Chrisite's Accused of Selling Counterfeit Wine

Bruce Golding writing for the New York Post states that  billionaire wine collector William Koch is suing Christie's for selling counterfeit wine.  The suit is not just about a few bottles, although some of the bottles Koch purchased were supposedly owned by Thomas Jefferson, but a full conspiracy to defraud.

Collectible wines has become a very important market sector for many auction houses, from the major international houses to smaller regional firms.

Many publications are picking up on the story including the Wine Spectator. Christie's of course denies the claim.

Golding reports

Koch's Manhattan federal court suit seeks unspecified damages, along with an injunction barring Christie's from selling any pre-1962 wine "without first obtaining the opinion of an independent qualified expert" saying it's legit.
The filing is the latest in a string of pending legal actions launched by Koch since he began probing the provenance of his own four bottles of "Th.J" wine -- which he bought in 1988 from The Chicago Wine Company -- in connection with a 2005 plan to exhibit them at Boston's Museum of Fine Arts.
The suit says Koch's suspicions were confirmed with the help of 10 "confidential" witnesses, including former Christie's employees and German glass workers who said they engraved bottles for the source of the purported Jefferson wines, Hardy Rodenstock.
Koch, whose yacht won the 1992 America's Cup race, claims Christie's knew that Rodenstock's bottles couldn't be tied to the Founding Father, but auctioned them off to get a 25 percent cut.

To read the full article, click HERE.

Spencer Family Selling Rubens

The family of Diana, Princess of Wales is selling off many Spencer family items, including a Rubens valued at 8/12 million GBP. Scott Reyburn of Bloomberg reports Christie's will be handling the Spencer family sale, and the total is expected to bring close to $29 million.  According to Reyburn, the Spencers were convinced it was a good time to sell as some old masters, especially those with the best names have been doing extremely well.

Reyburn reports

The trustees are also selling items that furnished Spencer House, in London’s St. James’s district -- which the family vacated in the 1920s.

On July 8, Christie’s will offer more than 40 lots of 18th- century English and French furniture, porcelain and decorative objects. These include a set of 12 George II mahogany dining chairs designed by Spencer House architect John Vardy, valued at as much as 1 million pounds.

The sale will “help the Althorp Estate to thrive for generations to come,” the trustees said in Christie’s statement. Althorp is having a 10 million-pound re-roofing and restoration project.

Diana Exhibition

“Diana: A Celebration,” an exhibition commemorating the life of the sister of Charles, 9th Earl Spencer, has been an attraction at the much-altered 16th-century house since 1998.

Christie’s has yet to set a date for its sale of the Spencer family’s collection of more than a dozen 19th-century carriages and other items it is removing from Althorp’s attics, cellars and stables.

“The ‘Attic’ sale is to do with good housekeeping,” Rock said in an interview. “The Trustees want to keep the key objects that are important to the original family collection. There are a lot of things that have been kept in storage since the 1920s and their condition isn’t improving.”

Bidders will be lured by lots such as a two-seat Regency- period coach used by Lord and Lady Spencer for state occasions, estimated at 50,000 pounds to 80,000 pounds. The ‘Attic’ auction, whose contents have yet to be confirmed, will also include everyday items such as watering cans that may have been used by Diana when growing up.

To read the full article, click HERE.

A Few Openings Still Left for the Good, Better, Best Appraiser Workshop - May 15 & 16

As many of you may be aware, Jane I and I hold an appraiser workshop at my shops in Alexandria, Va. The program is excellent for both new and experienced appraisers. We have an excellent work book, and as the class is limited to only 10, plus the two instructors the class is very interactive and hands on. Because of the small size, it is more discussion based, rather than a series of lectures. If you are interested please contact me for more information at 703-836-1020 or toddisg01@gmail.com.

Thanks,

Todd

THE NEXT GOOD, BETTER, “BEST” APPRAISER WORKSHOP
“ACTIVE LEARNING AT ITS BEST”

SATURDAY, MAY 15th and SUNDAY, MAY 16th, 2010
IN BEAUTIFUL “OLD TOWN” ALEXANDRIA, VIRGINIA


16 PROFESSIONAL DEVELOPMENT POINTS AND CERTIFICATE OF COMPLETION
COURSE WORKBOOK AND C D INCLUDED

Workshop Sessions:

• Close the Sale and Determine The Scope of Work

• Prepare Contracts and Obtain Deposits

• Prepare for the On-Site Inspection

• Research Using New Methods and New Technological Techniques, Creating Bibliographies and Incorporating Printed Documents and Appraisals into New Reports

• Learn How to Deal With Client Challenges

• Perform an appraisal inspection

• Advance Product and Specialty Area Knowledge

Inspect and study the inventory of two antique shops packed full of period and quality revival furniture, decorative arts and fine arts. You may remove drawers, turn over case pieces, inspect backboards and even disassemble/assemble a tall case clock. You will learn how to use ultra violet light to detect restorations to paintings, porcelains and furniture, and learn how to write property descriptions and condition reports. Click HERE for a photo album of the shops:

Your workbook with C D will include actual sample contracts, forms, glossaries and documents which are used everyday by successful and experienced appraisers.

The appraisal business is better than ever even in this economy. Are you going to waste another year trying to figure out how to make money in your appraisal practice? What are you waiting for?

Limited to 10 attendees, no more than 5 students to each instructor. Time and Space is limited! Contact us NOW for pricing and availability. The workshop is lead by  Jane C. Brennom, ISA CAPP, and Todd W. Sigety, ISA CAPP.

Click on the link below for further information and registration. Website: www.appraiserworkshops.com or Call The Appraiser Workshops at 703-836-1020

Masterpiece Fills New Show

According to the Antiques Trade Gazette, Masterpiece, one of the main shows that will be replacing the Grosvenor Antique and Art Fair has announced they have completed filling the show. They promoters now have the minimum of 85 dealers needed, and expectations are for close to 100 dealers displaying for the June show. The larger show is expected to be a success, as Grosvenor was limited to about half the number of dealers and the costs to hold and promote continued to escalate.

After several show cancellations in NY, it is good to see London being successful, I will be interested to seeing the dealer lists, and if it has gravitated to an art show, or remains both antiques and fine art.

The Antiques Trade Gazette reports

THE organisers of London's new luxury fair Masterpiece are closing their books this week for the 2010 launch, satisfied with having reached their target of around 100 exhibitors.

As ATG went to press, 85 top international dealers had signed up for the fair, which will be held in a purpose-built pavilion at the site of the former Chelsea Barracks, SW1 from June 24 to 29 with a preview on June 23.

However, with contracts coming in by the day, the organisers say they are certain to hit 100 by their deadline on March 31.

Masterpiece conclude their recruitment of exhibitors less than two months after announcing they had planning permission to go ahead on the Chelsea site. Firm bookings immediately flooded in from some of the trade’s biggest names, confirming that the top end had been waiting for the verdict on planning before firmly committing themselves to any of the June fairs.

Billed as “the best of the best”, Masterpiece was conceived as a fair combining art and antiques with luxury goods. However, for this first airing the exhibitors list is totally dominated by art and antiques dealers, with the expectancy that some wine dealers will join by March 31. A spokesman says this is hardly surprising since three of the five founders are long-established London antique dealers.

As we went to press, the latest recruits to Masterpiece are Galleria Gracis of Milan, who deal in English antiques, and from London, picture dealers Osborne Samuels and silver specialists Koopman Rare Art.

To indicate the scale of the new project, some 4200 sq m of stand space has been sold, two-and-a-half times the size of Grosvenor House.

HIgh Tech Art Replication

The Wall Street Journal has an excellent article on high tech art replication. This includes high resolution 3-D scanning, and printing onto canvas with a flatbed pigment printer with historically accurate paints. The scans can also be analyzed on computers and determine or at least assist in research of the artist' style.

