Artmarket

The action in Tribeca on Saturday night gave me a bit more proof that the art market is looking for a bounce. I attended an art show held by local artist Ben Krell and Lindsey Nobel, who came in from Los Angeles, and the action was palpable. At last count, six pieces sold at the event, and there were many serious buyers with an eye to add emerging artists to their collections again.

Krell and Nobel have vastly different styles, but the pieces complemented each other in the loft where the event, billed as an "open studio," was held. Krell's work through several periods was on display, from the tight geometric styles he favored several years ago to the organic approach he uses today. Nobel offered pieces using several media – including photography and plastic. Works by both artists captivated the guests who crowded the venue as the evening unfolded.

Nobel's work features intricate designs connecting larger abstract shapes that are based on photographs she has taken of sculptures. The intentional result is an interconnectedness reminiscent of neural networks, linking stations of consciousness into a greater, unified presence.

Unlike his partner at the event, Krell prefer broader, sweeping themes on his canvases (which he shapes himself). His latest movement evokes feelings of creation – in the cosmic sense – with concentrations of energy yielding to calming effects.

The Tribeca art exhibition was a trip home for Krell, who painted in that particular loft back in the 1990s. He also held a show there in September 2008, shortly after the collapse of Lehman Brothers. The mood couldn't have been more different this time around. Attendees were considerably more upbeat ... and in greater number. The sheer level of participation was enough to suggest that the art market is getting ready to turn, and the fact that several collectors made purchases reinforces the notion.


[Photo courtesy of Ben Krell]

Christie's and Sotheby's aren't being shy with the Old Masters. Pieces by Rembrandt, Raphael and Van Dyck are being offered at hefty prices, some records, that could bring in up to $133 million. If this happens, art collectors will have doubled last year's result ... and cast a strong vote in favor of an art market recovery.

The Christie's sale on Tuesday will include a portrait by Rembrandt and a sketch by Raphael. They are being estimated at 18 million pounds and 12 million pounds, respectively. According to Christie's, these are the highest estimates seen at auction, says Bloomberg News. The Sotheby's sale occurs on Tuesday, featuring a Van Dyck portrait that could fetch as much as 3 million pounds.

Unlike the volatile market for contemporary art, prices for the Old Masters have been relatively stable, as the supply is diminishing and demand is increasing.

According to Johnny van Haeften, an art dealer based in London, told Bloomberg News, "Prices at auction are very strong because there isn't much out there." He continues, "People don't want to sell at the moment. They're saying, 'If I let a painting go, where do I put the money? I'd rather keep it in a work of art.'" He bid unsuccessfully for two still life pieces by 17th century Dutch painter Adriaen Coorte. Both ultimately sold for more than 10 times their high-end presale estimates.

[Photo via Christie's]

One bidder spent more than $146 million this year and dropped a boatload of cash at the Christie's Hong Kong art auction on Monday, pushing prices higher and smashing records. Wang Wei, with her husband, investor Liu Yiqian, ranks 176th among the wealthiest in China, with a net worth of $740 million ... and she wouldn't say how much she's spent on art this year.

Wang waved Paddle 960 aggressively on Monday, sometimes tossing bids up HK$1 million at a time to distance herself from competitors for particular pieces. A few times, she didn't bother lowering her paddle, instead just holding it up until her rivals quit.

At Sotheby's Hong Kong in October, Wang's husband shelled out $11 million for a Qing Dynasty imperial throne, complete with carved dragons, setting a record. And, this month, he payd $25 million for a Ming Dynasty scroll by Wu Bin at Beijing's Poly auction -- it was the most paid for a Chinese painting.

At Monday's Christie's sale, HK$126.7 million in art sold, and the house wouldn't reveal how much of it went to Wang. Speaking for herself, the collector reveals why she made the purchases she did. According to Bloomberg News: "I just bought those for fun."

[Photo courtesy of Christie's]

In London today, $90 million in Russian art is going under the gavel, and the auction houses are hoping that a still robust community of Russian billionaires will come out in force to repatriate their heritage. Both Christie's and Sotheby's are holding auctions on December 1, 2 and 3, with MacDougall's, which specializes in Russian art, also selling on December 2 and 3. Bonhams is conducting one today.

