Young Collectors Night at the Winter Antique Show

The AW Blog even covers the NY social circuit. On Thursday, January 29th the Winter Antique Show held it Young Collectors Night, chaired by Kipton Cronkite, Gillian Hearst Simonds, and Tatiana Perkin. The NY Observer was there covering the evening and asking the question, has antiquing become "more of a younger, hipper thing to do for New York's young socials."

Cronkite reasoned to the question "I think so. It definitely has that stigma, which is why we're trying to raise awareness with the Young Collectors Night," said Mr. Cronkite. "If you're furnishing your apartment and you're buying a piece from a well-known store and you compare that price to an antique and you look over the long run, you'd see that the piece that's newly made is obviously going to be worth a lot less than an antique. If younger people can look at the money they're already spending, they'll see that antiques are a better investment and they have a lot more character. There are so many periods and colors that there's really something for everyone."

Perhaps the younger generation is starting to understand the benefits of antique decorative arts when compared to purchasing new items. I hope so.

To read the NY Observer piece, click HERE.

Sotheby's No Longer to Accept Credit Card Payments

I guess the merchant fees are to high. I would assume catalogs will still be available by credit cards.

Art Info is reporting:

NEW YORK—In 1995 Sotheby's famously accepted a $2.47 million credit card payment from Eli Broad for the purchase of Roy Lichtenstein's painting I ... I'm Sorry. As of this month, however, the auction house will no longer be accepting credit cards — only checks, wire transfers, and cash, New York magazine reports.

A Sotheby's spokesperson explained the change, saying that putting auction items on cards "was not widely utilized." He also confirmed that the Sotheby's-branded MasterCard has been discontinued. Christie's, on the other hand, began accepting credit cards last fall for sales up to $100,000.

Sotheby's NY Old Master Sale

Sotheby's NY just completed several days and auction sessions of Old Master Paintings and Sculpture sales. The sales totaled $63.9 million, with the top lot being JMW Turner's the Temple of Jupiter Panellenius (see image). The Turner brought nearly $13 million including buyers premium.

The sales had a total of 289 lots of which 158 sold, a sell through rate of 54.7% on the offered lots. Not a real strong sale with that high of a buy in rate, although the totals dollar figures look acceptable at first glance. The Old Master sales at Sotheby's had a low total estimate of $84 million and given the low ratio of sales, those that did sell, appear to have command reasonably acceptable prices. On further analysis the top three lots account for nearly $25 million of the total sales (including premium). The Christie's sale earlier this week (click HERE to read the AW Blog report), with a much lower total of around $14 million, and a sell through rate of 65%. The sell through rate at the Christie's sale was 65% compared to the 54.7% at the Sotheby's sales.

Old Master sales are considered more stable than the contemporary, modern and impressionist sales. The word is that for many lots, it was difficult breaking the $1 million threshold, and that both private collectors and dealers where being cautious. The $63.9 in sales initially looks promising, but given the number of unsold lots, and that nearly 40% of the total sales were derived from only three sales (again proving quality sells), unfortunately, I am not so sure you can consider the sale a success.

Update - Brandeis University May Keep Art?

Geoff Edgers of the Boston Globe is reporting that Brandeis University will in fact close the school's Rose Art Museum. There are two very interesting areas in the article, the first being that if there is a turn-around in the financial markets, Brandeis may be able to keep the collection (yet the museum will still close), and two, a Brandeis spokesperson stated the reason for closing was to bypass the stricter deaccessioning guidelines many museums must adhere to. This is not a good precedent to set.

Edgers writes Brandeis University President Reinharz confirmed a precipitous drop in the university's endowment but said that if the economic and philanthropic picture brightened, the university might not need to disburse a collection of modern art that includes works by Warhol, de Kooning, and Magritte.

"We have no particular mandate from the board of trustees as to when to sell, how to sell," Reinharz said in an interview.

He added: "If in fact there is a miracle tomorrow morning and the economy turns around and the stock market is up by 45 percent, nothing impels me, nothing impels us, to do anything."

Edgers continues with Brandeis Provsot Marty Krauss adding the reasoning behind the closure, which is scheduled for late summer. In an interview, she said university officials believed they could not operate a museum, which is expected to abide by a code of ethics limiting the reasons it can sell off art, and then sell art to pay for needs other than the museum. Closing the 48-year-old museum entirely would provide the university more freedom, Krauss said.

She said school officials have no regrets following the firestorm of criticism the university has received after announcing the dramatic move. At the informational meeting yesterday, administrators disclosed that the school's endowment had fallen roughly 25 percent, from $712 million to $549 million.

"We knew this would be controversial," she said. "We also firmly believe we're doing this for the right reason. This is a bold move to ensure the future of the university."

To read the full Boston Globe article, click HERE.

Ex Merrill Lynch CEO a Collector of Antiques

Peter Green of Bloomberg reports recently removed CEO of Merrill Lynch redecorated his office at a cost of $1.2 million. Over the past year, as Merrill Lynch was having major difficulties and laying off employees, the CEO, John Thain thought it a prudent time to redecorate his office. Green reports that Thain purchased from decorator Michael Smith $837,000.00 of antiques including a $25,000.00 table, $87,000.00 for area rugs, and $68,000.00 for an antique credenza. Life is good at the top, especially when the company is paying.

Green reports The antiques Thain reportedly purchased will probably hold their value over time, said Clinton Howell, a New York dealer in English furniture.

“Michael Smith is a very smart guy and he buys very good things,” said Howell. “It’s very likely that what he bought was worth the money if Merrill Lynch wants to get their money back.”

In light of Merrill’s $56 billion in losses from subprime loans and the credit crisis, $1.2 million spent on antiques hardly seems worth getting outraged over, Howell said.

“What John Thain did with his office is a little like noting that somebody failed to turn on his blinker before driving into a train,” said Howell.

Designer Dennis Rolland, who has done homes and offices for financiers including Peter Peterson, the co-founder of Blackstone Capital Partners LP, said it’s unwise to furnish an office with antiques.

‘Too Fragile’

“I would seldom encourage someone in an office to use antique furniture, it’s too fragile,” said Rolland.

The statement, or perhaps more so the attitude that bothers me the most is that of dealer Howell stating the amount Thain spent to decorate, in the grander scheme of Merrill Lynch losses and ultimate failure and subsequent buyout by Bank of America was insignificant. I am sure the stock holders of Merrill Lynch will feel much better at the insignificance of the decorating. It also bothers me that Thain, while the investment bank was struggling for its survival felt comfortable to spend over a million dollars to decorate his office. The sense of entitlement amazes me. Thain was just fired by Bank of America, terms have not yet been disclosed, but I am sure Mr. Thain will land on his feet.

There have been additional articles stating Thain will repay Merrill for the cost, as well as other dealers defending the purchases, saying there was value in the property purchase. I have not seen the property, but I would probably agree there is value there, and the pieces most likely will hold their value instead of depreciate. I am sure we could find a NY appraiser to place strong values on all of the items purchased by Thani for his office project. But I think these comments on value miss the point. I see the central argument as when a firm is on the brink of financial collapse and firing employees, the leadership of the organization should not be spending over a million dollars on office decorations. To me, that is just common sense. Again, the sense of entitlement and the enablers on corporate boards never ceases to amaze me.

To read the article, click HERE.

Christies NY Old Masters

Christie's held its New York Important Old Masters Sale on Wed the 28th. The sale generated $14.19 million in sales including buyers premium. 210 lots were offered and 137 sold a 35% buy in rate. The lowest price was $1,750.00 and the highest brought $1.76 million (F. Urbino, John the Evangelist, see image), with an average lot sale of approximately $103,500.00. The London Old Master sales in early December showed similar buy in rates, and all things considered, the current results are not bad.

