auction houses

The exclusive opening of Art Basel – for the most serious buyers – had the desired effect. The most famous art show in the world attracted the likes of art collector Roman Abramovich (however much it may be at the behest of his squeeze) and fetched some major sales, including $15 million for a sculpture by Pablo Picasso.

So, who joined Abramovich in scratching the art itch ... one that's been hard to scratch since the art market collapsed in 2008? Well, Val Kilmer, Peter Brant and Laurence Graff were among the elite.

Prices haven't returned to 2007 levels, noted art dealer Nicholas Maclean to Bloomberg News, but he added that the top stuff is selling well. This doesn't exactly defy common sense, of course. There are 303 galleries at Art Basel this year, and they're all hoping to ride this wave.

A Christie's International auction in Paris the day before Art Basel started set the tone for the affair. A sculpture by Amedeo Modigliani moved for $53 million, setting a record for the French auction market.

The numbers may not have big, but it felt like 2007 all over again during "Russian Week" in London. Russian billionaires descended on the art auction houses and fought fiercely for prized lots. Compared to last year, auction sales nearly doubled, with the Russians spending $86 million to repatriate icons, paintings, porcelain and Faberge items. This follows $18.5 million in Russian art sales by Sotheby's and Christie's in New York back in April.

The most popular pieces were early 20th century modernist works, with the top lot Alexander Yakovlev's "Titi and Naranghe, Daughters of Chief Eki Bondo." It was good for £2.5 million, almost tripling its high-end presale estimate of £900,000.

Sotheby's was the top auction house of London's Russian Week, generating £22.3 million by selling approximately 70 percent of its 615 lots. The result falls within the presale range of £19.3 million to £28 million.

Sir Winston Churchill memorabilia was good for more than half a million pounds. A collection belonging to Malcolm S. Forbes Jr. went under the gavel at Christie's, with 84 lots finding new homes. One of them was an unsmoked Havana cigar, which sold for £2,125. It soundly beat the auction's presale estimate of £1,500.

Included with the cigar was a note from the prime minister to Christopher Dunn, with whom he was dining: "Sir Winston Churchill... gave me this cigar at Luncheon – Hotel de Paris [Monte Carlo]" 12 April '63."

Forbes developed this collection over 30 years, and it sold for a total of £577,063 ... and it's only the first of three auctions from this private collection. The ultimate total is expected to exceed £1 million.

We cover a lot of the big auction houses here on Luxist but smaller auction houses offer quite a few treasures too. Clars, an estate auctioneer based in Oakland, California is having what is anticipated to be the largest and most important sale in their more than 60-year history on May 15 and 16. The sale comprises lots that span 400 years and come from four major estates and other important consigners. The sale includes 17th and 18th century furnishings and art from both contemporary artists and Old Masters. Clars is representing the Lane & Jenkins Trust of San Francisco, the Frank Hinman Estate of San Francisco, the Dr. Sydney Widrow Estate of Hawaii and Carmel; and the Dr. Lawrence Loftus Estate, also of Carmel.

Two of the key lots in the furniture category are a circa-1650 Charles II small Oyster-style walnut inlaid chest from the Widrow Estate (estimate: $10,000 to $15,000) and a circa-1730 George II walnut veneered chest on chest. (estimate: $8,000 to $12,000). A monumental Dirk Van Erp Studios vase will be offered, as well as a 1799 George III celestial floor standing globe estimated at $5,000 to $7,000. The painting shown at right "Moonrise over the Mojave" by Maynard Dixon (Californian, 1875-1946) is estimated at $150,000 to $250,000. The contemporary category will include original prints by Roberto Matta, Joan Miro and Pablo Picasso. Coming from the Widrow Estate will be a framed silver gelatin photograph by Ansel Easton Adams (Californian, 1902-1984) titled "Clearing Winter Storm, Yosemite," estimated at $40,000 to $60,000.

Clars sales end with fine jewelry. The top lot in the jewelry category is a diamond ring mounted in platinum, center set with one round brilliant cut diamond weighing 9 carats (GIA stated M color and SI1 clarity) surrounded by 52 round diamonds weighing 1.10 carats. (estimate $90,000 to $120,000)

Approximately 2,000 lots in total will be offered over the course of this two-day event and internet live bidding will be provided by LiveAuctioneers.com.

