Credentialing Reciprocity between ASA, RICS & ASFMRA

From an ASA announcement:

The American Society of Appraisers (ASA) has signed an agreement with the American Society of Farm Managers and Rural Appraisers (ASFMRA) and the Royal Institution of Chartered Surveyors (RICS) that identifies equivalency among the credentials issued by the three organizations and establishes reciprocity for certain credentials in certain disciplines.

The agreement, which was signed on Nov. 12 in San Antonio, Texas, during ASFMRA’s 79th annual conference, recognized reciprocity for credentials in the Machinery and Technical Specialties, Real Property and Personal Property disciplines.

The reciprocity agreement follows an earlier Memorandum of Understanding signed Aug. 4 in which the three organizations agreed to (1) encourage a positive environment within which ASA, RICS and ASFMRA can work collaboratively; and (2) provide a basis for joint action in priority areas of common interest, including enhancement of business, continuing professional development, education/training, member services and professional services.

Ronald Seaman, FASA, ASA International President; Louis Armstrong, CBE, RICS Chief Executive; and Steve Runyan, ARA, ASFMRA Past President, officiated at the signing. Seaman said, “I am pleased that we are continuing to develop our relationship with ASFMRA and RICS. Cooperative efforts with these fine professional organizations will be beneficial to the organizations, to individual members and to the clients we serve.”

According to Tom Justin, RICS Americas Chair, “RICS looks forward to working with ASA and ASFMRA. Their high standards of professional excellence, member knowledge and training expertise are well aligned with our own strengths. We look forward to a strong and fruitful relationship.”

To read the complete text of the agreement, click here.

The Top Free Press Release Distribution Sites

Phil Davies of the press release sites BigNew.biz and News-antique.com recently posted the release on the major free press release sites. I have used the news-antique site in the past with good results, but Phil Davies has a list of the top 15 free sites. It is worth reviewing. As small businesses and solo-professionals we all need to be aware of what is available to help market our services.

I cut and pasted the press release, but the formatting may be an issue, click HERE for the direct link to the original post.The Press release follows:

First off, yes I do design and sell Web sites that distribute press releases online. I also use free press release distribution sites for my PR clients, so I’ve seen both sides of the online PR distribution business.

Based on this experience, I have a bit of a bias about what I am looking for in a press release distribution service. The number of Web sites in this space seems to change from day to day. Sites disappear, change policies and appear daily. So this list needs to be just as dynamic.

Before you post a complaint that I’m missing a site, keep in mind that this list is a work in progress. It had to start somewhere so consider this a first draft. PLEASE don’t hesitate to submit a site for consideration. We’ll probably include it, as long as your submission fits the 4 criteria outlined below.

There are quite a few free pr distribution sites on the Web. Many of them are not worth the time it takes you to submit a release. However, there are some that are quite good. Following are the 4 criteria that I used to create this list of the top free press release distribution sites.

1. Page Rank - What is the Google page rank of the site? I’m only listing free PR sites that have a page rank of 4 or higher. To determine the page rank of a site,

Check Page Rank of any web site pages instantly:

This free page rank checking tool is powered by Page Rank Checker service

2. Google News - Are most of the press releases that are published by the site picked up by Google news? To find out if a PR distribution site is getting their content indexed by Google news, go to Google News and do a search for “site:sitename.com”. This will show all of the stories by that site that have been indexed by Google News. As an example, a search for all press releases for the free PR site BigNews.biz, would look like this “site:BigNews.biz”

3. Traffic - Does the free press release site get any traffic? For this list we used Alexa.com to check traffic. You will have to set your own standard for what you feel is acceptable. For this list, I’m using any site that is ranked above or around 300,000 by Alexa.

4. Cost - For this list we are looking for sites that are primarily free. However, they may offer additional premium services for a fee.

Keeping in mind the 4 points listed above, here is my list. Feel free to send me additional suggestions, but they must fit the 4 criteria listed above. The order listed here is based on the sites Alexa rank.

Note: All of the following site statistics are updated daily and all of these sites feed their content to Google news.

1. PRLog.org -

2. Merinews.com -

3. PR-Inside.com -

4. IndiaPRWire.com -

5. PR.com -

6. OpenPR.com -

7. ClickPress.com -

8. PowerHomeBiz.com -

9. 24-7pressrelease.com -

10. NewsWireToday.com -

11. free-press-release-center.info -

12. TheOpenPress.com -

13. BigNews.biz -

14. PR-Canada.net -

15. USPRWire.com -

Submit a site….

