Ponzi schemer Bernard Madoff has been sentenced but many of his investors are still looking to recoup some of their money. There may be a potential bit of money coming their way from J. Ezra Merkin, a New York financier who put his clients' money in Madoff's hands. Merkin, a noted art collector, is selling a collection of Mark Rothko paintings and Alberto Giacometti sculptures for $310 million. The painting shown at right is not one of Merkin's Rothkos but shows the style of painting that Merkin will be parting with. He was one of the leading collectors of Rothko works and even bought works directly from the Rothko family in 2004 for $91 million.

THe deal was announced by New York Attorney General Andrew Cuomo, who had put a freeze on Merkin's assets. The Wall Street Journal says that around $192 million of the proceeds might make it into the hands of defrauded investors. The rest of the money will go toward paying liens on the art, sales commissions, fees and taxes. According to documents sourced by the WSJ, PaceWildenstein LLC, the gallery that acted as a sales representative for the family, has a $42 million lien on behalf of the Rothko family regarding those paintings bought in 2004 and it is possible that now they will buy those paintings back.

The WSJ article seems to indicate that the price for the collection is high given the recent art market slump. The painting shown at right "White Center (Yellow, Pink and Lavender on Rose)" which was sold by David Rockefeller in 2007 brought in $72.8 million at a Sotheby's auction but other Rothkos have sold for less and in recent months several Rothkos have failed to sell at all.

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.

Its mid-May performance was nothing to scream about, so Sotheby's didn't take any chances at last night's contemporary art auction in London. Three works by pop art king Andy Warhol moved for $10.5 million, accounting for 25 percent of the $42 million in sales. In all, 40 lots came under the gavel and came in just under the high estimate of $45 million. A surprisingly high 92.5 percent of works found buyers.

This year's London results for Sotheby's are off 73 percent from the late June 2008 contemporary art auction, indicating that low expectations played a role in last night's success. The average price last year was around $2.2 million, dropping this year by 48 percent as a result of a protracted art market recession. Well, Tobias Meyer, worldwide head of contemporary art for Sotheby's calls it "a performing transitional market," but you know what that means.

If the latest results tell us anything, it's that death is the cure for dying. An ailing art market is now showing signs of life thanks to the dead guys whose art continues to be in demand. Earlier auctions focused on lower cost, less prominent, "cutting edge" artists as an attempt to get collectors to open their wallets in smaller increments. Now, we're looking at a possible flight to quality. Ninety percent of the pieces auctioned had been under the hammer before.

So, is there any meaning in today's art market? Eh, maybe. It's schismatic. It's fun. And, at least it gives bloggers something to write about.

Over the next few days, delegates from 50 countries are meeting to discuss the commitments of governments around the world to track down and return items stolen by the NAZIs. On the agenda will be the extents to which specific nations have enacted a 1998 agreement called the Washington principles (non-binding). This year, the conference is considering a new declaration on stolen art.

An estimated 650,000 pieces of art were estimated to have been stolen under Adolf Hitler's 12-year reign. More than six decades later, 70,000 pieces remain missing and sought by their owners.

While the Washington principles are considered to be a great foundation, the current problem is that they have yet to be implemented. At the upcoming conference, the delegation will announce rankings of countries based on how fully they have implemented the Washington principles. Among those that have failed to deliver are Russia, Hungary, France, Italy and Spain. Austria and Netherlands are said to be most compliant with the principles.

On June 23, a new exhibit opened at the Met: Afghanistan: Hidden Treasures from the National Museum, Kabul. My friend and I were able to go a few days before the opening, thanks to a members-only preview, courtesy of my mother.

History and fascinating story of the treasures' discovery aside (read here if you'd like even more background), I was wowed by the gold. Much of what's on display was discovered either in archeological digs or in a vault in the presidential palace, where citizens with foresight hid the treasures to protect them from war: jewelry, a belt, an amazing crown (shown here; it breaks down into six pieces for easy transport), a dagger sheath, clasps, anklets, rings, pendants, bowls ... the list goes on.

