Art, Images, Copyrights and the Public Domain

Eric Felten of the Wall Street Journal writes an interesting article entitled Who's Art is it Anyway? Felten reviews the case of a Wikipedia contributor. Wikiepedia being the on line collaborative encyclopedia where a volunteer contributor recently copied and posted over 3,000 images from London's National Portrait Gallery. The museum had its attorneys send a letter stating copyright infringement, while the Wikipedia contributors legal team responded there is no copyright on items in the public domain.

An interesting article/discussion follows. It is will worth the few minutes to read. You do come away with a better understanding of copyrights, Internet access across nations, and items in the public domain. Although the article concludes images of items in the public domain are not copyrighted, the intellectual debate is certainly interesting.

Felten states It’s not hard to understand the museum’s frustration. It goes to all the trouble and expense of making accurate photographic copies—getting the lighting just so, ensuring the magentas are distinguishable from the scarlets and crimsons—and then someone comes along with a few clicks of a mouse and appropriates thousands of images. One rightly chafes at the techie assumption that anything you can get your digital mitts on is free game. But no better is the opposite extreme, the effort to seize public property and put it under monopoly control. Copyright law tries to balance two social goods, providing private ownership of intellectual property to reward creativity while eventually making creative works as widely accessible as possible by letting the copyright lapse decades after the work’s author is dead. If new copyrights can be attached to old works of art, the whole copyright system is thrown out of whack.

Felten continues Copyright law exists for a purpose: to make creativity pay. Making accurate photographic copies of paintings is no doubt valuable and involves painstaking work. But it isn’t—and isn’t meant to be—creative. With all the digital assaults on the old copyright verities, the champions of intellectual property can’t afford to waste their energies trying to monopolize images that already properly belong to us all.

To read the full WSJ article, click HERE.

Art Capital Group Sues Annie Leibovitz

Allen Salkin of the NY Times is reporting that Art Capital Group, which loaned Annie Leibovitz $24 million is suing the famous photographer. Art Capital Group holds a lien on every photograph Liebovitz ever took as well as real estate properties in New York City and Rhinebeck, NY. According to the suit Liebovitz is not allowing appraisers into her properties and has failed to make agreed upon payments.

Salkin states Ms. Leibovitz approached Art Capital in June 2008 about her “dire financial condition” arising from her “mortgage obligations, tax liens and unpaid bills to service providers and other creditors,” the suit contends.

Art Capital and Ms. Leibovitz set up a one-year loan agreement with the company’s subsidiary American Photography starting in September 2008. In October, she signed a related agreement granting Art Capital the exclusive right to sell every photograph she had ever taken, her town houses in Greenwich Village, and her country home in Rhinebeck, the suit contends.

“In connection with the negotiation of this $22 million credit facility, Leibovitz discussed and acknowledged that Leibovitz’s fine art, intellectual property and real estate assets, all collateral for the loan, would likely need to be sold, in whole or in part as part of the process of Leibovitz’s financial restructuring,” the suit charges.

Since drawing down the $22 million plus an additional $2 million in a further agreement with Art Capital, Ms. Leibovitz has refused to cooperate with Art Capital’s efforts to sell her photographs and her property, the suit charges.

To read the full article, click HERE.

More Distrubing News From London

The other week I posted on the AW Blog about an Art Newspaper article on the reduction and closure of British government funded cultural material conservation programs (click HERE to read). Now, the Art Newspaper is running an article on the possible future reduction in viewing times of several important image archives for cultural property. In addition to reduced viewing periods, the image libraries may not be accepting and cataloging new images. The article states, the cuts have not been finalized, but things appear to be heading in the wrong direction.

This is a real shame, and I am surprised by the British government in reducing budgets for cultural property with possible historical significance. It seems so uncivilized coming from the Brits.

The Art Newspaper states The Courtauld Institute in London is considering drastic cuts to its three archives of images, including the Witt Library. From September, they would only open one day a week and effectively cease to collect. This proposal is causing great concern amongst art historians, as well as the art trade, since it is a major resource.

Cost-cutting lies behind the proposal, and the Courtauld is concerned about the subsidy involved in administering and adding to the collections (Witt Library, Conway Library and Photographic Survey).

The article continues The Witt Library holds around two million photographs and reproductions of paintings that are pasted onto thin card and stored in file boxes, classified by national school, then artist, and finally subdivided by iconography. Covering the period from 1200AD to the present, 70,000 artists are represented. The library’s origins go back to the image collection begun by Sir Robert Witt, who bequeathed it to the Courtauld in 1952.

The Conway Library is a similar collection, covering architecture, sculpture and some decorative art. Begun by Lord Conway, it was donated to the Courtauld in 1932 and now comprises around one million images.

The Photographic Survey records paintings, works on paper and sculptures in private historic collections (mainly those of aristocratic families) in England, Wales and Ireland. It began in the early 1950s, in association with New York’s Frick Art Reference Library, and now covers nearly 600 collections.

To read the full Art Newspaper article, click HERE.

Lehman Brothers To Auction Partial Collection at Freeman's

Lindsay Pollack reporting for Bloomberg states that Lehman Brothers, the bankrupt investment bank will sell 650 lots at Freeman's Auction house in Philadelphia. The sale is expected to raise $1 million through a series of 3 sales during the winter auction season. The full Lehman collection is said to total over 3,000 pieces of art.

Pollack reports Lehman is shedding 650 lots, projected to fetch a total of $1 million. They include modern and contemporary paintings, prints and drawings, along with a smaller group of American and European paintings and prints from Lehman’s New York, Boston and Delaware offices. Sales are scheduled for Nov. 1, Dec. 6 and Feb. 12, 2010.

“We tried to price things consistent with what they will bring in the current market,’’ said Anne Henry, Freeman’s vice president of modern and contemporary works of art. “There’s a lot of really attractive work at affordable levels.’’

Lehman filed the biggest U.S. bankruptcy on Sept. 15, 2008. Proceeds from art sales will benefit creditors. Lehman Chief Executive Officer Bryan Marsal has said the firm owes as much as $250 billion. (In the beginning of July, Lehman began selling on EBay Inc. items originally produced as freebies for clients and employees.)

Pollack continues “People may see this sale as an opportunity,’’ said Palmer, who said the Lehman name wouldn’t have a big impact. “The provenance isn’t a negative thing,’’ she said. “But I don’t think it has much to add.’’

Lehman hired New Hampshire-based art consultant Kelly Wright in January to inspect artworks at several Lehman offices and storage facilities and recommend a selling strategy.

Freeman’s, a 200-year-old regional auction house in Philadelphia, holds more than 30 sales a year. It competed for the consignment against other auction houses, according to Lehman spokeswoman Kimberly Macleod.

Lehman owns more than 3,000 artworks, and some of those aren’t being sold, such as art that hung in Lehman’s New York headquarters. The building is now occupied by Barclays Plc, which acquired Lehman along with a one-year option to buy the art. That option expires in September.

To read the full article, click HERE.

The Art Gallery Situation in LA

Suzanne Muchnicof the LA Times recently ran a good article stating the current status of the art market in Los Angeles. The Economy has taken its toll on dealers and galleries, yet many find a way to reduce exposure and risk and continue in business. I can attest to doing the same with my two antique galleries in Old Town Alexandria. Although sales of inventory has been very slow this summer, appraisal work and calls from potential clients has been strong.

There is some optimism in the LA Times article, noting that long time dealers with established reputations will be able to weather the current economic downturn. The article states several galleries are moving and expanding, so there is hope. The article also notes a Wall Street Journal quote that contemporary art prices have fallen close to 30%.