The Impressionist and Modern Art sales on May 4 and 5, 2010 are likely to confirm a continued climb in art auction pricing. We're now six months or so into the badly needed upswing, and there's plenty of room for optimism. Not only are the presale estimates and sales on the way up, but the number of pieces being resold quickly is on the rise, as well. This means that there's a high degree of liquidity in the art market: collectors can sell easily and without worry (as long as the inventory doesn't suck, in which case there's no hope, of course).

The increase in art market liquidity is due in part to the return of guaranteed minimum pricing, in which the auction houses assume some sales risk for attractive or desirable pieces that they feel can beat the numbers and attract buyers and sellers of other strong works. According to ArtPrice, there are "tens of millions of dollars for major works" committed via guaranteed minimum pricing, indicating that confidence is up.

It's the price guarantees that have led to the arrival of some strong pieces at the early may auctions this year, including pieces from the collections of Mrs Sidney Francis Brody, Raymond and Miriam Klein, Bernard Goldberg and Michael Crichton. Brody's works alone could fetch up to $150 million. The high estimate for Christie's is $300 million, a target that doesn't include the top lot, "Nude, Green Leaves" by Pablo Picasso, which as Jared Paul Stern revealed in a recent column is expected to bring in as much as $90 million. Other artists with eight-figure estimates include Henri Matisse, and Alberto Giacometti.

Don't just look for good news – also a expect a few records to b set. Sotheby's has high hopes for pieces by Salvador Dali and Auguste Rodin.

The May art sales are coming, and I, for one, can't wait to see what happens. The art market took an exciting turn at the end of 2009. Prices appeared to be on the mend, though nobody was willing to believe it fully – not after the tumult experienced for the year and a half before it. Tentative steps gave way to optimism at the beginning of this year, leading many to accept that the art market is coming back. Collectors opened their wallets. Auction houses put better works on the block. Everything looked good.

Unfortunately, there hasn't been much action in the major categories since February. This is strictly a function of the auction seasons. Sure, we've had the Armory Show in New York and Phillips de Pury's anemic sex-themed auction, but this doesn't scratch the big-money art market itch. At the beginning of March, Sotheby's moved Andy Warhol's "Self Defense" for $420,000, well ahead of the presale estimate of $250,000 to $300,000. Christie's pushed "Two Jackies" for $446,500, more than 10 times more than the low-end presale estimate of $40,000. Yet, without piercing the million dollar mark, it's hard to capture anyone's imagination.

So, we've had to wait – and will have to continue to do so until May. In the meantime, anticipation has been mounting. What's coming up next?

On April 11, William J. Jenack Estate Appraisers and Auctioneers will hold an auction featuring an important Imperial Russian silver box, among other antiques and fine art.

The Russian silver and enamel covered box with a gilt interior has an enameled scene of an 1883 painting, "A Boyar Wedding Feast," by Konstantin Makovsky, signed I.P. Khlebnikov, and measures 1½ by 2½ by 35/8 inches.

Besides being a beautiful work of hand craftsmanship, the silver box is also interesting because of the circumstances surrounding its sale a year and a half ago. In fact, this is the second time William J. Jenack will be selling the silver box because the winning bidder the first time around refused to pay for his purchase.

Indeed, in September 2008, the box was sold at a William J. Jenack auction to a phone bidder for $400,000, which was the result of a heated competition that involved several members of the live audience and half a dozen phone bidders from around the country.

The box, which then had an estimate of $4,000 to $6,000, attracted a great deal of pre-sale attention. "Needless to say, no one anticipated the response that the box achieved," says William J. Jenack, auctioneer and owner of William J. Jenack Estate Appraisers and Auctioneers. "The comparables in the marketplace at that time, never reflected numbers that we were able to accomplish at that time."

Before the box even went up for auction, the auction house received countless calls from interested buyers around the country. "We had people submitting offers to purchase the box before the auction," says Jenack. "Some of the offers were so large---in the $70,000 to $90,000 range---that we realized our pre-sale estimate was way off the mark."