Again, this list is a work in progress. So if you have suggestions, please forward them to phil(at)BigNews.biz.

Other features you might want to have when selecting a free PR site…
a) Does the site also accept photos or other file types as part of the release?
b) Does this site give you reporting tools so that you can see your traffic?
c) Is the site fast and easy to use?

.:Phil:.

Note: Last list Update 11-22-08

Sotheby's Announces New Middle East Auction Series in Doha

In a November 24th press release, Sotheby's announced a new series of auctions to be held in the Middle East. The venue will be the Ritz Carlton Hotel in Doha, Qatar. The sale is scheduled for March 18 & 19 2009 and will include contemporary art, fine watches, and an Orientalist sale with Middle Eastern inspired works. The Orientalist sale will include an important work by the Austrian artist Rudolf Ernst, "who was one of a generation of artists that took their inspiration from scenes of daily life in the Middle East, rather than political events like their predecessors, Eugène Delacroix and Horace Vernet."

In the past, both Christie's and Sotheby's have held sales in Dubai. As the international auction market grows we are witnessing the major players going to where the money and the high dollar collectors are. The Middle East has been fertile grounds for the large auction houses, and this expansion into Doha clearly shows the international strategy of Sotheby's. In the recent past both Sotheyb's and Christies have moved their major Asian sales to Hong Kong, now a further expansion into the Middle East. The strategy seems to be the targeting of the wealthiest geographic regions, over and above New York and London.

Bill Ruprecht, President and Chief Executive of Sotheby’s, said: “Doha is today a centre of dynamic economic and cultural growth, not only for the region but also internationally. The magnificent Museum of Islamic Art as well as other museums planned for this city are stirring huge excitement around the world and it is a great honour for Sotheby’s to be a part of this dynamism.”

“Our links with Qatar go back almost twenty years when we held pioneering sales for Arab stallions in the USA which attracted great interest from Qatar. Since that time, we have travelled extensively to Qatar and have developed close relationships here. We have also held very successful charity sales in Doha, one in 2005 and one in 2006, each of which achieved the record for a charity auction in the region. Our announcement today is the beginning of an exciting new phase in a long and much valued relationship and we look forward to our future in Doha with enormous enthusiasm.”

To read the full Sotheby's press release, click HERE.

More on the Artist Museum Partnership Act

Roland Augustine of the Art Newspaper recently reported on the Artist Museum Partnership Act. If you may recall, the Artist Museum Partnership act is a bi-partisan congressional bill to allow artist to donate to charities and museums in the same manner as individuals and collectors.

On September 6th the AW Blog reported on the 50 Artists for 50 States campaign, to read that post click HERE. A month earlier I also posted on both the Senate and House versions of the bill on August 6th with links to the actual House and Senate bills. To read that post, click HERE.

The Art Newspaper report states The Artist Museum Partnership Act would have the greatest impact on smaller, regional, museums. These institutions need assistance in expanding their collections. Donations by artists would bring American contemporary art to new communities and increase the audience around the nation. Incentives for artists to donate their works will help ensure that significant American cultural assets will remain in the United States and not be lost to other countries. To bring greater awareness to the issue, the Art Dealers Association of America has launched 50 Artists for 50 States, a national initiative to coordinate pledges by some of the country’s leading artists for donation to a museum in each of the 50 states. These donations would take place only with the passage of the Artist Museum Partnership Act. This legislation will support equal treatment for artists and help develop museum collections.

If the bill is passed, it would certainly create more work for appraisers. It is something all personal property appraisal groups should support as well as all appraisers.

To read the Art Newspaper article, click HERE.

HAPPY THANKSGIVING

Happy Thanksgiving from Todd and Jane at the Appraiser Workshops.

A Positive Comment

Fellow ISA Board member and appraiser Judith Martin, ISA CAPP left a comment last evening on a previous post about current market trends and only using the "freshest" of comps in appraisal assignments.

As you know, when there is a good comment, I like to move it from the comment section of the individual post where it is not always seen to a new and full post where all readers may see it. Judith makes several excellent points in her comments about how the existing economic issues have impacted value conclusions and appraising.