We have seen technology venture into the arts in assisting connoisseurship, and in authentication.  There have always been fakes and copies, but the new technology seems extremely accurate and will assist scholarship as well as replicate delicate works for viewing.

Whether to rewrite history or reinterpret masterpieces, replicas made with a palette of high-tech tools are changing the way tourists see art.

All three of these faithful fakes are the work of Madrid-based Factum Arte, a company that employs high-resolution 3-D scanners of its own devising to reproduce artworks.

The scans result in thousands of files whose images are stitched together, then churned out by flatbed pigment printer onto canvas primed with historically accurate paints. To get the clone closer to the real thing, conservators fill in any ridges or creases from manhandling or restoration by hand afterward.

Founded by painters Adam Lowe and Manuel Franquelo, Factum Arte now employs 30 specialists, with offices in London and Madrid. The company's first major project was a facsimile of Spain's Altamira cave completed in 2001. The cave, whose ceiling dances with Paleolithic drawings of animals, closed in the late 1970s because carbon dioxide was destroying the Unesco heritage site.

"We had to overcome a lot of prejudice at the beginning," said Mr. Lowe. "There were a lot of bad, theme-parky copies made in the '60s and '70s. We're not making big posters. We now have the technology that can give people an emotional double-take."

Mr. Lowe imagines a near future where facsimiles substitute some real attractions that are too fragile to endure the harmful carbon dioxide from the mouths of awed tourists

To read the full WSJ article, click HERE.

Update: Halsey Minor

For those following the Halsey Minor legal disputes with Christies, Sotehby's and now Bank of America Bloomberg has a good recap of what is going on. Phillips is now involved in selling some of the art, and according the Bloomberg article has made significant concessions to win the consignment.

The proposed sales would resolve a delinquent loan to CNET Networks Inc. founder Halsey Minor, who borrowed $25 million from ML Private Finance beginning in 2007, with art as collateral. The bank sued Minor and his trust in December 2008 for failure to repay the loan. Last October, ML Private Finance obtained a court judgment for $21.6 million, and this year petitioned the court to allow Christie’s to auction 103 works.

Minor himself had originally contacted Christie’s about handling the sale, but then turned to auction house Phillips de Pury.

“We at Christie’s were not happy about this development,’’ said Robert Manley, a senior vice president, in an affidavit. The auction house last month paid $600,000 in advance to cover the cost of having the works shipped to New York from California, photographed and prepped for sale, according to the affidavit.

Phillips fought back by offering to pay Minor 108 percent of the hammer price, an arrangement that shares the buyer’s fees. It’s a costly business-hunting tactic that auction houses reserve for only the most desirable material.

Changing Taste

The Phillips proposal also promised to waive all sale- related expenses and to give the works the marquee treatment in the firm’s new midtown-Manhattan gallery. The proposal shows renderings of Phillips’s triple-height windows featuring two major works from the Minor collection, Richard Prince’s 2004 “Hollywood Nurse’’ and Mark Newson’s 1981 serpentine aluminum “Lockheed Lounge.”

To read the full article, click HERE.

Sotheby's CEO Suffers Pay Loss

Philip Boroff writing for Bloomberg reports Sotheby's CEO William Ruprecht compensation was down over 30% in 2009.  The Bloomberg article is very short, so I will take the liberty of posting in its entirety.

March 25 (Bloomberg) -- Sotheby’s Chief Executive Officer William Ruprecht earned $2.4 million in 2009, a year in which the auction house lost $6.5 million for its worst result since 2003.

The compensation total was a 33 percent decline from the $3.6 million Ruprecht received in 2008, according to a Securities and Exchange Commission filing.

In 2009, Ruprecht earned $613,462 in salary, $1.4 million in stock awards and $340,780 in other compensation. That includes driver’s pay, contribution to Ruprecht’s retirement account, deferred compensation, life-insurance premiums, club and other memberships, and dividends on unvested stock.

Strone Article Link Correction

When I was posting about the Carol Strone article on connoisseurship I made an error in the link (sorry, my dyslexic typing skills get me again).  The correct location is on the Appraisers Post, at www.appraiserspost.com .  It is in the second featured article box, just click on the document image to open, read, print or download.

It is an excellent article, worthy of the time to read and discuss.

Todd

Update: Gilbert Stuart at $1 Million

A few weeks ago I mentioned an Athenaeum portrait of George Washington by Gilbert Stuart was going on sale at Cottone Auctions in Genesco, NY (click HERE to read original post).  The pres sale estimate was $200,000.00 to $300,000.00 and it sold for $1.06 million including a 15% buyers premium. The winning bidder was Jeff Bridgman, a dealer from York County, PA.

WGRZ TV reports

Bidding opened at $250,000 and quickly escalated to more than $700,000, when the action slowed down. Grant Holcomb, director of the Memorial Art Gallery in Rochester, was one of the last remaining participants, but bowed out when bidding reached about $750,000.

Jeff Bridgman, the owner of Jeff R. Bridgman American Antiques in York County, Pennsylvania, was the winning bidder.

Bridgman, who deals in antique American flags and American folk art, said that he knew the painting would sell for much more than the estimate of $200,000 to $300,000. While Stuart reportedly painted more than 100 portraits of Washington, they aren't available on the open market very often.

"There hasn't been one sold for five years," said Bridgman. "I'm very pleased."

While the final bid often exceeds the estimate, items don't always sell for more than expected. For example, a Tiffany floor lamp - which finished with the second-highest final bid of the nearly 300 items auctioned on Saturday - sold for $575,000, after being estimated at $500,000 to $800,000.

But based on art market trends and the historical significance of the painting, officials at Cottone Auctions thought the painting would be sold for between $400,000 and $600,000, said Matt Cottone, co-owner of the auction house.

The winning bid ended up being much more, breaking a record for Cottone Auctions. Previously, the most expensive item sold at the auction house was a James A. McNeill Whistler painting that was sold in July 2006 and had a final bid of $910,000.

"High-end pieces are bringing record prices right now," said Cottone.

Reconceiving Connoisseurship

Carol Strone has an excellent article in the Fine Art Connoisseur titled Reconceiving Connoisseurship. The article is not posted on the Fine Art Connoisseur website, but I was able to get a copy of the article and permission to post it on the Appraisers Post site. It is in one of the Featured Article boxes, with the ability to open, download or email. Carol discusses how true connoisseurship (outside of authentication) has been a lost academic process for nearly 40 years and has seen much erosion . But, Strone now believes the time is right for a rebirth of true connoisseurship which will advance our material culture.

Strone writes

Add to this the contradictions between connoisseurship and contemporary art. Old-school connoisseurs, who favor “masterpieces” of the past over “mediocrities” of the present, are much to blame in alienating the contemporary art world. Traditional formalist stylistic analysis of visual elements likewise excludes contemporary art objects that have more to do with ideas than with how well something is rendered. When the artist’s hand is absent from ready-mades or commissioned objects, attribution and craft matter little, and conventional connoisseurs have trouble adapting their skills to other purposes. In cases of performance, “process-oriented,” and “instruction-based” art, for which no physical object even exists in a post-medium age, object-based connoisseurship is left out in the cold. (Marcel Proust was prophetic when he said that “Museums are dwellings that house only thoughts.”) Connoisseurship recedes, too, as contemporary notions of visual “culture” usurp “Art with a capital A.”

Other, more benign, factors are eroding connoisseurship. Scientific aids (e.g., x-radiography) are now widely preferred to the naked eye, though connoisseurs must interpret the data. Much of the world’s art can be seen, moreover, in lavishly illustrated books and highresolution digital images on the Internet. In violation of the philosopher Immanuel Kant’s acquaintance principle, we increasingly forgo first-hand experience of the actual works on which connoisseurship depends. Yet no matter how fine, a reproduction can never exactly reproduce color, texture, scale, or volume. In art pilgrimages, cameras replace sketchbooks, minimizing mental and visual engagement before moving on to the next must-see work. Our time-pressed, shortcut oriented society stunts our eye. Probing physical, psychological,
and emotional experiences of art are rare for all but the most purposeful art lovers.

