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Economic Trends
Marion Maneker0June 19, 2013

Online Auctions Gateway to New Buyers for Christie’s

Christie's Online Auction

In an interview with the Financial Times, Steven Murphy explains the value of the firm’s internet strategy lies in more than just raw revenue:

“We have moved from seven online [only] auctions in 2012 to 50 online [only] auctions in 2013, and we average between 45 per cent and 75 per cent of the successful buyers are individuals new to Christie’s,” he says.

Christie’s and Sotheby’s deepen rivalry ahead of art sales (Financial Times)

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Economic Trends
Marion Maneker0June 18, 2013

China Guardian & Poly Auction Houses See Strong Growth in Weak Chinese Market

Poly Beijing Auction

The Financial Times offers some interesting numbers on the global art market. China’s sales volume dropped 50% in the first three months of this year, according to the French Conseil des Ventes. And yet, the FT projects the two leading Chinese auction houses are seeing strong growth:

Artnet figures for the period January 1 to May 31 2013 show that Poly’s sales are up 213 per cent, selling $93.8m so far this year. China Guardian’s sales are up 47.4 per cent to $369.6m in the same period.

Are Poly and China Guardian gaining at the expense of others or is that 50% drop in value not year-over-year? Either way, the numbers are curious. The Conseil des Ventes report comes out this month. Perhaps a more detailed explanation will emerge.

Chinese contenders pose challenges as they gain status (Financial Times)

Artists
Marion Maneker0June 18, 2013

Printer Sues Artist Over Experimental Monoprints That Exceeded Expectations

Alex Katz at Brand X

Excellent reporting by Dan Duray on GalleristNY reveals the lawsuit between art printer, Robert Blanton of Brand X, who developed a monoprint technique that had to convince Christopher Wool to try out by cutting an unorthodox deal that would eventually backfire into a lawsuit against the artist and his gallery:

Brand X alleges that Mr. Wool wasn’t sure how the monoprints would turn out and consequently entered into an agreement (over e-mail) whereby Brand X would finance their production in exchange for one-third, or 20, of the finished products. Mr. Wool and Luhring Augustine would then split the remaining 40, according to the complaint’s description of the agreement.

The complaint then describes the production process during which, it alleges, Mr. Wool and the gallery came to realize the works may be more valuable than they’d previously thought. It says that a gallery representative stopped by the Brand X studio and called the prints “beautiful,” adding that they “look like candy.”

Mr. Wool allegedly then tried to talk Brand X into accepting only one-quarter of the works, and then asked to pay for the production costs in exchange for all of them. Brand X refused, and work on the series stopped at 34 monoprints, which the complaint says Mr. Wool now refuses to sign.

Christopher Wool, Luhring Augustine Sued for $12 M. (GalleristNY)

Auction Results
Marion Maneker0June 18, 2013

Christie’s London Imp-Mod Evening Sale = £64m

Here’s what the press release says. Top ten and gainers to follow shortly.

The Impressionist and Modern Art Evening Sale took place on the evening of 18 June at Christie’s London, realising £64,076,575/ $100,407,993/ €75,225,899 and selling 84% by lot and 87% by value. The auction had a pre-sale estimate of £52,830,000 to £75,800,000. The top price was paid for Wassily Kandinsky’s rare Expressionist masterpiece Studie zu Improvisation 3, 1909, which sold for £13,501,875/ $21,157,438 /€15,851,201 (estimate: £12-16 million, pictured above). In total, 18 works of art sold for over £1 million / 22 for over $1 million, and two artist records were set: for a work by Eugène Boudin and a record for a painting by Constantin Brancusi.

Collectors
Marion Maneker0June 18, 2013

Hubert Looser Built His Collection on Transatlantic Art Arbitrage

Donald Judd, UntitledCatherine Hickley spoke to Hubert Looser about his collecting strategy as the permanent loan he’s made to the Zurich Kunsthaus goes on view:

His art collection includes works by Cy Twombly, Ellsworth Kelly, Willem de Kooning, Andy Warhol, Jasper Johns, Pablo Picasso, Lucio Fontana and Alberto Giacometti.

Looser applied the same tenacity to collecting that he brought to business, buying works by U.S. artists who were under-represented in European museums and spending between $500,000 and $1 million per work. Last year he agreed to lend 70 pieces to the Zurich Kunsthaus on permanent loan. An exhibition, “The Hubert Looser Collection,” runs through Sept. 8.