My favorite item, just for the sheer excess of it all -- and proving that showing your status via footwear is not a new thing -- was the pair of gold shoe soles designed to be placed with a body when buried. I guess mere sandals wouldn't do in the afterlife.

My friend and I really enjoyed the exhibit, which features many more items, gold and non-gold, such as glass, ivory and gemstones. But the gold alone is worth seeing if you are in NYC or planning a visit this summer. The exhibit will be at the Met until September 20 and is included in the price of admission to the museum.

(BTW, I also saw the Francis Bacon exhibit while there. He scared me a little, but viewing his work, you can see it's from the mind of a tortured genius.)

Paintings by Claude Monet and Pablo Picasso may have sold for $20 million, but the overall take of $61 million was off 74 percent from last year's Christie's Impressionist art auction. Forty-four lots came under the gavel last night with results good enough to beat the minimum estimate by ₤250,000 ($400,000) ... but you have to remember that the low end of the estimate is already low-balled. Even though expectations were roughly met, it was a tough night in London.

Last year, 81 lots fetched more than $250 million, close to $100 million of which came from Monet's "Le Bassin aux Nympheas." Monet was among the stars at Christie's this year, too, but at a fraction of the amount. As expected, the number of high-profile pieces coming to auction is down because the auction houses are no longer guaranteeing minimum prices.

Only 68 percent of the lots brought under the gavel moved this year mostly in the range of $450,000 to $900,000. In this "middle market," a third of the lots failed to sell, and only two were able to beat their high estimates. Usually, Christie's is able to hit a sale rate of 80 percent for this sector.

So, what does this art auction teach collectors across the market? Hitting low estimates is no sign of recovery. Lower standards that are barely met is far from an upswing. Managing expectations is far from art market managing returns.

The Thinker is one of the most recognizable sculptures in the world. It even has a role in the film Night at the Museum: Battle of the Smithsonian. Last week one of the Thinker sculptures by French master Auguste Rodin was sold at auction for more than 3 million euros ($4.2 million) in Paris at auctioneers Drouot. This Thinker, which is just 28.5 inches high, set a record for any of the Thinkers. This statue is part of a series of 21 sculptures made by Rodin. It was originally meant to be part of Rodin's Gates of Hell inspired by Dante's Divine Comedy. Rodin made a first small plaster version around 1880 and the first large scale bronze was presented to the public in 1904. This particular Thinker was purchased by Emile Chouanard in 1917, the same year it was cast. Another Rodin statue owned by Chouanard, "Little Eve" also sold for a record price of over 2.4 million euros at the auction.

[via Reuters]

Nobody can find a trace of the good vibes from the May contemporary art auction at Christie's. London art sales are off an estimated 70 percent this month from a year ago. The amount of top-shelf lots being offered has fallen precipitously. Auction house price guarantees are little more than a quaint novelty – this last bit spells continued heartache for the beleaguered art market.

So, if you're looking for Pablo Picasso, Francis Bacon or Richard Prince, you're more likely to find them in a museum than under the gavel.

The lack of price guarantees has been particularly problematic for the art market. Without that fallback position, collectors are withholding their pieces from auction, instead pursuing private sales ... or simply continuing to hold the pieces. It follows traditional investment strategy. Would you buy high and sell low? The same thinking applies to the art market.

Last year, six works were guaranteed and sold for more than $20 million. This year, nothing is expected to cross that threshold at auction. Both Sotheby's and Christie's have shrunk their catalogues by 10 percent and are even using these auction marketing tools to promote their private sale departments.

All of this sets the stage for the upcoming Impressionist auctions at Christie's (June 23, 2009) and Sotheby's (June 24, 2009). Estimates are low, with the former at $62 million and the latter at $44 million. Last year's estimates were well over twice this year's. On the June 25, 2009, Sotheby's will hold a contemporary auction and expects to pull in a mere $31 million, down more than two-thirds. The Christie's contemporary auction on June 30, 2009 is estimated at $29 million, down 78 percent from last year's estimate. There won't be as many works from the masters coming to market, thanks to the absence of guarantees.