During the 2008 auction, Jenack noticed many people in the audience he did not recognize. The bidding opened at $40,000 and the bidding bounced around the audience until it reached $100,000 when phone bidders entered the competition. "The people in the audience gave up at $150,000 and the phone bidders carried the bidding to $400,000," recalls Jenack.

The silver box was sold for $400,000 (not including a buyers premium of 15% and any applicable taxes) to a phone bidder, who was a Long Island, N.Y.-based dealer who specializes in Imperial Russian works of art.

"The buyer later contacted us to see how much the amount would come to," says Jenack. "We provided him with that information and sent him an invoice." Subsequently, the dealer defaulted on the purchase, and litigation ensued.

In early March, a New York Supreme Court Justice awarded damages against the defaulting purchaser of more than $497,398, representing the successful bid, taxes and buyer's premium. The decision is currently the subject of an appeal in New York State courts.

"Now we have to sell the box again," says Jenack. "Whatever it brings will be deducted from the total that the dealer owes us."

The box is important because it was made by Khlebnikov, who was a craftsman who worked for the House of Fabergé, the jewelry firm in Imperial Russia that designed elaborate jewelry, silver and the famous Easter eggs for the Russian Tsars. Khlebnikov is known to have created objects on his own, such as this piece, without the Fabergé seal of approval. The Khlebnikov box has a pre-sale estimate of $100,000 to $400,000.

The April 11th auction will also highlight Period American, French & Chinese furniture; Chinese & African works of art; American & Continental paintings & prints including signed works after Nikolai Egorovich Sverchkov, Milton Avery, Ivan Konstantinovich Aivazovsky, Bruno del Favero, Rolph Scarlett, Florence Kroeger, Charles Zacharie Landelle; animation art; fine & costume jewelry; small collection of stamps including Duck stamps; door stops; art pottery; Victorian porcelains; Vatican Papal Grand Cross Set of Equestrian Order of the Holy Sepulchre of Jerusalem; fossils including a fine ammonite (15 ½ x 18"-approx. 60 lbs) and decorative accessories.

Previews will be held at the William J. Jenack auction facility located at 62 Kings Highway Bypass, Chester NY 10918 on April 7th from 12:00 pm to 5:00 pm; April 8th from 2:00 pm to 5:45 pm; April 9th and 10th from 12:00 pm to 5:00 pm; and on the day of sale from 9:00 am to 10:45 am. For further information contact (845)469-9095 or email kevin@jenack.com. The catalogue for the sale will be available on-line Friday, April 2nd.

The auction, which will be held live in William J. Jenack gallery, will also be held simultaneously online at www.liveauctioneers.com. It will take place on Sunday, April 11 beginning at 11:00 am. The William J. Jenack website is www.jenack.com.

Despite an early sign of success with the February 2009 Yves Saint Laurent auction, France wasn't able to knock China from the #3 spot among the world's art markets. According to Artprice, China finished the year behind the usual leaders (New York and London), making considerable progress in a severe year for the art market. Fine art sales in China hit $830 million, taking a 17.33 percent share of the global market. In 2008, China had only a 7.83% share. Nearly half the 2009 fine art result in China came from three auction houses: Poly International, China Guardian and Beijing Council. The Hong Kong branches of Christie's and Sotheby's were good for another $200 million.

Because of the strength the Chinese art market showed last year, 15 Chinese hammer prices, including a contemporary sale, forced their way into the top 100 results worldwide ... and ever.

The action was small at only $9.6 million, but big names were featured at the Phillips de Pury art auction on Friday night. Donald Judd and Jean-Michel Baquiat went under the gavel and home with collectors for the third auction in a row. This follows solid results at Christie's and Sotheby's, marking a distinct turn in the fortunes of the art market.

Phillips de Pury didn't match Sotheby's and Christie's in terms of above-estimate totals and older works, but that really is the norm. So, I wouldn't view the fact that it only hit the middle of its presale estimate pessimistically. Given what was sold earlier in the week at the larger houses, the Phillips sale does nothing but confirm the direction of the art market.

