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.

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).

Christie's is looking for a thrill on November 10, 2009. The auction house is sending an Andy Warhol portrait of Michael Jackson under the gavel, with a presale estimate of between $500,000 and $700,000. The piece, measuring 30 inches by 26 inches, is one of a small collection of silk-screens the King of Pop Art created of the King of Pop in 1984.

The Jackson piece is being sold by an anonymous collector in New York, according to Brett Gorvy, the deputy chairman of Christie's. The current owner purchased it from the Andy Warhol foundation sometime in the 1990s.

Forty-six lots will be auctioned along with the Jackson portrait, and there will be two other paintings by Warhol.

Back in August, a similar Jackson painting by Warhol was sold. The buyer chose to remain anonymous, and nobody will reveal the price ... except to say that it went for more than $1 million.

Don't call it a comeback ... well, because the bar's been lowered. At the post-war and contemporary art sales last Friday, both Christie's and Sotheby's nearly hit the high end of presale estimates. This marks a distinct turn from earlier this year, when the auction houses couldn't even reach the lowest ends of reduced expectations. Any comparison to last year is made difficult by the fact that both houses combined their auctions with Italian art sales. So, they open with "close to the top end of the range" and can't really be evaluated on anything else.

Values for the pieces are off -- that's pretty well known (especially to anyone trying to sell right now). Sotheby's brought in $32.8 million at the sale -- which also had Arab and Iranian art on top of the contemporary and Italian lots. Christie's picked up $27.7 million, with more U.S. buyers than expected.

We're again seeing an engineered reality that's driven by performance relative to presale estimates -- this is all the hint we nee to know that the art market is still pretty far from recovery. But, as we know, it could have been much worse. Hell, we saw how bad it could be for most of this year.

Last year, the Russians were buying art just as fast as they could. Now, they're doing the same thing in reverse. Sotheby's and Christie's are bringing $31 million in Russian art to market, thanks to a global recession that has left the country's many billionaires financially crippled and in desperate need of liquidity.

Christie's is hoping to rake in $21.6 million from today's Russian art auction, which includes a porcelain dinner set owned by once-heir to the throne Grand Duke Paul. Sotheby's has approximately $9 million in Russian art, which it plans to send under the gavel on November 2.

If art and economic never intersected, we could just enjoy the aesthetic and be done with it. But, reality forces its way in – especially with the Russian economy 10 percent smaller than it was a year ago. And, the number of Russian billionaires has plummeted from 110 in 2008 to 35 now. Wealthy Russians and Ukrainians, according to William MacDougall, co-director of MacDougall's in London, are responsible for more than 90 percent of the market for Russian art.

So, expect the selling prices to suck, frankly. Even with some strong lots – Alexis de Tiesenhausen, director of Russian art for Christie's calls this auction unique in terms of "quality and historical significance" – the target market is selling rather than buying. The Christie's auction consists of 550 lots. The Sotheby's auction will have 122 – including paintins by Natalia Goncharova and Konstantin Korovin.

Estimates are much lower than they were in 2008, because of supply at auction, the drop in the art market and the absence of buyers in the target market.

The news out of Hong Kong has been solid so far, even if it continues the trend of meeting or beating lowered expectations. After a year of abuse, I think art collectors, gallerists and the artists themselves are eager for any good news they can claim. September was rough, according to ArtPrice, "with no room for over-bidding or risk-taking." There was only one contemporary artist, Andy Warhol, who has met expectations, so far.

But, there's room for hope: Jitish Kallah.

Kallah's only 35 years old. Born in Bombay, his work has been described by ArtPrice as "crisis-immune." The market for contemporary Indian art has been in a hard way, with the Christie's South Asian Modern & Contemporary auction last month bringing in only $5.1 million in sales – where the presale estimate was $5.6 million. Yet, Kallah's work set a new record, with "Dawn Chorus – 7" going for $320,000 and beating its high-end estimate by a factor of three.

Meanwhile, Warhol continues to deliver. A piece from his "Flower" series in 1964 went for $895,000 at Christie's in late September and a "Cambell's Soup Can (Tomato Soup)" fetched $310,000 a day later at Sotheby's.

So, we have fear and hope in October. This week, both Sotheby's and Christie's will hold auctions in the photography segment, with Phillips de Pury following next week. And, there are London sales coinciding with the Frieze Art Fair.

Let's see if art collectors are ready to dress their walls again.

A college project by artist Damien Hirst sold at auction last week for roughly $50,000. The collage, "Red Rubber Ball," sold at the low end of the estimate, which ranged up to $80,000. The piece includes a variety of found objects, such as a toy rabbit, a severed head from a doll and a dried out rose. Originally, Damien Hirst gave the piece to Julie Balmforth, who studied with him at Goldsmiths College.

The collage measures 39.5 inches by 31.5 inches and sold at Duke's of Dorchester, in Dorset. While the buyer's identity was not revealed, auctioneer Guy Schwinge would say that it went to an Irish collector "who is very excited at his purchase."

Whoever picked up the piece did buy something rare: a piece actually created with Hirst's own hands.

Hong Kong will come to life with the sound of a gavel on Tuesday, October 6, 2009. Sotheby's will be holding its Modern and Contemporary Asian Art auction, which will consist of three sessions: 20th Century Chinese Art, Modern and Contemporary Southeast Asian Paintings and Contemporary Asian Art. More than 380 works by Asian artists will come to auction, and the house expects close to $25 million in sales. Beyond bringing some new cash into Sotheby's, the auction is likely to give a sign as to the strength of the market, particularly with the November sales following shortly. Christie's will be holding its Hong Kong auctions on November 29 and 30.