There are some signs that the sales could go well. Sotheby's moved $13.8 million in Russian art at an auction a month ago, topping the $9 million presale estimate. The Russian government is saying the economy should grow next year, after falling 10 percent this year. If recovery is en route, big spending Russians may show up at this week's art auctions.

There's no shortage of Russian art coming on the market this week. In addition to the 540 lots being offered by Sotheby's, at a presale range of 14.8 million pounds to 21.2 million pounds, MacDougall's is selling 460 lots (12.5 million pounds to 17.6 million pounds), including a painting of a topless woman by Zinaida Serebriakova for between 1 million pounds and 1.5 million pounds. Christie's has 578 lots, with a presale estimate of 6.5 million pounds to 9.3 million pounds.

The top lot at Christie's Asian art auctions brought in a record $5.9 million in Hong Kong. A large abstract painting by Chu Teh-Chun, "Vertige Neigeux," surprised bidders and spectators alike, with an unidentified Asian private buyer ultimately winning in front of an audience of 400 people. Overall, the auction brought in $79 million.

Buyers from mainland China pushed prices higher at the Christie's sale, especially with local art collectors picking up artwork as a way to protect their wealth from inflation and a struggling U.S. dollar. Chu, Zao Wou-ki and Fu Baoshi are among the hottest artists on the market right now in Asia. A piece by Baoshi set a record during the day sale, moving for $7.8 million. One by Sanyu nearly tripled its presale estimate. According to Anthony Lin, an art consultant in Hong Kong, contemporary Chinese art is starting to recover.

On the first day of the five-day sale, Christie's also sold more than $5 million in wine.

[Photo courtesy of Christie's]

Art Basel Miami Beach starts on Thursday, and the word "test" is being used instead of "expectation." Even though there have been signs this month that the art market is turning the corner (or at least trying), caution remains pervasive, and the market is still seen to be fragile. The fair's organizers have said that profits will be down at least 20 percent for everyone involved, because of lower prices and a decline in the number of exhibitors.

Sixty of last year's participants have dropped out already, and the number of satellite art fairs around Art Basel Miami Beach has fallen from 22 to 16. Layout changes are taking the shift in participation and making it benefit those who remain. Exhibit space has been increased by 20 percent, and booths in the main art galleries area will be larger, as a result. This is where most of the action is. Eighty-five percent of the dealers have come back, and the number of stands has increased from 265 to 270.

Though prices are expected to be down at the Miami fair this year, artists and galleries aren't giving their work away. Emmanuel Perrotin, the Paris gallery, is trying to move Takashi Murakami's "Warp," painted this year, for $1.5 million. The same gallery is also pushing a Duane Hanson sculpture for $425,000 and a photographic print by Paola Pivi for $33,000. Edward Tyler Nahem, a first-timer at Art Basel Miami Beach, has a room full of paintings by Alejandra Icaza, which are selling for $35,000 a piece.

The crowd in Miami is likely to be a return to past decades, in which art collectors and investors -- rather than what Todd Levin, director of Levin Art Group calls the "fashionista crowd" -- dominate the scene. Art Basel Miami Beach thus might become an art fair again.

The Water/Bodies exhibit kicks off on December 21, 2009 at the Eden Rock Gallery. Located at the Eden Rock Hotel on St Barths, the gallery has hosted shows from the top artists in the world and those who will be in the next few years. The new show, curated by David Kratz, President of the New York Academy of Art, will no doubt be consistent with the gallery's fantastic reputation. This year, Eric Fischl and Jenny Saville, both Senior Critics at the Academy, will be among the Academy-affiliated artists showcasing their work at Eden Rock.

Each of the pieces at Eden Rock this winter will be related to the theme of nature, water and the body. Only small works will be displayed at this event, though a variety of media will be present, including oil, watercolor, drawing and sculpture.

Water/Bodies is the latest in an ongoing relationship between the Eden Rock Gallery and New York Academy of Art. The program includes an artist-in-residence program, in which up to 10 students or graduates of the Academy can visit St Barths and participate. Some of the proceeds from the sales at Water/Bodies will be used to support this program and others at the Academy. Past participants include Richard Prince, whose early 2008 show sold out before the opening.

