By Lanita Brooks Colbert
Art profoundly influences currency, political and economic power, shaping our perception of value and authority. It is not merely a form of expression; it is a tool that can elevate individual or national status and influence in the world. By acknowledging the interconnectedness of art, currency, and power, we can appreciate how creativity propels cultural progress and economic and political influence. As individuals, collectors, institutions, and governments invest in artworks, they, with or without intention, enhance their power and global impact, inspiring future cultural and economic development.
Cinquecento, 1500 to 1700 late post Medieval and Renaissance art financed city states and laid the foundation for philanthropy in the arts. One of the major players defining how art began and maintained creative dominance over the masses was and continues to be the Roman Catholic Church. The Roman Catholic Church, i.e., the Vatican, has been deeply entwined with art throughout its history from its evolution from one of the Papal States to its independence in 1929 and beyond. Art was seen as a means of instruction and inspiration for the illiterate population of the Middle Ages and Renaissance. Artists were encouraged to create works that inspired awe and conveyed the mystery of faith. While traditional religious themes remained significant in the Church’s visual faith message, the Church’s support of spirituality and creativity in faith was evident in their Baroque architecture, granting of Papal commissions, and global art acquisitions. The artwork commissioned by the Church in the Sistine Chapel and the twenty-six Vatican museums inform us of the Church’s wealth and resultant significant political and economic power. The Church’s tangible wealth contributed to its overall prosperity as well as its social, economic and political power. With brand equity, loyalty of the masses, intellectual property, trade secrets, goodwill, effective governance, and messaging via its cultural artifacts, the Church used its monetary wealth to collect and commission art, reflecting and increasing its social, economic, political and cultural status and influence, while financing art that convinced the masses that a beautiful world lay beyond the impoverishment of this world, then and only if they embraced the teachings of the Church.
The Church’s expansion across Europe and beyond led to the acquisition of diverse artworks, enriching its collection and expanding its vast artistic wealth, further solidifying its role as custodian of culture and art. Significant works by Michelangelo, Raphael, and Bernini were all created under Papal commissions. Many artists gifted their work to the Church, seeing it as a high honor to contribute to its mission and their standing as artists. The wealthiest families of the early Renaissance manipulated their power driven by banking, trade, and political sway, to influence the landscape and narrative of this era, which would establish ongoing patronage of the arts.
Under the auspices and political power of the Medici family in Florence, a new era of philanthropy was inaugurated. By investing in grand artworks, such as Sandro Botticelli’s Birth of Venus, wealthy patrons beautified their cities, Florence and Venice, cultivated political alliances, and enhanced their social standing. Their investment in art could and did stabilize and promote national power through cultural prestige, also playing a significant role in political power. The Cinquecento saw the emergence of art as a significant industry. Artists, workshops, and artisans created jobs and stimulated local economies. Art, particularly from cities known for their artistic output like Florence and Venice, played a significant role in boosting trade and commerce, driving local economies. These cities’ artistic heritage attracted visitors, benefiting the broader economy. As art became a symbol of national pride, it helped unify people under a standard cultural banner and fostered a sense of belonging and unity. The value of art from the Cinquecento has increased over time, turning initial investments into long-term assets. Nations that have preserved and housed these artworks in permanent collections at The Louvre, the Metropolitan Museum of Art, the Uffizi, the Tate Britain and the Hermitage, and Washington D.C.’s and London National Galleries of Art not only benefited from continuing tourism and art sales revenue, but consequently their initial investments’ financial impact as patron of arts and the results demonstrates the interplay of art and finance that shapes our understanding of the financial value of cultural endeavors.
Art’s enduring influence on the global economy is a testament to its vast influence and impact on currency and power. Art had become a strategic investment financing nations through cultural patronage, economic development, and the bolstering of political power of those who commissioned or purchased art. Today’s global economy intersects with the world of art philanthropy shaping our understanding of the financial facets of cultural endeavors and their ability to influence and underscore the significance of art in shaping our world.
