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.

On July 1 Christie's in London will auction off a stunning full frontal nude of Kate Moss by Chuck Close in its Photographs sale. Taken in 2003, the artwork is estimated at about $11,500 - $16,000 but could easily go much higher.

If that's out of your range or you don't want to risk being outbid, there's another option for getting Kate naked at your place. Via PhotographersLimitedEditions.com you can now purchase signed limited edition works from some of the world's best known photographers.

The investment-quality pieces come in limited editions of 11-25. One of our favorites is this nude of Moss by British photographer Rankin, taken in 2000. Produced in a limited edition of 25, the photo is priced at about $4,500.

The site also offers several of Rankin's other works including some celebrity portraits, as well as photos by the likes of Antoine Verglas, Arthur Elgort and Marc Baptiste, featuring many other gorgeous nudes.

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.

A big blue diamond was the top lot at the Christie's Spring Jewelry auction in New York this week. A 6.29 carat fancy-intense-blue diamond brought in $3.6 million on Thursday. An anonymous buyer bought the stone for what works out to $565,000 a carat. The lot saw 91 percent of the lots sold. Other stones sold included a 46.72-carat modified-rectangular-cut fancy yellow diamond with SI1 clarity which sold for $602,500 and a diamond necklace by billionaire jeweler Laurence Graff, bought by a private buyer from the Middle East for $410,500.

One lot that doesn't seem to have sold is the diamond pendant necklace with two fancy intense blue pear-shaped rose-cut diamond and a fancy intense pink hexagonal-cut diamond on a platinum chain which was supposed to be part of the auction.

[via National Jeweler]

Reflecting the lower prices for contemporary art brought on by the recession, there are some relative bargains to be had at Christie's Post-War & Contemporary Art auction in London on June 30. Chief among them is Jean-Michel Basquiat's Red Skull (above), painted in 1982 and estimated at only $2.4 million - $3.2 million. Other potential steals include Richard Prince's Country Nurse, est. at $2.4 million - $3.2 million; Jeff Koons' Moustache, est. at $1.9 million- $2.8 million; Francis Bacon's Study for Portrait, est. at $1.2 million - $1.9 million; and Andy Warhol's Self-Portrait, est. at only $800,000 - $1.2 million. The results will no doubt be closely monitored by art world insiders.

At auction over the past six months blue diamonds have been hot. SInce the record-setting sale of the Wittelsbach diamond, more blue diamonds have been seeing strong results on the auction block. Christie's New York Jewels Sale on June 11 will include four blue diamonds. Natural blue diamonds are among the rarest of colored diamonds, getting their blue shading from the introduction of boron into the crystal structure of the stone during its formation. Blue diamonds including the famous Hope diamond belong to the extremely rare Type IIb category of diamonds and are semi-conductors of electricity, the only diamonds with that characteristic. The Christie's sale will offer a superb fancy intense blue pear-shaped internally flawless diamond of 6.29 carats estimated at $3.3 – 5.5 million and a fancy dark gray-blue rectangular-cut diamond ring, SI2 clarity, of 3.28 carats estimated at $250,000-350,000. The showstopper is a diamond pendant necklace that puts two fancy intense blue pear-shaped rose-cut diamonds of 5.01 and 2.03 carats on either side of a fancy intense pink hexagonal-cut diamond of 3.01 carats on a platinum chain. The price hasn't been listed for the piece but it should be the top lot in the auction.

I bet you've never seen this Patek Philippe watch before. That is because it was not known to exist, and is a one of a kind made in 1936. Earlier this month in May, this watch sold for just over $1.7 million dollars at a Christie's auction in Geneva. The buyer was a private Swiss museum, and they recognized the special watch for its value, especially as a unique Patek Philippe. The watch is chrome-plated nickel being large at 55mm wide and has some unique navigational complications and an hour hand that operates on a 24 hour scale (not 12 hour scale). I don't claim to understand the functions entirely, as I am no pilot, but the watch is set to measure a 360 degree circle. The minute hand makes a full rotation each 4 hours, and the two seconds hands rotate each 4 minutes. Really not sure about what that all does, but it has something to do with directional angular navigation. The time can still be read though, but on the 24 hour scale. This goes to show that no matter how peculiar they are, the watch collecting world simplly loves a rare Patek Philippe timepiece.

Ariel Adams publishes the popular watch review site aBlogtoRead.com.

Via WatchTime.

Christie's is ready to auction a handwritten poem by singer Bob Dylan. An interesting find, the piece is said to have come from the hand of the teenager who later became the legend. There's only one problem: Dylan's hand, Snow's words.

The "poem" is based heavily on the song "Little Buddy" by Canadian country singer (didn't know there was such a thing) Hank Snow, who died in 1999 at the age of 85. The similarities eluded experts at Christie's. At one point in his career, Snow was known as the "Yodeling Ranger." A Reuters reader gets credit for the discovery, which the news organization then passed along to the auction house.

