Navigating the art world can be challenging. Insiders reveal the intricacies of their unique industry.

• Mark Lambert, an art dealer, stated that the desire and aspiration for art are the driving forces behind people's purchases.
• Younger dealers interviewed by CNBC had diverse backgrounds, including careers in interior design or as artists themselves.
• To avoid public auctions where a picture could "burn" if it doesn't reach its low estimate, clients may choose to sell through a dealer.

Art dealing often requires contacts — and the ability to take risks.

Almost by accident, Mark Lambert has spent over two decades as an art dealer, buying and selling works of art by renowned artists such as Andy Warhol, Pablo Picasso, and Claude Monet.

Lambert initially planned to become an art teacher after earning a degree in fine art, but a fortuitous encounter with an art dealer led him down a different path. He began as an assistant and stayed with the company for 17 years.

At the time, he focused on 19th century Victorian paintings and displayed at approximately 20 international art and antiques fairs annually. Following a period at another dealership, he established his own gallery, Lambert Fine Art, in Stratford-upon-Avon, England, in September.

Art is a unique trade, according to Lambert, because it is typically purchased based on emotion rather than necessity. "People don't need it, but they want it. They aspire to it. That's why it's unusual. And I think most people who buy art are investing in something for themselves, something they can look at and enjoy every day," Lambert explained.

If a picture doesn't sell properly or sell well at an auction, it can reduce its perceived value and lessen demand, Lambert said.

'The business needs new blood'

Newcomers to the art dealing world may find it intimidating, as stated by Olya Johnson, an interior architect and co-founder of Relic, an art and interiors business established in 2023.

For the first time in January, a relic was displayed at the esteemed Decorative Fair in London, an annual arts and antiques event that typically draws in seasoned dealers who work for their family's business, according to Johnson.

Johnson said that less experienced dealers may feel they need to wait years to showcase their pieces at the fair, but because Relic was invited to share a stand with an established exhibitor, they decided to take the opportunity and try it now. She added that it was an "incredibly positive experience."

Johnson stated that it is widely recognized that the business requires fresh perspectives and young blood.

Relic offers art and decorative objects for sale, as well as loans pieces for editorial and advertising shoots to clients such as Elle Decoration magazine and Colefax and Fowler.

Portfolio career

Johnson and her business partner Natalie Vosloo, a creative director in advertising, run Relic alongside their day jobs. Johnson stated, "Dealing is always running in parallel to the primary career, and my experience with all the younger dealers we know is always a second thing."

Two artists CNBC spoke to also deal in art.

Tom Rooth is a skilled artist who specializes in pencil drawing on ceramics, featuring animals and sea creatures in his work. He is a former director and fine art expert at Christie's, where he also worked as a dealer of 19th and early 20th century paintings. He buys on consignment or from auctions and sells to dealers and individuals.

Rooth's career as a dealer helped him sell his ceramic pieces. At art fairs, he used his designed plates to hold sweets for people browsing his paintings. "People were drawn to them, inquiring about their prices," he said in a phone interview with CNBC, and his ceramics business flourished.

Jack Roberts is both an artist and a dealer in the art world. He specializes in colorful embroidered pieces under the name JPR Stitch and creates them on a regular sewing machine. He has built a following on Instagram, where clients often find him, including those in their 20s and 30s.

Roberts is a dealer and consultant who provides galleries with art on a loan, sale, or return basis. He currently has contemporary artists David Hockney, Jeff Koons, and Damien Hirst in his collection.

Risks of dealing art

Dealers may own multiple pieces of art without knowing when they will be sold, according to CNBC's sources. Lambert owns around 70 to 100 artworks at one time, while Roberts suggests dealers might own a "bread-and-butter" selection of artists that are likely to sell.

Dealers may also own pieces that see demand increase, Roberts said. "Occasionally you'll have the 'golden nugget' that comes along that you've either bought particularly well, or you bought and then the market has increased enormously for that piece," he said. Roberts said he has "a couple" of such pieces in his collection, but knowing when to sell them can be tricky.

Some dealers use buying works by niche artists as a strategy, according to Roberts. While there may be a profit in the piece, selling it can be challenging and may take a long time to find the right buyer, he said.

Lambert, who acquired a limited edition print by Banksy earlier this year, has found that the prices for the artist's prints can vary. He said, "The market is unpredictable, and it's all about who has the money on that particular day." Lambert had initially thought that selling Banksy prints would be a straightforward process, but he has found that the prices can fluctuate greatly for just one piece.