Looking at the top ten sales, there was a mix of lots selling above the reserves, between the reserves and below the reserves. Pretty typical from a quick glance. Although as posted on the AW Blog before, Old Master sales have more stability and less volatility in their sales than modern and contemporary. The February sales of modern, impressionist, and contemporary art will be interesting to watch, and compare the results from similar sales held during the 4th qtr of 2008.

"Like a Good Neighbor" - State Farm to Stop Insuring Private Property in Florida

I just received an alert from fellow appraiser Alvah Beander that State Farm is pulling out of the Florida residential property market. A Market Watch report states that State Farm, the nations largest private property insurer will no longer insure residential property in Florida. The withdrawal not only includes real estate, but also personal property. The decision came after the state regulators refused to allow State Farm to raise insurance rates by 41.7%.

The Market Watch reports states, State Farm has been the largest private property insurer in Florida, so when it leaves, thousands of homeowners and other policyholders in the state will have to look for coverage elsewhere.

The withdrawal plan includes coverage for homeowners, renters, condominium unit owners, personal liability, boats, personal articles, and business property and liability policies. More than 700,000 homeowners will be affected, State Farm said.

CNN reports that State Farm has lost $1.21 for every dollar collected in premiums on Florida property. CNN states the announcement is the first step of a two year process to leave the Florida property market.

Perhaps there is business for appraisers as potential clients need to update their personal property insurance records as they move to a new and different insurer. The report stated State Farm plans to continue selling Auto, life and health insurance in Florida.

To read the Market Watch report, click HERE. To read the CNN report, click HERE.

London Art Fair - The Middle Market

Oliver Basciano of Art Info reports on the London Art Fair, now in its 21st year. What I find interesting is the fair, with 112 exhibitors, is placed squarely in the middle market. The article is titled about the fair coming of age, but I must admit I like the fact that a middle market show is drawing press attention and has had successful results. As appraisers we know the middle market has been suffering, especially in the decorative arts for some time now. The middle market was ailing even when the upper markets were showing signs of strength. With so much attention showered on the large fairs and auctions, many times the middle market is forgotten. I wish there was more information and results for the middle market of the fine and decorative arts. I too have been to blame for overly focusing on the upper markets, but unfortunately, that is where most of the emphasis and sales result reporting is. So we take what we can get.

The Basciano article states the London Art Fair, which ran between January 13 and January 18th had many satisfied dealers. I dont want to get too excited, but the news of the show and positive results are very pleasing, especially in our current economic climate. Many dealers were reporting satisfactory sales given the state of the economy. So we are not talking about a great success, but a solid return in the middle market with acceptable sales given the economic situation.

Basciano reports But of late, LAF has reinvented itself as a mid-market destination for local collectors, and judging by the foot traffic and positive exhibitor reports so far at this year’s edition, has done so successfully.

The article states many of those who patronized the show were local collectors, and the dealers were, in general pleased with the results. As a dealer, as I am as well, you do have to take into consideration the current economic situation, and factor those changes into deciding the success or lack there-of of any show or fair results.

I was displaying at the Historic Annapolis Foundation Antiques show January 15th-18th, and I was pleased with the results, given the current economic climate. That being said, several years ago, I would have been disappointed. Most dealers were pleased with the gate, but as always would like to have seen more sales for the number of patrons visiting the show. How times changes perspectives.

To read the ArtInfo article, click HERE.

Winter Antique Show Update

Amy Page of Art Info has an article on the Winter Antique Show, and the report is not one of gloom and doom. I gather from the article that many dealers went into the show with low expectations and tried to maintain as much value in their pricing strategies as they could. Others brought their typical Winter Show quality items and prices as well. According to the article, both show strategies seem to be paying off. Many of the dealers are saying that mid-way through the show, they are pleased.

Page opens her article with In response to the sour economy, some dealers in this year’s Winter Antiques Show in New York (January 23 – February 1) scaled back their booths, bringing less expensive objects than they had in the past. New York dealer Leigh Keno, for example, typically shows pieces of American furniture priced in the millions. This year his top work was a carved maple chest of drawers made by the workshop of Major John Dunlap, New Hampshire (c. 1790), priced at $490,000 (it sold on the opening weekend), and nothing else in the booth was valued above $100,000.

“We thought about the economy,” said Keno, “and brought pieces that are useful and buyable.”

Page continues with some additional dealer comments:

London antiquities dealer Rupert Wace said that he made sure his pieces were priced as well as possible, a task made easier by the weak pound. But while some dealers had stocked their booths with less expensive items, others continued with business as usual, saying that their regular prices were always reasonable enough. Spencer Throckmorton, owner of New York’s Throckmorton Fine Art, brought “what we usually sell at the gallery, which is good material at good prices. We did no downsizing. Overall, those dealers who came with low — or no — expectations were pleasantly surprised. Bernard Karr, the president of Hyde Park Antiques, said that the fair was doing better than he thought. “We all had trepidation,” he said, “but the world has not stopped spinning. Everyone did a bit of business.”

This is good news after a substandard showing at the American Week auctions. The Winter Show runs through Feb 1st, so there is still time for more sales. Many of the dealers say they have had a lot of interest and have numerous items pending. Lets hope the trend continues.

Perhaps this indicates there will be a bit of stability in the antique market. Have we have reached the bottom, and now interest and sales are starting to turn toward a positive run. I will try to get more information as the show proceeds and concludes.

To read the ArtInfo article, clikc HERE.

Brandeis University to Close Rose Art Museum and Sell Collection

The Boston Globe is reporting that Brandeis University plans on closing the schools Rose Art Museum and sell the 6,000 item collection. The museum has been part of Brandeis University for nearly 50 years and has a main focus on contemporary art. The school is facing some extreme financial hardships, and is also looking at reducing faculty by 10% and even the potential of requiring students to attend a summer session.

Regarding the collection that includes pieces by Warhol, Lichtenstein, Paik, the Globe reports The move shocked local arts leaders and drew harsh criticism from the Association of College and University Museums and Galleries. Rose Art Museum director Michael Rush declined comment this evening, saying he had just learned of the decision.

The report continues “Clearly, what’s happening with Brandeis now is that they decided the easiest way is to look around the campus and find things that can be capitalized,” said David Robertson, a Northwestern University professor who is president of the Association of College and University Museums and Galleries. “It’s always art that goes first.”

But there is no precedent for selling an art collection of the Rose's stature. Internationally recognized, the collection is strong in American art of the 1960s and 1970s and includes works by Willem de Kooning, Jasper Johns, Morris Louis, and Helen Frankenthaler.

As the article states, which are having difficult times surviving in this economy are looking for ways to raise substantial amounts of capital to survive. If there is an art collection involved with sufficient value, as disappointing as it is, we are finding the collections are becoming more and more a tool to be used to raise capital as opposed to a benefit to the public.

Bloomberg also reports on the closing of the Rose. It states many foundations which supported Brandeis University were effected by the Madof Ponzi scheme. Bloomberg reports the collection was last appraised in 2007 and valued at $350 million.

The New York Times states the Massachusetts Attorney General is going to look at the situation. The NY Times article states Emily LaGrassa, director of communications for the state attorney general, Martha Coakley, said that Brandeis had informed the office on Monday of its decision, but had not consulted with the attorney general in advance. The attorney general has approval powers over certain actions of nonprofit institutions in the state.

Ms. LaGrassa said that in the case of Brandeis, the attorney general would review wills and agreements made between the museum and the estates of donors to determine if selling artworks violated the terms of donations. “We have not yet offered any opinion on any aspect of the proposed sales,” she said, adding, “We do expect this to be a lengthy process.”

