The sound of wallets closing...?

Koons Egg Sculpture To Test Art Market Waters

(Source Forbes.com)
A high-priced work by a contemporary star goes up for auction at Sotheby's. Will it sell?

When Sotheby's puts a seven-foot-wide magenta and turquoise Jeff Koons sculpture of an Easter egg on the block in New York May 12, will the international auction house wind up with egg on its face?
It's possible.
"I don't think it's going to sell," predicts Todd Levin, a former Sotheby's ( BID - news - people ) specialist who runs New York art advisory firm Levin Art Group. The auction house estimate of $6 million to $8 million is much too high given the worldwide economic crisis, says Levin. Plus the sculpture--a shiny, oversized replica of an Easter egg covered in foil and topped with a bow--is not one of Koons' more important works.
Only the auction will tell whether Levin is right. The sale is part of a run of auctions at Christie's, Sotheby's and Phillips that are viewed as a test of the international market for Impressionist, Modern and Contemporary Art.
Koons, 54, became famous during the 1980s for his bold, post-modern works that included vacuum cleaners encased in Plexiglas boxes; a life-sized porcelain sculpture of Michael Jackson with his pet monkey, Bubbles; and a series inspired by Koons' then-wife Cicciolina, an Italian porn star. Those works, created between 1982 and 1990, are the most valuable of Koons' oeuvre, says Levin.
Over the past half-dozen years, the Koons market has been supported by big art-world players such as publisher Peter Brant, Manhattan real estate magnate Aby Rosen and Ukrainian billionaire Victor Pinchuk, all of whom own works by Koons and therefore have a vested interest in making sure his prices stay high. As does Koons' dealer, Larry Gagosian, who sold the egg to Loeb in the first place.
Read Article... It's a chicken or the egg matter.

Sotheby's Launches Inaugural Sale of Arts of the Islamic World in Doha

A Safavid Voided Silk Velvet, Metal Thread and Bouclé Figural Panel Estimated $250,000 – 350,000. Photo: Courtesy Sotheby's.

Sotheby's Launches Inaugural Sale of Arts of the Islamic World in Doha

(Source Art Daily) LONDON.- Sotheby’s first ever Arts of the Islamic World auction in the Middle East, which takes place on March 19th 2009 will feature a number of exceptional and rare works spanning nearly 1,000 years from cultures as diverse as those from North Africa, the Middle East and Iran. Among the highlights of the sale are the Pearl Carpet of Baroda, a masterpiece of pearls and jewels from 19th-Century India and a rare Safavid voided silk velvet panel from 17th-Century Iran (Lot 301, Est. $250,000-350,000).

Discussing the sale, Edward Gibbs, Head of Sotheby’s Middle East Department, said: “Sotheby’s has worked closely with collectors and museums from the region for many years so we are delighted to be able to offer so many superb objects in our inaugural sale in Doha.”
Remarkable Discovery
A remarkable discovery, featured as lot 301 in the sale, is a 17th-century silk velvet figural panel from Safavid Iran which is exhibited in public for the first time having recently resurfaced in a European private collection where it had been since the early 20th century. The outstandingly high quality of craftsmanship, combined with the rarity and beauty, as well as the miraculous state of preservation, make this textile one of the most sophisticated weavings ever produced by the workshops of the Safavid court. The panel uses voided silk velvet enriched with metal thread and bouclé and shows two female falconers equipped with general fittings for the hunt – one has a lure tied round at their waist and a the other has a small Saluki or hunting dog straining on a leash. Falconry was a popular pastime among the wealthy and sophisticated Persian elite of the day. Comparable pieces can be found in major museum collections, most notably the Museum of Islamic Art in Qatar.

Fragile Beauty
The medieval Islamic period is represented by an exceptional carved glass bowl dating to the 10th century. Decorated in the so-called “beveled” technique, this fragile bowl is deeply carved so the designs stand out in dramatic relief. Only a handful of such pieces survive from antiquity and this example is among the finest in existence (Lot 304, Est. $650,000–850,000). The five other known comparable examples are all in major international museum collections: the National Museum of Islamic Art in Doha, the Kuwait National Museum, the Corning Museum of Glass in New York, and the British Museum and Victoria & Albert Museum in London.

New Art markets and the crisis

New markets and the crisis [Feb 09]

(Source ArtPrice ©)
The most speculative and volatile markets over the last four years, emerging art markets have propelled a number of Chinese, Indian, Russian and Middle-Eastern contemporary artists into the global limelight with extraordinary speed. But with so many young artists fetching such big figures at auctions, some kind of meltdown was inevitable.
The first consequences of the global financial crisis on the art market were felt in Hong Kong in 2008 at the Christie’s and Sotheby’s October sales. Indeed, China's art market has proved to be particularly sensitive and thousands of art market professionals are keenly watching developments in that country where the price index of contemporary art rose 583% between January 2004 and January 2009.