Judith states:

Todd, excellent blog. My fellow local appraisers have been discussing this very subject. It is a sticky situation especially when dealing with FMV or MV for the client. The market is moving so quickly now that it makes one very nervous at times to put a number down. I wrote a market value appraisal last March for a client who wanted to sell a large quantity of Williamsburg furnishings. The items were to be sold within a month of the appraisal. However, the sale was postponed and has not happened as of yet. In my estimate my client has lost at least 50% of the market value from last March due to the financial markets today. This is just one reason it is so very important that the reader of the appraisal understand the meaning of Effective Date.

Judith, before joining the ISA Board was the lead instructor for the ISA Core Courses so her comments carry much validity. She taught appraisal theory and methodology for many years and is familiar with the pitfalls of appraising in a declining market. Her comment on the appraiser understanding the effective date is so important in today's economic climate. I would even bring it a step further and ensure clients are aware of it as well. It is a concept that I failed to mention in my post on using fresh comps, yet the effective date of the value conclusion is just as important. In a declining market, and in Judith's scenario above, if the effective date in the report is not properly defined and noted (and perhaps it should be bolded due to the current economic atmosphere and value fluidity) the clients expectations from the appraisal report may be one thing and the market valuation only a short time later something completely different. This can cause serious client/appraiser problems and increase assignment risk and the potential for legal exposure.

It might be a good time for all appraisers to review their documentation and verbiage and make sure proper emphasis is given to comps, effective dates, and market trends.

To read the AW Blog original post on fresh comps click HERE.

Art Gallery Owner Arrested

Thomas Zambito of The Daily News is reporting on a NY art dealer being arrested for selling fake/fraudulent art, including works by Matisse and Calder.

The article is short, so I just cut and pasted:

A New York art gallery owner was nabbed Friday for commissioning dozens of knockoffs of Matisse, Calder and others that he passed off as the real thing. Giuseppe Concepcion was arrested in Florida on charges of trafficking in phony artwork and scheming to dupe clients, Manhattan federal prosecutors say. Concepcion owns the Prorate galleries in New York and Miami. The feds say Concepcion purchased authentic works of art by Henri Matisse, Alexander Calder, Tom Wesselman and then commissioned forgeries he sold to victims, complete with bogus documents verifying their authenticity. In August 2005, Concepcion sold a 1969 oil painting by Calder to a Greenwich, Conn., man who gave Concepcion his 2004 Bentley as partial payment for the $180,000 price tag, FBI Special Agent James Wynne said in legal papers filed yesterday in Manhattan Federal Court. Experts at the Calder Foundation determined that painting, and 14 others the Connecticut man bought, were fakes, Wynne said. In November 2006, Concepcion sold a $125,000 knockoff Chagall watercolor titled "Fleurs Rouges Et Bleues," the feds say. The New York-based Comite Chagall determined the painting and its certificate of authenticity were fakes.

Let the buyer and the appraiser beware!

Results: Russian Sales in London

On Monday Christies, Sotheby's and Bonhams all held specialty sales of Russian fine and decorative arts. Expectations were high. There was concern if wealthy Russians were going to invest in traditional investments or expand their collections in the arts or if they had the funds to invest at all due to lower commodity prices.

John Varoli of Bloombergs reports there were both positives and negatives at the sale. A German Princess of Hanover had 100 lots in the Sotheby's sale with 90 items selling for $2.95 million, beating the catalog high estimate of 1.66 million. We have not seen that happen for a while.

The three sales totaled $31.5 million which was well below the total low estimate from the catalog frin 3 of the 4 various sales sessions. With Sotheby's takin in $24.4 million, Christies totaling $4.55 million and Bonhams bringing in $2.58 million . The Christies sale saw 59% of the 242 lots sell, Bonhmas sold only one third of its 244 lots with none of its top lots selling, and the other Sotehby's sale sold less than two thirds of the lots. Varoli reported that most of the top buyers at the Christie's sale were Americans and Europeans.

The RIA Novosti reports Art dealers have said the relative failure of Monday's auctions - around one third of lots were not sold - was due to auction houses' unrealistic price tags that failed to take into account the weakened state of Russia's economy. Russia's stock market has lost around 70% of its value since May, curtailing the spending power of many of the country's richest people.