To read the Boston Globe article click HERE, to read the Bloomberg article, click HERE, to read the NY Times article, click HERE. As the reports surface, the mainstream press is really picking up on this story. It will be interesting to see how it shakes out.

I was in Chicago for a few very cold days, and at the airport I am reading US Today. I really hate spreading the negativism, but it is so hard to avoid. The economy is just in shambles, and it is reaching into and effecting almost every area of daily life, not only the fine and decorative arts.

The article was dealing with upcoming profit reports, and the layoffs and companies like Home Depot (closingnExpo design center), Caterpillar, and Sprint (around 35,000 job losses). Many economic experts predict that 2009 will be a very difficult year with many more reductions. I certainly hope something positive comes along, or we will be reading more and more about institutional survival, and not just in the arts.

More on Titians

A while back the AW Blog posted on the potential sale of two Titian by the Duke of Sutherland to the National Gallery in London and the National Galleries of Scotland (click HERE to read). Each Titian was to be sold at the discounted price of 50 million pounds. The first 50 million pounds were due December 31st, and the second 50 million pounds in four years.

The Times of London is reporting that the ArtNewspaper is soon to release a story detailing complications in the negotiations. In addition to the Titian purchases is the long term loan agreement with the Duke about the Brdigewater collection of old masters. The collection is considered the greatest assortment of old masters in private hands. The Bridgewater collection has been on display at the National Galleries of Scotland. It was thought the Bridgewater collection would stay on loan for an additional 23 years so long as the two Titians were purchased at 100 million pounds. It is said the first 50 million pounds has been raised, but final negotiations continue.

It is now thought the Duke wants the ability to sell pieces of the Bridgewater Collection under certain circumstances. The National Gallery and National Galleries of Scotland are of course against the selling of any of the Bridgewater collection while on long term loan to the institutions.

My thoughts are what a fantastic appraisal exercise in valuation and broad evidience. The Galeries receiving the two Titians at discounted prices (how much of a discount), true value of each Titian (indivudually and togheter as they were meant to be) value of the individual pieces of the Bridgewater collection, and the collection as a whole, and the impact to value of not being able to sell the property for certain periods of time. Much to think about from an appraisal perspective. I am sure there are even more valuation considerations as well.

To read the Times article, click HERE.

More on Americana Week

I just took a look at the final results of the Americana Week auctions as posted by Sotheby's and Christie's. Sotheby's results are broken down into the two day Important American Sale and the single owner Lamond sale. Similar to what I posted a few days ago, but here are some highlights and official figures from the auction hosues.

According to the Sotheby's press release the Important Americana sale contained 338 lots, and 193, selling only 57% of the offered lots. The total sales amount was approximately $6.18 million. The highest item in the sale was the Captain Edward Allen Chippendale Mahogany Bombe Chest on Chest, possibly Salem to C L Prickett Antiques for $1.76 million (est $800,000.00 - $1,200,000.00). There was a fair drop off to the next highest items, being a Silver Tiffany bowl at $302,500, followed by piece of furniture, a bombe chest of drawers, also purchased by Prickett at $302,500.00 ($300,000 - $600,000 estimate).

The Lamond sale totaled $1.534 million, had 111 lots, and sold 106. 95.5 % of the lots sold, which is very high rate. Top lot was a high chest that sold for $482,500 to a private collector and carried a $200,000 - $1 million estimate (that's a wide range - see image) the next highest items was a set of six Queen Anne PA side chairs, for $98,500.00

The Christies release is a combination report of its Important American Furniture and Folk Art, Important Silver, Chinese Export and Hodroff Collection part III. The Christie's release states 568 lots were offered, 391 sold for a total of $6.3 million. Christie's sold 68% of lots offered during its Americana sale. Top lot, was previously mentioned, being the Charles Peale Polk of George Washington at $663,500. The top piece of furniture was a NY carved Chippendale card table which was sold to Leigh Keno for $278,500.00.

In my post the other day, I compared to last years sales, so no need to rehash that. I hope to have some idea of how the Winter Antique Show is progressing shortly. The comments on the auctions, both from a quality of merchandise, quantity of property and value perspective have been rather mild and unenthusiastic to say the least. Although the high buy through rate at the Lamond sale gives some encouragement.

Christie's to Combine Sales

As further evidence of reorganization and cost savings, Christies issues a press release on January 23 of a new sales platform for old master paintings and 19th century European art. The new sales platform will effect the NY location of Christies by combining the previously separate categories. Although Chrisites has test the combination in the past by mixing some 19th century paintings into recent Old Master sales/

According to the press release “This new initiative formalizes a process that began several years ago with the successful introduction of major 19th century works into our Old Master Paintings sales, including the record-breaking sale in 2006 of J.M.W. Turner's 19th century masterpiece, Guidecca, La Donna della Salute and San Giorgio,” said Hall. Similarly, the upcoming sale of Important Old Master Paintings and Sculpture on January 28 includes an array of exceptional works from the early 15th century up to the 19th century, including major works by Turner, John Constable, Ippolito Caffi, and Anne-Louis Girodet. The new sales calendar will include a flagship international auction each January in New York of the most important paintings, drawings and watercolours from the consolidated category, followed by an additional mid-season auction each June. Additionally, further works of art will be offered in Interiors sales throughout the year in New York.

The effect is fewer auction and a gaining of economies of scale by combining the two categories. The London Old Masters and 19th Century European sales are expected to remain separate as the European markets are considered differently than the US markets.

Sotheby's to Reorganizae Amerstdam Location

Just a real quick post here. Bloomberg is reporting the Dutch paper Dagbald is claiming the Sotheby's office in Amsterdam will reduce staff by two thirds, and reduce the number of auctions from 10 to 2 per year. The Amsterdam location currently employees about 60 people. According to Dagbald, the strategy is to only have two specialty painting sales in Amsterdam, and channel the remaining decorative and fine art property to London, Geneva, Paris and New York.

This repositioning, in effect makes the Amsterdam office little more than a satellite drop off location for Sotheby's other, larger locations. Late last year, both Sotheby's and Christies stated they each planned on staff reductions and reorganizations. They both are certainly following through on their claims to cut costs in order to survive as the economic stresses continue to hurt the fine and decorative art markets.

To read the Bloomberg article (very short), click HERE.

Sotheby's and Irrevocable bids

I was talking with fellow appraiser Judith Martin about a letter to the editor in Maine Antique Digest on Sotheby's and the rather new concept of irrevocable bids. I decided to do a little extra research and here is what I discovered.

The irrevocable bid is a guaranteed bid placed by a potential buyer on a Sotheby's auction lot. If the item does not reach the level of the secret irrevocable bid, then the lot is sold at the amount of the irrevocable bid. Should there be no other bides, the lot sells will then sell at the irrevocable secret bid amount. This is different than an absentee bid, where if bidding stops below the maximum of the absentee bid, the lot sells at the last bid price. The irrevocable bidder pays the same buyers premium as any other purchaser.

Here is an interesting aspect of the an irrevocable bid. If the lot sells for above the irrevocable bid, the person who made the irrevocable bid gets a percentage of the amount over the secret irrevocable bid and the final selling price. It has not been revealed what the amount is, there has been speculation it is is 50% of the buyers premium.

The irrevocable bid is meant to reduce the exposure and risk to the auctions house, should there be an irrevocable bid, there is less of a need for guarantees. Some consider the irrevocable bid as a third party guarantee, and it is similar in concept. It protects the auction house and there is a share in profits over a decided upon selling amount.

