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.