Muchnicof states Sales have all but dried up for many L.A. area dealers, quite a few galleries have closed and others have downsized. But in a period of retrenchment and reshuffling, solidly established dealers are soldiering on with tightened belts, and a surprising number of galleries are growing, with the help of reduced rent. Unsettling as the current economic climate is, the expansions seem to confirm the resilience of L.A.'s art scene. "It has been a tough time," says George Stern, a board member of the Art Dealers Assn. of California. "Clients sense that it's a buyer's market and rightly so. But I'm optimistic. Professional dealers who have been around for a long time seem to be weathering through this."

Muchnicof continues All this action doesn't mean the galleries are sailing through the recession unscathed. As veteran dealer Margo Leavin puts it: "This has been a big hit, a really big hit. There isn't an art institution that hasn't been affected."

Artscene, a monthly guide, lists more than 600 showcases in Los Angeles and adjacent communities, but dozens of galleries have moved or reorganized. At least 20 others have folded in the last year or so, including Ann Helwing, Lizabeth Oliveria and D.E.N. in Culver City; and Mary Goldman, Black Dragon, the Project and Mesler & Hug in Chinatown.

To read the full LA Times article, click HERE.

More on the Grosvenor House Fine Art and Antiques Fair

Antony Thorncroft of the Financial Times has a very good article on the once prominent Grosvenor House Fine Art and Antiques Fair. The fair recently closed due to declining interest in antiques, poor economic conditions, lack of profits for the promoters and a venue that would rather have another function, more profitable function.

Thorncroft states Although sudden, the decision was not entirely unexpected. For some years now the fair has been living on its reputation. It prospered greatly when wealthy Anglophile Americans paid an annual visit to London to refurnish their mansions with Georgian furniture and Old Master paintings. Now such enthusiasts are thin on the ground, and London has ceded its position as the undisputed centre of the art trade to New York. Many of the major dealers in brown furniture, such as Jeremy Hotspur and Norman Adams, who had been the bedrock of the fair, retired. Such leading Old Master dealers as Johnny van Haeften and Colnaghi decided that they could do better business by concentrating on gallery events in July, when their key clients were in London for the major picture auctions at Sotheby’s and Christie’s. Other dealers pulled out because the cost of taking part, which could approach £70,000 for a large stand, was proving too risky an investment.

Thorncroft continues Three major West End furniture dealers, Apter-Fredericks, SJ Phillips and Mallets, had been discussing even before the demise of Grosvenor House a new event for London, Masterpiece, a fair that would bring together goods of the highest quality from classic cars to Old Masters.

Now, according to dealer Harry Apter, “we are working day and night to make it happen by June 2010.” The main problem is finding a central London site. The favoured location would be the grounds of Chelsea Hospital, and planning permission is being sought for what would be the capital’s largest marquee or, as Apter prefers to call it, “semi-permanent structure”.

There would be room for up to 200 dealers and again the hunt is on for foreign exhibitors. They expect a good response from former Grosvenor House colleagues, who should appreciate a considerable saving on their costs and a fair, like Maastricht, that is run by dealers for dealers.

To read the full Financial Times article, click HERE. (Please note, you might have to register to read the FT article.)

Galleries Opening, Closing, Moving and Expanding

Art Info has a short but interesting article on both fine and decorative art galleries. The news is a real mixture, with some galleries closing due to the current economic climate, while others are opening, moving or expanding. It does appear there are opportunities in the current economic crisis.

The article states News both bad and good from galleries around the globe continues to roll in during difficult economic times. In New York, Brooklyn staple McCaig-Welles Gallery has announced it is closing. Owner Melissa McCaig-Welles wrote in an e-mail that the decision was due to the recession along with other factors, namely her move to San Francisco and the birth of her second child.

"In 2008, my relocation to San Francisco brought about new opportunities for McCaig-Welles Gallery, but also unforeseen challenges," she wrote. "Experimental and satellite project spaces were made possible through new gallery partnerships, allowing our artists to exhibit bi-coastally. As we dedicated ourselves to expanding and developing these programs ... an impending economic crisis followed our coattails, surmounted by devastating global financial reverberations."

McCaig-Welles added that although the Brooklyn space will be shuttered, she plans to continue working with artists on the West Coast and will announce several projects in the coming months.

The article continues In Paris, Steinitz Gallery, which specializes in high-end antiques, is expanding into a second location at 77 rue du Faubourg-Saint-Honoré. The new gallery comprises roughly 700 square meters of exhibition space spread over four floors. It will host thematic exhibitions and invite decorators to periodically take over and redesign the interior. Steinitz will maintain its current location at 9 rue du Cirque.

To read the full article, click HERE.

The Art of the Deal - Private Sales

Katya Kazakina of Bloomberg has a good article on private art sale transactions. Kazakina reports in the past dealers would assist or act as a middle man in private sales. Now, the dealer must make an offer and buy the art outright. If the dealer wants a bargain, he has to be ready with an offer and a check to back it up. Some dealers try to flip the newly acquired artwork quickly, showing invoices to potential clients and marking up what might be closer to a small commission instead of

Kazakina states Such sales are on the rise since the economic crisis chased speculators and other buyers out of the public art market and scared sellers with the risk of costly artworks flopping at auction.

Publicly traded Sotheby’s has lost about half its market value in the past year. Worldwide sales for Christie’s International declined 35 percent in the first half of 2009, the company said.

With prices in flux, many collectors prefer the discretion and flexibility of a private sale over the auction room’s risk and visibility.

“If it doesn’t sell, it’s not a public event,” said Michael Findlay, director at Acquavella Galleries Inc. in New York. “However, if your painting is on the cover of an auction catalog and it’s been marketed globally and then doesn’t sell -- ouch!”

Kazakina continues Private sales compose the most opaque segment of the largely unregulated art market. The secrecy that makes these deals appealing to clients also precludes most participants from revealing any specifics about the transactions.

Such deals also allow collectors to have control over prices “at the time when price points are very difficult to determine,” Dolman said. “People are happy to negotiate and walk away from a transaction” if the agreement isn’t reached, he added.

Serious and seasoned collectors, who understand the advantages of buying in a depressed market, have filled the gap left by fleeing speculators.

The article has some very good information on the state of the market and how galleries are fulfilling the needs of buyers and sellers. Keep in mind that Sotheby's and Christies both have private sales divisions, and they have been active.

To read the Bloomberg piece, click HERE.

Sotheby's to Sell Property from the Collection of Arthur Sackler

This past Friday Sotheby's NY announced in a press release it would be auctioning property from the collection of Dr. Arthur Sackler. The property will be in the fall 2009 and winter 2010 sales. Portions of the collection will be on exhibit starting today at Sotheby's NY headquarters. As quality items with solid provenance have done very well in these difficult economic times, I would expect to see strong interest in the Sackler property. It might be what is needed to regain some momentum in the impressionist and modern art market segments. It probably won't be a cure all for what ails the art markets, but it should be a positive step forward.

The press release states During the fall 2009 and winter 2010 auction seasons Sotheby's in New York will present works from the collections of renowned philanthropist and patron of the arts Dr. Arthur M. Sackler. The offering of several hundred objects from Dr. Sackler's collections comprises important Impressionist and Modern paintings, Chinese Furniture, Asian Carpets, English Furniture, Antiquities, Pre Columbian Art, Old Master Drawings and European terracottas and bronzes. Together the group is estimated to bring more than $15 million.

Six works will be offered in the Impressionist and Modern Art Evening Sale in November including Wassily Kandinsky's stunning Krass und Mild (Dramatic and Mild) from 1932 (est. $6/8 million)(see image). Among the other highlights is Dr. Sackler's renowned collection of European terracottas - the most extensive of its kind remaining in private hands. Fine Chinese Furniture and Asian Carpets will be the first group of property offered, highlighting Sotheby's Asia Week sales in September. Works from Dr. Sackler's collections will be exhibited in Sotheby's 10th floor galleries from July 27-August 21, 2009, excluding weekends.