As a form of transparency (if you can call it that), should a lot having an irrevocable bid, it will be noted in the catalog. The effect of the irrevocable bid is the item in actuality has been pre sold at some amount above the reserve, with options for other bidder to out bid the secret irrevocable bid. The issue here is will the irrevocable bid scare of other interested bidders, who will now have dual thresholds to deal with. First if there is a reserve, and second to out bid the secret irrevocable bid.

This is all very interesting and debatable from an ethical and transparency point of view. The idea of third party interest, transparency, dual thresholds all are bothersome to purchasers. Especially when they are paying premiums of ranging from 12% to 25% depending upon the final sale amount.

NY Times Previews the Winter Antiques Show

Benjamin Genocchio of the NY Times has a preview of the 55th annual Winter Antiques show in NYC. He is impressed with the wide assortment of merchandise on display from the 75 dealers. Yes, there is the large amount of typical American antique furniture and decorative arts but there is also a lot of variety in this years presentations and dealer exhibits, including mid-century modern.

Genocchio states While the accent is on 18th- and 19th-century Americana, variety abounds: there is Asian art; glass; rugs; Egyptian, Roman and Greek antiquities; jewelry; ceramics; paintings; photography; silverware; folk art; prints; rare books — some 10,000 items in all.

Genocchio continues This year, for the first time, the fair’s organizers have allowed modern material, up to 1969, to be presented in the show. Not all of the items qualify as antiques, but increasingly these kinds of art world definitions are meaningless. Besides, the new mixture mirrors the way collectors like to combine antiques and antiquities with modern art and furniture in their homes.

As I have mentioned in past posts on the AW Blog, mid century modern is a growing sector for collectors. If it is showing up at the Winter Show, soon expect to see more and other shows and auctions. Mid Century modern accounted for nearly 25% of merchandise at the 24th Paris Biennale des Antiquaires, France's leading antique show and fair this past fall. Now at the Winter Show in NY, I would say mid century modern decorative arts has broken into the established and traditional venues of fairs and exhibits.

Eve Kahn also has an article in the NY Times about both the Winter Show and the NY Ceramics fair. Kahn was impressed with the Ceramics fair and made the following observation Dealers can be educational resources comparable to excitable, deeply informed, eloquent museum docents. Picking up a piece at a booth could set off a mini-lecture about the historical forces and peculiar personalities that shaped the original design, the enduring mysteries surrounding its production and survival, and maybe why its price is so reasonable.The prices seem relatively sensible, and the dealers especially scholarly, at the New York Ceramics Fair and the American Antiques Show. Trolling the aisles asking about the newest highlights, any rarities fresh to market, you hear just a few figures over $10,000, and there are plenty of conversation pieces available for just a few hundred dollars.

It is pleasant to see Kahn recognize the both the knowledge of the dealers and their willingness to share that knowledge with show patrons. Too many times you here of dealers ignoring potential clients, or just show patrons who would like to learn more. The dealers must keep in mind they could be future collectors and customers. It is also interesting to see what Kahn considers to be fair and reasonable prices. Too many times at these NY Americana week sales, there is such a wide range between price and value. I have witnessed at many shows extraordinary items with justified extraordinary prices, I have also seen many ordinary pieces with extraordinary prices.

To read the NY Times piece on the Winter show, click HERE. To read the Kahn piece on the Ceramics and Winter Show, click HERE.

Preliminary Results from Americana Week Auctions

On Friday and Saturday Christie's and Sotheby's held their annual Americana week sales. I only have preliminary numbers, and have not yet analyzed percentages of lots sold and sales results versus estimates for 2009, but I hope to have that posted within a few days.

Day one of the Sotheby's sale including American silver and Chinese export totaled $1.83 million, day two of the sale held on Saturday the 24th with mostly furniture totaled $4.35 million. The Laomond single owner sale of fine and decorative arts totaled $1.53 million. Sotheby's total for the American week auctions was $7.71 million. I do know one of the big dollar value items, the Old Jake weather vane, circa 1850 of Winchester VA failed to sell. The estimate on Old Jake was $3-$5 million.

This year the Sotheby's Americana sale had 338 lots, and the Lamond single owner sale had 106 lots for a total of 444 lots.By comparison, the total for Sotheby's two Americana week auctions of 2008 was $13.89 million, This years sale brought about half of last years totaled. I will say, that I believe there was not only more lots, but better offerings at last years sale. I also wish to see the buy in rate for 2009. The 2008 sales had 462 lots, and sold 345, selling about 75% of the lots in the two auctions.

The Christie's2009 important American Silver sale totaled $996,100.00, and the American Furniture and Folk art sale totaled $2.97 million. On the 21st Christie's held two other auctions connected to Americana week, including Chinese Export Porcelain, which totaled $1.45 million, and the Hodroff Collection Part III, totaling $897,587. For an Americana week total of around $6.32 million. The highest selling item at the group of Christie's sales was the George Washington portrait by Charles Peale Polk at $662,600.00 (see image).

In 2008 Christie's had a rather incredible assortment of property and between two single owner sales, the American Furniture and Folk art sale, and the American Silver Sale Christie's and Hodroff Part II totaled over $21.26 million with 1151 lots offer and 993 lots selling. About 86% of the lots selling.

A rather large difference in sales figures, the number of lots Christie's offered this year was much smaller than in 2008. I believe both Christies and Sotheby's had an overall lower level of quality as well.

Remember, all lots prices quoted include buyers premiums, typically 25% on the first $20,000.00, 20% up to $5000,000.00 and 12% thereafter.

At first glance when compared to 2008 the sales seem to be a setback. But we have to consider the number of lots offer, the buy in rate, and the quality of merchandise as well as the state of the economy. So lets not rush to judgment. As soon as I have more details and analysis of the 2009 sales I will post, but I wanted to get some of the early figures out. I hope to have low estimate totals compared to actual sales as well as number of lots offer to sold.

Thanks

I wish to thank everyone who took the time to send words of encouragement and support for the AW Blog. There were a several comments posted on line and many more sent directly to me. All were greatly appreciated.

The Blog continues to show strong signs of growth from the time it was initially launched this past July. Since initial publication, according to Google analytics, the AW Blog has seen over 6,000 visits and over 11,000 page views. The average number of viewers and visits has been increasing each month, from a relatively few in July, to currently over 2,000 views per month. These figures do not include the daily views of those who get delivery by email. The email delivery subscription base is growing as well, supporting the notion that the content, after being reviewed is deemed worthy to received daily.

To all AW Blog readers, thank you for your support.

Todd

Yves Saint Laurent’s and Contested Property

Le-Min Lim of Bloomberg is reporting there is two pieces of contest property in the greatly anticipated Chrisities February sale of fashion mogul Yves Saint Laurent’s collection. The two items in question are Chinese animal heads, a rabbit and a rat.

Lim reports the two animal figural heads are among 700 works in the Yves Saint Laurent and Pierre Berge Collection expected to raise as much as 300 million euros ($389 million), according to a Christie’s statement from September. The proceeds will help set up a foundation for AIDS research.

Lim reports “For each and every item in this collection there is a clear legal title,” Christie’s said in a statement e-mailed today in response to inquiries from Bloomberg News. “We strictly adhere to any and all local and international laws.”

Any lawsuit would be filed in the French courts, Liu said. The lawyers seek to block the sale first and ultimately to repatriate the items. The auction will be held at the Grand Palais.

The 1995 United Nations Unidroit Convention limits claims on stolen cultural artifacts to within 50 years of their theft.

All the bronze heads are among 12 zodiac animals from a water-clock fountain in Yuanmingyuan, or the Imperial Summer Palace. The palace was set ablaze and its treasures plundered and scattered by British and French troops in October 1860.

A previous sale in 2007 contained a tiger head from the same foundation and was purchased for $8.9 million and donated back to China. Given the statute of limitations appears to have past (50 years), it is interesting that in this case China is suing, instead of bidding.