It is a very thought provoking article, and I highly recommend all AW Blog readers to visit the Appraisers Post and read the article. Click HERE to read Reconceiving Connoisseurship.

Asian Art Sector Remains Strong

As in the recent past sales for the Asian Art sector, Sotheby's NY had successful sales during Asia Art Week in New York.  The sale saw several Sotheby's record prices, including a new record for a Classical Chinese Painting when Bada Shanren’s Two Mynas on a Rock sells for $2.9 million. The Sotheby's sale totaled $22.6 million, which was $7 million above the high estimate.

The Fine Chinese Ceramics and Works of Art Sale alone totaled $14.4 million, with 245 lots being offered and 185 selling for a respectable 76.7% sell through rate. The Indian and SE Asian sale totaled $$8.17 million, with 180 lots being offered and selling 131 for a 72.8% sell through rate.

Although the sell through rates could have been higher, the prices for the property that did sell, sold well as evidenced by being $7 million over the high sale estimate with nearly 25% of the property not selling.

Sotheby's stated about the sale

Discussing the Fine Chinese Ceramics and Works of Art sale, Dr. Caroline Schulten, Head of the Chinese Works of Art Department at Sotheby’s New York, said “We are delighted with the result of the spring sale. The price of nearly $3 million for Bada Shanren’s Two Mynas on a Rock is a reflection of the compelling beauty of the painting. We are thrilled to have achieved such a stunning price for this masterful depiction of two birds that has not appeared on the market for over 25 years. Jades, ceramics and furniture also performed well with particularly strong prices for fresh to the market works priced conservatively.”

Commenting on the result of the Indian and South East Asian Art sale today Zara Porter Hill, International Head of Indian Art at Sotheby’s said: “We are delighted to have set a new world record price for a work by Manjit Bawa at auction; the $602,500 price was far above our pre sale expectations. It is by far the most important work by Bawa to have appeared at auction in the past 10 years and it attracted interest from all around the world. We are also very proud of the many other exceptional prices for modern Indian paintings, where 74 works sold for $5.4 million – the dynamic bidding leading to a staggering 97% sold by value rate. The $1,058,500 fetched for a highly important Untitled painting from 1955 by MF Husain was a stunning success, as was the Schlesinger Collection where all the works sold, totaling $921,650 against an estimate of $237/352,000. These results again show the appetite for good quality works with distinguished provenance
offered at attractive estimates.”

Turner for Sale

Carol Vogel, reporting for the NY Times states a J.M.W. Turner. final landscape of Rome will be offered for sale at Sotheby's London.  Vogel states many believe the landscape is one of Turner's best.  It is titled “Modern Rome — Campo Vaccino” and was painted in 1839. The pre-sale estimate for the painting is $18-$27 million, with the sale scheduled for July 7th. The painting is fresh to market, with it last being offered in 1878.The painting was then bought in London by the fifth Earl of Rosebery.

Vogel states

It has remained in the family ever since. (One of the earl’s descendants, Harry Dalmeny, is deputy chairman of Sotheby’s in England and director of its country house sales there, which may explain how the auction house won the property.)

Sotheby’s expects the canvas to fetch $18 million to $27 million. “It’s the spectacular fruit of Turner’s two visits to Rome,” said David Moore-Gwyn, senior specialist in early British paintings at Sotheby’s, “showing the strength of color and light that you can only get in Italy.”

The painting will be on view at Sotheby’s in New York from April 29 to May 14, when buyers will be in town for the Impressionist, Modern and contemporary art auctions.

If the canvas ends up going to a collector who wants to take it out of Britain, the buyer will have to apply for an export license. In that event, would the National Galleries of Scotland try to stop it from leaving England?

“The National Gallery was given a chance to buy it,” Mr. Moore-Gwyn said. “There are large holdings of Turners in English museums.”

To read the full article, click HERE.

Value After Death

Fellow appraiser Christine Guernsey sent me an interesting article from the Huffington Post about artists and values of works after death. The article, by Daniel Grant states in his title Is an Artist Only Appreciated After He Dies?

Although there is truth that in some instances art value increase after death, Grant points out that most of the time this increase in value and recognition is based over an extended period of time with gradual increases. Grant also points out that in general many artist values actually decrease after death. Some of this is based on how the estate is handled, how dealers view the artist and the inventory of the artist.

In any event, it is an interesting article to read and view from both the perspectives of collectors and appraisers.

Certainly, the truism applies to some quite important artists, for instance, Gauguin and van Gogh. Both 19th century French painters were outcasts socially, and their artwork was held in even greater contempt. At their deaths, they were both penniless, lonely and isolated figures, shouting out their messages to the world but not even hearing an echo.

True recognition followed these painters' deaths, as their works began to sell and their names found a place in the history of art, and it has led to the drawing of a bizarre conclusion: Art must naturally become more valuable after the artist's death.

"I would have to say that a deathwatch does exist for many older artists," Robert Schonfeld, a private art dealer and one-time head of the appraisal department at Sotheby's auction house, said. "All dealers and collectors anticipate changes in circumstances that make works more available or more valuable."

The concern with an artist's age does frequently lead collectors to start hording, or buying up, works by artists who are getting on in years or who are in poor health.

However, the concept of the starving artist whose death gives his or her works new life is more mystique than truth. In a few, very rare instances do works immediately go up in value. In some cases, prices go up gradually (or eventually). In general, demand drops and the prices go with it.

To read the complete article, click HERE.

Update: Halsey Minor

Internet entrepreneur Halsey Minor has had his share of legal issue within the art community, including disputes with both Christie's and Sotheby's.  Some of those issues have been posted here on the AW Blog.

The Courthouse News Service now has an article that states that a finance company owned by Bank of America is seeking the return of artworks either held or sold by Christie's auction house and the Paul Kasmin Gallery. The art was supposedly pledged as collaterl by Mr Halsey in securing a $21.6 million loan.

The Courthouse News Service states

Merrill Lynch sued Minor in 2008 in Manhattan Federal Court, claiming he had sold paintings that were collateral for a $21.6 million loan. Minor appealed and lost, then filed a counterclaim that was tossed out, according to contemporary media reports.
The plaintiff in the recent federal action, ML Private Finance, is a Delaware company whose sole member is Bank of America. BofA bought Merrill Lynch in late 2008 as the world financial system melted down.
ML claims Kasmin has in its possession a Walton Ford painting belonging to Minor titled "Loss of the Lisbon Rhinoceros," and that Christie's has about 115 artworks and pieces of furniture owned by Minor.
The auction house and gallery cannot transfer Minor's property without a court order, according to the petition.

To read the full article, click HERE.

ISA Announces New Executive Director

I am pleased to say that ISA is growing and thriving with the announcement of two new staff potions, including a new Executive Director to lead ISA. As a member of the ISA Board of Directors I am excited about our recent stability under the guidance of Sentergroup in Chicago, and the opportunities for growth and educational advancement with a strong staff of professionals with experience in the association and appraisal community.

The International Society of Appraisers is pleased to announce the addition of two new staff members.

Joseph Jackson, CAE has been appointed Executive Director, effective March 1. Joe is a Certified Association Executive with more than 16 years’ experience as an association management professional. In his role as Executive Director, Joe will oversee the effective administration of the Society’s resources including communications, finance, education, marketing/public relations, and membership management. Prior to joining the staff of our management company Sentergroup as an Account Executive in 2005, Joe served the American Institute of Architects in various capacities for 11 years, including 7 years as the Executive Director of AIA Colorado.

On March 8, Sara Porter joined ISA’s staff as Membership & Operations Coordinator. In this capacity, Sara will focus on membership recruitment and retention initiatives, database management, dues invoicing, member benefits and other operational and administrative solutions. Sara is a graduate of Butler University, and has experience in the association marketplace through previous positions with Smith Bucklin, the American Hospital Association and the American Dental Association.