Dr. Sackler was one of America's foremost collectors, whose passion for objects transcended any one collecting category or time period, featuring outstanding examples of ancient art of many cultures, as well as European sculpture, furniture, and paintings from the Renaissance to the modern era. Dr. Sackler's passion for collecting was matched only by his generosity, gifting objects and endowing galleries at the Metropolitan Museum of Art, Princeton and Columbia Universities, the Smithsonian, and the Royal Academy in London, in addition to establishing museums at Harvard and Beijing Universities.

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

An Excellent Site for Contemporary Art

Fellow appraiser Judith Vance, ASA sent me this link to One Art World, an Internet site devoted to contemporary art. If you sell or value contemporary art, the site will be useful as it contains strong informational components of contemporary art. It has information on artists, galleries, auctions and auction analysis. It is an outgrowth of chelseaartgalleris.com Internet site. It will now expand its coverage and focus on contemporary art from around the world.

The site navigation bar has tabs for shows, receptions, an art calendar, directories for art businesses, artists and art venues, auction analysis and sales results, as well as art for sale. Keep in mind this is all related to contemporary art. I would expect as the site grows and matures, the content level and data archives will grow as well. Although the focus is very narrow, many times as an appraiser, that is what you need.

The press release announcing One Art World states Chelseaartgalleries.com, one of the most popular art portals in the world, announced today that it is extending its reach globally. The new destination site, oneartworld.com, will subsume and extend all of chelseaartgalleries.com's functionality, while providing a location agnostic view of the art world.

"After fine tuning our site in New York for more than three years, we are now confident that our ideas can be successfully replicated worldwide", says Jonas Almgren, founder of chelseaartgalleries.com and oneartworld.com.

He continues "The art world is international, and much of what we do in terms of galleries, artists, auctions, art fairs, and biennials, already go beyond Chelsea and New York. It is a natural next step for us to expand globally."

To visit One Art World, click HERE.

Bad Link

The link from yesterdays post from the Times Online article was not working. I have corrected it on the site, and also in this message for email readers of the AW Post.

Click HERE to read the Times Online article and quick market review.

A Quick Market Review on Fine and Decorative Arts

The Times Online of London has a good article on buying and selling of fine and decorative arts. They spoke with expert in several fields and ask the basic question of buy, sell or hold within the context of the existing market and economic conditions. The Times asked fine art experts, furniture experts, the group of ceramics/glass/silver, jewelery/fashion and and coins/stamps. Quality, perhaps is the most important component of the evaluation process. A good article with anecdotal discussions from experts on the state of various fine and decorative art market segments.

The following are the verdicts from experts who were interviewed.

• Fine Art - Cautious buy
• Furniture - Buy Georgian; hold contemporary
• Ceramics/Glass/Silver - Buy 18th-century and contemporary glass and 18th-century silver from rarer Assay Offices, such as Dublin. Otherwise hold.
• Jewelery/Fashion - Buy 1920s, 1930s, 1940s vintage; otherwise hold.
• Coins/Stamps - Cautious buy.

The article states The financial crisis may tempt some readers to sell their fine art and collectibles to free up cash. Others may be considering buying such tangible assets as an investment that will provide aesthetic pleasure even when the markets are down. With both groups in mind, Times Money has asked experts how key categories have performed in the downturn, and where they expect prices to go next.

All agree that quality remains the single most important factor, with the finest pieces in pristine condition most likely to gain and hold value.

David Middleton, of Towry Law, the wealth manager, cautions that art and antiques are notoriously volatile and should only be a small part of a diversified investment portfolio. He also warns that the prices you get when you sell are well below shop prices and insurance values.

To read the full Times Online article, click HERE.

Chrisites First Half Sales Drop 35%

ArtInfo is reporting very poor first half 2009 sales results for Christie's. Because of the YSL sale, Paris was the top sales location for the first time. I hope to have Sotheby's results soon and will post as soon as they are available.

It is a short article, so I will take the liberty of posting it in full.

LONDON— Christie’s has reported a dismal first half for 2009, with international sales down 35 percent. Contemporary art sales in New York and London were particularly hard hit, with numbers dropping 70 percent from the same period last year. The bright spot among Christie’s auctions was the City of Lights: For the first time, Paris was the house’s top seller, boosted by the €373.9 million ($483.8 million) sale of late fashion designer Yves Saint Laurent's pieces in February.

In 2008, auction houses abandoned the practice of guaranteeing a minimum price to be brought in at auction; that, coupled with the slow economy, left sellers wary to put their artwork on the block.

Christie’s, owned by French billionaire Francois Pinault, has also struggled to afford a full staff. Since the beginning of the year, 200 jobs have been cut company-wide.

The Decline of Conservation Programs

Emily Sharpe writes an interesting article in the Art Newspaper on the continued decline in conservation training programs. London's Victoria and Albert Museum and the Royal College of Art have announced the closing of their joint post graduate level conservation training programs. Sharpe points out that the UK's college level studies are market based, and the classes are not drawing the required students into the conservation programs for the required profitability. It is a slippery slope we are on, with museum closing and deaccessioning cultural property, conservation programs closing due to financial concerns instead of considering the cultural implications. Toward the end of the article is the statement What does this say about what we value?....... a good question indeed.

Sharpe states The UK’s position as a worldwide leader in conservation received another serious blow as London’s Victoria and Albert Museum (V&A) and the Royal College of Art have confirmed plans to close their joint post-graduate conservation training programme. This news comes three months after we reported the course was in jeopardy (April 2009, p.33) and five months after the Textile Conservation Centre at the University of Southampton—a leader in the field—announced it would close its doors on 31 October.

A joint statement says: “…the V&A’s priorities and needs in conservation training have changed and the RCA and V&A have therefore taken the decision to close the course”. The V&A says it intends to create a work-based conservation development programme for its staff, which will focus on developing skills “in areas where the museum needs additional assistance such as upholstery, textiles conservation and textile mounting”.

Sharpe continues The greatest concern is the potential threat to the world’s cultural heritage. “Conservation is a critical core function of heritage,” said Ms Frame. Jerry Podany, president of the International Institute for Conservation, said: “If we continue to whittle away at these resources and are unwilling to support them, particularly during difficult times, what is going to happen to the world’s treasures? What does this say about what we value?”

To read the full article, click HERE.

Appraisers Post Update

Just a quick note on the Appraisers Post webzine. We have had several posts, the most recent was today with Daphne Rosenzweig, Ph.D., ISA CAPP and Asian ceramics expert post on some interesting and useful websites for Chinese and Japanese ceramics. I recommend you visit the site and look at some of the articles and the group of appraisers and experts who will be contributing to the site along with their bios.

I have been busy the past week or two, but will soon officially launch the site. There are enough contributors to start with those who have already decided to participate along with a few more who will shortly be agreeing to contribute.

If you have not looked at the site recently, take a few minutes and visit at www.appraiserspost.blogspot.com.

Also, dont forget about the LinkedIn appraisers group started by Collector Pro developer and Appraisers Post contributor Brian Hiatt. Visit the Professional Personal Property Appraisers group at LinkedIn by clicking HERE.

More on Cruise Ship Art

Last week Jori Finkelof the New York Times reported on cruise ship art auctions. The title of her article was Art Auctions on Cruise Ships Lead to Anger, Accusations and Lawsuits. This report is not new, as many appraisers know, and as I have posted on these auctions on the AW Blog before. The largest of the cruise line auction galleries. The New York Times article covers 4 pages on the site, so make sure you click through and read the full article. A main issue or focus is the appraised values as assigned and determined by Park West. The states how one customer tried to get a refund, was told all sales are final. After contacting the NY Times and a call by the paper to Park West, the refund was granted.

