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.

Ukraine is about to get a new contemporary art center. Victor Pinchuk is shooting to make Kiev a major art destination, so the wealthy art collector is creating a new center that will be larger than the existing PinchukArtCentre, which was the first private contemporary art center in the former Soviet Union and has had more than 830,000 visitors since its doors swung open in 2006.

Pinchuk, a steel billionaire, is an avid collector, with pieces by Jeff Koons, Damien Hirst and Andreas Gursky. His new endeavor, he tells Bloomberg News, "will make Kiev and Ukraine a fantastic place for contemporary art." Pinchuk made the proclamation at a show for 20 Ukrainian artists who were nominated for the first Pinchuk Art Center Prize, which comes with a cash component of $12,200 and a one-month internship with an artist from the international scene. Hirst himself will announce the winner on December 4, 2009.

Pinchuk has a strong relationship with the artist celebrity and owns "probably half" of the skull paintings (by the collector's own estimation) in the current Hirst show at the Wallace Collection in London. He also participated in Hirst's solo auction in September 2008 but wouldn't tell what he bought.

The world's latest Nobel Peace Prize winner also has excellent taste in art. President Barack Obama has skipped the staid portraits that are usually pulled to adorn White House walls and instead opted for three dozen pieces with a bit more of an edge. Works have been pulled from the National Gallery of Art, the Hirshhorn Museum and Sculpture Garden and the Smithsonian American Art Museum to decorate the building the symbolizes executive authority in the United States.

The Obama family is definitely leaning modern, with Rothko, Degas and Diebenkorn among the artists represented. They've also included a word painting by Ed Ruscha. Not wanting to deprive the public of the opportunity to view works on display, the Obamas limited their choices to artwork in museum storage.

There's now a lot of money hanging from those White House walls. "Red Band" by Rothko, "Berkeley No. 52" by Diebenkorn and "White Line" by Sam Francis together are estimated to be worth between $20 million and $30 million. Throw a piece by Jasper Johns into the mix – specifically "Numerals, 0 through 9" – and you get a sense of the collection the Obamas have assembled.

Even with access to a collection of that caliber, though, I'd still never take Obama's job. And, there aren't enough Rothkos out there to change my mind.

The Frieze Art Fair previews in less than a week, and London's art market players are looking to make a splash. While it's unlikely that the prestigious and well-attended event will single-handedly undo 12 months of carnage, hopes are high that it will be a turning point. Frieze is the largest art fair in Europe that's dedicated to the contemporary space.

The preview will be held on October 14, 2009, and 165 galleries will be courting the wealthy collectors expected to be in attendance – up from 151 galleries in 2008. Twenty-eight art galleries left from last year, so Frieze had to find a considerable number of new participants to make up the difference and then come out ahead.

The fair is coming on the heels of a year in which auction sales are down 70 percent to 80 percent and prices for works by many major artists are down by half.

In one of the grandest gestures the market has seen since the slump began, Gerard Faggionato, a dealer from London, will be putting Francis Bacon's "Study from the Human Body after Muybridge" up for sale at a price of $9 million. This isn't exactly what Bacon's work used to fetch, but it's still a steep price in a depressed market. Faggionato represents Bacon's estate, which is the seller.

The painting shown at right, Bacon's ' Study for the Portrait of Michel Leiris ' is being shown as part of the exhibition 'Caravaggio and Bacon' at the Borghese museum in Rome.

Selling at the top of a bubble is fantastic ... if you can pull it off. You look, feel and live like an absolute genius. Former art dealer Anthony d'Offay did this, unloading 725 postwar and contemporary pieces before the art market collapsed, dragged down by a global financial crisis. Timing is everything, and the collection purchased for a mere £26.5 million was valued at an astounding £125 million. Included were Jeff Koons' "Winter Bears," an Andy Warhol hamburger (evidently more expensive than those at Burger Joint) and an Anselm Kiefer palm tree.

D'Offay didn't make a dime.

Rather than sell the collection at a profit of close to £100 million, he sold them to the United Kingdom at cost: £26.5 million. Instead of taking the money, d'Offay chose to be paid with strings ... namely those attached to the deal. The condition of his sale was that the country had to send the artwork on tour throughout the UK, making it easy for people under age 18 to access the art.

D'Offay explains that financial constraints on British museums – which are free and thus have no money with which to acquire new pieces – are great for the people, but not for keeping the walls full with fresh material. On the list for the future is a special room for Damien Hirst's "Pharmacy" installation and has already purchased Hirst's "Painkillers" piece (pill cabinet) for $877,000. In a deal with Hirst, he also picked up work by Koons, and Hirst's new "Necromancer." Hirst was d'Offay's gallery assistant as he was finishing college.

D'Offay's talent, he says, is buying art, rather than curating or creating. He became inspired as a child in northern England when viewing a collection of Francis Bacon (shocking, right? Bacon connection comes back again ...).

The thief was a sports fan, it seems. Ten pieces by pop art king Andy Warhol – showing famous sports figures – were swiped from a home in West Los Angeles, according to local police. The 40 square inch silkscreens were stolen around September 2 and September 3. The owner, businessman Richard Weisman, is offering a $1 million reward for information leading to the recovery of the multimillion dollar collection.