Established artists did continue to rise aove the fray, with Judd's 1987 sculpture, "Untitled (87-29 Studer)," selling for £735,650. Basquiat's "Cash Crop" landscape and collage "Untitled" were the second best sellers behind Judd's work at £713,520 each. All beat their low-end estimates of £600,000.

There was a concern that Phillips would struggle to attract buyers, particularly because the auction was focused on living artists. While the challenge may not have been evident from the fact that 86 percent of the lots sold, it was confirmed by the tendency of them to move at the low end of the presale range.

It looks like art market watchers (including me) were right for the wrong reasons. At the Sotheby's contemporary art auction last night, $84.5 million in sales were completed, but the highly coveted Lucian Freud didn't hit its low estimate. Lucio Fontana, Yves Klein, Willem de Kooning, Peter Doig and Frank Auerbach, however, led to pitched bidding battles.

The evening's highest price was paid for de Kooning's "Untitled XIV," which fetched 4 million pounds over the phone, beating its high-end estimate by a third. The seller was a collector from Europe who picked up the painting from the artist's estate. Doig's "Saint Anton (Flat Light)," an Alpine scene, was good for 2.8 million, also via phone.

But, Lucian Freud still stole the spotlight, if not the top bid. His self-portrait with a black eye carried a low-end presale estimate of 2.8 million – after having been offered at a lower price in private sale before the auction. The seller, Victor Chandler, is a bookmaker based in Gibraltar with a penchant for secrecy: his press officer refused to be named (according to Bloomberg News).

The Lenz collection, also high-profile, performed very well at Sotheby's. Only one of the 47 lots wasn't able to move, and the entire collection sold for 23.2 million pounds, soundly beating a presale estimate of 11.2 million pounds to 15.2 million pounds. The most expensive piece was Klein's "Fire" painting "F 88," which brought in 3.3 million pounds, just shy of its high estimate of 3.5 million.

The evening's surprise came from Auerbach, who's 1956 drawing was purchased by London art dealer Offer Waterman for 1 million pounds, far above the presale estimate of 50,000 pounds to 80,000 pounds. Interestingly, Sotheby's senior international specialist Oliver Barker noted to Bloomberg News, "The gap between Auerbach and Freud and Bacon is closing." Are we seeing a new evolution in the Francis Bacon supply chain?

Overall, the contemporary art auction beat its high-end presale estimate of 45 million pounds and thrashed the 2009 result for the same auction, a mere 17.9 million pounds for 27 lots.

It looks like not all the revenue ticked up at auction last fall turned into a tangible upside for Sotheby's. The auction house is suing two Chinese buyers for $270,300 because they never paid the tabs they bid up. According to Sotheby's, the winning bidder of a Qing Dynasty cloisonné censer and cover didn't pony up the cash required, "despite repeated requests and demands." Ouch! Another purchased took five antique paintings without paying the tab, Bloomberg News reports.

According to Kevin Ching, CEO of Sotheby's Asia division, the company wants "to send a message it won't stand for defaults." Ching continues, "We can't have people bid at our auctions and disappear without paying." To show he's serious, he says he's willing to pursue legal action in mainland China, on the off chance that "they think the long arm of Hong Kong law couldn't reach them." And, with Hong Kong now the third largest art market in the world (after New York and London), the message will reach a pretty broad audience.

Sotheby's won't reveal the identities of the non-payers, citing confidentiality policies.

The art market's biggest question turned out to have a $200 million answer at Sotheby's on Wednesday night. Led by Alberto Giacometti's "L'Homme Qui Marche I," which an anonymous bidder picked up for more than $104 million, the auction house realized a total take of $235.7 million on 31 sold lots. Nobody expected this outcome, not even the most optimistic art market spectators, let alone a committed pessimist like me. Of course, my first instinct is to suggest that we wait for the contemporary art sales next week, but it's hard to deny that this week's outcome is both promising and exciting.

The Giacometti set a new record for the artist, sailing past the $27.5 million picked up by "Grand femme debout II" at a Christie's sale in May 2008. In driving nearly half the auction's sales, this piece made it clear that the art market comeback is more than the wishful thinking of collectors who have spent more than a year and a half watching their pieces lose value. A year from now, we'll be looking at "Homme" as the symbol of the art market's recovery, much as we've come to see that final $85 million Francis Bacon sale in May 2008 as the peak before the decline.