This is in addition to the recent naming of Leon Castner, ISA CAPP, as Director of Education, with responsibility for the oversight and development of our Core, USPAP, and Requalification courses, along with our Webinar series and new educational endeavors.

Another NY Art Fair Fails

The Antiques Trade Gazette is reporting the NY International Tribal and Textile Arts show has been cancelled. The show was usually held in May,and was only able to draw two dozen exhibitors for 2010.

The ATG report is short, so I will post in its entirety.

The New York show scene has been badly hit by the economic downturn and promoter Caskey-Lees said that as of early March, only 24 exhibitors had signed up for this niche event. In a letter to exhibitors, Bill Caskey and Elizabeth Lees wrote: “To attempt to produce and promote a show, with any reasonable level of quality, for only 24 exhibitors would result in a loss of several hundred thousand dollars.” Exhibitors’ deposits will be returned.

“This was an exceptionally difficult decision for us both,” Bill Caskey said. “We have, over the past two years, redesigned and re-priced all our specialty shows to help dealers and collectors through this difficult economy.”

The San Francisco Textile and Tribal Arts Show will continue, as will Caskey-Lee’s other niche market fairs, including the New York Arts of Pacific Asia Show, which opens on March 24.

Manhattan organiser Sanford Smith announced the cancellation of his 22-year-old Works on Paper fair, scheduled for the Park Avenue Armory in February, citing the economic climate, while Haugton International Fairs, who have axed New York shows of 20th century design and Asian art in recent times, have also chosen to ‘postpone’ this spring’s staging of the International Fine Art Fair.

The Fun of Art Auctions

Nick Foulkes writing in Newsweek has a good article on the fun and enjoyment of buying at the major auction houses. Foulkes discusses how the auction houses have become more of a theater of buyers and entertainers than purely a market exchange for money and property.  Foulkes mentions the Mick Jagger of auctions or the man with the golden gavel (read the article to find out who he is talking about), He also mentions in how times have changed, that buying used to be only wholesale, and how the whole atmosphere and approach to selling has changed. It is an interesting an fund article to read.

Foulkes states

I have a theory as to why the show must go on. In the climate of neopuritanism that discourages people from spending even if they have the money, only a totally insensitive fool would splurge on a new jet or a flashy holiday villa. However, purchasing art has the benefit of bestowing a cultural and intellectual halo on the shopper: one is more likely to be seen as a connoisseur rather than a fashion victim.

Auction houses have been clever in creating comfortable luxury experiences for people who would have shunned the salesroom a decade ago. The atmosphere is somewhere between a cocktail party, a premiere, and a high-end boutique. As Linley explains, "The theater starts when you walk in and are greeted, seated, and given a paddle. When the great auctioneer gets to the stand, the room goes into a hush—rather like the opening night of an opera—and for the next hour or two it is his job to entertain, and to get bids out of people who may be wavering." Just as a high-end fashion retailer will extend private shopping services to good clients, so an auction house will go to great lengths to treat its special customers well. Linley holds discreet lunches for collectors and experts in his King Street boardroom, and will on occasion allow customers to borrow a piece and see if it fits the space they have in mind. But, beneath all the sophistication and schmoozing, there runs the visceral current of competitiveness. Says Linley: "The only way to get to the bottom of what a piece is really worth is to get a lot of people in the room and watch them fight it out."

Art Crime and Billboards

Tom Moroney reporting for Bloomberg notes the FBI has taken out three electronic billboards in the Boston metropolitan area seeking new leads and information on the Gardner museum theft of 20 years ago. Some of the billboards are being donated for the cause, and it is not the first time the FBI has gone low tech in the use of billboards. So far, there is very little evidence to follow, and most leads have not evolved into anything of substance.

The article states

FBI agents have traveled to Paris, Japan and other destinations to track hundreds of leads in the past two decades, Kelly said.

Local Job

“My guess is that it was probably local guys,” Kelly said. The thieves may have planned to use the art as bargaining chips to barter for reduced punishment for future crimes, rather than intending to sell it, he said.

“There’s a very strong possibility that these guys went in to do a simple robbery and unwittingly committed the heist of the century,” he said.

The crime began at 1:24 a.m. when two thieves disguised as police officers were admitted to the museum by a security guard. The pair bound and gagged both guards on duty with handcuffs and duct tape, then spent 81 minutes choosing their loot, the FBI said.

The Boston billboards aren’t the first for the FBI. Billboards have helped the agency solve 35 crimes in the past two years, including robbery, missing persons and other cases, said Chris Allen, a spokesman.

The FBI’s Boston office hasn’t received any tips since the electronic billboards went active with Rembrandt’s work three days ago, Gail Marcinkiewicz, a spokeswoman, said yesterday.

Museum officials are confident that the paintings will be returned some day, said Katherine Armstrong, a spokeswoman for the Gardner, in Boston’s Fenway neighborhood. It keeps vacant spaces where the four largest of the stolen paintings had been displayed.

To read the full Bloomberg article, click HERE.

Milestone: 1000th Post for the AW Blog

I just noticed the post on New York Asia Week was the 1,000 post to the Appraiser Workshops Blog.

Time sure does fly by. The AW Blog has covered a lot of information and appraisal and fine and decortaive art related related content in those 1,000 posts. The site continues to grow and has earned a reputation as a recognized destination point for appraisal and market news on the web.

I hope you have enjoyed the postings and found them helpful and useful in your private and professional endeavors.

I look forward to working on the next 1,000 posts.

Todd

Asian Art Week - New York

This week we see the NY sales of Asian art. The Asian Art Dealers has sales and events lined up, the website for additional information is http://www.asianartdealersny.com,
as do museums, auction houses and shows.  Auctions are scheduled for Sotheby's, Christies, Bonhams, Doyle and IM Chait.  The Arts of Pacific Asia show is also scheduled.

Sotheby's has two sales, one on March 23, Fine Chinese Ceramics & Works of Art and the other  on March 24, Indian & Southeast Asian Art.  Christies has a few more events scheduled over Sothebys.  I will try to post results from auction results and dealer sales as they become available.  Keep in mind the Asian sector, especially at the upper end has been strong, so expectations should be positive. The auction houses have approximately 1300 lot offerings, but word is the best property has been reserved for the upcoming Hong Kong sales, so it will be interesting to see how the sale fare, and if collectors are willing to spend top dollar in NY or wait until Hong Kong..

The Chistie's sales are as follows (including more Sackler Collection property).

• TUE Mar 23 South Asian Modern + Contemporary Art

• TUE Mar 23 Indian and Southeast Asian Art

• WED Mar 24 Japanese & Korean Art

• THU Mar 25 For the Enjoyment of Scholars: Selections from the Robert H. Blumenfield Collection

• THU Mar 25 Fine Chinese Ceramics and Works of Art Including Property from the Arthur M. Sackler Collections

• FRI Mar 26 Fine Chinese Ceramics and Works of Art Including Property from the Arthur M. Sackler Collections

The NY Times also recently reported on some of the dealer activity for Asia week.

Anyone interested in Buddhist sacred art will want to sample some of these special, open-to-the-public exhibitions in Manhattan for Asia Week. John Eskenazi (24 East 80th Street) should be a first stop and a return visit. You won’t find anything in the city more beautiful than the eighth-century Sri Lankan bronze Buddha Mr. Eskenazi has brought with him from London. With its slender limbs and water-thin robe washing over its torso, this figure is a reminder that in Buddhism many cultures merge. In this case India, China and Southeast Asia meet in a distinctive island art.

Other knockouts include a resplendent gilded-bronze Padmapani, probably cast in Tibet by an artist from the Katmandu Valley, and a jumbo clay bodhisattva’s head from Gandhara. This was the area where classical Western influences filtered into India, though its easy to imagine influences going the other way too. Bernini would have been blown away by this grand head, with its mop of deep-cut curls and proto-Baroque-crown.