The article also goes into the lawsuit with Phoenix based Fine Art Registry run by Theresa Franks. I also fine interesting a quote from the Park West Gallery attorney Robert Burlington stating "no verbal agreements or representations shall be of any force of effect unless set forth in writing in this invoice." If I understand correctly what Mr. Burlington is saying is that anything the auctioneers says, does not matter unless it is in writing in the invoice. Although not directly related, I think the current auction law bill in NY State is attempting to hold auction houses more accountable for their statements in order to protect clients and buyers from misrepresentation.

As cruise ship art is seen on a regular basis, the NY Times article is a must read for all appraisers. These types of stories and anecdotal evidence on cruise ship art has been in circulation for years. I wish the courts would finally take a stand on some of the reported issues as well as the cruise ship lines. But, a lot of money is at stake.

Finkel states The biggest player by far, with more than $300 million in annual revenue and nearly 300,000 artworks sold each year, is Park West Gallery, based in Southfield, Mich. It handles such a high volume of art sales at sea that it bills itself as “the world’s largest art dealer.”

Park West sells art on the Royal Caribbean, Celebrity, Norwegian, Carnival, Disney, Holland America, Regent and Oceania lines. (Princess runs its own auctions in-house.)

For the cruise-ship companies, Park West’s auctions have become a revenue source like any other concession. For the passengers the auctions are a popular form of onboard entertainment, like gambling or shopping or catching the shows.

Yet some Park West customers say they did not get what they bargained for.

Finkel continues While overcharging for a product is not in itself illegal, misrepresenting the goods sold can be. The plaintiffs’ central argument hinges on Park West’s description of its appraisals.

On the back of Park West invoices, issued on the ship, the appraised value is described as “the price a client would have to pay to replace the work through a reputable retail art gallery.” Yet on the Park West appraisals themselves, shipped to buyers along with their artwork, the appraised value refers to the “current Park West Gallery retail replacement price.”

A lawyer for the plaintiffs in both states, Shawn Khorrami in Los Angeles, said there was a big difference between the two. “It’s the difference between saying, ‘My house is worth $50 million because that’s what the market would pay for it,’ and, ‘My house is worth $50 million because I say so,” he said.

To read the full article, click HERE.

Old Line London Antique Shop Now Under Receivership

The news in the antique and fine art trade has not been been terrible over the past few months and there have been some positive signs. The news I have been reporting and relaying has not been as negative as it was at the end of 2008, so perhaps that is a good sign. Unfortunately, there are still signs of weakness, even at the very top market as the new of receivership for the Partridge firm in London.

I spotted this yesterday on Art Info and the Times of London and fellow appraiser Anne Weston also sent me an additional link on the receivership of one of the more established and known antique dealers in London and in business for over 100 years, the Partridge gallery. The reports states the business is now up for sale and the receivers feel confident a deal can be brokered to save the legendary firm. So perhaps the firm will emerge from its receivership and be a stronger entity.

The London Times reports Partridge Fine Art, the dealership set up in 1902 to buy antiques for Queen Mary, was placed into administration yesterday.

The business, which sells to private clients, designers and institutions such as the Metropolitan Museum of Art, the British Museum and the J Paul Getty Museum, is probably best known for selling a Louis XVI writing table to the Getty museum nearly 35 years ago for what would be millions of pounds at today’s prices.

The table was designed in 1777 by Jean-Henri Riesener, one of the great cabinet makers of his age, at the behest of Marie Antoinette, who saw it as an integral piece of furniture for her palace at Versailles.

The Times continues A spokesman said that the tough economic climate was likely to be the main reason for the group’s downfall. It is unclear how many jobs were at risk.

“We are concentrating on saving the business and selling the store as a going concern, thus saving a piece of history as well as the employment of those working there,” Mr Stoneman said. “We are confident that there will be a significant amount of interest.”

The Antiques Trade Gazette adds, The dealership is housed in possibly the grandest building in Bond Street, a purpose-built four-storey listed building called the Palace of the Arts, from where it has supplied the finest art and antiques to the likes of Queen Mary, the Burrell Collection in Glasgow and, perhaps most notably, the British Museum and the Getty Museum in Malibu, California.

The company ran into trouble around five years ago, when then chairman John Partridge unveiled what he dubbed the worst set of trading figures in his 46 years at the helm.

Former auctioneer and ceramics specialist Mark Law, who already ran porcelain specialists Albert Amor, quickly put together a bid to take control of the company. With the backing of a consortium including former Culture secretary David Mellor – a client of Partridge – he formed Amor Holdings, an investment vehicle that bought out the Partridge family in a £14m staggered deal.


To read the full Times of London article, click HERE., to read the Antiques Trade Gazette article, click HERE.

IRS Seeking Supervisory Art Appraiser

I have heard rumors that Karen Carolan of the IRS is retiring, so this appears to be that supervisory position. The application deadline is August 1, so the open period closed shortly. Pay range is 95K - 123K per year.

Duties are listed as:

MAJOR DUTIES:

As a Supervisory Art Appraiser, you will be responsible for

• Conducting complex appraisal and valuation studies;

• Identifying the fair market value of diverse works of art, literature, and other historical or cultural property;

• Overseeing the Art Advisory Panel;

• Assisting trial attorneys in their preparation for cases related to the valuation of cultural property; and

• Planning, organizing, directing, and evaluating the activities of subordinate staff.

Click HERE for more information from the Government Jobs site.

Appraiser Workshops Blog 1 Year Anniversary

Although it slipped by me last week, the 14th of July 2008 was the one year anniversary of the first Appraiser Workshops post. Since that time the site has seen strong growth in readership with much support from personal property appraisers and art and antique dealers.

A few statistics, the AW blog site is currently averaging about 1,800 visits per month with nearly 2,900 page views per month. The site continues to show growth both in on site viewership and email delivery. The above numbers dont count the email delivery system which is now sending daily emails to over 270 addresses and RSS feeds. The emails distribution program through Feedbruner increases the number of views of the site content by an incredible 8,100 per month.

Since inception without counting the email distribution and RSS feeds the site has seen over 14,500 visits, nearly 26,000 page views and nearly 9,000 visitors. The numbers are also growing nearly every month.

Now in the scope of other websites, perhaps those numbers are small, but the content is geared toward personal property appraisers and those in related fields, so the overall universe of readers is rather small. In that regard, I am very pleased with the number of site visitors and email recipients.

Thank you for your support over the past year as I realize much of the growth is through word of mouth by fellow appraisers loyal to the site. Your positive comments both online and privately, as well as your encouragement have made the past year both enjoyable and educational.

A Few Miscellaneous Items of Interest

The London Telegraph has an interesting yet short article under Art Market News. The article includes predictions that some Andy Warhol portraits of Micheal Jackson, commissioned by Time magazine in 1984 will be in the sale. One of the portraits of Jackson last sold for $278,000.00. There is currently one being offered through a silent auction at theVered Gallery in the Hamptons, NY, starting at $800,000.00 (see image). Click HERE to visit the gallery site.

The Telegraph update also mentions a recent Bonhams auction with Apollo 11 items. The article states Thursday, to coincide with the 40th anniversary of the Apollo 11 mission to the moon, and some items went into orbit. A lunar-surface star chart used by Neil Armstrong and Buzz Aldrin to determine their positions and signed by Aldrin sold for £218,000 – three times its estimate – to a rare book dealer. However, other items, such as an Apollo 14 lunar-surface dust brush used by astronauts Alan Shepard and Edgar Mitchell, estimated to fetch more than $125,000, failed to take off and were left unsold.

The update also briefly discusses the Victorian Edwardian painting sales recently held in London. The sale was not considered a success with less than 50% of the lots sold, but the update mentions two paintings that did very well, with one selling for 4 times the low estimate and one sell for 4 and half times the estimate. This reinforces the current trend of a few items at auction doing rather well, usually high quality and fresh to market items, with most everything else still being a bit sluggish.