While we're unlikely to see a replay of Prince's sales at Eden Rock this year, the art market is certainly better than what we saw late last year. Maybe collectors will go back to voting with their wallets.

I'm still not sold that the art market is recovering (it could be, but it's too soon to tell). But, if it is, the upside is going to the galleries and collectors -- the artists aren't getting squat. November was generally kind to Christie's, Sotheby's and Phillips de Pury, leading to hundreds of millions of dollars in art sales. So, to get their own piece of the art market pie that may or not be forming, artists are starting to go directly to the buyers.

Artist Ryan McGinness hosted a sale of pieces by several artists, with the person who did the work taking home all the spoils. The presale estimate of $47,000 to $57,000 made sense, as the final tally came to $51,300, pretty much in the middle. McGinness himself was present at the event ... via a video connection from Amsterdam.

The traditional auction model trends to benefit collectors rather than artists, as it creates a secondary market for artwork. It's really no different from the stock market. An IPO, if successful, will be the starting point, with the price going up later, to the advantage of all subsequent owners.

Surrealist, modern and postwar pieces will go under the gavel next week at the Christie's Impressioniste et Moderne auction in Paris. More than 140 lots will be offered on December 1, 2009, with presale estimates ranging from $6 million to $9 million. Among the artists represented in the auction, which consists of the Lefebvre-Foinet collection, are Alberto Giacometti, Max Ernst, Henri Matisse and Zao Wou-Ki. The collection was amassed over five generations, with the latest in the family making the decision to sell.

A portrait of Maurice Lefebvre by Giacometti could fetch between $1 million and $1.5 million, but other lots are more attainable. "Lyrical Explosion C," by Alberto Magnelli, is expected to sell for $210,000 to $270,000, and Sonia Delaunay's "Colored Rhythms No. 615" could go for up to $160,000. Playing on the success of the market for Chinese art, Zao Wou-Ki's "5.11.64" could move for as much as $600,000.

Paris has done pretty well through the art market slump, especially when the auctions deviate at least somewhat from the norm. Though there aren't any guarantees, let's keep an eye on this one. It could be the touch of fresh air we need.

[Photo via Christie's]

The hint of a recovery we got in the first half of 2009 has fallen off a bit,according to Art Price's Art Market Confidence Index. The latest report suggests that art prices have dropped 37 percent since January 1, 2008, when the art market first showed signs of weakness. But, there are some indications that it's headed in the right direction over all. Art Price does state that the third quarter is almost always weak. Only 12 percent of auction lots sold during all third quarters over the past decade, and low sales volumes tend to mean low prices.

The art market appears to have hit its worst point in the first quarter of this year, when art prices were down 38 percent over the previous 15 months. Values plunged to 2004 levels, and spectators figured that conditions would only get worse. Prices edged up 1.2 percent after the first quarter, but a slow summer didn't yield any real progress.

Art Price sees the November results as promising, with seasonally adjusted growth for the Post-War period up 2.1 percent since March and the Old Masters picking up 4.5 percent. And, for the past two quarters, only 38 percent of lots failed to sell, and it looks like October and November will stay consistent with that result.

More than anything else, the numbers suggest that confidence is increasing -- which is the first step in a recovery.

The Phillips de Pury auction on Thursday night raked in what once would have come from a single painting. Despite parading out pieces by Andy Warhol, Jeff Koons and Richard Prince, the sale was good for a mere $7 million, with individual lots moving for prices in the hundreds of thousands of dollars. Thirty-nine went under the gavel, and eight didn't sell.

The Chelsea auction house lacks the savvy, knowledge and reach of Sotheby's and Christie's, so it had to lean on British art collector Charles Saatchi, who has agreed to complete most of his transactions through Phillips de Pury. In trade, subsidies from the auction house help keep access to Saatchi's gallery free.

Roughly a dozen of the lots came from Saatchi, while the others are said to have been rejected by Sotheby's and Christie's. In general, the pieces were "pretty skimpy," according to Manhattan art dealer Edward Tyler Nahem, who observes that the auction house "did pretty well with what they had."