Across town at the Ansonia (2109 Broadway, entrance on West 73rd Street), Nancy Wiener is also showing a head, this one life size, carved in stone and as severe as Mr. Eskenazi’s is ornate. It comes from the vanished stupa at Amaravati, once a magnet for pilgrimages and a source of a great Indian sculptural style.

To read the NY Times article, click HERE.

Younger Group of Museum Curators

Carol Vogel has an interesting piece in the NY Times about a younger group of museum curators. These younger curators have a tendency to put on exhibitions that draw younger people, which is good. Vogel also mentions museum work is a safe haven during difficult economic times in the fine arts world. The new curators are also more involved in all aspects of the running the museum, including the exhibition planning and installations, fund raising, and public relations.

I think this is excellent progress, as many museums have had a difficult time in changing with the economic issues and technical advances of the past decade. Having new, younger eyes and minds, with different ideas may be a very welcome, and needed change.

Vogel reports

During good economic times, many young people like Mr. Roy would have snubbed the museum world, preferring instead to become a filmmaker or a big shot at an international film festival. Many young curators with backgrounds in art history would have jumped at the seemingly more glamorous life as an art dealer. But in these turbulent times, the stability of a museum job is attractive.

“Museums are safe harbors in this difficult economic time,” said Glenn D. Lowry, director of the MoMA, who said that Mr. Roy was one of a growing number of curators at MoMA in their 30s and early 40s. “Previously you were in your late 40s or 50s before becoming a senior curator, but all that’s changed,” he added. “These curators look at things more broadly. This is a generation who grew up entirely in the digital world and they are untroubled by distinctions of media.”

It is also a group plugged in to all areas of museum life. They don’t simply organize exhibitions, they also have a hand in fund-raising and public relations, catalog production and installation. “The old-fashioned notion of a curator was that of a connoisseur who made discoveries and attributions,” said Scott Rothkopf, 33, who is the latest full-time curator to join the Whitney Museum of American Art’s team. “A lot of that work has already been done. The younger generation is trained to think differently, to think more about ideas.”

To read the full NY Times article, click HERE.

Update: Salander Pleads Guilty

The New York Times and other sources are stating that New York City art deal Lawrence Salander has plead guilty in court on Thursday to 29 charges of art fraud in the amount of $120 million. Salander is expected to serve between 6-18 years, and perhaps more depending on how much he is able to repay those involved.  Salander plead guilty to 29 counts of grand larceny and scheming to defraud investors.

The NYT states

As Mr. Salander walked to the defense table in State Supreme Court in Manhattan on Thursday, he was steadied by his lawyer and another man. The lawyer, Charles A. Ross, told the judge, Justice Michael J. Obus, that Mr. Salander had had a stroke recently and had been hospitalized. Later, a prosecutor raised questions about Mr. Salander’s alcohol abuse.

Mr. Salander read an eight-page statement in a raspy voice, admitting to 29 charges of grand larceny and scheming to defraud investors. Among other things, he said he had bilked Mr. McEnroe out of about $2 million and the estate of Mr. De Niro out of more than $1 million.

“I did everything I have described knowingly and intentionally,” Mr. Salander told the judge.

Justice Obus then read each charge, stopping to ask Mr. Salander, “Is that correct?” or “Do you admit to that?”

Mr. Salander responded, “Yes, sir” or “I do.”

Once he had gone through all of the charges, Justice Obus told Mr. Salander: “Obviously, this case involves a great deal of money, and a great deal of pain and loss have been inflicted on the plaintiffs. I am hopeful they will be paid back to the extent it is possible here.”

To read the NYT article, click HERE and for the New York Post article, click HERE.

The Barcelona Chair on the Appraisers Post

Please forgive a little cross promotional postings but there is an excellent article on the Appraisers Post from fellow appraiser Soodie Beasley, ASA AM that I want to make sure fellow appraisers view. Soodie writes about the Barcelona Chair on the Appraisers Post. Soodie also has an upcoming article on 20th century furniture designers Marx, Mont, Duquette and Springer in the Journal of Advanced Appraisal Studies - 2010. Soodie also contributed an article to the 2009 Journal entitled Discovering a New Collecting Category: Furniture by Decorators.

As appraisers 20th century design is becoming more and more important, and we should start spending more time studying and advancing the scholarship of this emerging period in decorative design.

Soodie states

Ludwig Mies van der Rohe is credited for the design of this chair. But many of us might not know that Lilly Reich (1885-1947) played an enormous role in the development of many of Mies van der Rohe’s designs. Though she has been credited in a few scholarly journals and books, her name has largely been forgotten. It is interesting to note that Mies did not fully develop any furniture designs successfully before and after his professional and personal relationship with Lilly Reich.

After all, architecture and industrial design were considered a man’s domain. There were male as well as female practitioners, and yet history books are filed with primarily men’s. When Mies was asked to design the German Pavilion, he chose Reich as his co-collaborator. Reich was responsible for the curvilinear forms and vivid colors of Mies work. She brought a soupçon of sophistication to their designs. She understood that fashion was integral component. Reich continually explored the visual as well as tactile qualities exploring the contrasts between polished metal and textured surfaces.

To read the full article by Soodie, click HERE. If you have not visited the Appraisers Post recently, please take time to do so, recent article on the Artfact app for the iPhone, David Maloney on appraisal assistance and now Soodie Beasley on the Barcelona chair.

Journal of Advanced Appraisal Studies to Publish Soon

The Journal of Advanced Appraisal Studies - 2010 is nearing publication. I would expect the journal will be available for online ordering in just over two weeks.  Like the previous two editions, the 2010 publication covers a wide range of appraisal related topics, and includes articles from a wide mix of experts, educators, appraisers and specialists.

I will post to the AW Blog when copies will be available for order.  In the meantime, below is a list of authors and topics/titles of each article.  I think many will agree, there is a something of interest to most appraisers and related fields.  The content is informative and should be of assistance to both those to the profession and those with many years of experience.

This years group of authors include some past contributors as well as many new contributors.  Most of  major appraisal organizations are represented with many being very supportive of the project. Keep in mind, the proceeds support the educational initiatives of the Foundation for Appraisal Education, so in addition to gaining an excellent reference source, you are also supporting appraisal education with your purchase.

• Logan Adams – Building Bigger and Better Business with the Moving Industry

• Soodie Beasley - Fantasy Furniture by Designers: Mark, Mont, Duquette and Springer

• Elizabeth Kessin Berman – A Time to Value and a Time to Creatively Value Appraising Church and Synagogue Collections

• Jane C. Brennom – Appraisers vs Authenticators

• Robert W. Cook - Lack of Objectivity Leaves Appraisers at Risk: Index Adjusted Good-Better-Best Appraisal Model Offers Partial Solutions

• Robert J. Corey – Lack of Objectivity Leaves Appraisers at Risk: Index Adjusted Good-Better-Best Appraisal Model Offers Partial Solutions

• Hollie Davis – For Love or Money: Antiques as Investments

• Mark S. Gold – The Deaccessioning Debate: What Appraises Need to Know

• Brian Hiatt – Comparison of Different software to Prepare Personal Property Appraisal Reports

• Brian Kathenes – Appraising Stamps and Coins: Tips, Tricks and Hints for Taking the Mystery out of Stamp and Coin Appraising

• Jill Kent – Folk Art for Appraisers

• Elin Lake-Ewald – Original Research and Innovative Appraisals

• Judy Nelson – Reading a Two Dimensional Atrwork; Suggestions for the Generalist Appraiser

• Andrew Richmond - Love or Money: Antiques as Investments

• Felicia N. Rossomando – The Application of Blockage Discounts For an Artist’s Estate: An Art Business Approach

• Jerry Sampson – Establishing the Appraisers Library

• Elizabeth Sebesky – The Art Market: How Lending Fuels Art Crime

• Paul Shutler – The Importance of Being Provenanced

• Todd W. Sigety – Price Anomalies

• Scott Zema – Personal Property Appraising and the Element of Time

Appraisal Scholarships Available

As many readers of the AW Blog are aware, I am an active volunteer with the Foundation for Appraisal Education. I developed and edit the Journal of Advanced Appraisal Studies, now approaching our third annual edition and I work on other projects that help promote and raise funds for the foundation. The proceeds of the Journal go to support the educational initiatives of the foundation.