To read the Telegraph update, click HERE.

Review of Orientalist Art

The Economist has a good online overview article on the state of Orientalist Art. The article states the market segment has always been mixed, with peaks and valleys. Unfortunately, we are in another valley.

The article states Christie’s Orientalist sale in London on July 9th did not go well. Of the 59 lots on offer, 27 failed to sell despite every effort by the auctioneer, Alexandra McMorrow, to squeeze bids out of those attending. It was an afternoon of thin trading, with reluctant bidders and bargain-hunting buyers. The entire sale was despatched to just 14 purchasers.

Like many art market segments, with only a few exceptions or very high quality and rare works, most recent sales of Orientalist art has been effective by the economic downturn.

The article concludes with a short warning to consignors, These two pictures were among the five that sold above their top estimates. Their success on a flat July afternoon offers two crucial lessons for vendors in recessionary market: don’t sell unless you have to, and don’t be greedy in setting estimates. If the low estimate is pitched at a high level, buyers sense greed in the air and tend to hold off from bidding. In a buyers’ market, purchasers like to feel they have got a bargain, especially if they are spending a lot of money.

To read the full article, click HERE.

Fisk - O'Keefe Ruling

If you are in the mood for some "light" reading, click HERE to read and/or review the 19 page ruling from the Tennessee courts on the Fisk University/Georgia O'Keefe Foundation lawsuit. As you may recall, I posted last week, and Fisk, with some restrictions is allowed to sell or share the collection, or at least the O'Keefe Foundation can not block a sale or potential sharing agreement. I would assume there are still deaccessioning issues to consider.

I'll start you out At issue in this appeal are the respective rights of three parties concerning charitable gifts of 101 pieces of art given, subject to conditions, to Fisk University in the late 1940s and early 1950s. The
collection has an estimated present value in excess of $60 million. Four of the pieces, including the painting Radiator Building - Night, New York, were the property of Georgia O’Keeffe and given to the University by Ms. O’Keeffe. The other ninety-seven pieces were part of a much larger collection formerly owned by Alfred Stieglitz, Georgia O’Keeffe’s late husband. The ninety-seven pieces were gifted to the University by Ms. O’Keeffe as executrix of the estate and/or as the owner of a life estate in the ninety-seven pieces. All 101 pieces were charitable, conditional gifts that were subject to several restrictions, two of which are at issue here; the pieces could not be sold and the various pieces of art were to be displayed at Fisk University as one collection. These proceedings began when Fisk University filed an ex parte declaratory judgment action seeking permission to sell two valuable pieces of the collection because it could no longer afford to maintain the collection pursuant to the conditions imposed 50 years earlier.

Sotheby's Video on theImpressionist and Modern Marke

Sotehby's has posted a video on the state of the market of Impressionist and Modern market based upon its sales and analysis. If you recall from the AW Posts on the recent London Impressionist and Modern sale, Christie's was hurt, but Sotheby's had a much better showing. They of course are promoting their recent sales as a big success. So keep in mind this is a marketing tool as well as a market update. The video is interesting to watch.

To watch the Sotehby's video on the Impressionist and Modern Market, click HERE.

Brimfield in July Report

July Brimfield is going on right now and the Republican newspaper is reporting slower than usual sales. The paper notes the July Brimfield sales are usually the slowest, but many of the dealers are reporting fewer sales at lower prices.

The report sates What people are buying are inexpensive items, such as multi-colored glass garden balls, he said Friday.

"The younger generation is not interested in antiques. They go to Bob's Discount Furniture ... It's the baby boomers who collect," Smith said.

Smith estimated they do a quarter of the business they did eight years ago.

"We love doing this, but we loved it much more when we were making money," Smith said.

Antique furniture dealer Gary J. Lamothe, of New York, also said he noticed the slowdown.

"It's worse than usual. There have been lot of tire kickers," Lamothe said.

The outdoor antiques shows run though Sunday. Vendors come back to Brimfield Sept. 8 to 13.

Michael Gallant, a Maine dealer at Hertan's field, described business as "tenuous."

"I'm probably off 20 to 30 percent, but people are still coming out to buy quality items," Gallant said.

For example, he sold a $2,200 hooked lion rug. But in a better economy, he thinks he could have gotten up to $6,000.

To read the full story from the Republican, click HERE.

Antiquities Smuggler Conviction Upheld - And a US Case....

Steve Scherer of Bloomberg is reporting that Italian courts have upheld the conviction of Giacomo Medici,who was charged and convicted of stealing antiquities and selling them to museums around the world. Medici was convicted in 2004, fined $14 million and sentenced to 10 years in prison. After the appeal the sentence was reduced to 8 years. The Getty Museum's former antiquities curator is currently fighting charges of smuggling in Italy as well.

Now that brings me to a topic that I missed last month about the cultural heritage of the US. When we think of the smuggling and illicit sales of antiquities we typically think of Italy and Greece. It appears in the four corners region of New Mexico there was some antiquities smuggling and sales as well. Craig Childs of The Los Angeles Times reported on a two year undercover investigation and $300,000.00 in sales of illicit Indian artifacts and cultural material. Here is an excerpt from the LA Times article, but the full article is well worth reading as well.

Childs states The federal action, a lot of locals think, was akin to busting a bunch of good ol' boys with a backwoods still. They don't give much thought to how illegal digging in the Four Corners has decimated one of the richest archaeological regions in the country, putting thousands of years of human history into private hands.

Pulling artifacts from the land without documentation and adding them to private collections is a form of archaeological genocide, erasing the record of a people from a place.

Yet for many in the Four Corners area, it is like collecting seashells. Sunday picnics used to include shovels. An old-timer once told me that there were so many pots they were like pumpkins on the ground, and few saw anything wrong with digging and collecting. The pastime was hardly frowned on until the 1980s, when a similar federal raid blew open this same town of Blanding.

One of those targeted in this most recent sting was James Redd, 60, a longtime family doctor and one of the most prominent citizens in Blanding.

Redd and his wife, who was also targeted in the raids, faced similar charges in the 1990s when they were caught digging on state land. After a lengthy legal battle, the Redds were acquitted.

Redd was found dead on his property last Tuesday, the day after his home was searched. It appears that he committed suicide.

The following morning, community members gathered at the foot of the Redds' driveway, some weeping, some deeply angered, saying that agents had gone too far in a town where pot hunting was once a respectable part of life.

The sting extended beyond Blanding to nearby Colorado and New Mexico. Forrest Fenn, a wealthy collector in Santa Fe, also had his home searched, although he was not named in the indictment. Agents entered Fenn's home on Monday and confiscated artifacts, records and his computers.

To read the full NY Times article, click HERE.

Ruling on Fisk University and O'Keefe Collection

The New York Times is reporting there is a ruling on the Fisk University collection of Georgia O'Keefe paintings. The article is rather short, so I will take the liberty of just posting the full article for your review.

The Georgia O’Keeffe Museum cannot try to block the sale of an art collection donated by O’Keeffe to Fisk University 50 years ago, a state appeals court ruled. The Stieglitz Art Collection, 101 pieces of a larger group of works amassed by O’Keeffe’s husband, the photographer Alfred Stieglitz, includes works by the couple and pieces by Picasso, Cezanne and Renoir. The university, which has longstanding financial difficulties, has arranged to share ownership of the collection with the Crystal Bridges Museum of American Art, which is preparing to open in Bentonville, Ark. The Crystal Bridges Museum will pay $30 million, and the collection will alternate locations every two years. Fisk, in Nashville, must still win permission in a lower court to sell an interest in the collection, a violation of the terms of the original gift. The Georgia O’Keeffe Museum, in Santa Fe, N.M., had argued that it should take possession of the entire collection if Fisk violates any of those terms.