Again, just like the recent London contemporary art sales, the catalogs and reserves were established months ago, so the estimates and buyer demand are not really surprising. The Bloomberg piece also notes that items from the Imperial collection with strong provenance sold well, reinforcing the desire for strong ownership history and quality.

To read the Bloomberg article, click HERE.

Dallas Paper Chronicles Growth of Heritage Auctions

John Austin of the Dallas Start Telegram recently ran a story on the success and growth of Dallas based Heritage Auction Galleries. Austin states how the two founders Steve Ivy and Jim Halperin started as rival coin dealers then merged and jointly moved into comic book and movie poster auctions in 2001. The article now claims Heritage has grown into the number 3 auction house in the world behind Sotheby's and Christie's with nearly 375 employees and a vast array of specialty auctions. Heritage Auctions Galleries claims to be the largest auctioneer of collectibles in the world.

If you are an appraiser, I am sure you are aware of the phenomenal growth and marketing prowess of Heritage Auction Galleries. The have quickly risen to be a significant player within the auction community. I recently dealt with one of the Heritage specialists, and unfortunately what I had did not fit the needs of Heritage. I must mention that after the conversation with the specialist I had a much better understanding of how to deal with and dispose of the property for my client. The Heritage specialist was informative, knowledgeable and pleasant to deal with.

The recent Civil War collection sale in Gettysburg, PA generated $4.3 million in sales with the Ninety-six lots from the Dr. John K. Lattimer Collection of Lincoln materials totalling $1.6 million.

Heritage Heritage sells coins, stamps, fine art, movie posters, comic books, jewelry, Americana and sports memorabilia.

What Heritage Auction Galleries has sold:

• 1933 Babe Ruth All Star Game worn jersey: $657,250

• Jeans worn by James Dean in Giant: $35,850

• Personal battle flag, Gen. J.E.B. Stuart: $956,000

• Kurt Cobain’s 1960s Mosrite guitar: $131,450

• Johnny Carson’s microphone: $50,787

• Guinness World Records Largest Private Rare Coin Transaction Ever: $15 million-plus for the Estate of Ed Trompeter (August 1998)

• World’s Largest Auction of Comic Books, Comic Art and Related Memorabilia: $5.2 million (October 2002; included the collection of Academy Award winner Nicolas Cage)

• World’s Most Expensive Action Figure: the original GI Joe prototype: $200,000 (August 2003)

• World’s Largest Numismatic Auction: $61 million (FUN 2005; later eclipsed by Heritage’s $78 million FUN 2007)

To read the Star Telegram article, click HERE or to visit the Heritage Auction website, click HERE.

Antique Dealers feel the Economic Slump

The other day I posted some of my thoughts on the middle market of the antiques industry. I recently found this article from the Orlando Sentinel about how many dealers are being hurt by the current economic woes. While I believe the slump is a reality the trade has to deal with it and survive through it. I believe the overall downward trend is wider and deeper and is caused by more than just the economic issues. The current state of the economy is certainly contributing greatly to the slower than expected sales, as is changes is taste, lifestyles and collectors.

The Orlando Sentinel article states Across the country, antiques dealers are hurting. "It's very, very tough," said Mark Hill, co-author of The Collectibles Price Guide. The antiques business has changed in recent years, as some dealers shut shops and moved sales to online auctions such as eBay. Antiques dealers have also been battling a shift in tastes, as younger consumers lean toward modern furniture.

"It used to be, not too long ago, everybody was into Duncan Phyfe mahogany or oak claw-footed tables, but that's not the trend anymore," said Tuttle, who specializes in American furniture of the 1920s, '30s and '40s. "A lot of these kids, the younger generation, they don't want that clutter. I go into so many of these big houses, and there's nothing in them. They've got a leather couch and a big-screen TV and nothing on the walls." And the sour economy isn't helping. In the past six months, many Florida antiques shops and dealers have seen sales slump.

Overall, not much different than what I reported after talking with dealers about the current state of the industry. The economy, changes in decorating tastes and the lack of young collectors, all contributing to the sluggishness of the antique trade. To read the Orlando Sentinel article, click HERE.

Reminder - The PBS Film Rape of Europa Permiers Tongiht

Remember to check you local listing this evening for the PBS Documentary film the Rape of Europa on Nazi art looting and destruction as well as the story of survival. Most east coast PBS stations will broadcast the show at 9:00 pm.