Looking for a cool piece by Lucian Freud? Try MoMA.

I've been dying to write about the sexy, gorgeous Polaroid photography by artist Matt Schwartz of She Hit Pause Studios for ages, and now, thanks to Henri Bendel, I have the perfect excuse to do so.

Monday night marked the launch of a permanent She Hit Pause exhibition at Alison Nelson's Chocolate Bar at Henri Bendel. The party featured free chocolates, free drinks, and several raffles including surfing and photography lessons.

Why surfing? Because surfing is one of Schwartz's favorite photographic subjects (click here for examples). Really, you have to see these photos -- they invoke memories and inspire fantasies with a haunting and gritty glamour.

Schwartz was there at the party, smiling as he looked around. "This party is like my dream," he said. "All these people looking at my work." His humility speaks well of him -- but it won't be long before he's no longer surprised by all the appreciation. This kid is really, really good.

Check out the gallery for photos of the fete which showcased some brand new, not-available-yet photos from a recent trip to Ecuador. And if you're interested? She Hit Pause prints are available on the website for highly affordable prices -- don't be shocked if that price goes up soon -- or you can visit the luscious photography and grab something sweet at the Chocolate Bar at Henri Bendel.

A sketchbook full of crayon drawings by Pablo Picasso has been stolen from the Picasso National Museum in Paris. The notebook contains 32 drawings and is estimated to be worth between $8.4 million and $14 million. The drawings are dated 1917 to 1924. The sketchbook was stolen from the first-floor exhibition room and noticed to be missing just before lunchtime on Tuesday. The independent says that there were no signs of a break-in and the alarm system did not go off.

The 6 inch by 9 inch pad was kept in a high security glass cabinet which could only be opened with a special key but there is some question of whether or not the lock was broken. There were no security TV cameras. A special exhibit of the works of Daniel Buren which is being shown in the museum includes a giant mirror that may have blocked the view of the staff.

The museum is located in the Hotel Sale townhouse which has been under renovation for the last couple of years. Many of the museum's major Picasso works are currently away on loan to raise money for the renovations which is why exhibits by other artists are being shown in the museum. Paris police have said it looks to be a well-organized theft and that the works would be hard to sell on the open market. One thing that concerns me is the possibility that the sketches could be broken up and sold individually on the black market.

The major pieces that typically define Art Basel, the world's largest art fair, are being eschewed last year in response to the largest art market plunge in nearly 20 years. If you're hoping to see the likes of Andy Warhol's work at the show in Switzerland this year, you'll have to hunt. The show opens to VIP visitors today, but you won't see much up-market art in attendance among the 300 galleries and 2,500 artists represented.

Galleries and dealers are being realistic. Average auction prices fell 76.2 percent from May 2008 to the present, according to ArtTactic, a London-based company that analyzes the market. The unexpected $93.7 million result at the Christie's contemporary art auction in May was based on lowered expectations, tainting the success. Consequently, the art on display is generally "priced to sell." A small 1964 Warhol silkscreen self-portrait is being offered for $675,000, though it would have been put up for a $1 million last year. Effectively, prices have returned to 2005 levels.

Of course, a lucky few will be able to take care of the "shadow fair" that's likely to emerge at Art Basel this year. While some will be stuck working the booths, others will strike private deals, usually involving pieces offered on consignment from collectors.

Pierre Konowaloff believes that Van Gogh's painting, "The Night Café," was stolen from his great-grandfather during the Communist takeover of Russia. Now, it belongs to Yale University, and he wants it back.

According to this claim, Ivan Morozov acquired the painting in 1908 and owned it until the Russian government snatched it in the 1918 "change" to Communism. What was Morozov's, it seems, became Lenin's. Then, it passed through galleries in Europe and New York until it was eventually left to Yale by a collector in 1961.

The hook, for Konowaloff, is that Yale took the painting "with reason to know that it had been unlawfully confiscated or 'nationalized' without compensation," according to a report in Bloomberg.