White House Looking for Art

I posted in the recent past about President Obama and the families desire to decorate the White House with more contemporary art, including art from the African American community, the Hispanic community, the Asian community and women. The Art Newspaper ran an interesting story about how the Obama's interest in these emerging art market segments is raising interest and awareness among collectors. The article has some excellent commentary, and is well worth reading.

The Art News Paper states What is the significance of the attention being paid to the art of African Americans by this country’s most visible museum? Puryear is arguably one of America’s greatest sculptors and certainly doesn’t require the imprimatur of the White House. Many of his peers seem to be skillfully navigating the fraught waters of contemporary art as well.

Yet when one steps outside the vaunted and insular precincts of art, validation takes on a different tone. Beyond museum exhibitions, auction prices, critical reviews and international fairs, lies the vast territory of a larger society less swayed by esoteric notions of the valorisation of art and artists. Rather, there one finds a public whose tastes and desires are being stirred by the heady—and welcomed—promise of change. It is that indefinable sense of possibility that opens minds and fuels concrete action to challenge the status quo.

It would be presumptuous and premature to predict that the actions of one president, even one as influential as Barack Obama, would singlehandedly alter the course of American art history or the destinies of African American artists. Yet his and the First Lady’s early actions in expanding the agenda for White House art have evinced an ability to transform the bully pulpit into a poetic perch from which to suggest new strategies for broadening the conversation about art and culture in this country. The echoes of those actions are reverberating not only in the hallowed halls of the First Family’s residence, but down the decades of American creative expression.

To read the full artilce, click HERE.

Salander Investigation Claims Another Victim

Philip Boroff and Lindsay Pollock of Bloomberg are reporting that Salander O'Reilly Gallery employee Leigh Morse was arrested. According to the report Morse is a 30 year veteran of the art gallery establishment in New York and was director of the gallery. She is charged with stealing and defrauding clients by selling paintings of the Robert DiNiro, Sr. estate, not paying the estate and having purchase proceeds deposited directly into her account. She has plead not guilty and is free on bail.

The Bloomberg article states Morse was a dealer long before she joined Salander, now 60. She worked for other American painting galleries, including Coe- Kerr in the 1980s, according to a dealer who worked with her. After Coe-Kerr closed in the early 1990s, she joined Babcock Galleries.

“I thought she was a stellar person,” said John Driscoll, owner of Babcock. “When she worked here, she was bright and on the ball and gracious and totally professional.”

At Salander-O’Reilly, where she worked from 1995 until it closed in October 2007, Morse sold artworks from the estate of Abstract Expressionist painter Robert De Niro Sr., father of actor Robert De Niro, and didn’t inform the estate of sales or remit proceeds, Morgenthau said in a press conference yesterday.

In May 2007, Morse sold two De Niro paintings and arranged for the $77,000 purchase price to be wired to her personal bank account, Morgenthau said.

‘Earned Trust’

As gallery director, “she earned the trust of the estates that turned over possession of their inherited art for the Gallery to exhibit and sell,” according to the District Attorney’s office. “Rather than communicate the truthful information to the respective estates, Morse intentionally misled them or failed to disclose the true status of their works,” the office said in a release.

Salander owes Morse money in back commissions, said Micki Shulman, deputy bureau chief of Morgenthau’s frauds bureau.

To read the full article, click HERE.

Social Networking and the Appraiser

Fred Winer, president of ISA called me after attending a session at the ASA conference in Orlando, Fl. The session was entitled Media Training in Social Networking. Fred knows I like to follow technology trends and apply them to personal property appraising.

The discussion was to encourage the use of and also apply some of the newer technologies within social networking such at LinkedIn and Twitter to appraising. I am not sure how many people might want to follow me or any other appraiser on Twitter, but the LinkedIn network is interesting. I was first approached to join the LinkedIn by fellow appraiser Nini Hamalainen at the ISA conference in Charleston, SC this spring. I joined LinkedIn and have a partial profile on the site, I also have connected with a few other appraisers but I have never really used it, or full discover the benefits.

After Fred's call I hear from Brian Hiatt, developer of the CollectorPro appraisal software program. In his email he states he is starting a group on LinkedIn for appraisers. The Appraisal related group is now just starting, I of course signed up and hope the site develops. Not only that, but I hope to discover some of the potential benefits of social networking, and how it might apply to appraising.

Sometimes the only way to understand these fast emerging technologies it to just jump in and try it out. For those not familiar with LinkedIn, it is a social network site like FaceBook, but with an emphasis on business and commerce. Click HERE for more info on LinkedIn.

If you are interested in joining the LinkedIn personal property group established by Brian, click HERE.

ACA Newsletter

Appraisal Course Associates partners Dave Maloney and Bill Novotny just published the latest edition of their free, periodic online newsletter "ACA's Appraiser's Update."

Like preceding issues, this latest Update is full of useful information of interest to the personal property appraiser.

Included in this issue:

• a caution against misusing the terms "USPAP certified appraiser" and "USPAP certified appraisal,"
  
• a review of an important change to USPAP's ETHICS RULE,
• an article about bankruptcy appraisals,
• a great review of our "Personal Property Appraiser's Post."

Read the latest edition of the "ACA Appraiser's Update" here. I'd also recommend that you sign up to receive the newsletter automatically via email. They also have all past issues of the newsletter archived on the ACA site.

Salander Charged Again

Indicted New York art dealer Lawrence Salander has been arrested again on additional charges of stealing $5 million from several estates. This incudes paintings by Robert De Niro, Sr, the father of the actor.

Reuters reports Art dealer Lawrence Salander, 59, was indicted on additional charges for stealing $5 million from several estates on Tuesday after he was arrested in March for orchestrating a sophisticated $88-million art investment scam that also duped former tennis champion John McEnroe and Bank of America.

Salander and other dealers at his New York gallery sold the works by Robert De Niro Sr., an abstract Expressionist painter who died of cancer in 1993 aged 71, and did not pay out the majority of the sales to his estate, according to the charges.

As a result of the scam, De Niro Sr.'s estate lost more than $1 million, the DA's office said.

To read the full Reuters article, clikc HERE.

Art Loss Register Acquires Trace.com

From the Art Loss Register Press Release:

LONDON.- The Art Loss Register (ALR) announced the acquisition of the register of stolen art and antiques from Trace, a subsidiary by MyThings which will become a minority shareholder in the ALR. This merger will consolidate the two databases into one, and reinforce the need for one database recognised internationally as the centre for due diligence searching by the art trade and for registration by insurers and victims of theft.

"The Art Trade cannot be expected to search a multitude of databases with different content which do not provide an authoritative check on whether the item is stolen, missing or has some other defect to its title. Likewise victims of theft need to register in one location providing support to the police to assist them and increasing the chances of recovery," said Julian Radcliffe the Chairman of the Art Loss Register.

"We look forward to developing our additional services in relation to fakes, pre loss registration and searching for lower value items particularly for auction houses," he added.

"We believe that this merger with the Art Loss Register will provide Trace auction house clients the best future service," said Benny Arbel the CEO of MyThings which has just raised new funds to develop its core business in behavioural targeting.

Recent Court cases in the UK and USA have highlighted the need for art and antique dealers and auction houses to search before they buy or sell to avoid criminal or civil action against them.

The ALR is the world's largest private international database of lost and stolen art, antiques and collectibles providing recovery and search services to private individuals, collectors, the art trade, insurers and law enforcement through technology and professionally trained staff of art historians.

The ALR was formed in 1991 through a partnership between leading auction houses and art trade associations, the insurance industry and the International Foundation of Art Research. The ALR has been involved in the recovery of over 1,000 works of art worth with an estimated value of £100,000,000. With over 210,000 items on its database of lost and stolen art and antiques, it undertakes over 300,000 searches a year. The ALR is recognised as the leader in art recovery, due diligence and the resolution of title disputes.