Check PBS listings for the Rape of Europa HERE.

Surviving the Art Market

Alexandra Peers of the Wall Street Journal just published an article entitled The Fine Art of Surviving the Crash in Auction Prices. Peer's asks the million dollar question, "So where does it go from here". Peers discusses the market impact on auctioneers, dealers, artists, and collectors.

Peers states in her WSJ article The art market's crash -- for that is what it is -- threatens to remake the art world. In the past few weeks, auctioneers, dealers, artists and collectors have changed strategies and policies, and it's likely that future changes will be even more sweeping. With Sotheby's stock hovering at about $9, down from $50 a year ago, it's now cheaper to buy the 164-year old brand than all the art it sold in the past three months.

It's all been a reality check for art collectors. Noted one West Coast art dealer: "Their houses are worth less, their stocks are worth less, but they thought their Rudolph Stingel was still priced the same? No."

In the wake of the auctions, says Tobias Meyer, a vice chairman of Sotheby's: "The price disparity between good and great has widened to humongous." The problem for the trillion-dollar global art industry is that most of the art it has for sale is, by definition, just average.

Peers believes that many auctions houses will have to cut costs and retrench, focusing more on quality product and volume control, while dealers/galleries are representing fewer artists and displaying at fewer fairs while cutting payroll. In this environment big name artists should easily survive, but it will be more difficult for emerging artists to become connected with quality and and name galleries. Collectors have seen the value of their collections decrease, yet there are good opportunities to add to collections at very fair and reasonable prices.

Overall and interesting piece by Peers, and one that certainly makes you think about how to survive over the short term.

To read the WSJ article, click HERE.

PBS Documentary - The Rape of Europa - Premiers Monday Evening

The PBS documentary, the Rape of Europa premiers Monday November 24th on many Public Broadcasting stations. The Rape of Europa reveals the story of how the Nazis plunder art during their reign and how other individuals and groups risked their live to save the art. The documentary will air on the east coast on most PBS stations at 9:00 pm.

According to the PBS site, THE RAPE OF EUROPA tells the epic story of the systematic theft, deliberate destruction and miraculous survival of Europe’s art treasures during the Third Reich and World War II. In a journey through seven countries, the film takes viewers into the violent whirlwind of fanaticism, greed, and warfare that threatened to wipe out the artistic heritage of Europe. For twelve long years, the Nazis looted and destroyed art on a scale unprecedented in history. But heroic young art historians and curators from America and across Europe fought back with an extraordinary campaign to rescue and return the millions of lost, hidden and stolen treasures. Now, more than sixty years later, the legacy of this tragic history continues to play out as families of looted collectors recover major works of art, conservators repair battle damage, and nations fight over the fate of ill-gotten spoils of war. Joan Allen narrates this breathtaking chronicle about the battle over the very survival of centuries of western culture.

It should be a very interesting file/documentary. There is also a book the film was based on, click HERE for an Amazon link. If you miss seeing the film on Monday, I believe PBS rebroadcasts it several times.

For more information, visit the PBS site by clicking HERE.

Journal of Advanced Appraisal Studies - 2009

Some early submissions to the 2009 edition of the Journal of Advanced Appraisal Studies are coming it. I am pleased to see some very interesting appraisal related articles. So far I have reviewed articles on the effects of light on paper, appraising photography, Indian baskets, marketing/business plan, art indexes, working with financial planners and scoring models. All are excellent articles and will be a great reference for all personal property appraisers. Contributors are from AAA, ASA, ISA, NAA and other related and associated fields of endeavor. I encourage all AW Blog readers and appraiser to order the new version when available in March 2009.

Fellow appraiser Robert Corey and I are collaborating on an article where we use Charles Montgomery's 14 evaluation points, surveyed ISA certified appraisers who ranked the evaluation points, and developed a scoring model based upon the survey results and importance of each of the 14 evaluation points. There is an individual scoring component which allows the appraiser to increase or decrease the individual scores and to make adjustments based upon quality, condition etc. We had a good response from the survey results, indicating a percentage of importance for 14 evaluation points in four decorative arts categories, including furniture, glass, silver and porcelain.