To read the full article, click HERE.

More on Museums and the Economy

Earlier this month I posted on the ArtNewspaper review of what museums were doing during these difficult financial times (click HERE to read the post). Remember, many endowments have lost significant value due to declining stock portfolios and declines in other investment vehicles. Many museums run on patronage and/or government subsidies as well as endowments. While some museums are cutting back, a few were maintaining the status quo and few were more aggressive and planned on expansions and major exhibits. Interesting to note, the three levels of planning. I wonder how much has to do with proper museum management. On the most part, I would assume the museums with good directors and patrons continue to strive, while others with poor management and attention to detail suffer.

The ArtNewspaper now has an updated list with plans of additional museums. These include:

• the Austin Museum of Art shelved plans to build a new $23m branch in downtown Austin after Houston-based developer Hines Interests withdrew its plans to purchase land from the museum. It is hoped a new plan will be devised and the project will again commence later this year or in 2010
  
• the Denver Art Museum reduced its 2009 budget by $2.5m, or about 12% less than the $21.3m approved by the board in September 2008. The cuts have been made in anticipation of a decline in the museum’s endowment caused by the financial downturn, but museum director Lewis Sharp says there will be no layoffs or other changes made to the programming.
• The Cincinnati Art Museum is not proceeding with an expansion project and has also had to lay off seven members of its staff, mainly positions involved in the multi-million-dollar capital fundraising campaign for the building project
• the Milwaukee Art Museum has announced new hours and admission prices for 2009, partly in response to economic conditions. As of January, the museum will be closed on Mondays, except for the public holidays Labor Day, Memorial Day, and Dr Martin Luther King Jr Day. Also, the museum now has a single-ticket admission fee of $12 ($10 for student and seniors) and will no longer charge for special exhibitions. This is a significant raise in prices from last year, when general admission to the museum cost $8 for adults, $6 for seniors and $4 for students.

To read the full ArtNewspaper article, click HERE.

Some thoughts on Americana Week

I have anxiously been awaiting the Americana sales this week at both Christie's and Sotheby's. Plus to get feedback on the Winter Show a bit later in the month. Many consider the auctions and sales a good annual barometer for the antique trade.

Sotheby's is having two sales, including the single owner Lamond Sale on Sat the 24th, and the Americana furniture and decorative arts salein two parts on Friday the 23 and Sat the 24th. These two large auction houses typically promote and feature these sales. In checking the sites, I find on the Sotheby's site good content and graphics of the sale on the home page, although rotating with other sales. When the computer flash programing opens, it starts and features items from the Americana sale. Nothing unusual about that, sort of expected, especially with the important sales starting Friday afternoon.

Next I go to the Christie's site and they have flash computer programing as well. But what surprises me is the Chrisite's home page has three rotating flash pages, one for the Feb impressionist and modern sale in London, one for the upcoming NY Old Masters sale, and one for the Paris sale of the collection of designer Yves St Laurent. Nothing on their Americana sale on the home page. To find the Americana sales on the Christie's site I had to go to the calendar to find the two sales, one for American Silver the other for Furniture/Decorative scheduled for Friday afternoon.

It will be interesting to see the sales results and compare to last years figures. But, I am surprised that Christie's does not have property form the Americana sale featured on the home page. The only thing I can assume is based upon the property in the sales, the level of return was to small to feature when compared to the total estimates of the other sales. The Yves St Laurent Sale is expected to generate over $350 million. Last year the main Christie's Americana decorative art sale totaled less than $20 million. Regarding importance of sales to Christies, I guess the numbers, as large as they are speak for themselves. Furniture and the decorative arts, like Rodney Dangerfield would say, "get no respect".

I'll report on the sales results as soon as I can. Perhaps this weekend or early next week.

More on Christies Staff Reductions

Catherine Bolyes of The Times of London reports on the staff reductions going on at Christies London headquarters. She reports the perhaps 20-25% of the mid level staff may be let go. The London office of Christies employs around 800 people. The London operations are currently under review, with job losses expected to take place over the next four months. The New York office of Christies has already released around 80 employees from a variety of departments and positions.n Boyles reports the Chrisites employs 2,100 people in 85 worldwide offices.

Boyles states The main part of Christie's business is devoted to art, but it also auctions fine wine. The fine art market has altered hugely since Lucian Freud's Benefits Supervisor Sleeping was sold for a record $33 million at Christie's in New York last year. The Russian oligarchs and hedge fund billionaires who drove up the prices of contemporary and modern art have suffered from the credit crunch.

Christie's sale of 20th-century British art last month, seen by many as the mainstay of British private art collecting, ended with 57 per cent of the lots successful — down from 81 per cent at 2007's sale. The sales total of £4.1 million was less than half the £9.4 million achieved last year.

Christie's is not the only auction house under pressure. Sotheby's, its main rival, which is listed in New York, has said that it will save $7 million (£4.6 million) by reducing staff levels and other costs this year.

To read the full Times On Line article, click HERE.

ArtTactic Releases Contemporary Art Survey

Anyone who has been following the art market or the AW Blog is aware of the downturn that has hit the fine art market, with an added emphasis on major losses within the contemporary specialty area. ArtTactic just released its confidence report for contemporary art and it is not positive. With an 81% decline in confidence and many believing it will be 3-5 years before contemporary art rebounds. The downturn in contemporary art in the 4th quarter was also documented by the RICS survey, posted on the AW Blog yesterday.

From the ArtTactic website:

The ArtTactic US & European Contemporary Art Market Confidence Indicator for December 2008 has dropped to its lowest level since it was launched in May 2005. The ArtTactic Art Market Confidence Indicator has dropped to 10.5 from 56 - a 81% drop since May 2008. The drop in confidence comes on the back of 40% drop experienced in November 2007, shortly after the outbreak of the credit crises. The current reading implies that pessimists outweigh optimists in the Western contemporary art market by a ratio of 10:1.

ArtTactic reports The drop in confidence comes on the back of 40% drop experienced in November 2007, shortly after the outbreak of the credit crises. The current reading implies that pessimists outweigh optimists in the Western contemporary art market by a ratio of 10:1.
The ArtTactic report continues Recovery will take years: 52% of the respondents believe it will take more than 3 years for the market to start picking up, and more than half of these believe it could take more than 5 years.

- Bottom falls out of the high-end of the market: The confidence has weakened in all of the higher price segments (particularly above 0,000) since the last reading in May 2008

- Risk rating at an all-time high: The Risk Barometer stands at 8.3, significantly higher (22%) than last reading in May 2008, suggesting a heightened level of uncertainty in the art market, both in terms of the potential value correction and the duration of the downturn.

To review the ArtTactic figures, click HERE.

A Message for Peggipei

As I have done in the past, when there is an interesting comment on the AW Blog, I like to move it from the comment section to the main posting area so all readers may see. Peggipei posted a comment about the content I provide on the AW Blog. The comment is at the end of my post.

Due to the comment from Peggipei, there might be some misunderstanding on what the Appraiser Workshops blog is all about.

In some respects, I agree with Peggipei, that many of the articles are limited in scope to fine art. I too am frustrated with that, as I am an American and English furniture specialist and not a fine art specialist. But there is little content in the news about the decorative arts, and even less on personal property appraising. When I find it, I post it. Remember, many of the trends reported on fine art can also be applied to the decorative arts.