Art Theft in Texas

The Austin American-Statesman is reporting the theft of 8 Picasso paintings along with four other paintings. The story is bid odd, as the theft was on June 23 and reported, but noted that only one Picasso was missing. It was later reported that the 11 other paintings were missing, but they were on load from NY and LA galleries for an exhibit in the Austin, Texas home. According to the report, the items were not insured.

The article states West Lake Hills police said this week that no arrests have been made and that the case is under investigation. Art thefts are uncommon for the department.

The Picasso, a black and white circus scene from the artist's 347 Series, which Borinstein says she has owned for years, hung on the wall above her nightstand.

The art was not insured, Borinstein said.

"I have no hopes of getting them back," she said.

A burglar or burglars entered her home during the day while she was away, she said.

"It had to be someone who knew me, knew my house and possibly knew my habits," she said of the thieves.

She is offering a reward for information about the theft, anonymous or not, and is considering hiring a private investigator.

To read the full article, click HERE.

Update: Old Master Sales - Holding Strong

Last week I posted on the London Old Master sales at Christie's and Sotehby's. Given the state of the economy, the sales results were considered very positive, especially when compared to the contemporary market segment. The London Evening Standard ran this very short piece on the sales, stating the Old Master market is even with January of 2008, and the gains from 2005-2006 remain. This is some very positive news, although there usually is less volatility in the Old Master market than Contemporary art. But the ideas that market is holding is some good news.

The article is short, so I will take the liberty of posting the whole article:

Old Masters including Breughel the Younger and Goya have sold for millions of pounds at the latest London summer art sale, as fine art continued to defy recession.

After taking last night's auction at Sotheby's, chairman Henry Wyndham said: "I do not believe that prices were much different from a year or two years ago."

Auction totals at Sotheby's were down on a similar sale last summer, at £36million, but prices were buoyant and sale rates high.

Statistics from Art Market Research show Old Masters are matching the prices of January last year and preserve most of the gains of the 2005-08 art boom.

At Sotheby's, Pieter Breughel the Younger's Massacre of the Innocents sold for £4.63million - nearly double the estimate. Seven bidders battled for Jusepe de Ribera's The Torture of Prometheus, driving the price to £3.85 million, way beyond the £1.2million estimate.

"Some people believe the art market is no longer the same," said George Gordon, Sotheby's Old Master expert. "We can reassure them that it pretty much is."

Sotheby's to Sell Items from Lost Inheritance of the Romanovs

Sotheby's London has just announced it will sell items form a lost inheritance of decorative art items from the Romonov family. The sale is to be held in November and includes nearly 100 lots of property that have not been seen for over 90 years. The sale will include a Faberge jewelled and enameled cigarette case by Workmaster Michael Perchin, St Petersburg, 1899-1903 with an
Estimate of £60,000-80,000

The Sotheby's press release states Sotheby’s is delighted to announce that in November this year it will bring to the market, for the first time ever, the extraordinary and rediscovered collection of personal and rare objects, including many exquisite pieces of Fabergé, which belonged to Her Imperial Highness Maria Pavlovna, Grand Duchess Vladimir (1854-1920) and her late husband, His Imperial Highness Grand Duke Vladimir Alexandrovich (1847-1909) - son of Emperor Alexander II and brother of Emperor Alexander III.

Deposited at the Swedish Legation in November 1918, the month Sweden broke off diplomatic relations with the Russian revolutionary government, the existence of the trove was unknown for ninety one years and recently surfaced among diplomatic holdings in Stockholm. Sotheby’s has now been asked to sell this collection, which represents one of the most important groups of objects with Romanov provenance to be offered at auction in recent times. It is expected to realise in the region of £1 million.

The sale of this previously unknown and private collection will comprise around 100 lots of cigarette boxes and an extraordinary array of cufflinks, including many fine pieces of Fabergé, that bear ciphers, Imperial inscriptions and coats of arms and even photographs of the Vladimirs and their immediate family. Estimates for the objects in the auction – several of which are in immaculate condition – range from £80-120 up to £4,000-6,000 for a set of cufflinks, and for a cigarette box from £700-900 up to £70,000-90,000.

RICS Releases 2nd Quarter Arts and Antiques Survey

The Royal Institution of Chartered Surveyors just released its second quarter Arts and Antiques Survey. Overall the news is positive, all though those reporting reporting stated on average positive growth, it has slowed from the first quarter. Of the 10 fine and decorative arts categories surveyed, only two, ceramics and contemporary art failed to show signs of positive price increases.

I always find these reports and surveys useful when preparing market analysis statements for appraisal reports. I print out the full RICS report and save each quarters survey results. I always find them useful and interesting and a fair review of the market in the UK.

The summary report states The net balance of surveyors reporting rising rather than falling prices fell back in the second quarter but it still remains positive overall. The All Lot net price balance slipped from +19 to +7.

Out of the ten sub-sectors covered in the survey, only two (ceramics and contemporary art) did not record a positive net balance during the latest three month period. That said, the net balance still improved in the contemporary arts sub-sector (though it remained in negative territory overall), while it deteriorated in the ceramics sub-sector (from a positive reading previously).

It is notable that in contrast to the contemporary art sub-sector, the oil and watercolour sub-sector recorded a positive net balance overall. Significantly, this was driven by positive net balance readings in the middle and top ends of the market. In the contemporary arts sub-sector, the net balance of surveyors reporting price falls remains the third consecutive quarter that this has been the case.

The best performing sub-sector was silverware (with strong readings in all price bands), followed by militaria and then jewellery. The continued strength of silverware and jewellery can be partly explained by the perceived ‘safe-haven’ status of such items during times of financial and economic uncertainty.

In terms of the demand and supply outlook for the Q3 period, confidence remains generally positive in both areas. However, confidence in the supply outlook fell back slightly, whereas confidence in the demand outlook strengthened for the second successive quarter.

T0 read the full report/survey, click HERE.

Update: Hart Galleries

The last news we had of this sad saga is the Harts were each recently sentenced to 14 years in prison as they plead guilty to misapplication of fiduciary property of more than $200,000, a first-degree felony (click HERE to read previous post. Brian Rogers of the Houston Chronicle is now reporting that a new judge is allowing a trial, after the guilty plea and previous sentencing of 14 years. The Harts thought they were going to get probation, not prison, and certainly not 14 years each. Texas State District Court Judge Vann Culp refused to explain the decision.

Rogers reports After their guilty plea, the couple agreed to leave punishment up to then newly-elected state District Judge Randy Roll following a pre-sentence investigation. The investigation included 160 letters from prominent Houstonians asking Roll to consider giving the couple probation. He sentenced them to 14 years in prison.

“They thought they were going to get probation, and when they got prison time, they fired their lawyers and started blaming everyone,” prosecutor Markay Stroud said in court. “Now, they want what my children would call ‘a do over.’ ”

Stroud, who negotiated the original plea agreement and will have to start the case over, seemed stunned after state District Judge Vann Culp’s ruling.

“Given the evidence I heard, I’m very surprised by the decision,” the prosecutor said.

She declined to comment further, saying it now was a pending case. She previously had said the couple stole more than $4 million.

The Harts’ attorneys claimed victory after the ruling and said they were preparing for the new trials.

To read the full articl, click HERE.

The Personal Property Appraisers Post

I have mentioned over the past few months the new webzine/blog project I was working on. The site is a "non-denominational" site, designed for all appraisers, with news and appraisal related content unfiltered by any group or association. I am very excited about this project as it has been extremely well received by fellow appraisers. I expect it to be a destination site for personal property appraisal news and content.