“I wanted to buy art in the top league and transform my money into art,” he says. “I only wanted museum quality art. I bought one or two works a year. I put quality before quantity. I did a lot of work to make sure I didn’t make mistakes.”

Swiss Magnate Builds Twombly, Picasso Collection, Gives It Away (Bloomberg)

Art Fairs
Marion Maneker0June 18, 2013

Will Gompertz Discovers the Obvious at Venice Biennale

Will Gompertz

 

A fairly trite rehash of the of money ruins everything take on the art market. Now turned toward preferring “outsider” art to “commodified” art:

The BBC’s Art Editor Will Gompertz joins us from one of the art world’s biggest market places – the Venice Biennale. He explores how the art market works to generate value and interest. How do you know if the big money spent on a painting or a pot, is a good deal in the long run? He talks to the artists, the dealers and the art critics who drive this increasingly lucrative global business sector.

Venice Biennale—Art Meets Business (BBC News)

Art Fairs
Kenny Schachter0June 17, 2013

It’s Ground Hog Day at Art Basel, Pt. 2

The inimitable Kenny Schachter went to ArtBasel and wrote about it for ArtSpace twice. Here’s the second installment:
Kenny Schachter's Basel Diary, Part 2

Lucio Fontana canvases at Helly Nahmad’s Art Basel booth.

No more disclaimers this time around, let’s just jump back into the thick of it, starting—where else?—with more dinners and parties, of course. During the relentless march of fairs and biennials, the art world resembles a giant mixed cocktail. Sometimes it works, and sometimes it exacerbates the more questionable tendencies of certain fair-goers’ behavior. One thing is for sure, the intensity of it all can really blind people and drive them to extreme forms of action and reaction. And the art crowd is a high-strung lot to begin with.

I admit to possibly forgetting that I had kids one night at about 3 a.m. at the Three Kings Hotel, where everyone congregates each night after dinners where they seat you dealer-to-dealer, so that there’s always a pair of shoulder blades pressing from behind—a kind of wall-to-wall art-world orgy. Others come directly from the parties, and it’s funny to see well-heeled, middle-aged people with stamps on their hands from the clubs. I may even have the faint remainder of one still, days later.

Back to the raucous bar scene. In walks a prominent U.K.- and U.S.-based contemporary dealer, chest puffed like a reverse peacock, who nearly bowls me over like a pin—of course without coming close to uttering “excuse me.” Minutes later the very same Grizzly Adams-esque man knocks into me again, and says a “hello” in my direction, followed by the lovely comment, “I wasn’t saying hello to you, Kenny.” Sometimes the art world can be really touching (literally).

But it’s always fun to eavesdrop on your neighbors at parties and events—you will never be left disappointed, as I can attest after hearing some doozies. For instance, “My friends said I would meet such interesting people in Basel, but I’ve found none, just a bunch of schmoozers.” And even more biting, a Gagosian employee dropped this little bomb about an artist who recently flew the coop, “Ha. Does anyone still represent him?”

 photo hadid_zps536bf3bf.png

There was a dinner for Dame Zaha Hadid and her sublime and magical firehouse at the Vitra campus, now 2o years old and looking fresher and better than ever. The building was supplemented for the occasion by a new sculptural furniture element with edges so acute it looked like it could take off, or, more likely, kill someone. All I could think of seated at the dinner in the sleek main hall, where the trucks used to park, was plopping my bed down in the middle of the floor and moving in.

Ok, now on to the art, more or less. The fair is broken down between two floors with the ground level filled with the most established works (I refer to it as obvious things by obvious people), while more contemporary fare is situated upstairs. It’s a good idea to head out with a pocket full of candy, as what’s worse than an art dealer or collector with bad breath? Getting past the entrance to the fair can be a contact sport if you get in the way of a starved collector: “I’m sorry, the line starts behind me!” And with my notorious sense of direction, leave it to me to get lost at just about every turn.

Long gone are the days when artists appeared to be more physically involved in the process of making art, rather than farming out the manufacturing of goods—even paintings—to underlings and machines. Artists sometimes seem to be after the creation of formulae rather than individual works with heartfelt meaning.

Traipsing the aisles, you can’t help but make human observations—like that the art world is often more colorful than the art, as in the case of a dealer in a tight dress with a body so contorted as to resemble a John Currin character. Or that other dealer twitching so much I couldn’t tell if he had a tic or swallowed a jar of MDMA.