Eight lots failed to sell at the Sotheby's Impressionist and Modern evening sale, but this hardly matters when considered against the auction's overall performance. Presale expectations were beat by more than 100 percent, thanks in large part to the fact that 17 of the lots sold for more than £1 million each. Three lots crossed the £10 million threshold. Works by Georges Seurat, Paul Cezanne, Gustav Klimt and Camille Pissarro easily pushed into seven-figure territory.

Sotheby's reached the high end of its presale estimate for its Important Old Master Paintings and Sculpture auction on Thursday. The sale was expected to generate between $38 million and $55 million, and the final result came in at $53.4 million. The top performer was "Jupiter and Antiope," a 1612 mythological scene by Hendrick Goltzius, though the $6.7 million winning bid failed to reach the low end of its presale estimate of $8 million to $12 million. The last high for this artist, though, was $1.5 million, set in 1996 when the art market was recovering following the burst of its early 1990s bubble.

Rembrandt's "Portrait of a Young Woman with a Black Hat" was also estimated at $8 million to $12 million, but the painting never made it under the gavel. The piece was withdrawn at the seller's request, Sotheby's told ArtInfo. He'd picked up the piece at a Sotheby's New York auction in January 2007 for $9 million, paying much more than the $3 million to $4 million estimate.

It looks like Christie's agrees with me (or, I agree with Christie's): the art market is going to recover this year. The auction house, which is bringing some powerful inventory under the gavel at its contemporary art sale next month, expects the market to recover this year. With the improvement in conditions, price guarantees may return, as well.

In 2009, Christie's states, sales fell to 2.1 billion pounds, a decline of 24%. For the contemporary category, which was hit worst by the art market slump, sales dropped 59% to 244.3 million pounds -- in 2007, it only took a handful of pieces to get up to this amount.

According to Edward Dolman, chief executive of Christie's, "These figures were much better than we expected." He observed to Bloomberg News, "The art market is vulnerable and we thought we'd be down 50 percent, as we were in the last recession in 1991." Christie's, along with the other major house, Sotheby's, were able to compensate for weakness in contemporary art with sales of Old Masters, wine and jewelry. Also, performance in Asia contributed to the salvaging of 2009, where average selling rates by lot gained 5% to 80% in 2009.

The Old Masters group gained 1% last year, one of only four categories to show an up-tick in 2009. The best performer, however, was the 20th Century Decorative Arts category, which posted a 149% increase, helped along by the 21.9 million euros paid for an Eileen Gray chair at the record-setting Yves Saint Laurent sale.

In 2008, an astounding 65 pieces by Damien Hirst fetched seven-figures each at auction. The total came to $230 million. The numbers are nothing short of staggering, especially when you compare it to what he did six years earlier, when the annual total for his work hit a mere $2 million. Clearly, some excitement was generated, and art collectors rode the wave. The last major sale was conducted at Sotheby's on September 15 and 16. "Beautiful Inside My Head Forever," as it was called, made a killing for the hottest living artist ... right before the financial world went to straight to hell. This bold move, however, led to a period of silence for the artist and stagnation for his collectors.

Shortly after the mortgage market mayhem became a global financial affair, unsold rates for Hirst's work shot from 11 percent to 55 percent by the end of the year. A mere 12 months after his he emptied the insides of his head -- not to mention plenty of inventory -- prices for Hirst's work returned to 2004 levels. A year after buying "Butterfly" painting "I Miss You" in late October 2008, Christie's unloaded it for a mere $450,000, only half what it had paid. In 2004, the piece's initial auction price was $415,000. I suspect this is at least part of the reason why the auction houses backed away from guaranteed minimum pricing ...

With the books closed on 2009, only two pieces by Hirst pierced the million dollar mark, both from the "Butterfly" series. "Tranquility" brought in $1.5 million back in May at an auction in Hong Kong. Almost half a year later, "The Importance of Elsewhere-The Kingdom of Heave" brought in close to $2 million, again at a Hong Kong auction. Both sales came from Seoul, not the usual New York and London communities.