The Personal Property Appraisers Post will soon launch, but I wanted AW Blog readers, many who are going to be Appraisers Post contributors the opportunity to visit the site and view some of the appraisers who have volunteered to participate in this project. I hope to eventually get between 30-50 appraisers and related industry professionals involved in the site. Each committing to post at least once every 4-6 weeks. With the proper balance between posts and contributors, the site should always have new and fresh content. The contributors all have direct access to the site for posting, reinforcing the Independence of the site.

The site currently has about 20 contributors listed, enough to soon officially launch the webzine, with still more to be added over the next few days. I will post to the AW Blog when the site officially launches. Some bugs in the template have just been worked out, (Internet Explorer users could not view the side bar) and a few more posts need to be posted.

There are currently two post on the site, one from Stephen Sweeting, ASA who wrote about the art market in Canada, and a new post from David Maloney, AOA CM who just posted on the appraisal debate of Inspection vs Non-Inspection. Both are excellent articles for the appraiser, and what I hope to be representative of the content that will be regularly posted on the Appraisers Post. The Appraisers Post currently has a CPA/attorney and an attorney/appraiser as contributors and will soon be adding other specialties such as fine art and decortive art conservators.

Please take a few minutes and visit the site. More content will be posted shortly with interesting topics such as appraisal professionalism, furniture designers of the 20th century and building and maintaining an appraisal library. The site will also contain information on upcoming conferences and appraisal related education and events.

Visit the site at www.appraiserspost.blogspot.com

If you are interested in being a contributor, and like to write, click HERE to email me. Remember, the time committment is minimal, only one post every 4-6 weeks of about 300-800 words.

From Grosvenor Art and Antiques Fair Comes a Masterpiece

About 10 days ago I posted on the AW Blog that the Grosvenor Art and Antiques Fair was closing, with a bit of a push from the hotel in order to better utilize the Grand Ball room in the hotel (more $$$), but also because of declining interest in antiques. I also mentioned there were rumors the show would resurface in a different venue. Dave Itzkoff of the NY Times Art Beat is reporting the replacement fair is to be called Masterpiece.

Itzkoff reports The new event, to be called Masterpiece 2010, is scheduled to take place from June 25 to June 30, and its organizers are presently reaching out to art and luxury goods dealers to secure their participation. Simon Phillips, the chairman of the antiques dealer Ronald Phillips, which was formerly an exhibitor at the Grosvenor House fair, told Bloomberg that locations including the Royal Hospital Gardens in Chelsea were being considered for the Masterpiece 2010 event, but cautioned that permissions had not yet been secured. “There is a real need for this event if London wants to be capital of the art world,” Mr. Phillips said, according to Bloomberg. Last month, organizers of the 75-year-old Grosvenor House fair said it was being discontinued, citing declining profits and increasing costs.

Deaccessioning Debate in the UK or Hitting an Iceberg

Several months back I was posting a lot on the deaccessioning debate here within the States. This included the Rose Art Museum at Brandies, the Fiske University, the Corcoran, the National Academy, Iowa State, the Metropolitan Opera along with a few others. I then grew a bit tired of the debate over what and how museum funds from deaccessioning could be used for, such as only replacing items of art or for overhead and conservation. Although the discussion is worthwhile and guidelines and more flexibility is needed. Whats the point if the institution is forced to close. But there are also other issues such as the donors intent.

The London Telegraph is reporting the UK is no going through some similar issues as well. The public Southampton Art Gallery is looking through its collection of 3,500 works of art to determine what might be sold in order to support a museum on the Titanic.

The Telegraph report states There are two clearly demarcated sides to the argument. Opponents insist that museums and public galleries don’t exist solely to display: they are also centres of scholarly research and repositories charged with the preservation and safe-keeping of anything that is of aesthetic or historical value. What to one generation looks like junk can emerge as treasure to another. Extensive selling-off will also discourage donors, who like to feel that they are giving sub specie aeternitatis.

On the other hand, most galleries and museums are over-stocked with artifacts of no discernible value. Storing and conserving such stuff securely at controlled temperatures costs a fortune. Libraries regularly purge themselves of books, why shouldn’t museums and galleries do the same? A car boot sale will not only clear debts, it can also provide funds for new acquisitions.

In the US, the practice of “deaccessioning” is more prevalent and even major institutions buy and sell robustly. But the government is beginning to think that it’s gone far enough.

To read the rest of the article, click HERE.

Results: Old Masters Week In London

Sotheby's and Christie's both appeared to be very pleased with the sales results of this weeks Old Master Paintings, including the collection of a Johnson and Johnson heiress. The Sotheby's Evening sale and the collection from Barbara Johnson totaled nearly $60 million including buyers premium. The evening sale brought $42.76 million in sales, with 48 of 33 lots selling. The buy through rate was 68%. Fourteen of the lots sold for over $1 millions and 5 new auction records were set. The Johnson collection brought a total of $15.9 million with 44 of 56 lots selling. The buy through rate was a strong 78%, with three lots selling for over $1 million. Of the lots sold in the Johnson collection, 57% sold for prices above the pre sale catalog high estimate.

The Art Newspaper noted the interesting news that this is the first time in several years where Old Master paintings have outperformed the Contemporary and Modern sales. I still am reluctant to say the Old Masters are thriving, but with the numerous records set it was clearly a very good sale. The sales of the recent Contemporary and Modern auctions were considered by many to not be of the highest quality, with some works that were recently seen on sale. In any event, the Old Master category may not be thriving, but it is certainly showing signs of strength when compared to other categories.

Sotheby's stated Alexander Bell, Co-Chairman of Old Master Paintings, Sotheby’s Worldwide, commented after the sale: Johnson, a selection in which most of the major schools in the field of Old Master paintings were well-represented and the “Tonight’s results demonstrate yet again the consistent underlying strength of the Old Master Paintings market. We were pleased to offer in addition to the impressive group of paintings, sculpture and works of art from the collection of Barbara Piaseckapre-sale exhibition had a real buzz and air of excitement. This area has a long-established and stable collecting base, which was very much in evidence tonight and collectors responded with particular enthusiasm to the unique spiritual aesthetic of the Johnson collection. Ribera’s Prometheus – the top-selling lot of the Johnson collection – was greatly admired and we’re thrilled to have set a new auction record for the artist.”

The Christie's Old Master sale saw 63 lots come under the hammer with 48 selling to a sell through rate of a strong 76%. The 48 selling lots totaled $32.84 million including buyers premium. The sale had 9 paintings selling for over $1 million dollars, with the top lot of selling to a US private collector for $3.5 million. Three auction world records were also attained during the Christies sale.

Online Art Sales Struggle

The Savannah Morning News recently ran a short but interesting article about online art auctions. The site initially refers to online art auctions, but I believe the article actual is referring to all online art sales, not only those that auction. The report states actual sales have been in decline since the economy started having difficulties and has paralleled the issue brick and mortar auction houses have had. The article also mentions that most sales are in the lower value ranges and the online art services are starting to cater more to that group. This makes sense as buying from an image can be deceiving even if unintentional. I know selling furniture online can be hard, and when the image is taken with lighting it can look completely different.

The article states, Online sites selling art are facing a similar situation to auction houses: Sales are down. These sites vary in the quality of art they sell. Some of them are standalone and some are operated by galleries as an additional way to reach buyers. Some owners say they are losing money, while others said their businesses haven't grown as much as they had hoped since the economic downturn. They are all looking at alternative ways to keep their businesses going in this declining market.

Palo Alto, Calif.-based McCormack-Skiba said people are buying the cheaper art on the site. No one is buying the more expensive works on the site that run from $5,000 to $10,000.

So, to readjust their strategy they are offering more art at lower prices. They are increasing the number of prints of each artist they represent on their Web site.

To read the full article, click HERE.