Archive for the 'Market Talk' Category
Wednesday, December 31st, 2008
Asian Art Fair Cancelled
In a move reflecting the current slump in the global art market and mixed results at Basel Miami fairs earlier this month, The International Asian Art Fair, (previoulsy scheduled to be held at the Park Avenue Armory from March 11-15) has been cancelled by London-based Haughton International Fairs.
A statement released on the fair organizer’s website states: “Due to the present global economic situation we have regrettably taken the decision to cancel The International Asian Art Fair for 2009…Many of the dealers who had contracted to take part are not in a position to go forward in the current climate and as such we have decided a fair would put an untenable strain on their resources. We hope to be able to re-launch the fair in 2010 and look forward to working with our exhibitors again.”
With just a few remaining hours of the year left, indeed this is one more reminder that tonight we should all party like its 1999.
Friday, December 19th, 2008
Sotheby’s Claims Contemporary Market Remains Strong
In an effort to instill confidence, Sotheby‘s has posted a video concerning the state of the contemporary art market during bleak financial, times. Speaking candidy about the current economic climate. Tobias Meyer (Worldwide Head of Contemporary Art), Alexander Rotter (New York Head of Contemporary Art), and Leslie Prouty (Senior Vice of Contemporary Art) still manage to express overall optimism in the market. A few main messages are conveyed:
•This is a buyers market with many oportunities
•Good works will always have a strong market
•The current economic climate has led to a shift in auction strategy - During the boom of the past several years, works were estimated aggressively, with the goal of finding collectors to meet those expectations. To continue matching buyer’s with seller’s, new strategy finds the auctioneer focusing on buyer’s expectations and bringing works to auction with more moderate pricing.
•The contemporary market has a firm foundation, backed by the support of a committed collector base
Watch the video here
Thursday, December 18th, 2008
The Big Takeover
Image: © Original Artist / cartoonstock.com
Seasoned art and culture critic, Lee Rosenbaum, has written some interesting commentary over the last several days regarding Los Angeles County Museum of Art’s proposed “merger” with the Los Angeles Museum of Contemporary Art. As previously reported, MOCA is at the brink of financial collapse and is in dire need of rapid injection of funds.
In a press release issued Dec. 16, LACMA stated the “goal of this plan would be to preserve the independence and integrity of both institutions while combining their operations and infrastructure,” including a “merger of Board leadership,” and the ability for MOCA’s permanent collection to be housed and exhibited in LACMA’s several museum spaces.
Rosenbaum calls the plan an attempted takeover, and a move by LACMA and its Director/CEO, Michael Govan, to take advantage of a struggling MOCA in its time of need, arguing that ”instead of being a perpetrator of pernicious takeover mischief, Michael Govan should have been a collaborative colleague, offering to provide space and support for MOCA’s insufficiently exhibited, superb permanent collection, without insisting on assuming control over it (as would happen under a single-board, single-director merger).”
Since LACMA’s announcement this past Tuesday, several voices have spoken out against the deal, or offered alternative plans. Grassroots organization MOCA Mobilization has delivered a petition of 3,200 signatures to MOCA’s board, stating “we support an independent and autonomous MOCA. We condemn any plan now or in the future to merge MOCA with any other institution.” Furthermore, in an effort to stall the merger, a motion was filed by the Los Angeles County City Council, petitioning the city’s Community Redevelopment Agency to give MOCA $2.8 million in rent money. In return, the museum would agree to accept $30 million in financial assistance offered by philanthropist Eli Broad.
Read more at: CultureGrrl
Tuesday, December 9th, 2008
Art Basel Miami Recap - Part 1
Damien Hirst
The Art Collectors presents the first installment of our extensive coverage of Art Basel Miami and its surrounding satellite fairs.
Undoubtedly there was a significant downturn to the feverish buying frenzy of the boom of the past several years. Although there was less spending and decadence in the air, overall, spirits remained hopeful as the week progressed.