Interestingly enough, on the day of Peggipei's comment, in addition to the Forbes post on Russian art fakes and forgeries (which I personally found fascinating), was a posting on the RICS Art and Antique survey which was just released. The survey contains much information on market trends for the decorative arts (including furniture, books, ceramics, silver, etc). The previous day there was a post on auction houses and how they are approaching upcoming sales in the poor economy (this effects appraiser who work with clients who need market value appraisals), and the latest USPAP Q&A's. Earlier I posted on classical furniture coming to Americana week and prior to that discussed items of interest at the Winter antiques show and the itinerary and auctions of Americana week. There was also a recent post on Park West Gallery being sued, yes fine art, but most generalist appraisers see cruise ship art on a regular basis. The blog had a fair amount on museum deaccessioning, which can be applied to both fine and decorative arts. I also post technology tips when I find something I think is useful to appraisers. I have even posted on motivation topics such as Getting Things Done (GTD) and organizers.

So I am not so sure I agree with Peggipei about only a "smattering" of items beyond fine art and the posts being "redundant". Remember, the posts originate from what is currently in the news, the NY Times, the Financial Times, the Wall Street Journal, LA Times, Forbes, the Times of London, etc. Every post is not meant to be of interest to every reader of the blog. If it is of interest I hope it is read, if not, I expect it is quickly deleted. Perhaps some appraisers only gain usable content once or twice a week, maybe more, maybe less.

To be clear, the blog is a free service set up in my spare time to report news and current events on topics that would be of interest to personal property appraisers. Many readers of the blog send me content and news when they see it as well. The blog is not meant to be a vehicle to teach the basics of appraisal theory and methodology.

Peggipei comments Appraising is a challenge, exciting and new with each new client we take on, and as we appraisers know "Knowledge is the Key," so once again, give us something more than art to learn about.

The Appraiser Workshop Blog is a free service, so I find the above comment rather demanding and presumptuous. I understand there is more than fine art to report, yet finding current and reliable content on the decorative arts and personal property appraising is not always easily found. I run two antique galleries, run an appraisal practice, I am a partner in the Appraiser Workshops developing and holding classes, I exhibit at antiques shows, post daily items to the blog, I developed and edit the Journal of Advanced Appraisal Studies (pro bono for the Foundation for Appraisal Education, the 2009 edition coming in March), and I serve on the Board of Directors as Treasurer of the International Society of Appraisers, so I only have a limited amount of time for the blog. I am not complaining, I love every minute of it.

Peggipei would like me to write about appraisal theory and methodology. To write on condition, age, scarcity etc. The blog was not developed for that type of primary appraisal information. Although if I find something published that applies, I post it. Unfortunately I dont have much additional time to write blog posts, and columns with primary or even secondary research that Peggipei would like. In reality that is why the Appraiser Workshops has the Good, Better, Best Appraiser Workshop, and soon another workshop on valuation. That is why ASA, ISA, NAA and AAA have classes. The blog is meant to be a news based service for appraisers, not an instructional column with appraisal theory and methodology articles (for that, sign up for a class or purchase the Journal of Advanced Appraisal Studies).

Peggipei, if you know where to find reliable news and content on those items of interest in your posted comments, then please, by all means send them to me. If you would like to write something for the blog which would be helpful to fellow appraisers, please do.I put a fair amount of time into finding the content that I do post, but I only have limited time and resources to do it. Most of what I find is fresh and topical, but I never envisioned the blog as a forum for teaching the basics of appraising. I think if I did, I would lose many of my readers and subscribers. It is for current news within the industry. Most of the posts link back to the original article since I am not writing an article or column, only passing along information that is in the news with a few comments and excerpts.

So when I get a comment like "The name on the door reads "Appraisal Workshop," so give with information on other things!", while the content I provide is totally free, perhaps I do get a little defensive. For that I apologize, because if you put yourself out in the public domain, you have to be prepared to handle criticism. I have rambled on for far too long, Peggipei's full comment follows for those who are interested.

Of course further comments are welcome.

Peggipei posts:

I look forward each day to you latest articles, but day after day they are about Fine Art, with only a smattering of other topics thrown in.

The current article is great, but is "Fine Art" the only thing out there that is interesting? What about all the other fields in the appraising world? Not everyone is an art appraiser, or even interested in art. Sure art prices can effect many things, but come on, day after day of the same thing is getting a little redundant.

The name on the door reads "Appraisal Workshop," so give with information on other things! Talk about setting values, talk about condition, talk about age, talk about rarity, scarcity. 'Help' we little appraisers hone our tools in other areas of the appraising world. Live up to you name, please.

Appraising is a challenge, exciting and new with each new client we take on, and as we appraisers know "Knowledge is the Key," so once again, give us something more than art to learn about.

Respectfully submitted,
Peggipei

Russain Art Forgeries

Heidi Brown writes on fakes and forgeries in Russian fine art in the February 2 edition of Forbes magazine. It is a very interesting and enlightening article, entitled, Scamsky, Inc., When it Comes to Expensive Bogus Art, No Noe Can Touch the Russians.

Russian fine art has become so popular that all appraisers need to be aware of the growing number of fakes and forgeries being produced and marketed through galleries and auctions, even those with existing provenance and approval from authentication boards. So even if there is an expert authentication, according to the article, there still is a real chance the painting could have issues.

Brown reports The entrenched network of fraud makes nearly everything with a Russian connection questionable.

Russians love 19th-century depictions of their countryside, so a $250,000 forgery can start off as a landscape by a little-known Danish artist, procured at a small European auction house for $2,000. A forger signs the name of a famous artist and "Russifies" a few details: a Danish maiden becomes a Russian peasant; a farmhouse becomes an Orthodox church.

She continues Even prestigious institutions have been compromised. In 1991 the Museum of Modern Art's show of Lyubov Popova, a Malevich contemporary, may have included at least two forgeries. In order to borrow an important collection of the early-20th- century artist, the museum agreed to show paintings that lab tests determined had been made with materials that moma found to be too recent. The museum declined to comment, saying no one associated with the exhibit works there anymore.

Getting authentic material isn't a problem. A 100-year-old canvas can be procured at a Moscow bazaar; scrape off the old paint and voila. "You read about the kind of paint that was used and prepare it yourself," says Ivan Lobanov, a Moscow mural painter who used to copy icons. Thirty years ago paint from the 1920s was still on the market. Forgers can "age" a work by moving it between a hot oven and the cold. Cracks form after the painting is wrapped around a tube or pressed down on a table edge. Old varnish glows under ultraviolet light, so authenticators can be tricked by a new luminescent varnish that also glows.

Making unsigned copies is not illegal in Russia unless the artist admits he intends to sell it later as a forgery.

If you are appraising Russian art, appraiser beware, even with museum provenance an expert authentication.

To read the Forbes article online click HERE.

RICS 4th Quarter Arts and Antiques Survey

The Royal Institute of Chartered Surveyors released their fourth quarter Arts and Antiques Survey. As we appraisers know, the forth quarter of 2008 did meet expectations and confidence in the markets was drastically reduced. The RICS survey is an excellent tool to use when analyzing markets and documenting market trends for appraisal reports. A few of the survey categories include books, ceramics, furniture, silver, clocks, jewelry, toys, paintings oil.watercolors and contemporary art.

The RICS Art and Antiques survey confirms that by the fourth quarter of 2008 the top end of the market has also been hit hard. Previously it was only the middle market which was suffering.

The RICS analysis states the key development in Q4 was capitulation at the top end of the market. This area had previously shown considerable resistance to external macro economic forces and the squeeze on credit compared to the rest of the arts and antiques market.

The report also places blame on the financial and housing crisis. Noting the collapse of Lehman Brothers, and fewer homes sales, which translates into fewer sales of the decorative and fine arts for new home purchasers. The report states jewelry and silver did better than most sectors, but oil and water colors, contemporary art and case furniture all showed large declines in confidence.