The commodification of art in the United States began to take shape in the late 19th and 20th centuries. During the Gilded Age (1870-1900) wealthy industrialists started to invest in art for enjoyment, as a status symbol and a design element in their houses, leading to the establishment of art as a financial asset as it gained in value. With the rise of the commercial art market and the increased influence of galleries, auction houses, and exhibitions, artists and collectors had more accessibility to a broader audience to sell or purchase artworks. To this day, the historical footprint of the 1913 Armory Show remains one of the cornerstones of New York’s yearly cultural scene. With 1300 pieces displayed in 1913, the public became exposed to modernism in art, showcasing European avant-garde to American critics and artists. The Creatives were introduced to the emergence of modern artistic styles, including Fauvism, Cubism, Futurism, and Expressionism, all in one place. It introduced astonished New Yorkers to contemporary art like Marcel Duchamp’s cubist ‘Nude Descending a Staircase.’ Today, artists’ works like Duchamp’s are in major museums and collections worldwide, but in 1913, they were mostly unknown in America. This show reflected the era’s atmosphere of political and social activism. Major collectors of European art during the Gilded Age included Isabelle Stewart Gardner, J. P. Morgan, Henry Clay Frick, and Andrew Mellon. With the enormous wealth of ” Robber Barons” of the Gilded Age, John D. Rockefeller, Andrew Carnegie, Cornelius Vanderbilt, Jay Gould, and J. P. Morgan were able to amass significant collections that help establish museums and shape art history. In today’s global market, the wealthy view art investment as a long-term store of value and hedge against inflation. The intersection between art and financial prominence and acumen for individuals and institutions provides a clear picture of this alternative asset class.
By the mid-20th century, with the growth of a class of wealthy collectors and the rise of Modernism and new genres, art firmly established itself as a commodity, often tied to investment and status. With auction houses like Sotheby’s and Christie’s leading art sales, art acquisitions became a part of wealth building in the global economic market. Funding artists and art institutions was the next step in the evolution of art, currency, and power as art and money came and continued to come together when exchanged within an agreed purpose and value.
J.P. Morgan, Bank of America, UBS, Morgan Stanley, Goldman Sachs, Credit Suisse and Deutsche Bank among others all have blue chip art collections. These collections are valued between 60,000 euros and 1 billion dollars, consisting of over 60,000 works of art. The extensive collection of institutions including the JP Morgan library provided a guideline for the building of a collection and subsequent access for the public. Banks invested and continue to invest in art to diversify and build their brands as do collections, often showcased in exhibitions and cultural events. In so doing, they bring support to artists, museums and arts organizations, demonstrating their commitment to investing in the future of art, notable and emerging artists and their understanding of art as a tangible asset. These banking institutions are “art bankers”, advising blue chip collection clients on how to use their collections to raise funds or support philanthropic endeavors. Bankers believe in numbers and market figures, while those in the art world focus on the quality of artworks, their visual power and their creators. Thanks to the internet, auction databases and art foundations and museums, the art market has become much more transparent and accessible for the public, artists and those interested in art as investment, commodity, and means of exchange.
The universal language of art communicates directly with individuals’ minds and shapes perceptions and attitudes toward other individuals and cultures. This quintessential footprint of cultural exchange was best achieved from the 1st to 16th centuries along the Silk Trade route. Historical evidence of diverse linguistic, religious, economic, cultural and political traditions shows that they were deeply embedded in cross-cultural interaction, and its acquisitions greatly influenced Europe, Asia, Africa, its people and their economic status.
Collecting and owning art has always been and continues to symbolize affluence. Not only are high worth individuals drawn to art as investment, but large corporations and financial institutions invest in art, buying at major art exchanges such as Art Basel. Art and money have much in common, as both can and do influence who and what we consider valuable. Wealth continues to power, and with that progression comes personal and global economic impact.