The preliminary listing of articles for the 2009 edition include:

• Forensic signature analysis
• Wine Appraising
• Photography
• Ethics
• Media Relations
• Marketing
• Online Auction Platforms
• Online appraising
• Art Indexes
• Wall Paper
• Illustration Art
• Auctioneering and Appraising
• Paper Artifacts and the impact of light
• Scoring Models
• Indian Baskets
• African Art
• Frames and Limiting Conditions
• Decorative Arts during Slavery
• Canadian Decorative arts
• Russian Decorative Arts
• Artist Attribution Levels
• Financial planning and appraisers
• Maps
• Insurance Claims

The 2009 edition of the Journal of Advanced Appraisal Studies will be published in March, 2009 by the Foundation for Appraisal Education. If you have not purchased the 2008 inaugural edition, it is available by clicking HERE.

As I have mentioned on the AW Blog on numerous occasions, there are some terrific articles in the 2008 edition. A reference book that should be in all appraisal libraries.

Group of Russian Sales Coming this Week

This coming week will be an interesting indicator as there are three major sales of Russian fine and deecorative arts scheduled. They include Sotheby's London, November 24-26, Christie's London 24-27, and Bonhams in London on the 24th.

The sales include all manner of Russian fine and decorative arts, including Faberge items, Imperial porcelains, and military swords. The sales should be another indicator of the economy, and how wealthy Russians collectors have been impacted by the fall in commodity prices. The question for the Russian collectors is where to put their money, in more traditional investments or perhaps invest in art. Many believe it is a good time for Russian collectors to enhance and improve their collections and these sales have some excellent opportunities for collectors.

I will post results as they become available next week on the AW Blog. Stay tuned.

Sotheby's Victorian Art Sale a Success

ArtInfo is reporting some positive news on the recent Sotheby's Victorian Art Sale, held on November 19th. The positives are the sale brought in $6.8 million with fees against a low estimate of $7.3 million without fees. If you recall some of the past sales contemporary and impressionist sales were only bring about 50% of the low estimate. Additionally, 88 percent of the lots sold, with fourteen artist records being set.

Can we consider the sale a huge success, probably not, but at least it is a positive sign, and we have not had many of those recently. I understand the recent Greek sales were also successful. Although the news is good, the sales volume generated from the Victorian Art Sale are probably to small to have a positive effect on the bottom line of Sotheby's for the 4th quarter.

The ArtInfo article was very short, so I just cut and pasted.

LONDON—The Victorian art market scored a boost yesterday as the collection of the late U.K. diplomat David Scott earned a total of £4.6 million ($6.8 million) at Sotheby’s London. Although the 242-lot sale missed its pre-sale estimate of £5 million, a healthy 88 percent of lots were sold, and dealers reported that it was a better result than at other recent Victorian art sales. Fourteen artist records were set, including for the evening’s top lot, Sophie Anderson's oil No Walk Today from the 1850s, which Scott purchased in 1926. The work, which carried an estimate of £600–800,000, sold for £1 million. Scott, who died in 1986 at the age of 99, amassed his collection over several decades. London dealer Rupert Maas once described it as “the finest collection of Victorian narrative paintings left in private hands.”

Middle Market - Not all Grim

Bob James the president of Armacost Antiques Shows posted a comment to the AW Blog about my analysis of the middle market from talking with dealers at the Alexandria Antiques Show. I do wish to emphasize that my comments and the comments of other dealers, while made at the Alexandria show were in reference to the middle market in general and not a specific indictment of the Alexandria show which happens to be one of my favorite shows or any other specific show. The downturn is impacting the middle market across the board, and its reach is widespread, including shows, shop dealers and acutions. Since many AW Blog readers dont always read the comments sections, and Bob makes some very interesting and valid points, I thought I would post his comments directly to the blog.

Bob James and Armacost Antiques Shows promote many national antiques shows throughout the country. He is one of a few promoters who is willing to try different ideas in order to enhance attendance and the show experience for both dealers and patrons. Bob also wrote a great article in the 2008 edition of the Journal of Advanced Appraisal Studies called Antiques Shows Getting a Makeover. The reputation and quality of his shows and show dealers are high. He is constantly talking with dealers, so his thoughts and insights are very relevant to the discussion.

Bob's comments are as follows:

Middle Market Not All Grim

Todd’s assessment of current middle-market conditions, based on observations made at last week’s Historic Alexandria Antiques Show, is accurate in stating that “the middle market is struggling at the moment.”