With that in mind, the Foundation for Appraisal Eduation is now accepting applications for scholarships. More information can be found on the website, by clicking HERE. A PDF scholarship application is available by click HERE

Dont be shy, apply for a scholarship.  During these difficult economic times, a few extra dollars to attend a conference or workshop may make the difference in landing a large assignment.  There are three, one for up to a $1,000 for an experienced appraiser, one for up to $1,000.00 for a new appraiser, and one for $500.00 for a select candidate for the Keith Ball scholarship.

Mission: The Foundation for Appraisal Education was formed to advance education related to personal property appraising and to assist individuals through scholarships for educational development to improve their capabilities by attending courses, classes, workshops and conferences.

How It Works

• To apply for a scholarship, submit a completed application prior to taking a course, class, workshop or conference. There is no limit to the number of applications submitted.
• In 2010, The Foundation will present scholarship awards of $1,000.00 each to one new and one experienced appraiser, and one selected candidate for the Keith Ball memorial Scholarship of $500.00.
• Scholarship monies will be paid directly to the sponsor of the course, class, workshop or conference when the selected candidate confirms the educational opportunity in which they will participate.
• Unused portions of a scholarship can be applied towards another course, class, workshop or conference, but must be dispersed within the allotted time frame (see below), or the unused portion will revert back to the Foundation.

Dates

• In 2010, applications will be accepted February 15th through June 30th. Scholarships will be awarded on August 15th of the same year.
• Recipients will have one year from the date the scholarship is awarded to complete their course, class, workshop or conference.

Guidelines

• Scholarships are awarded to cover the costs for tuition of courses, classes, workshops, programs or conferences and do not include travel, hotel or other associated expenses.
• Scholarships will be awarded only for educational classes, workshops, courses and conferences related to personal property appraising.
• It is the responsibility of the applicant to complete and submit the application within the time frame noted above to be considered for a scholarship.

Eligibility

• Students, new & experienced appraisers or any individual wanting to further their educational development in the area of personal property appraising may apply.
• Applicants from all Appraisal Societies are welcome. 
• Directors, officers, and employees of the International Society of Appraisers and the Foundation for Appraisal Education, members of the Foundation for Appraisal Education Scholarship Selection Committee and their relatives are not eligible to apply for Foundation for Appraisal Education Scholarships.

Send the completed and signed application plus supporting material to:
Diane Marvin, Scholarship Director
2336 S. East Ocean Boulevard, #359
Stuart, Florida 34996
Applications may also be e-mailed to dmappraise@aol.com, or faxed to 772-219-7458.

Christie's 20th Century Art and Design Sale

Edward Krudy reporting for Reuters states the recent Christies mid season 20th century decorative art and design sale in New York did very well.  There was also some very interesting items as well with bidding.  Krudy reports the sale totaled $1.2 million for 99 lots, with 89 lots selling.  That is a nearly a 90% sell through rate, which is excellent.  There were many remarks stating there was again excitement and enthusiasm in the room. Little by little, there are signs of a gentle recovery in many of the fine and decorative art sectors. It is not fast, but there is interest, and perhaps more importantly buying.

Krudy reports

"There is definitely more energy and excitement in the sales room than last Spring," said head of sale Carolyn Pastel from Christie's New York offices in Manhattan. "We really had a lot of interest in the States and internationally."

The global international art market was hit hard last year as the recession took its toll on luxury purchases. Total global revenue from fine art sales contracted by $3.7 billion in 2009 from the previous year, and was only half the $9.3 billion posted in 2007, according to research by Artprice, a provider of art market information.

Pastel said buyers from 18 countries joined U.S. counterparts via telephone and Christie's Internet bidding system, which Pastel reckons probably experienced its heaviest usage ever. Over a quarter of buyers and underbidders - participants with the second best bid - came via the Internet, she says.

A similar auction last Spring generated about $981,000, while only 81 percent of the auction was sold by value and 77 percent by lot.

Participants bid for 20th century objects and furniture, including items from Tiffany Studios, Frank Lloyd Wright, Daum, George Nakashima, Harry Bertoia, Sam Maloof and Joe D'Urso.

To read the full Reuters article, click HERE.

Is the Giacometti All Time Auction Record About to be Broken?

Colin Gleadell writing in Market News for the Telegraph UK reports many dealers believe the upcoming sale of a Picasso being offered at Christie's in May may break the Giracometti auction record of $104 million. Nude, Green Leaves and Bust,The Picaso is titled Nude, Green Leaves and Bust, and is similar in style to le Reve, whcih was sold privately to Steve Wynn for $139 million. The painting is estimated to sell for close to $80 million, with many expecting it could go higher and challenge the Giacometti auction record..

Gleadell reports

If any artist can topple Giacometti's $104 million world record for a work of art at auction, it is Picasso. Last week at the Maastricht art fair, bets were on that Picasso's Nude, Green Leaves and Bust, from the collection of Mrs Sidney F Brody, could be the one to do it when offered by Christie's in New York in May. Estimated at $80 million, it compares with Le Rêve, another work from the series, which was to be sold privately for $139 million by Las Vegas hotelier Steve Wynn, before he inadvertently put his elbow through it. Certainly Picasso's palette boards, on which he mixed his paints, were in record price territory at Maastricht. At the Galerie Krugier, a group from the collection of Picasso's daughter Marina were priced from €110,000 to €2 million.

To read the full art news column, with info on Maastricht, and also a short paragraph on Chinese antiques as still a very strong market sector.

Update: Salander-O’Reilly Galleries LLC

Philip Boroff writing for Bloomberg updates the current situation at Salander-O’Reilly Galleries LLC. It appears some property is headed toward the auction block, with Christie's being the possible destination for a sale in June. Some of the galleries Renaissance art will be offered, but it appears the quality is not as strong, and the difference between what is owed and the value of art is said to be great.

The art that is supposed to be auctioned at Chrisite's in June as part of an agreement Salander had with First Republic Bank. This particular collection was invested in early artworks dating from the 12 century to the early 18th century.  Salander thought this sector was undervalued. There is also potential issues of unsecured creditors and bank creditors fighting over proceeds as well with First Republic Bank stating it has made concessions to other creditors to avoid additional legal issues.

Pieces may be offered in June, said Robert Feinstein, a lawyer who represents unsecured creditors in the case.

“We are preparing for a sale in that time period,” Feinstein said in an interview.

Feinstein disclosed in U.S. Bankruptcy Court in September that there were “advanced negotiations” with Christie’s International about a consignment. In the interview, he said that there hasn’t been an agreement with an auctioneer. Toby Usnik, a Christie’s spokesman, declined to comment.

The gallery collapsed amid lawsuits alleging that proprietor Lawrence B. Salander, now 60, sold art without permission and without remitting proceeds. More than 400 people and businesses have filed court papers seeking to retrieve money and art.

Last year, the dealer was charged with 103 counts of fraud, forgery and other crimes. He pleaded not guilty and is free on $1 million bail. Prosecutors said collectors, artists and investors who did business with Salander lost more than $92 million.

U.S. Bankruptcy Court in January approved a settlement between unsecured creditors and Bank of America Corp.’s First Republic unit that cleared the way for an auction. First Republic lent the gallery about $30 million starting in 2002.

“The bank had every right to be paid back first from the proceeds of art,” Feinstein said in the interview, citing loan documents.

To read the full article, click HERE.