Times may be tough for the art market, but a large collection of Warhols is still definitely worth a $1 million reward.

The paintings were displayed in Weisman's living room, and the doors to the house were locked. Nobody's sure how the thieves got into the house ... well, nobody knows but the thieves (obviously). The family nanny noticed that the paintings were missing and dashed off to a neighbor's house to call the police.

Among the missing are pieces depicting O.J. Simpson, Pele, Chris Evert and Muhammad Ali. The exact value of the collection is unknown, but Weisman had tried to sell it for $3 million in 2002. In 2007, of course, Warhol became the top seller at auction worldwide, so even in the current art slump, it's hard to imagine the collection hasn't appreciated.

Other artwork in the house was untouched, and the home had not been ransacked, leading the police to believe that the thieves were only interested in Warhol.

So, once again, the LAPD is trying to track down O.J.

The historic Hotel Ukraina, a city landmark in Moscow, Russia, is about to reopen as the Radisson Blu Royal Hotel. The property will have undergone a substantial renovation and its new look and feel is sure to impress.

The property will offer 507 guestrooms, along with 38 serviced apartments. The rooms will be 345 square feet in size, and the apartments will be quite large – from 540 square feet to 2,750 square feet. All rooms and apartments will be equipped with high-speed internet access.

What really makes the reopening interesting, though, is the connection between old and new. The property's art collection will be featured, consisting of nearly 1,000 paintings from the socialist realism school of thought, the "official" movement of the Soviet Union for more than six decades. Murals and ceiling frescoes will be restored and on display through the hotel's public spaces.

To enhance the experience, the hotel will feature a 43,000 square foot spa and wellness center, with a Turkish bath, Finnish sauna and six-lane swimming pool. There will also be a dedicated kids' club, giving parents some much-needed time to relax. After unwinding, dash up to the 31st floor bar and enjoy the views of Moscow. For another perspective on the city, you'll be able to take a culinary boat tour on the Moskva River.

"This hotel is another milestone in our history," says Kurt Ritter, President & CEO of Rezidor, which owns the property. "Rezidor, the international pioneer on the Russian hotel market, is today the leading international hotel operator in Russia and the CIS countries – and now manages an additional key property in Moscow, which is one of the most remarkable hotel structures in Europe."

The Art Price Global Index suggests that the art market started to turn at the middle of the year, but it's going to take the autumn art season to confirm whether this is a false positive or the start of a new trend. Maybe the slight improvements in economic conditions are leading to more art market confidence (and spending), or perhaps they're just sick to death of being in a slump.

Art prices increased by 4.97 percent at the end of the second quarter, according to the Art Price Global Index. This comes after the index fell a total of 30 percent from the start of 2008. The collective will of art collectors, dealers and auctioneers probably won't be enough to change the art world, but it could happen at the same time. The Art Market Confidence Index gained 20 points during the second quarter, supporting the notion that we're all ready for this to be over.

It was still a tough quarter for Post-War and Contemporary artwork, which saw prices drop nine percent and four percent, respectively. But, the rest of the art market has fared better, thanks in large part to the increase in the number of affordable works brought under the gavel. So far this year, 79 percent of pieces sold for less than €5,000, up from 73 percent in 2008. Paintings and multiples declined, as well, by 31 percent and 41 percent, respectively, since 2008. With 4 percent and 5 percent price drops in the second quarter of 2009, their prices have returned to 2004 levels.

But, the summer's pretty quiet for the art market. We won't be able to confirm a recovery until the fall auction season begins. Then, we'll know if wallets are ready to be opened and stay that way for a while.

Art crime is running rampant around the world. More of the modern Russian art on the market is fake, according to an ArtInfo report, and authenticity is a problem in Vietnam, as well. There are lawsuits here in the United States, as well. So, ArtInfo asks the fair question: why are the wealthy, usually financially savvy so vulnerable when it comes to art?

Excitement is certainly part of the problem. The high prices, limited supply and egos involved create an emotionally charged environment. As hedge fund spouse Danielle Ganek observes in her (rather painful) novel, Lulu Meets God and Doubts Him, "Art is the new cocaine." Yep, and that leads to some hasty decisions.

Experience usually makes a difference in protecting collectors from fakes. New collectors rush into the bidding process, not always understanding the quality or history of what they're buying, though there's also plenty of room for seasoned buyers to make mistakes. For the newcomers, the risks include wanting to gain access to what is seen as an exclusive club, social pressures to abide by this subculture's conventions and an unwillingness to ask questions ... mostly because of those social pressures.

Yet, for all the regrets that top collectors have related about impulse buying, there are others who lament not having been faster on the paddle.

Last month, J. Ezra Merkin Ascot Partners LP sold his art collection, which included a hefty dose of works by Mark Rothko, for $310 million. The buyer still isn't known, which is the norm in the art market. But, there are some breadcrumbs along the way which Bloomberg News considered worth following. Interestingly, Merkin's Ascot Partners LP had invested a considerable amount of cash with Ponzi scam artist Bernie Madoff.