Reporting for the Times London, Sarah Thornton describes the five-day affair as yet another measure of a market that has “slowed down dramatically but averted a crash, mainly as a result of the skilful driving of dealers and the return of serious collectors who were ‘priced out of the market’ during the boom by fast and high-spending billionaires,” and a somber tone of “deep relief, as there were enough transactions at the fair to demonstrate that art is still a liquid asset.” (full story here)
The less that disasterous slump was substantiated by a Miami Herald survey of 86 galleries and dealers - 41 exhibiting at Basel, and another 45 from satellite fairs. Over 70 percent experienced flat or slight decreases in prices. The Herald notes that this does not account for reports of major discounting. Half reported smaller crowds and less potential buyers. Even with these somewhat bleak reports, 60 percent of exhibitors surveyed were ”extremely likely” to return next year. (full story here)
Despite the overall somber tone, crowds flocked to view a massive mix of established heavyweights and up-and-coming stars of international modern and contemporary art. Here is part one of our Art Basel recap, to be followed up with a closer look at satellite fairs and a special focus on some of our favorites from the past several days.
Lots more to see after the jump… Read the rest of this entry »
Wednesday, November 26th, 2008
Emmanuel Perrotin Launches Investment Fund
These are exciting times for Emmanuel Perrotin. Just a few short weeks after reinstating his representation of Damien Hirst, the international gallery owner has announced the launch of Artists’ Dreams, an investment firm that will pool collectors’ funds to finance the production of major works of art. By removing financial barriers to otherwise cost prohibitive projects, the venture will allow emerging artists to compete with art titans such as Hirst and Koons, whose monumental success has risen with the production of large scale installation and museum-worthy works.
The arrangement will upset the traditional gallery - artist relationship, in which profits are typically split evenly. Works will be sold exclusively via Perrotin’s Miami and Paris galleries, and investors would share in the dealer’s profits, based on initial investment. This is not Perrotin’s first foray into this sort of investor relationship. He pooled collector funds for the production of Piotr Uklanski’s 1996, Untitled (Floor Dance), which went on to be exhibited at the Guggenheim in 2007.
The Art Collectors eagerly awaits to see which artists will be the lucky benefactors of these potentially career-shaping funds.
Source: Art Observed / The Art Newspaper
Tuesday, November 25th, 2008
Broad Injects Millions Into LA Art Institutions
Image: LA Times
This past week billionaire collector, Eli Broad, officially announced he will move ahead with plans to open a new contemporary art museum in Beverly Hills. The new 25,000 square foot institution will house the Broad Art Foundation and permanent collection, including seminal works by Jean Michel Basquiat, Jasper Johns, Andy Warhol, Roy Lichtenstein and Damien Hirst. The announcement comes less that a year after Broad gifted $56 million in funds to open the Los Angeles County Museum of Art’s Broad Contemporary Art Museum.
Broad’s philanthropic pursuits don’t stop here. This week he offered an additional $30 million to help keep Los Angeles MOCA afloat. As previously reported, the museum has burned up its funds and is is on the brink of financial disaster. In a Nov. 21 LA Times op-ed, Broad said, ”I’d like to make a proposal to the MOCA board and to the civic angels of Los Angeles. I’ll step up if you do too. The Broad Art Foundation is prepared to make a significant investment in MOCA — $30 million…It is vital that the museum remain on Grand Avenue, keep its collection and continue its tradition of world-class exhibitions…This is not a one-philanthropist town…with a global recession that has hit every American’s pocketbook, charitable giving has declined…The philanthropic community must not turn its back on MOCA. We must make it one of our civic priorities.”
In total, Broad’s spending would represent a cash injection into Los Angeles’ art institutions in excess of $1 billion.
Sources: The New York Times / LA Times / Art Observed
Monday, November 24th, 2008
Christies Punk/Rock Rundown
Sex Pistols Promotional Poster, 1977.