He is correct in his reading of the immediate situation. Most people, antiques collectors included, do prefer to hold onto their cash right now. And he is correct in his reading of the longer term predicament. Not only are there numerically fewer members of Generations X and Y than there are of Baby Boomers, but Xers’ and Yers’ tastes in furnishings differ. Dealers struggle in the face of a smaller, less receptive market than they did in the past two decades.

But I would add a bright brushstroke to the dark picture Todd paints.

Good news goes unreported, in my experience. As a show promoter, I have found consistently that the dealers whose sales are strong at shows do not broadcast that fact, for fear of provoking hurt feelings among their colleagues. Instead, the open talk comes largely from those who are faring poorly or—worse yet—who goose-egg. And rarely does the likelihood of post-show sales get a mention by these dealers.

Los Angeles Museum of Contemporary Art - Falling on Hard Times?

Mike Boehm of the LA Times is reporting the Los Angeles Museum of Contemporary Art is encountering serious financial difficulties. It is now looking for either a large cash infusion, and may consider sharing or merging its collection of nearly 6000 pieces. With an annual budget of $20 million most raised through donation drives and 250,000 annual visits the museum has witnessed much growth over the past decade. But its cash burn rate has been very high, going through nearly $20 million in un-designated funds, and also borrowing $7.5 million from designated funding accounts. The museums investment portfolio was once worth over $35 million now stands closer to $20 million.

Boehm states MOCA must sharply accelerate its fundraising to ensure its continuing health. The director planned to meet with MOCA's Board of Trustees this afternoon to discuss a range of options. He said talks were proceeding "with a number of potential partners about a variety of arrangements," but he insisted that a dissolution or takeover of MOCA by another institution was not an option. "All the possibilities being explored involve MOCA retaining its identity, continuing its program, expanding its collection," he said. But he added: "I think it is time for this city to step forward and offer the kind of financial support commensurate with the work being done."

Boehm continues An irony of MOCA's plight is that, thanks to the appetite of wealthy international collectors, the market value of its prime pieces has soared. Corporations and individuals routinely sell sculptures and paintings in an economic pinch, but a museum that did so would be violating its reason for existing, which is keeping art in the public domain. The codes of ethics of both the American Assn. of Museums and the Assn. of Art Museum Directors, although not legally binding, specify that the only acceptable reason for selling artworks from a public collection is to raise money for buying other, presumably more desirable, pieces.

To read the full LA Times article, click HERE.

Christie's to Gallery to Collector - Law Suit

Noleen Walder of the New York Law Journal is reporting on a case where a collector purchased a painting by Jean-Michel Basquiat from a gallery which purchased the painting from Christie's. The authenticity of the painting is in question and the collector who purchased the Basquiat from the Tony Shafrazi Gallery according to a recent court ruling may sue not the gallery, but Christie's. It appears that both the gallery and the collector relied upon the auction catalog statement of authenticity. The court ruled since the gallery was able to sell the painting, it did not suffer damages, but the purchaser (in this case a third party) who relied on the gallery and the original auction gallery may have a claim against the auction house.

Walder states Guido Orsi, who paid the Tony Shafrazi Gallery Inc. $185,000 for the untitled work 17 years ago, alleges that Christie's passed off the painting as genuine at a 1990 auction, even though Basquiat's estate had expressed doubts to the auction house about its authenticity.

According to the complaint, the Christie's catalogue attributed a painting identified as "Lot 176" to Basquiat, saying it had been "acquired directly from the artist." It described the painting as "signed and dated 1982 on the reverse -- acrylic and color oilsticks on canvas."

The catalogue provided a limited warranty for "any article described in headings printed in UPPER CASE TYPE in this catalogue ... which is unqualifiedly stated to be the work of a named author or authorship is authentic and not counterfeit."

What I find very interesting and according to attorneys quoted in the article the ruling could open a tremendous amount of liability and litigation issues against auction houses and their specialists. This ruling may allow third parties who relied upon the published auction catalog content and the expertise and reputation of the auction house to now hold the auction house liable for damages if the catalog listing is found incorrect or negligent. It is important to keep in mind that the specific claim and court case claims Christie's knew there was a question of authenticity and even with that knowledge authenticated the painting and published it in the sales catalog.

I would recommend that every appraiser and auctioneer on read the NY Law Journal article. Click HERE to read.