance service, in an interview with Artsy.

Can the origin be falsified?

“Of course, everything can be possible,” said the Parisian gallery owner Almine Rech when asked about the forged provenance, “but it’s hard.” He said there’s usually some record of a work, even an unfinished one, in a catalog somewhere, whether it’s from a commercial gallery, an institution, or a catalog raisonné, whether it’s finished or not. Especially for works from the 20th century onward, he told her, there’s a good chance there’s paperwork to back up where the work has been.

While well-known artists are more likely to have falsified provenance (such as Basquiat), their works have been well-documented for years, and the number of works that have not been seen by an authenticating authority, either the artist or his estate , he is thin. For lesser-known artists, Rech said, not many people would be interested in faking provenance.

Provenance not only helps prevent counterfeits

These days, it’s more important than ever to make sure a work has been legally acquired before you buy it. For years, the Nigerian government has been trying to get the so-called “Benin Bronzes” returned to their country after the works were looted in the late 19th century, mainly by British forces, eventually finding their way into many institutional collections.

Some museums in Germany, Scotland, and the US have researched where their works come from and have shipped or announced that they will ship certain works to Nigeria. The University of Aberdeen, for example, consulted its records and found that its sculpture of an Oba (king), purchased at auction in 1957, had been “acquired under … reprehensible circumstances,” in the words of George Boyne of the University of Aberdeen. college. The university returned the job to Nigeria in a repatriation ceremony last fall.

In more recent history, artworks stolen during World War II, especially by the Nazis, have made provenance vital to the heirs of the families that used to own them. One of the most famous cases is that of Maria Altmann, who sued the Austrian government under the US Foreign Sovereign Immunities Act. The Supreme Court ruled in her favor, allowing her to pursue her case against the Republic of Austria, where she entered arbitration to claim several works of Gustav Klimt that his uncle had left him before the Nazis stole them from him, eventually making their way to Austria’s state museums.

In that and several subsequent cases, documents such as old photographs of family homes or letters from distant relatives have been used to help determine who the correct owners are, even if the works have become institutions half a century later. These kinds of problems continue to plague the art market, most notably looting during the most recent conflicts in the Middle East and North Africa.

What collectors should look for in provenance

“When you buy a work on the primary market, people don’t realize that provenance is an issue,” Kendrick said. They only think about it decades later, or when the original collectors die and their closest relatives need to figure it out, not only as a financial matter, but also a sentimental one. Collectors now know “what’s good to keep,” Rech said, but “collectors have to collect their own provenance.”

In the secondary market, collectors should look for a file with enough documents to trace the whereabouts of the works, both their owners and their exhibits. All must pass expert checks. “If there are too many doubts,” Rech said, “it’s better not to buy the work.”

Another aspect of provenance to consider: it can have a considerable impact on the price of a work. “If there isn’t enough provenance,” Rech said, “they can’t authenticate a work,” whether from an artist’s estate or from a potential buyer, which can hamper its resale price. But on the other hand, if a work has an impressive history, say notable previous owners or inclusion in pivotal exhibitions, its price may go up.

Provenance in the Blockchain Era

Traditional routes to establish provenance remain vitally important to collectors, but a paper-based system can be unreliable and digital documentation can also be falsified. “The technology is now well equipped to solve this provenance problem,” said Fairchain co-founder Charlie Jarvis.