Estimate: $2000-3,000, Price Realized: $6,250
Results are in for Christies Nov. 24th Rock/Punk auction. While the majority of lots consisted of music memorabilia, including show flyers, photographs, records and clothing, a somewhat random selection of art toys were thrown into the mix, perhaps in an attempt to introduce the genre to a wider audience. Here, we present you with a (biased) selection of some of our favorite lots. Read the rest of this entry »
Thursday, November 20th, 2008
MOCA Crisis
Image: Liz O Baylen / Los Angeles Times
It’s hard to feel bad about losses incurred by international auction house giants or millionaire collectors in the past few weeks, but it comes with heavy heart that we report the latest victim of the financial crisis - Los Angeles MOCA. The LA Times reports that with practically all of its remaining funds dried up, the museum is struggling to meet operating costs. While MOCA is seeking a large infusion from donors, it is weighing all possibilities, including a potential merger with another institution. Museum Director, Jeremy Strick says MOCA is in talks with several partners, but remained firm stating shutdown or takeover were not likely. ”All the possibilities being explored involve MOCA retaining its identity, continuing its program, expanding its collection,” Strick said, adding, “I think it is time for this city to step forward and offer the kind of financial support commensurate with the work being done.”
Want to do your part? Take a few minutes to become a member, and then use your 10% discount on something from their museum store
Monday, November 17th, 2008
Christies Sued Over Forged Basquiat
A lawsuit filed against auction giant, Christies, for consciously selling a fake Basquiat may proceed, concluded a ruling handed down by NY State Court. In 2001 Guido Orsi purchased the bogus painting from Tony Shafrazi Gallery for $185,000, after the gallery had acquired it for $242,000 from a 1990 Christie’s auction. The suite claims Christies passed off the painting as genuine, despite Basquiat’s estate identifying it as counterfit and requesting it be withdrawn from the auction.
As stated in the suit: “If as plaintiffs alleged, Christie’s fraudulently misrepresented the Painting’s provenance, and published that misrepresentation in its catalogue, which Christie’s could reasonably anticipate would be relied upon by bidders at its auction, as well as subsequent purchasers, it may be liable to those who relied upon its misrepresentation.”
Orsi had initially filed suit against Tony Shafrazi Gallery in Milan, but opted to withdraw and joined Tony Shafrazi in suing Christies in the United States. Representation for Shafrazi and Orsi remarked on the significance of the decision, which ”allows third-parties who did not bid at an auction … to rely on the catalogues sold and distributed by [an] auction house as representations of authenticity,” permitting such parties to recover
If successful, Shafrazi and Orsi will be awarded a total of $7 million - $2 million in damages based on the increase of Basquiat’s market value since the original 1990 sale, and an additional $5 million in “exemplary” damages.
Christies denies any wrong doing and “considers that the suit is without merit.”
Source: law.com
Thursday, November 13th, 2008
Dismal Results at Sotheby’s + Christies
Image: Shannon Stapleton/Reuters
The latest returns from this season’s contemporary art auctions are in, and the less than stellar results reinforce the notion that this is a buyer’s market, with overall gains receding back to 2006 levels. The November 10th contemporary auction at Sotheby’s struggled to raise $125.1 million, far beneath the low estimate of $202.4 million. Out of 63 lots, 20 (32%) failed to find buyer, with Sotheby’s taking a hit and losing millions on several lots it had guaranteed to sellers.
The November 12th sale at Christie’s did not fare much better, bringing in a total of $113.6 million, far below the low estimate of $227 million. Again, nearly one-third of the lots on the block failed to sell. Even the famed Basquiat, Untitled (Boxer), 1982 (a highlight of the auction due to its owner, Lars Ulrich of heavy metal band, Metallica, and inclusion in the Brooklyn Museum 2005 retrospective) only found two bidders. Ultimately, the piece sold for 13.5 million (including auction house commission), with an estimate of $12-16 million. Perhaps the most disappointing result was a self portrait by Francis Bacon. What was expected to be a focal point of the sale, estimated at $40 million, failed to find even one bidder.
With these results, one thing has become abundantly clear - the art market has not escaped the financial crisis. “It was a half-price sale, said one Sotheby’s buyer, ”who, In under 90 minutes, dropped more than $8 million (including fees) on works by Ed Ruscha, Jeff Koons, Robert Rauschenberg and Donald Judd.
Source: The New York Times, Mixed Results for Contemporary Art Sale at Christies / A Dreary Night for Contemporary Art at Sothebys