In 2007, driven by the financial strength of Hong Kong and the dynamism of Shanghai, China took third place on the global art market podium behind the United States and the United Kingdom. The rocketing price indices of Fanzhi ZENG, Xiaogang ZHANG, Lijun FANG, Minjun YUE, Guoqiang CAI and Guangyi WANG fuelled an unprecedented optimism, inspiring thousands of would-be artists across the country, prompting hundreds of new gallery openings and giving a very substantial boost to the Chinese art auction market. Just when our figures showed that one third of the world's top 100 contemporary artists (ranked by auction revenue) were from China, Bonhams decided to set up shop in Hong Kong (26 November 2007) alongside Christie’s and Sotheby’s who were already well established on the island. After Bonhams, Artcurial decided to head East with a first sale in Shanghai in January 2008. The following month in London, Sotheby’s was unable to sell Overwhelm by Minjun YUE, despite his leading position on the contemporary Chinese art scene. At the time, this was a rare event: only 9 paintings by the artist were bought in over 10 years (between 1997 and 2007). In 2008, the number was 12 …

After the record bought-in rates posted in October at Sotheby’s and Christie’s Hong Kong, the November and December sales confirmed the contraction of demand and the choosiness of buyers. Sales have not been frozen, but we are definitely seeing a sharp correction of the Chinese art market. Collectors are now being extremely selective both in terms of quality and price. Numerous works by the stars whose prices had risen too high (e.g. Lijun FANG, Minjun YUE, Xiaogang ZHANG and Fanzhi ZENG) sold below their low estimates or were bought in. The recent failure of an attempted quick sale of a painting by Xiaogang ZHANG at Est-Ouest Auctions Co. Hongkong drew a definitive veil over the speculative mood. The work in question is a portrait from the Big Family Series. Initially selling for CNY 8.5 million (USD 1.15 million) in November 2007, it failed to sell in December 2008 even after a substantial trim of its estimate (roughly USD 554,000).

The stars of contemporary Indian art are in more or less the same boat. Despite a 957% increase in the price index between January 2004 and January 2009, more than half of Subodh GUPTA's works offered from October to December 2008 were bought in. His important work Vehicle for Seven Seas III was bought in on 13 November, 2008 in New York despite carrying a reasonable price estimate (300,000 to 400,000) compared to the USD 625,000 that a work from the same series fetched in April 2008 (Artcurial, Paris, EUR 425,000). We find the same scenario in the field of Iranian art where nearly half the works offered for public sale by Farhad MOSHIRI (1963) have remained unsold. Back in March 2008, collectors at the Dubaï sales were a lot more extravagant, pushing up the price of Eshgh (Love) to USD 900,000, which was six times the estimated price (Bonhams).

The February Contemporary Art sales in London timidly propose 2 to 5 Chinese and Indian star attractions at Sotheby’s (5 February) and Christie’s (11 February), including the unavoidable Fanzhi ZENG and Anish KAPOOR. However, the real test will be in March and April 2009 with sales dedicated to Asian art.
On 12 February, Phillips de Pury & Company will be offering works by six Chinese artists, one Korean (Kim Whanki), two Indians (Hema UPADHYAY and Jiten & Sumir THUKRAL & TAGRA) and one Pakistani (Rashid RANA). Phillip’s is also participating in the emergence of the African artist El ANATSUI whose 2006 work entitled Congress of Elders is expected to fetch around GBP 200,000. Almost a complete stranger to the secondary art market, a work by this artist entitled Healer fetched USD 500,000 at Sotheby's London in October 2008… not the most favourable period for generating a new record…
Still buoyant throughout the first half of 2008, demand on these highly dynamic new markets has substantially contracted since the autumn. In a global crisis context, many works have become too expensive and speculative temptations are no longer on the agenda.
Nevertheless, among the major buyers of contemporary Russian, Chinese, Korean, Indian or Iranian art, profit is often not the primary motive. In recent years, many Russian and Chinese collectors have invested in the works of their compatriots in order to build coherent collections for foundations or museums.

Sotheby's will offer in its sale of Important Americana A Rare and Important Molded Copper Fireman “Old Jake” Weathervane

(News from Art Daily)
NEW YORK, NY.- On January 24, 2009 Sotheby’s will offer in its sale of Important Americana the most important, and perhaps the earliest, weathervane to appear on the auction market in recent history, A Rare and Important Molded Copper Fireman “Old Jake” Weathervane Made for the Union Fire Hall, now Charley Rouss Fire Company, Winchester, Virginia, dating to circa 1850, which is estimated at $3/5 million. “Old Jake,” as the weathervane has long been called, is unprecedented in its quality, form, and scale – measuring over six feet high and six feet wide – and has topped the Charley Rouss Fire Company since just after the Civil War. After almost 140 years above the skyline of Winchester, Virginia, the weathervane is being sold to raise funds for new fire equipment and the potential construction of a new firehouse.