The RICS surveys are excellent tools for the appraiser. Much information and content revolves around fine art, the RICS survey has great information and statistics on both fine and decorative art. It is a tool all appraisers should be aware of and use on a regular basis to spot market trends.

To read the full 8 page RICS Arts and Antiques survey, click HERE.

You Should Read this Article

Ben Hoyles of the Times of London has a very good piece on the at market and upcoming sales. Yes, the AW Blog has covered much of the discussions on what may or may not happen at the major contemporary art sales next month. The Times piece starts out very similar to many of the other recent articles and commentary by experts on the state of the market, but then takes a slight turn as well. It is not really a gloom and doom article, but it does discuss the economic realities of today.

I like it because it discusses how the auction houses are starting to reorganize and plan on dealing with changes in the market without constant growth. The feel you get from Holye is along with the new realities, there is almost a slow growth approach with more emphasis on the property, the quality, value, and not always trying to out perform the competition.

According to Hoyles, the currently reality is the major auction houses are now not looking to set records, but with an emphasis on selling what is in the catalog.

Holyes reports Pilar Ordovás, deputy chairman for Post-War and Contemporary Art at Christie's, said: “These are the first sales to reflect the new reality. Our main concern was not to have the biggest sale - it was to have a sale where everything sells. That's important to keep confidence going.”

The quote by Urdovas is very telling, if that is an actual reflection of what Christies truly believes. If so, it is a pleasant change from the hype and over hype, beat the competition at any cost of the past few years. It brings a little perspective to the market place not always having to set a new record with every sale and artist.

The expectations for the sale are still reserved but hopeful. With the dollar in a better position, there are expectations more US collectors will become involved in the sales.

I found the the most interesting aspect of the article in this statement. One route out of their predicament is a return to the longstanding collectors who have been priced out of the market in recent years by speculative buyers flush with new money.

That would certainly would be a calming and steadying influence. From an appraisers perspective, perhaps price and value will become a bit more connected. In yesterdays post I stated that from 2005-2007 the contemporary art market had quadrupled. In these difficult times, it is interesting to see that contemporary art has seen the largest downturn and volatility, while other more traditional areas of collecting, such as old masters have taken less of a hit and appear to have much more stability.

Hoyles concludes, The auction houses are confident that they have done everything in their power to cut their cloth for the new financial climate. Only time will tell if it is anywhere near enough.

We will have a much better idea of where the fine and decorative arts market are by the end of February. Between the NY Americana Sales, the London Contemporary sales and a few others over the next few weeks will be excellent indicators of the year to come. It is nice to see an article that deals with the new economic realities in a professional and non threatening manner, without the promoting signs of impending doom for the fine and decorative arts.

To read the Times of London piece, click HERE.

USPAP - January 2009 Q&A's

The Appraisal Foundation has posted the January, 2009 Q&A's. To read or download the PDF file click HERE. The January Q&A's discussed three topics.

They include:

• Communicating Confidential Information to a Sworn Peace Officer

• Signature on Letter of Transmittal

• Citation of Effective Date

2009 - A Contracting Market for Fine Art

On Friday I posted about the upcoming contemporary, modern and impressionist sale at Sotheby's and Christies. The NY Times article states how unstable the fine art market currently is (ckick HERE to read post). Last week Scott Reyburn of Bloomberg also ran an article on expectations for the February London contemporary art sale. He compares 2009 estimates and lots from this year to years past and makes some very interesting assumptions.

Reyburn calculated the 2009 sales total low estimates for the Sotheby's, Christies and Phillips de Pury sales are $55.9 million. Sounds like a pretty good number, but when compared to last years totals you can easily see where Reybrun is going. The 2008 total low sales estimates were $244.57 million. The 2009 low estimate total for the big three contemporary auction houses is a mere 23% of the 2008 total.

Reyburn claims the auction houses are having a difficult time finding consignors for contemporary art in the current economic climate. The article also indicates that the major international auction houses are becoming more selective in what they are willing to accept, and being more conservative with estimates. The effort to lower estimates and price expectations also contribute to fewer consignors. As an example the 2008 sale at Sothebys had 70 lots, this year only 27, Christies had 54 to 31 this year and Philllips had 111 lots in 2008 with 53 for 2009. Those are some sizable changes in the amount of art being sold. The amount of commissions expected by the houses has to be greatly reduced. The 2009 sale has less than half the number of lots when compared to 2008.

From 2005 through 2007 the contemporary art market increase four fold. It look like the trend was going to continue through 2008 with solid results and and gains in the earlier part of the year, but when the 4th quarter arrived, the November contemporary art sales quickly began trending downward.

To read the Bloomgerg article click HERE, it has some excellent numbers and comparisons.

The Commercialization of Auction Houses

The International Herald Tribune has an interesting article about the state of the major auction houses. It gives a little bit of recent history and reviews how and perhaps more importantly why, they have gotten to their current situation of financial decline and need for reorganization.

The article makes a case that instead of being fine and decorative art lovers and proponents of quality of merchandise, the major auction houses evolved into a big, returns motivated business with constant pressures to increase sales and annual profit levels. Sotheby's is now a public company, so an emphasis will always be on profits and increasing the price of the stock. The article details the commercialization of the major auction houses, and in doing so is very interesting and insightful.

The IHT article states The financial crisis that managements are endeavoring to forestall by reducing overheads is the inevitable consequence of the metamorphosis undergone by auction houses over the last four decades. The service industry that auctioneering had been for two centuries - and still was in the 1960s - has turned into a purely commercial venture trying to emulate big business.

This shift of emphasis reflected a new mind-set among managerial teams that was in part due to a natural desire to make more money for themselves and in part to a fundamental cultural change. Unlike the previous generation of auction house leaders to whom art was an object of admiration and personal desire, some of the new managers looked upon it as merchandise.

The IHT continues The auction houses are now stuck with inflated marketing teams put together to hype their goods and large financial departments set up to work out complex deals with wealthy clients. They have multiplied auction outposts across the world, in search of new bidders, the latest being Dubai, where Christie's October auction was a heavy disappointment, and Doha, where Sotheby's is to hold in March a sale of paintings and watches.

The entire configuration must be revised. A smaller format will be needed to adjust to the mass of goods available for sale, which will inexorably contract, crisis or no crisis, and to turnovers that will come down.

This involves reducing personnel, not among the experts and department hands who do the job, but among those who put in frills, from PR crews to administrators. News that John Tancock, Sotheby's remarkable expert in Impressionist and Modern art, with a lifelong network of connections in the field is retiring sounds like a tactical mistake made in panic.

Not all luxurious premises are justified, nor are all the bureaus abroad. Working methods and long-term policy need to be reconsidered.

With luck, auction houses may then slowly revert to the public service role that was theirs in the days when there was no temptation to manipulate the market. Their ability to operate satisfactorily is as necessary to the common good as is the proper operation of the banking system, even if auction houses showed an eerie propensity to make the same fundamental mistake - expecting an unwavering ability to pay ever more artificially inflated prices on the part of underinformed segments of the public.

To read the full IHT article, click HERE.

American Classical Furniture During Americana Week

Wendy Moonan has a piece in the NY Times primarily about a hand written speech by Abraham Lincoln which will be auctioned by Chrisites. The sale is scheduled for Lincolns birthday of February 12, and is estimated to sell for $3-$4 million.

So what does that have to do with American classical furniture. If furniture specialist can get through the section on the Lincoln speech, there is some interesting commentary on the furniture sales at Sotheby's. Christie's and Bohahams, all of course soon to have specialty sales on Americana. As most appraisers are aware of, great classical furniture can command very high prices, while rather ordinary or poor examples can sell for pratically nothing.

