phillips de pury

Auction house Phillips de Pury & Co. tends to lean heavily toward the contemporary world, which is a lot like loading up your portfolio with small foreign stocks – it's extremely volatile. Before summer ended in 2008, this was a pretty good move, as contemporary art was skyrocketing at auction, and Phillips de Pury was there to take advantage of it. Since then, however, it's been harsh. At the May 14 and 15 contemporary sale in New York this year, the house pulled in only $10 million (compared to $62.8 million a year earlier).

To navigate the severe auction market, Phillips de Pury has decided to stick with the ultra-contemporary market, but it's restructuring, mixing contemporary art, photography and design – all of which are usually listed and sold separately.

Today's the day we'll see if it works. In London, Phillips de Pury is conducting the auction Now: Art of the 21st century. It consists of 291 mixed lots, with everything from photos to furniture. All pieces were created after 2000. There will be a wide spectrum of talent reflected in the lots, as well, with unknowns and high-profile artists like Tom Price and Candida Hoffer coming under the gavel.

Phillips de Pury has a reputation for being a bit more flexible than Sotheby's and Christie's, so breaking with tradition could help the house beat the bust and get back to the business of actually selling art at better than fire-sale prices.

When times are tough, you don't spend when you don't have to. There's sufficient graffiti in London to keep art collectors entertained, which is causing them to shy away from works by Banksy. Larger auction houses have cut down on the Banksy works they are carrying, and some of the regional auction houses are canceling their urban art specialist sales.

It's hard to tell if Banksy is disappointed. The artist, who was born in Bristol (west England) keeps his (her?) identity a secret. So, if you see some weirdo crying in a corner over the next few weeks at a pub in Bristol (or, maybe, London), ask if it's Banksy. It could be cooler than finding Waldo.

Prices for pieces by Banksy have plunged this year, with failure rates on the rise. Auction houses are now sufficiently nervous to hedge their bets, carrying little (or no) inventory by the artist and canceling auctions that may not deliver.

In general, contemporary art auction selling points are down 30 percent to 50 percent – about as much as your 401(k). The top houses – Christie's, Sotheby's, Bonhams and Phillips de Pury – didn't carrying any of Banksy's work in their June or early July auctions. This year, 76 Banksy paintings and prints have come under the gavel, with 30 of them (almost half) not selling. The highest price reached was $230,500 at a New York Sotheby's event. Last year, the top price for a Banksy piece was $1.9 million at Sotheby's RED charity auction in February.

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.

Christie's, Sotheby's and Phillips de Pury & Company felt out the fine art photography market at the beginning of the month. With the broader industry in turmoil, the auctions held from March 30 to April 2 were to show just how well one of the art market's most profitable sectors would fare.

At auctions in New York, Sotheby's pulled in $200,000 for a portrait by László Moholy-Nagy that was shot in 1920 ... good enough to be in the top 10 for photos by this artist. But, in better times, the piece probably would have gone for the $300,000 price estimate that Sotheby's put on it. Christie's moved an artist's proof by Richard Avedon for $95,000, and Phillips de Pury & Company's best result was a portfolio of 11 photos by Avedon, which sold for its low estimate of $100,000.

In general, ArtPrice referred to the results as "frankly disappointing." This is a stark change from 2008, in which more than 11,000 photographs moved at auction for a total of $158 million. By January of this year, the ArtPrice Fine Art Photograph index had plunged to its 2004 level.

Over the past couple of years Russia's new wealthy have made some big moves in the art world. Most recently, as my colleague Jared Paul Stern reported that Russian billionaire Roman Abramovich will be bankrolling a major Francis Bacon exhibition at his girlfriend Dasha Zhukova's new Moscow art gallery in 2010. Now auction house Phillips de Pury has been sold to Mercury, a Moscow-based luxury goods group. Phillip's founder Simon de Pury will still remain as chairman and will have a share in the company. This isn't Phillips's first spin with a luxury conglomerate, it was was briefly owned by LVMH. For Phillips, the new owners will provide a big influx of capital so that Phillips can continue adding to their contemporary art auctions and it will also likely bring some important auctions to Moscow.

Remember the necklace shown above? Well now it can be yours along with a number of other items of mega-bling from the hip hop world.On October 1, Phillips de Pury & Co. is holding the Hip Hop's Crown Jewels auction which will feature around 50 iconic pieces worn by hip hop luminaries such as 50 Cent, Biz Markie, MC Lyte, Kanye West and the late Notorious B.I.G and Tupac Shakur. Major pieces include Missy Elliot's diamond, black diamond and gold turntable ring, Biz Markie's black and white diamond headphones pendant, Sean "Diddy" Combs diamond and platinum bracelet, Pharrell Williams' pave diamond Gucci link necklace, Slick Rick's multicolor diamond-set eye patch and of course Lil' Jon's famous diamond and yellow diamond "Crunk Ain't Dead" pendant which weighs nearly 12 pounds and boasts 3,756 round-cut white diamonds total set in 18K yellow and white gold. A portion of proceeds from the sale will benefit Russell Simmons' Rush Philanthropic Arts Foundation, the Hip Hop Summit Action Network and the Diamond Empowerment Fund.

[via Fashion Week Daily]