Japanese artist Yayoi Kusama was the top seller, with her painting "Infinity Nets (T.W.A.)" busting past its high-end presale estimate of $400,000 and settling at $842,500 (including fees). Kusama's performance follows a well-hyped exhibition at the Gagosian Gallery this year.

Christie's tried in New York with a 1983 piece by Jean-Michel Basquiat and didn't succeed. The auction house may have been too aggressive in estimating the 16-foot piece at $9 million. That's what's tough about the art market right now. There are signs of recovery, and it can be tempting to push for higher prices. Unfortunately, it's easy to get a bit excited. The painting had the highest estimate at the auction. The piece with the second highest presale estimate, a piece by Andy Warhol, met a similar fate.

The Basquiat piece, "Brother Sausage," was offered anonymously by a buyer later revealed by Bloomberg News to be Peter Brant, an art collector based in Connecticut. The piece may be a casualty of his divorce from model Stephanie Seymour. Well, it won't be financing post-marital discord and could remain a contested asset for a while.

Warhol's "Tunafish Disaster" was projected to move for up to $8 million and, like the Basquiat painting, didn't receive any bids. Art dealer Robert Mnuchin of L&M Arts was stuck taking it home.

Yet, some works beat the odds in an auction that raked in $74.2 million, within the presale range of $61.5 million to $88 million. Nonetheless, this was the lowest result we've seen from a Christie's New York contemporary art effort since May 2003 and down 81 percent from the top of the market two and a half years ago.

Celebrate if you own an Ed Ruscha print. At a Bohnams and Butterfield's auction last week, excited bidders pushed Standard Station (E.5) past its high estimate of $40,000 ... all the way to $170,000 and a new record for Ed Ruscha's work. The previous top spot for Ruscha was $133,000 for Hollywood, which was attained during the art boom in 2007.

The record-setting piece features a red gas station, an image now associated with Ruscha, and is #33 in an edition of 50 (a pretty large run). The strong auction performance follows an enormous retrospective held for the artist at London's Hayward Gallery and recognition by Americans for the Arts with its Artistic Excellence Award.

But, there's no prize so grand as an outstanding performance at auction.

November 2008 was pure living hell for the art auction houses. The bottom had just fallen out of the market ... and they were still saddled with pieces for which they'd offer guaranteed minimums. This is exactly what happened with Roy Lichtenstein's "Half Face with Collar."

The 48 square inch painting went under the gavel at Sotheby's almost a year ago, with the seller, Italian art dealer and collector Gian Enzo Sperone, protected by a $15 million minimum by the house. Now, it's on display at FIAC, right next to Andy Warhol's "Green Disaster," in the Projet Moderne section.

For many, the question of who owns the Lichtenstein painting has been raised. Is the fact that it's hanging as an entry from the Gagosian Gallery meaningful? A source at FIAC tells Bloomberg News that it is: "Larry owns it and it's definitely for sale."

It would be poetic, of course, for the piece to fetch the $15 million it failed to reach last November, but for now, all we can do is wait for the result (if any).

The big numbers and grand auction centers around the world remain under pressure, but small local art scenes are finding ways to thrive. Like the small cap stocks that lead financial markets out of a recession, maybe it's the emerging artist and local art scene that will deliver us from this slump.

Grand Rapids hosted ArtPrize, a new art show this year, and it was so successful that the organizers are going to do it again in 2010. Businesses in town got a bump, and Grand Rapids was able to boost its cred as an art destination. The 18-day competition commenced on September 23, 2009 and drew tens of thousands of visitors to the Michigan city. Some restaurants ran out of food, because they weren't expecting such a large influx of guests. Doug Small, president of the Grand Rapids/Kent County Convention and Visitors Bureau, told The Associated Press, "Nobody had any clue this would happen."

The competition attracted 1,262 entries, varying in size, shape, style and medium. They were displayed in lobbies, on bridges, in parking lots and in the Grand River -- anywhere in town where they could find a place to exhibit. The winners were chosen by the voting public, using the event's website and text messaging, with 37,264 people participating.

The winner was Ryan Ortner of Brooklyn, New York, with the oil painting "Open Water No. 24, measuring 19 feet wide, taking first place, with Tracy Van Duinen taking second and Eric Daigh coming in third. Ortner lent his painting to the Grand Rapids Art Museum, which is going to display it until January.