In a sense, this is the one-year point for the art auction market. It was a year ago – in Hong Kong – that the world saw the effects of the financial crisis unfold in the art market. So, this bit of trivia will be front-of-mind as bidders make tough decisions on which pieces to acquire.

Sotheby's is betting big on the Contemporary Asian Art category, hoping that 190 lots will bring in $12.5 million in sales. High-profile artists are represented, including Guogiang Cai, Minjn Yue and Zhengjie Feng. There will be 130 lots in the Modern and Contemporary Southeast Asian Paintings auction, including I Nyoman Masriadi's The man from Bantul, The Monster, which is estimated at $100,000. The 20th Century Chinese Art category has a mix of safe and speculative pieces.

On November 17, 2009, several celebrity-designed luggage will go up for auction at Sotheby's. The purpose is to celebrate the 150th anniversary of the Red Cross, which is about as worthy an organization as one can imagine. In all seriousness – most people have no idea the true range of services and support that the Red Cross offers. If a soldier overseas needs to be reached because of an emergency back home, the family can call the Red Cross, which will do all the legwork. So, it's exciting to see some big names getting behind this cause.

Among the designers, however, are some artists who have been in the news lately. Annie Leibovitz, fresh from her negotiations with Art Capital Group over her $24 million loan, is finding some time for goodwill despite her financial situation. Her contribution is a red-lined backpack designed specifically for camera equipment.

Damien Hirst has also gotten in on the charitable action. The taxidermist artist who developed a name dumping maritime life in formaldehyde and affixing as many diamonds as possible to skulls has put together a tall black trunk with little drawers to hold surgical devices – which is what Hirst uses to build his ... ummmm ... stuff. This piece, in particular, should be in high demand, now that a Damien Hirst piece may actually have been touched by Damien Hirst. Last November, he laid off 17 of the 22 people involved in his pill cabinet creation.

Let's hope that these pieces – and the others brought to Sotheby's in two months – sell for fantastic prices. Art market be damned! This event is for a great organization, and every extra dollar of success will help someone out who needs it.

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.

June auction revenues were off 70 percent in London this year, due in large part to job cuts and an unwillingness to guarantee lots. Even the occasional sign of hope had to be taken with a grain of salt, as lower expectations tended to magnify this year's results falsely.

Together, Sotheby's, Christie's and Phillips de Pury pulled in $269.4 million in this summer's sales – off 70 percent from a year ago. In addition to the mechanical drivers of lost jobs and guarantees, the auction houses haven't had an easy time bringing high-profile, high-value pieces to market. Every event in London this summer unloaded at least two-thirds of its inventory, and success rates rose to above 88 percent at the Sotheby's and Christie's events this past June, but lingering in the background is the notion that 2009, at this point, is nothing like 2008.

To some, the current art slump is reminiscent of the early 1990s, in which a bubble in Impressionist art pricing precipitated a general decline, and nobody could get a realistic sense of a piece's value. The market took several years to recover, but it has since passed the levels of nearly 20 years ago. The Impressionists are down 68 percent this year, roughly in line with global trends, with the contemporary market off approximately 73 percent. New York fared no better than London, with contemporary sales at Sotheby's down 75 percent and Christies off 72 percent.

Art auction houses are looking to protect themselves. Lacking a local "enforcer" to find once eager collectors and shake them down for every last dollar, the likes of Sotheby's and Christie's will spend the coming fortnight managing expectations while trying to eke out a living. Atop the agenda this season is the notion of protecting price levels for Impressionist, modern and contemporary pieces.

Reality has struck.

Sotheby's has revealed a sales target of $179 million to $256 million for the spring. Last fall, the auction house hit $411 million – which is paltry compared to the $742 million take at this time last year. The showpiece now is "Baroque Egg with Bow," a sculpture by Jeff Koons, which carries a Sotheby's estimate of $6 million. While this sounds rich for today's market, the house almost quadrupled that amount with a sculpture from the same artist in 2007.

For those who haven't been keeping score, 2007 for the art world was like 1999 for technology people.

By reinforcing concern through modest estimates and carefully selected lots, the major (and smaller auction houses) are subtly positioning themselves for any unexpected support. A strong spring auction – as measured by current economic conditions – could cause global art market confidence to rebound. A turn for the worse, however, would be exacerbated by already depressed hopes.

One client is putting up a third of the take at the Christie's wine auction this weekend. A total of 613 lots are available, with one party accounting for than 200 of them. This seller is described only as a "wealthy New York family" (duh). For collectors, according to the auction house's spin, this is a great time to buy. Prices are falling, which means that there are plenty of bargains out there.

Apparently, there's some wisdom to this perspective. At the Sotheby's auction last weekend, bidders dropped more than $2.9 million on vino, thrashing a pre-auction estimate of only $1.8 million to $2.6 million. New buyers are coming into the market. At the Sotheby's auction, more than 20 percent of the bidders were new. Two weeks before that, Hart Davis Hart, of Chicago, moved nearly $2.7 million of liquid bliss, beating its presale mark of $2.4 million.

In a Reuters interview, wine consultant Judy Beardsall likens wine collecting and investing to gardening, "At a time like this, it's a chance to turn over the soil in the garden, put down some stock for the next generation."

But, if you aren't interested in waiting, all the wines put up for auction are fit for consumption ... for a price.