Moonan states This year Sotheby’s, Christie’s and Bonhams are each presenting some unusual pieces of American classical furniture from the early 19th century, including high-style American Empire examples made in Baltimore, Philadelphia, New York and Boston.

This style has received little attention in recent years. (Wendy A. Cooper, a senior furniture curator at the Winterthur Museum in Delaware, wrote the definitive book, “Classical Taste in America: 1800 to 1840,” in 1993.)

That doesn’t mean that collectors have stopped buying this flamboyant grand furniture, which is often decorated with American reinterpretations of designs from ancient Rome, Greece and Egypt.

“We sold a lot of material in 2008,” said Stuart P. Feld, president of the Hirschl & Adler Galleries in New York, which offer period furniture, lighting, porcelain and glass, starting at prices around $15,000.

Hirschl & Adler and Carswell Rush Berlin, a private dealer with a similar specialty, based in New York, will be exhibiting at the Winter Antiques Show, which runs from Jan. 23 to Feb. 1 at the Park Avenue Armory.

The article also lists some of the more unique American classical pieces that will be on sale. To read the article on Lincoln and Classical American furniture, click HERE.

In DC for the Inaguration - Museums Ready

The NY Times is running an article on how some of the DC museums are preparing for the large crowds descending upon DC for the inauguration. Many many museums have been planning for years for the inaugural, but the expectations of large crowds are now even bigger. The Smithsonian is expecting 1 million people to visit their 8 museums during the inaugural period, more than 3 times the number for all of a typical January.

The article also lists museums, links and exhibitions, so if you are in town braving the cold and the crowds....

• NATIONAL GALLERY OF ART The only surviving set of portraits of the first five presidents by Gilbert Stuart is on view in one of the newly reopened American galleries of the west building.
• THE CORCORAN GALLERY OF ART During January the Corcoran is offering two-for-one admissions with a coupon from its Web site (corcoran.org). On view through Jan. 25 is “Richard Avedon: Portraits of Power” — featuring, appropriately enough, an image of Barack Obama taken during the 2004 Democratic National Convention.
• THE PHILLIPS COLLECTION Visitors at the Phillips need simply to say the word “inauguration” to get two tickets for the price of one during January. The Phillips (phillipscollection.org) has organized two exhibitions especially for the inauguration. It has reinstalled the “Migration Series,” 30 panels painted between 1940 and 1941 by Jacob Lawrence, when he was just 23 and living in Harlem.
• THE NATIONAL MUSEUM OF WOMEN IN THE ARTS One of the first inauguration-related decisions the museum (nmwa.org) made was to rehang its permanent collection with works that Ms. Sterling, its director, said would “appeal to a broader spectrum of folks.” Now on view are many of the institution’s American paintings, as well as a 1937 Frida Kahlo self-portrait, the only example of her work in a Washington museum.
• THE SMITHSONIAN INSTITUTION The National Portrait Gallery in downtown Washington — one of the many museums that make up the Smithsonian (si.edu) — will feature the street artist Shepard Fairey’s “Hope” poster of Mr. Obama.

To read the full NY Times article, click HERE.

London Impressionist, Contemporary and Modern Sales

Carol Vogel has a nice piece in the Art and Design section of the NY Times on the upcoming London impressionist,contemporary and modern art auctions. Vogel states upfront the markets are unsure, it is in not a given the sales will be successful. They are smaller in scale than the November NY contemporary, moder and impressionist sales.

Vogel states they will nonetheless have at least a few noteworthy paintings, sculptures and drawings with estimates that are purposely conservative to tempt even the most price-conscious collector. Betting that the appetite for German Expressionist painters is as hearty as it was before the economic crisis, Sotheby’s has put one of Ernst Ludwig Kirchner’s Berlin street scenes on the cover of its Feb. 3 Impressionist and modern art sale catalog. Sotheby’s expects the painting to bring $7.2 million to $10.1 million. “It relates most directly to one in the Museum of Modern Art,” Ms. Newman said. That painting, “Street, Berlin,” is also from 1913. The canvases share many of the same compositional and stylistic elements — both depict mannequinlike passers-by, with a man peering into a shop window on the right — but in the Sotheby’s painting, two female figures are staring straight ahead rather than in profile.

To read the complete NY Times article, click HERE.

Rough Sailing for Park West

Mike Martindale of the Detroit News is reporting that Park West Galleries is being sued again. Park West Galleries is now being sued by novice collectors for selling what is claimed to be nearly $600,000.00 in fakes and forgeries. The suit claims the artwork is nothing more than glorified posters. The art was sold to the novice, unsophisticated collectors on cruise ship lines. No surprise there.

Martindale states The alleged victims claim the artwork was represented as original by Park West employees, including owner Albert Scaglione and gallery director Morris Shapiro, and was accompanied by a certificate of authenticity. But outside evaluations have found otherwise, according to Ralph C. Chapa Jr., the Farmington Hills attorney who is one of several lawyers representing 10 people in the civil complaint against Park West, Scaglione, Shapiro and Royal Caribbean Cruises.

"I can't believe they were able to get away with this for as long as they have," Chapa said. "The people we represent felt they were making investments which would increase in value. Instead, they now find they bought art at inflated prices which, in some cases, have been determined worthless by independent art experts."

Now here is an interesting as well as disturbing aspect to the the Park West story which directly impacts appraisers. Martindale states that people involved with Fine Art Registry, a Phoenix-based online tagging and registration service for artwork that performed some of the examinations, are the subject of still-pending defamation lawsuits filed by Park West in Florida and Michigan. Several art collectors who visit the Web site regularly became concerned about their own art purchases and contacted Chapa's firm, which represents Fine Art Registry.

As appraiser, many of us would look can look at art and come to many different conclusions, it appears the Fine Art Registry, and their appraisers are looking at a lawsuit by Park West. Appraisers have long followed the sales of cruise ship art, and are amazed at the volume and sales given the poor publicity surrounding these sales. But it continues. The public should be protected, the cruise ship lines should become actively involved, as well as regulatory agencies. But as the article reveals, there is a lot of money at stake, such as $300 million in annual sales by Park West. With those types of sales numbers, it appears Park West has the cash flow and resources to protect their sales and mode of operations.

To read the Detroit News article, click HERE.

Collectors Raising Cash by Selling?

Roya Nikkhah, Arts Correspondent for The Telegraph UK is reporting that collectors are being forced to sell due to the tightening credit markets. Nikkhah states that many masterpieces will find there way to fine art sales in the coming months. The fine art will be sold during a downturn in the market, but it appears many collectors need to cash out portions of their collections and in doing so, perhaps not maximize all potential value. It appears the world financial and economic woes are hitting the wealthy, as they pursue avenues to increase liquidity, even in what many consider a slow market and not the time to sell.

Nikkhah states Works by artists including Amedeo Modigliani, Camille Pissarro, Oskar Kokoschka, Piet Mondrian and Edouard Vuillard - some of which have never before been seen at auction - are to be sold after many years in the hands of private collectors.

Art experts say that the global economic downturn is forcing some collectors to part with rare works and family heirlooms they can no longer afford to keep, even though the works are unlikely to reach their full sale potential as prices in the art market fall.

Nikkhah continues Dr Sarah Thornton, an art expert and the author of Seven Days in the Art World, said: "Anyone who puts up a masterpiece in this season needs the money, because the works are not going to realise what they would have done six months ago, or what they might do in three years time. Private collectors selling now are either distress-selling or they want the money to invest in something else."

Helena Newman, Sotheby's' vice-chairman of Impressionist and Modern Art Worldwide, said: "A lot of people are very distracted by the current economic climate and there is no doubt that putting works to sale in this climate is not going to be as easy as it was six months ago.

To read the Telegraph article, click HERE.