Appraisal Assistance

Dave Maloney has a very interesting article on the Appraisers Post about when assistance is provided to appraisers. Dave's article goes into some depth regarding USPAP requirement, record retention and what is considered significant assistance. As personal property appraisers, we typically call other appraisers for advice, guidance and valuation help. When doing so, we need to know what is considered significant assistance, Dave's article goes a long way in explaining and guiding appraisers on what course of action should be taken.

The issue is addressed in part by USPAP’s Advisory Opinion 31 Assignments Involving More than One Appraiser, but AO-31 addresses only assistance provided by other “appraisers” who are providing “appraisal” assistance. For the personal property appraiser, however, who often makes use of appraisal as well as non-appraisal assistance from other appraisers, or who consults with experts who are not "appraisers," the issue becomes much less clear.

The personal property appraiser becomes involved with others who provide assistance with an appraisal or appraisal review assignment in a variety of scenarios. They typically include:

* Two appraisers having similar areas of expertise working together on an assignment as equals
* A specialist appraiser contributing significantly to an assignment from within his or her specialty areas such as as a fine art appraiser valuing the paintings or a GIA gemologist appraiser valuing the jewelry
* An appraiser who contributes to an assignment in a manner not considered to be significant
* A staff appraiser who conducts research and analysis that is reviewed and typically relied upon by the primary appraiser
* A non-appraiser consultant/expert who contributes to an assignment

The issue of which USPAP obligations are applicable to the primary appraiser as well as to the assisting appraiser or the non-appraiser consultant/expert is a multi-faceted issue that requires a clear understanding of several USPAP issues and requirements.

To read the full article, click HERE.

TEFAF Update

I am traveling and having some issues with the internet connection at the hotel.  Just some quick info on TEFAF for now.  Sales appear to be good and the preview evening on Friday had 10,500 people attend.

TEFAF Maastricht has set an example that the rest of Europe should follow, said Neelie Kroes, Vice President of the European Commission, during a visit to what she called “the world’s leading art and antiques fair”. Ms Kroes praised the Fair on Friday 12 March, the day after a record 10,500 people attended the private view where dealers reported good business.
“The European Fine Art Fair can proudly call itself the world’s leading art and antiques fair,” Ms Kroes told the Information Communications Technology Business Summit in Maastricht. “What is especially relevant to my remarks today is that TEFAF has continued to grow through the crisis. TEFAF has grown when other fairs are cutting back or shutting down.

"There are lessons here that others in Europe can copy. TEFAF adapts to its circumstances: adding new sections, changing focus, refusing to be complacent. TEFAF has decided: ‘The world is changing, so we are changing too’."

The success story of TEFAF, continued at the private view of the 23rd edition of the Fair. A record 10,500 invited guests attended the private view. This was an increase of 11% on 2009. Dealers reported good business. Many private and institutional collectors in all fields from around the globe visited the Fair.

The National Gallery of Art in Washington bought the newly discovered Winter Landscape with Skaters painted by Adam van Breen in 1611 from John Mitchell Fine Paintings of London for €910,000. The painting is one of the earliest known works by Van Breen.

Antiquities dealer Rupert Wace Ancient Art from London sold a Roman bronze statuette of Aphrodite wearing a silver diadem from the 1st century AD to a French private museum. Other purchases included two pieces bought by German and American institutions from Julius Böhler of Starnberg and Renaissance cutlery, sold to an American museum by Kunstkammer Georg Laue of Munich. 

NY Observer to Expand Art Coverage

Art Daily and Mediabistro are reporting that Alexandra Peers will be heading up an expanded art coverage division at the NY Observer. This is great news, as Peers is well known for her articles on art and collecting from the Wall Street Journal, with many of her articles referred to hear on the AW Blog.

The press release states

The New York Observer is expanding its coverage of the arts scene with the aid of two new hires. Joining the Observer team is writer Alexandra Peers, who will act as editor-at-large, and art publisher David Gursky.

Peers have previously written for the Wall Street Journal, focusing on international arts coverage, in addition to writing for New York magazine, The New York Times and myriad arts publications. She will work with both the print publication and Observer.com to expand coverage of New York galleries, museums, auction, houses, art and antiques dealers, and collectors

Before joining the Observer's team, Gursky served as vice president and group publisher for Art + Auction, Modern Painters, Gallery Guide, Museums, Culture +Travel and Artinfo.com while at Louise Blouin Media.

Editor Kyle Pope expressed the publication's excitement about their added coverage and new staffers: "With the addition of Alexandra, and the increased coverage planned, we will be more authoritative than ever."

Strength in Old Masters

Kelly Crow writes an interesting article in the Wall Street Journal on The European Fine Art Fair, or TEFAF now going on in Maastricht, The Netherlands. The fair runs from March 12th through the 21st.Unlike many other fairs, TEFAF focuses on the old master sector, and according to Crow, there is some strength in the marketplace.

The fair is the size of 5 football fields, and the estimate worth of the paintings on display is in the $4 billion range. Crow states that 70% of the Old Master market is represented at TEFAF, but I am not real sure what that statistic specifically refers to. The TEFAF has a great website at http://www.tefaf.com

Crow reports

Now the Old Masters are staging their comeback. The highest price paid all last year for a work of art at auction was for Christie's $48 million Raphael chalk drawing, "Head of a Muse," sold in December. Christie's also broke Rembrandt's record by getting $33.2 million for his "Portrait of a Man, Half-Length, With Arms Akimbo." Sotheby's, meanwhile, got a record $13.5 million three months ago for Anthony van Dyck's 1640 "Self Portrait."

The traits that once made such Renaissance men appear old-fashioned—their scholarly followings, their steady price levels—have now become strong selling points. Although the recession hurt every art category last year, Old Master values at auction only fell 12% last year, compared to a 60% drop for contemporary art, according to Clare McAndrew, a Dublin-based art economist. Old Masters also have a history of rebounding quickly from downturns: As an investment asset, older art yielded a 6.2% compound annual return over the past decade, besting the negative 1.4% for the S&P 500 for the same period, according to the Mei Moses Annual Old Master Art Index, which tracks repeat sales of thousands of artworks at auction and compares the trajectory of art prices to other financial barometers.

To read the full WSJ article, click HERE.

The TEFAF website states

As a visitor to TEFAF Maastricht you will be present at an outstanding event, one that offers the best choice of the very best in fine art. You will have a unique chance to view and to buy paintings from Bruegel to Bacon as well as objects reflecting 6,000 years of excellence in the applied arts.
No where else will you find such an elegantly displayed selection of genuine masterpieces from 263 of the world’s most prestigious art and antiques dealers from 17 countries.
No where else will you find such rigorous investigation of their quality, condition and authenticity. Every item is checked by one of 26 vetting committees made up of over 155 internationally respected experts.
And no where else will you find yourself in such a distinguished and stimulating company of dealers, academics, art critics, and collectors. During the week of the fair, anyone who is anyone in the field of fine art will be at TEFAF Maastricht.

Caravaggio - Most Studied Artist

Michael Kimmelman has a good article in the NY Times about Caravaggio. It seems Caravaggio has become the most studied artist, with more books, catalogs and scholarly papers written in the last 50 years. The study was completed by Philip Sohm at the University of Toronto.

It is an enjoyable article to read.

The NY Times reports

Mr. Sohm, who announced his findings during a talk at the College Art Association conference in Chicago last month, focused on publications, not tourist revenues or exhibition attendance figures, and his study says nothing about how Michelangelo and Caravaggio stack up against box-office greats like Rembrandt and van Gogh.

But his research does corroborate evidence plain to anybody in or out of art academe or who has browsed for scarves in Italian airports where motifs of Caravaggio’s “Bacchus” and head of Goliath have become as ubiquitous as coasters bearing bits of David’s anatomy and mugs with the figure of Adam from the Sistine ceiling. Caravaggios are now used to decorate the cover of “Emerging Infectious Diseases,” a medical journal, and to advertise a sex shop in London.