Another tendency observed repeatedly at fairs are the mega-valued artworks, often at prices matching the GDP of mid-sized countries, enough to warrant their own individual security guards. And then there’s the celebrity count, the art-world equivalent of counting wartime casualties. What’s a fair, after all, without some Jay-Z and Kanye (who, after a brief Basel appearance, declared himself once again bigger than both God and Steve Jobs, who, looking at the glut of Apple products in dealers’ booth, may hold more sway here than the former)?

 photo leogrrr_zpsebc62ce1.jpg

And, of course, a fair would not be complete without tiger-loving LDC(Leonardo DiCaprio) on the prowl. GRRR! Forget the Mugrabis and MoMA, today it’s the celebs who are responsible for market inflation and reputation manipulation. I actually made an artwork about LDC, who hosted the recent $40 million charity sale at Christie’s to save endangered species. I then proceeded (for some reason) to send the image to Larry Gagosian, the purchaser of the $6.5 million Mark Grotjahn (money well spent), the star lot and background for my digital collage. If that wasn’t enough, I had to stop Gagosian, after a few, on the stairs of the Three Kings and remind him.

Making yet another appearance at a fair was the first-floor Gerhard Richterpainting, bought at auction within the past few years (a typical occurrence), with the remnants of an over-painted candle barely visible from the bottom of the composition. This thing has been dragged to so many fairs that the paint may fall off. If the candle was still there it would be priceless in that size, but without, it’s proven to be unsellable. Maybe they should get a restorer to scrape away the abstraction and relocate the missing candle, just don’t mention it to Gerhard.

The legendary Nahmads, who I revere for their dynastic familial relationship with art (and for buying it en masse!), had a typical double-barreled, high-caliber booth filled with beautiful and significant works by Miró, Calder, and Bacon. There was even an all-white room with furniture and carpet replete with an unparalleled group of Fontana slits, the art world’s take on The White Album. They were all sold for between $2 million and $6 million, not to mention a Calder snapped up for $10 million. I guess the cloud hanging over the gallery from the recent legal troubles in New York is as white as the room.

At one point, a portion of the Nahmad booth was cordoned off to make way for a private viewing, transforming it into a Fontana Fortress to present a single work to what seemed like a very rich collector. When another equally deep-pocked patron appeared, I could not believe that the assistant failed to make the ID of this well-known oligarch and refused him entry. Not the wisest of moves, which she soon came to recognize after being not-so-subtly alerted by his bodyguard. Bet she remembers next time.

A few more notable quotes from the peanut gallery: “The artist has an notable relationship with Gumby and Felix the Cat.” And, “Look at that painting! She’s having a giant orgasm.” You can all but hear the jingling sounds of money ringing in the ears of many of the conversationalists. “What did you buy?” is a popular catchphrase encountered again and again, reminding everyone in no uncertain terms why we’re all here in the first place.

It is more than amazing to think that, literally, hundreds of millions of dollars of sales are consummated by nothing more than a handshake and a leap of faith. With $2 billion worth of art said to be on show, that’s a lot of handshakes and, with that crowd, it’s best to be equipped with a few buckets of anti-bacterial wash.

 photo aston_zps61997e30.jpg

I bumped into collector, gallerist, and sometime art writer Adam Lindemann, and we engaged in a long, drawn-out discussion of the market and the many newfangled resources by which price movements and trends are monitored and tracked. That was about classic cars, of course, a shared passion.

Though I won’t divulge what (or even if) I bought at the fair—those are professional trade secrets, you see—there is an undeniable high, a chill-inducing buzz from pulling the trigger. Sure, it’s a materialistic and admittedly sad attempt to fill an emotional void of some sort or another, but a fun temporary fix nevertheless. I guess you can figure the answer to whether or not I bought something.

Here is another popular refrain in today’s art world in general: “This is unique, yes, but she may do some additional versions.” What the dealer fails to mention here is that there will actually be an infinite amount of additional works fabricated and that they will be all but indistinguishable from the very work you just purchased.

Navigating a fair, a more-than-day-long enterprise, is a constant battle against declining phone batteries. These events present incredible opportunities to learn, gather information, and see. Speaking of looking, one New York gallery run by an unnamed German had the title of the gallery printed in giant, boldfaced lettering on its wall labels while you had to squint to see the name of the artists.

The art world is composed of a succession of hierarchical concentric rings of power, in which the most elite dinner is with just four people. Even veterans like me still end up snubbed and drubbed on occasion. But the art itself is largely free to view and accessible to all. Nothing can describe or replace the experience of sucking in all the art on offer at a fair. The common retort that there’s “nothing great” at a fair is no more than disingenuous posturing.