This isn't the only claim that Yale is facing. The university also has to contend with a suit by the Republic of Peru, which wants to reclaim artifacts excavated from Machu Picchu.

When art collectors beef, there are no dis' records. Instead, there's just beef. Canadian art collector Jolles Shefner picked up one of Chaim Soutine's paintings from the Le boeuf (Piece of Beef) series for a mere $68,000 in 1981. She went home and hung it in her living room for the next 23 years. Then, she sold it for $1 million. Half a year after that, Soutine's beef wound up in Washington, D.C.'s National Gallery of Art, which paid $2 million for it. Now, all the people in this chain of transactions have beef. When someone makes a great deal, it's usually at the expense of the person on the other side.

Shefner's heirs sued the middlemen from Jolles' sale and the National Art Gallery – essentially for fraud. Though the truth is still struggling to the surface, Soutine experts Maurice Tuchman and Esti Dunow appear to be involved in both the Shefner sale and the later sale to the National Gallery of Art. Shefner's estate seems to have accused Tuchman and Dunow of market manipulation, using their Soutine savvy to maximize their earnings.

In the lawsuit filings, Shefner's heirs claim that Tuchman and Dunow left "at least half a dozen" comparable Soutine sales from the list they provided to the Jolles to support the 2004 valuation and sale. And, these folks are saying the National Gallery of Art didn't investigate the source of the painting sufficiently. Of course, the family wants the painting back.

Tuchman and Dunow deny any impropriety and have indicated that Jolles' daughter received an independent valuation from an auction house that put the value of the painting at $1 million. But, the dynamic duo of Soutine wanted to restore order to the world. So, they agreed to pay $210,000 to the National Art Gallery in a settlement deal so complicated, you'd think it would be intended to end in the death of James Bond. They will authenticate the painting and maintain a provenance listing. The painting itself will go back to the Shefner family. The National Art Gallery will pick up $1,325,000 in cash from the Shefner heirs and a seven-year promisorry note for $650,000. All three payments come to $2,185,000. The museum walks away with a small profit – and it holds onto the painting until the promissory note is paid.

"Alexander watching Apelles painting Campaspe," a long-lost work by French artist Jacques-Louis David is set to go under the gavel at Sotheby's on July 8. The piece was unveiled publicly for the first time in 84 years yesterday in New York in anticipation of the London auction next month. At the Old Master Drawings sale, David's work is expected to go for approximately $1.2 million.

David did not produce many elaborate drawings on the scale of "Alexander," which will put the ultimate winner in exclusive company. The work was originally given by David to Baron Gros, his favorite student, in 1820. Since then, it has only been held in private collections, with no public visibility.

Hoping to draw some momentum from the recent success at Christie's – and the auctioning of this unique piece, Sotheby's expects a strong showing at the London auction.

Charlie Keila laughed at me. I had just commented on how hot his studio gets, and he couldn't contain the amusement of a man who deals with it every day. Artists who work in glass spend a lot of time around 1,900 degree ovens – it's just part of the job. When you look at the work produced, though, you can see why it's worth becoming acclimated to the sweltering conditions. Keila can only be described as a master.

Keila's studio sits at the corner of Orange and Pine in Orlando, FL – just across the street from Corona Cigar Co. – in the City Arts Factory. In fact, the artist was in large part responsible for the location. After having learned the glass art trade elsewhere, he returned to the town of his teenage years, bringing with him a commitment to arts and culture for which Orlando had been desperate.

This is the Orlando that's obscured by "The Mouse" ... but it exists. If you look past the theme parks and set your sights on downtown Orlando, you can find a vibrant culture that deserves far more recognition than it receives.

For years, Keila says, Orlando has effectively exported its talent. Artists and business professionals alike grow up in Orlando and take their talent elsewhere. The community is deprived of the talent it creates, resulting in a cultural and professional vacuum. This is exactly the problem that the glass-blower sought to solve when he decided to return.