“Old Jake” depicts a fireman with intricately detailed flowing ribbons at his neck and horn in hand – with the other hand he bravely points to danger. The work was first mentioned in the records of the then-named Union Fire Company of Winchester, Virginia, in 1871. Though “Old Jake’s” exact origin and maker are unknown, the piece is possibly a depiction of an 1858 Louis Maurer print “Rushing to the Conflict,” from his American Firemen series, which was reproduced and distributed by printmakers Currier and Ives and depicts a nearly identical fireman prepared to dash to the rescue. Many local residents believe “Old Jake” was named by a local carriage maker George Barnhart, who is thought to have crafted the weathervane for his son Jacob. In 1895, the town of Winchester gathered to watch as “Old Jake” led a parade through the center of town to the fire company’s new home, which was constructed after fire destroyed the volunteer company’s previous post and would later be christened the Charley Rouss Fire Company in honor of its greatest patron.

The incredible shrinking saleroom

The incredible shrinking saleroom (Dec 24th 2008)
The high end Art Market, the auction houses and the end of the bubble.

It is about time to check for the Art Market Outlook for 2009, the best available information is to find on the Internet and from Art Magazines, Auction Houses like Christie's and Sotheby's and from resources elsewhere in the Art World. However, the Art Market is keeping up appearances and a clearer picture will emerge in the next three months.
The financial industry and banks have through the years usually been very generous with grants and gifts to museuns and the Arts in general, and due to the crisis a lot of those grants have been reduced or ended.
In the middle part of the market, Artists, dealers and galleries are beginning to feel the pinch of a shrinking market.
But first we will explore the top of the market.

A different version of this article research can be found at our stock market blog:
Blog: Beurskrach 2008 - Stock Market Crash, recession and the World Economy
Post: The high end Art Market, the auction houses and the end of the bubble.
Link: http://beurskrach.blogspot.com/2009/01/high-end-art-market-auction-houses-and.html


With more than 200.000 lay-offs in Wall Street alone and many more in London and other financial districts around the world, stock markets off between 35 % and 55% globally, property prices like in East Hampton fallen by over 35%, and the gobal recession taking shape, the high end Art Market can be expected to take a heavy hit.

(from The Economist) Neither of the main houses wants to be the first to announce job losses or cancelled sales, but there will be cuts. With smaller auctions comes the opportunity to reduce variable costs such as catalogues and marketing, where there is still a lot of fat.

If there is one lesson to be learned from the autumn it is that there is still an art market, and you can’t say that anymore about all markets. Demand is there for works of exceptional quality. The challenge will be to persuade sellers who don’t need to sell to continue consigning their very best works.

Just how difficult this will be can be seen from the fact that when asked about the coming sales, both houses ignore the Old-Master sales that will be held in New York at the end of January and focus instead on the Impressionist and modern sales the following month. Sotheby’s, for example, has separated a husband-and-wife pair of portraits by Frans Hals in the hope that they will make more apart than together. “The Portrait of a Man Holding Gloves” is estimated at $8m-12m whereas his much plainer consort, shown in “The Portrait of a Woman Holding a Handkerchief” has been set at $7m-9m. The pictures have been consigned by a New York collector and were recently shown in London as part of a marketing tour. Despite that, both pictures are being talked about by dealers and collectors as “not great Frans Hals”.

The outlook for February is brighter. Christie’s has six works from an important European collection. The consignment, which includes works by Henri de Toulouse Lautrec, Paul Gauguin, Pierre Bonnard and Pierre-Auguste Renoir, is led by a painting by Claude Monet. “Dans la Prairie”, which dates from 1876, was exhibited at the seminal third Impressionist exhibition in Paris in 1877 in Paris. It was painted in Argenteuil, where Monet lived between 1871 and 1878, depicts the artist’s wife, Camille, reclined and reading amongst blooming flowers in an open meadow. It is expected to sell for around £15m. Sotheby’s has a rare work by Amadeo Modigliani dating back to 1913, which has been consigned by a British collector and which has not been seen at auction for nearly 30 years. Part of the “Caryatid” series on which Modigliani worked frequently in drawings, this version in oil has a highly sculptural feel.
The estimate has been set at £6m-8m.

But the sale that is generating the most excitement is the three-day auction of paintings, furniture, clothes and sculpture belonging to Yves Saint Laurent and his partner, Pierre Bergé. Like the Damien Hirst sale, it will be a party. Christie’s is hoping it will be a bash. Sotheby’s, its rival, is also hoping the sale goes well, for if it does it will mean that perhaps things aren’t quite so bad as they seem.
Sotheby’s Impressionist and Modern sale is in London on February 3rd 2009. Christie’s sale is on February 4th. The three sessions of Yves Saint Laurent/Pierre Bergé collection begin in Paris in February 23rd.