All in all, I survived Basel, including a close brush with a tram that nearly flattened me, my nose pressed firmly against the windshield by the time it stopped. I also overcame other blows, such as when I was told that I could increase my business if I stopped talking so much, and that a work I bought was being reoffered (by whom I am still trying to find out) before I was invoiced.

In two decades, I don’t think I’ve ever stayed through a fair without changing my reservation to leave early. Who can blame me? You’d think I’d learn. And now what, after the endless spate of biennials and fairs we have just been through? The auctions, of course! I just got home to a mountain of catalogues. Ready for some more tales from the trenches?

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Economic Trends
Marion Maneker0June 17, 2013

Wine Funds Sour

wine

The Financial Times spoke to two leading figures in the wine fund industry—which is all of 20 funds around the world—to find out why some of the leading funds have been closed or fallen under the heavy hand of regulators. Andrew Davison’s Vintage Wine fund peaked at around $150m in AUM just before the credit crisis:

“The wine market is dead. It could take years for this market to recover,” says Mr Davison. “I think you have to ask whether open-ended structures are suitable for these sorts of illiquid investments. There’s also a danger that wine funds can get too big. When you allow investors to come in and exit on a regular basis, you get huge outflows when things go bad.” […]

Justin Gibbs, co-founder of Liv-ex, says: “Wine funds are still a game in their infancy.”

But the market holds appeal, especially for wealthy Chinese, who just a few years ago were responsible for driving the price of fine French wines to record highs.

According to Mr Gibbs, the performance of wine, which is worth about £6bn per year as a global market, has been “very lacklustre” since June 2011, when the market turned after a strong two-year run. The best bordeaux vintages tend to fare better than burgundy, but on the whole the market remains weak.

The Wine Fund Market Brought to Its Knees (Financial Times)

Collectors
Marion Maneker0June 17, 2013

With Success in Hedge Funds and Art Market, Collector Points to New Opportunities

Kazuo Shiraga, "Chishusei Sekishogun"

Kazuo Shiraga, “Chishusei Sekishogun”

Scott Reyburn sat down with the Rachofsky’s in Switzerland to hear more about what they’re buying and where they think the market is going. After an obligatory blessing of the market’s growth, Rachofsky affirmed his belief that there are many market opportunities both in established and younger artists—”He owns paintings by Polke, Marlene Dumas and Luc Tuymans, as well as pieces by Richard Aldrich, Katy Moran and Jacob Kassay.”

In the last four years, they’ve been buying Japanese postwar art, amassing what Howard calls a “definitive” collection of as many as 100 pieces by artists such as Shiraga, Saburo Murakami and Shozo Shimamoto.

“Japanese postwar is an undervalued area of the market,” he says. “Our primary concern isn’t financial. There’s a whole evolution of thinking right now about mid-20th-century art movements and we’re trying to be part of the dialogue.”

Curators, dealers and collectors are ahead of the auction houses in rediscovering Japan’s 1950s and ’60s avant-garde.

The Gutai group was the subject of a recent survey at the Guggenheim Museum in New York. The Belgium-based dealer Axel Vervoordt sold an abstract by Shiraga — who painted with his feet — to a Swiss collector for 1.2 million euros ($1.6 million) at the Dutch Tefaf art fair in March.

The Rachofskys are currently showing the exhibition “Parallel Views,” exploring the relationship between Japanese art and Arte Povera, in their Texas warehouse space.

Now’s Best Time to Buy Art, Collector Rachofsky Says (Bloomberg)

 Shozo Shimamoto, "Bottlecrash"

Shozo Shimamoto, “Bottlecrash”

General
Marion Maneker0June 17, 2013

How the Global Art Market Keeps the Global Elite Together

If you’ve ever wondered what forces are driving the growth of the global art market’s exponential growth, let us offer a non-obvious contributing factor that comes of a Financial Times story on the transformation of the world’s great cities into “citadels for the elite.” How does this relate to the art market? Following Columbia University Urbanist Saskia Sassen’s comments below, for a global elite to have easy intercourse, it needs a common context of experiences and interests. Wealthy persons from Russia, Brazil and China might not have much in common as everyday experiences but increasing they share in interest in—or passing knowledge of—art and artists.

Here’s what Sassen told the FT:

Global cities are turning into vast gated communities where the one per cent reproduces itself. Elite members don’t live there for their jobs. They work virtually anyway. Rather, global cities are where they network with each other […] So top-level corporate and professional sectors of São Paulo begin to have more in common with peers in Paris, Hong Kong et cetera than with the rest of their own societies.

Priced Out of Paris (Financial Times)