Dylan wrote transcribed this piece while away at Jewish camp when he was 16 years old. He submitted it to the camp newspaper for publication, and the editor held the handwritten piece for more than half a century before donating it to Herzl Camp in Wisconsin.

This piece is nonetheless believed to be the oldest Dylan manuscript and will be offered at the June 23, 2009 Pop Culture auction. An estimate of $10,000 to $15,000 has been offered.

Big surprise: Dylan's management office wasn't available for comment.

Christie's fought the trend and walked away with close to $94 million. Naysayers stand shocked (I'll admit it; I'm among them). This is still far from the record-setting years leading up to the current financial crisis, but only the truly stubborn would not recognize the accomplishment of coming close to the upper end of the auction house's estimate, particularly a day after competitor Sotheby's turned in such a dismal performance.

The initial estimate for Christie's Post-War and Contemporary Evening Sale was $71.5 million to $104.5 million. Forty-nine of the 54 available lots were sold – a sales rate of 91 percent by lot and 94 percent by value. This easily tops the 81 percent by lot that Sotheby's hit (en route to a paltry $47 million). Thirty of the lots sold for more than $1 million each, and nine raked in more than $3 million a piece.

If you want to be negative, though, you still have plenty of ammo. Back in November, Christie's achieved a $113.6 million take with a sale rate of only 68 percent (by lot). A year ago, the auction house pulled in $331.4 million at a sale rate of 95 percent.

But, last May doesn't count. That was a last hurrah, of sorts, and most in the art community realized it, even if they wouldn't concede the obvious.

At last night's contemporary art auction, Sotheby's brought in a meager $47 million – down 87 percent from last year's record of $315 million. The auction house wasn't even able to reach its low estimate for this year of $51.8million. Need some perspective? Last year's Francis Bacon triptych sold for 84 percent more (at $86.3 million) than all the lots purchased at last night's event.

The top sale last night was a blue and pink egg by Jeff Koons, measuring seven feet in width. At $5.5 million, it didn't even reach its estimate, which ranged from $6 million to $8 million. Last June, his pink "Balloon Flower (Magenta)" went for $25.7 million at a Christie's auction in London. Interestingly, art dealer Larry Gagosian was the buyer, though it's unclear if he bought it for himself or a client. Gagosian sold the egg back in 2004.

In general, buyers were in short supply, with most bidders choosing to remain on the sidelines. But, there is a sense that good works sold at fair prices ... unless you were one of the sellers, I imagine. Art market analysts, dealers and critics sought to find a silver lining, calling successes what would have been failures in previous years (such as the Koons egg price).

The shrinking pool of buyers reflected the artwork available. The number of lots offered at Sotheby's last night was down 42 percent, from 48 to 83. Only 81 percent – 39 – were sold.

Tonight, it's Christie's turn. Fifty-four contemporary pieces are set to come under the gavel, with total estimates ranging from $71.5 million to $104.5 million (not including commissions).

The only fingers not crossed, most likely, belong to bargain-hunters.

Auction revenues in general may be in decline but the price of rare classic Patek Philippe watches seems to be holding steady. At Christie's Important Watches sale in Geneva on May 11 an exceptionally fine and rare 18K rose gold perpetual calendar chronograph Patek Philippe wristwatch with moon phases and baton numerals from 1960 is expected to fetch a record price, with a pre-sale estimate of $880,000 - $1.3 million. The watch, which has never before been offered at auction, is one of only seven examples of the highly-coveted second series reference 2499 in rose gold known to have appeared in public to date.

[via JustLuxe]

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.

"Russian" and "art" together used to mean "stratospheric prices paid." Not any more. Last week's Russian art auction results at Christie's and Sotheby''s showed the difference a year can make. Last year, the two houses brought in $64 million at the New York-based annual ritual. This year, the final take was only $27 million.

At the Christie's auction, the top-selling piece was Svetoslav Roerich's "Portrait of Nicholas Roerich in a Tibetan Robe" for $2.9 million – thus accounting for more than 10 percent of both houses' sales. It set a record for works by Roerich. The next best was by Nicholas Roerich himself. "The Greatest and Holiest of Tangla," a landscape of Tibetan snowcaps, brought in $1.4 million.

Efforts to repatriate Russian art, of which I first learned from Annika Larres at the Bukowskis auction house in Helsinki, seem to have slowed, due in large part to the loss of so many Russian billionaires over the past twelve months.

Overall, Christie's moved 69 percent of the 390 lots available for $13.2 million. The father/son Roerich team accounted for a third of that. The Sotheby's auction, last Wednesday, was good for $13.8 million, compared to $46.5 million in 2008.

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.

Earlier this month in Paris, a paleontological auction was hosted by Christie's raising over 761,423 Euros. Although not all lots sold, including a saber-tooth tiger skeleton and the jaws of a prehistoric shark, the Ophtalmosaurus sold for 181,000 Euros ($240,000). The dolphin-like marine reptile existed 164 million years ago and was sold to a private European collector. I'm thinking you would have to live in a very large home to make this seventeen-foot skeleton look like decoration amid the furniture and vases.