Along the way, Merkin's agent, TLIA, LLC, picked up $26.5 million of the $37.5 million in fees. The company is registered to a retired art collector and advisor, Ben Heller, age 83. He isn't talking. PaceWildenstein, which represents the Rothko estate, nabbed the other $11 million. Again, no comment. Yet, TLIA's piece of the commission is a bit high, according to art advisor Liz Klein, but she notes that answers are impossible without the full set of facts. Given the generally silent art market, we're unlikely to get all the facts anytime soon.

Like Merkin, Heller was a Madoff victim - $3.4 million in a charitable trust and $10 million of his own cash went down the drain.

Despite the large flushing sound that's accompanied the art market this year, there are still 10 collectors worth noting. In fact, ARTnews was even able to cobble together a top 200 list this year (if they went to 300, I figure I'd wind up on the list, too, given the state of the art market right now). The names in the top 10 still represent the art collecting elite, they just happen to be in much worse shape than they were at this time last year.

Roman Abramovich, Russian billionaire and art addict, takes the #1 spot. It would be easy to zero in on any one of several purchases last year and call it "defining," but the man spent a few hundred million on art. The most expensive pickup was a Francis Bacon triptych which set him back almost $90 million.

Top 10 Art Collectors (according to ARTnews):

1. Roman Abramovich
2. Debra and Leon Black
3. Edythe L. and Eli Broad
4. Steven Cohen
5. Marie-Josee and Henry Kravis
6. Jo Carole and Ronald S. Lauder
7. Francois Pinault
8. Mitchell Rales
9. Carlos Slim Helu
10. Sheikh Saud bin Mohammed bin Ali al-Thani

Okay, so you take a quick look at this list and realize that Abramovich, who requested a bailout from the Russian government, isn't the only flawed personality it contains. Steven A. Cohen, the Connecticut-based hedge fund manager, owns a dead rotting shark. While Damien Hirst's ego is built to last, his creations are more like personal computers ... planned obsolescence. Kravis, who sits atop esteemed and powerful private equity firm KKR, was not left unscathed by the current financial crisis. The precipitous drop in oil prices over the past year must have left the sheikh in a rough spot, and Slim thought he could make money by investing in a newspaper (that's just fucking stupid ... almost as stupid as paying $90 million for a 1970s Bacon, frankly).

Maybe we'll see some changes over the next year. I wouldn't mind writing about an unknown visionary busting into the winners circle at this time next summer. Now, all we have to do is find one.

Art collectors are still taking a beating, but at least they're letting themselves hope. ArtPrice's Art Market Confidence Index (AMCI) has gained a little bit of ground this year, after enduring a dismal 2008. Prices at auction haven't followed collector optimism yet, but wishing is a prerequisite to opening your wallet.

The AMCI doesn't reflect pricing so much as art collector confidence in the market, and an upswing is evident. Last year, the AMCI plunged 30 percent, and on January 31, 2009, it revisited the low it reached after a series of disappointing November 2008 auctions. The situation remained grim in February, at which point the AMCI seemed to follow the broader financial markets, reaching a low point in early March and subsequently looking for a recovery. We haven't seen a turnaround yet, but the worst appears to be behind us.

From April to July, the AMCI is certainly pointed higher, but the sentiment is academic until collectors pry open their checkbooks and take action. Right now the money isn't flowing, and that's what has to change for the market to rebound.

If you put any faith in conventional wisdom, the best time to invest is when the market is at the bottom. So, there's no time like the present to put some cash into the fine art asset class. Hey, what passes for a solid performance these days is more than 70 percent off last year's levels. Before you invest anywhere, it pays (sometimes literally) to do your homework, and this is especially true with the art market. A fourth grade math education equips you to watch a stock prices ups and downs – and it is supplemented by what we pick up on the nightly news and (I hope) on the likes of BloggingStocks and DailyFinance.

Art, however, is different.

To understand this market, you're staring down the task of learning thousands of years of product history, in addition to a relatively illiquid marketplace in which prevailing tastes play a major role. You can carve this mammoth amount of information into smaller pieces, but you still need to identify a starting place. It's easy to get intimidated ... and also unnecessary. Take a look at the 10 tips below to make the art market a bit more accessible.

1. Take a recreational interest in art
If you're going to commit several thousand dollars to an art investment, you really ought to be interested in it. Start by going to museums, just to get a sense of the breadth available to you ... and to decide what you like. Some of the most attractive pieces may be way out of your price range. I love Francis Bacon's work, but there's no way it will grace my walls anytime soon, not even with the help of the current art market slump. But, you can use the masters to get a sense of the styles that turn you on, which you can use to choose pieces that are closer to your price range.

2. Know where to find insights
Okay, my bias toward Luxist's art market reporting is pretty obvious, but the articles here can help you get started. Also, check out art market publications like ArtInfo, ArtPrice and Art Market Blog. Bloomberg also provides solid art market coverage. Once you have the basics nailed down, spend some time on the auction house websites, like Sotheby's and Christie's. Get a feel for how the marketplace operates.

Gallery: The artwork of Julio Aguilera