“The only way to understand old art is to make it participate in our own artistic life” is how Venturi phrased it in 1925. That Caravaggio left behind no drawings, no letters, no will or estate record, only police and court records, makes him a perfect Rorschach for our obsessions. He was outed in the 1970s by gender studies scholars, notwithstanding the absence of documents to indicate he was gay. Pop novelists and moviemakers have naturally had a field day with his life. Exhibition organizers cook up any excuse (“Caravaggio-Bacon,” “Caravaggio-Rembrandt”) to capitalize on his bankability. Newly discovered “Caravaggios” test the market every year.

To read the full NY Times article, click HERE.

African American Art Showing Strength

The Artnewspaper is reporting the African American art sector is showing some signs of strength after the late February sale at Swann Swann, since 2007 has been holding bi-annual specialty sales for African American artists. The sale in February brought 1.24 million against pre sale estimates of $1.3-$1.9 million. The sale offered 162 works with 118 selling for a 73% sell through rate. The sale also set 4 new artist records.

As appraisers, we have to stay on top of market trends and what sectors are gaining and showing signs of strength and where there is weakness.

The report states

The top seller was auction virgin Malvin Gray Johnson’s best-known and celebrated oil painting Swing Low, Sweet Chariot, 1928-29, for which a collector paid $228,000 (estimate $200,000-$250,000). Four new artist records followed as institutions, collectors and dealers competed for the best works—this included a record for Sargent Claude Johnson’s tan painted terracotta figure Untitled (Standing Woman), 1933-35, which went to an unnamed institution for $52,800.

Swann’s inaugural sale of African-American art took place in February 2007, growing from specialist-in-charge Nigel Freeman’s observation of the frisson caused by African-American artists’ works on paper during regular prints and drawings sales.

“Three years ago, there was no auction market for African-American artists that even came close to their fair market value, with the exception of works by Jacob Lawrence, Romare Bearden and Henry Ossawa Tanner”, said Mr. Freeman. “Now we have set auction records for many more important artists and have introduced over 100 African-American artists to auction”.

To read the full Artnewspaper article, click HERE.

UK Fine and Decorative Arts Exports Decline

The Antique Trade Gazette has an interesting article on how UK fine and decorative art exports have drastically declined. This is interesting as just recently the ATG was reporting how the UK was catching up to the US as the leader in art sales. Exports of art and antiques fell in 2009 to most European Union countries, Russia, China/Hong Kong and the US. The few gains appear to be limited to some Middle Eastern countries.  Imports of art and antiques into the UK also suffered large declines.

This particular article states that for 2009 art and antiques exports fell by nearly 25%. An interesting article to read.

The ATG article states

Exports to the United States, the UK’s chief international trading partner globally, were hit badly for the second year running: antiques saw a 25.7% decline to £186.1m, while pictures fell by 29.3% to £622.1m.

Imports of pictures from the US fared slightly better, down by 22.6% to £747.2m, while antiques imports from the US held up relatively well, falling only 3% to £110.3m.

With the worldwide recession beginning to bite hard as 2009 began, the almost universal decline in the movement of goods is hardly surprising. What was not clear until now was how much trade would be hit.

Switzerland, a non-EU country that acts as Europe’s chief entrepôt for art and antiques, saw a 65.5% decline in the value of antiques (to £24m) exported from the UK, while picture exports dropped to £406.6m, a fall of 24.8%. Imports from Switzerland saw antiques down £29.6m, a 26.4% fall, while pictures were down 20.6% at £454.6m.

There are two highly notable changes. The first is the huge level of pictures making their way from the UK to the Ukraine – £115.3m worth – putting it only third to the US and Switzerland as a UK trading partner in this category. This could simply be the result of vigorous acquisition programmes by one or two well-known Ukrainian collectors. The second is the appearance of Greece at the top of the table for EU trading partners, taking £55m in pictures from the UK.

To read the full article, click HERE.

Bonhams Looking to Grow

The Wall Street Journal has an article on Bonhams and the current growth strategy to compete with Sotheyb's and Chrisite's. Bonhams. Chairman Robert Brooks would like to grow Bonhams to eventually become the largest international auction house.  That is a tall order, as Bonhams last reported total sales in 2007 were $600 million, compared  to $2.8 billion at Sotheby's and $3.3 billion at Christie's in 2009. The growth strategy includes Asia and Australia, as well as the hiring of noted specialists.

The WSJ reports

As an auctioneer, if you didn't have a good time in the last quarter of 2009 then basically you don't know what you are doing because it was very, very strong."

Closely held Bonhams doesn't release sales figures, but auction houses as a whole suffered in the recession. In 2009, Christie's global sales were down 35% from 2008; during the same period, Sotheby's sales fell more than 50%.

But Mr. Brooks says the market is relatively buoyant. "One of the bellwethers in the auction market is jewelry, and that has seen growth all last year. The main thing is there are a lot of people with high reserves of cash and high levels of disposable incomes, and we are seeing no fall off at all in any areas."

In January, Bonhams took market leadership in 10 specialist areas in the U.K. market, including jewelry and Japanese art. But in the big-ticket areas of the market, such as impressionist and contemporary art, its sales fall short of its rivals.

"In terms of overtaking the market, impressionist paintings may be one of the last dragons that we actually slay," he says. "But that doesn't mean we are not in the hunt, but we admit there is a long way to go in impressionist art."

Sitting in the boardroom of Bonhams headquarters on London's New Bond Street, Mr. Brooks says one of the strategies for growth could be acquisitions. As the firm has relatively little debt on its balance sheet, there are options to expand.

To read the full WSJ article, click HERE.

Estate Tax Update

Jonathan D. Salant writing for Business Week has a good article on the current situation on the estate tax.  There are some very interesting political issues and maneuvering involved with when and if a new law is enacted.  One, if no changes are made, 2011 will see an estate tax rate at 55% with an exemption level of only $2 million per married couple.  If that remains and a new law is not enacted the article states the government will generate an additional $34 billion in 2011 revenue and about $410 billion through 2019. With such large deficits, I am sure that income is enticing to Washington, although many dont beleive that will happen or come to fruition.

At the end of 2009 the House passed a bill for the tax rate to go to 45% with an exemption of $7 million per couple, but the bill was not reconcilled with the Senate.  The Senate has yet to act, but many beleive a 35% tax rate may be on the horizon.  The Senate is currently looking at a bill which would include a 35% tax rate and $10 million exemption, this is being sponsored by Arizona Republican Senator Jon Kyl and Arkansas Democratic Senator Blanche Lincoln, and would also make the law retro active for to January 1, 2010.

The article is a good overview and update on what is happening with the estate tax rate and exemptions, such as political maneuvering, timing issues, and partisan interests. Unfortunately, all are coming into play for the passage of a new estate taz law. I recommend all appraisers read the article.

The article states

A 35 percent rate “is really that sort of sweet spot of what’s acceptable to all sides,” said Dena Battle, director of tax policy for Washington-based National Association of Manufacturers. “We don’t want to see the tax go up to 55. We didn’t want to see the tax at 45.”

The longer Congress delays action, bringing a 55 percent tax closer to reality, the fewer reasons Democrats have to consider Kyl’s and Lincoln’s 35 percent alternative, said Jeff Shoaf, senior executive director for government affairs at Arlington, Virginia-based Associated General Contractors.

Senate Majority Leader Harry Reid, a Nevada Democrat, is “very reluctant to bring this up at this point,” Shoaf said. “The closer we get to the deadline, the stronger his hand is.”

Leverage Waning

Estate-tax opponents “had leverage” in the policy debate when Democratic leaders were trying to keep the tax from disappearing at the beginning of the year, said Chuck Marr, director of federal tax policy for the Center on Budget and Policy Priorities, a nonpartisan Washington research group. “That will wane as the year goes on.”

On the other hand, Democrats have some incentive to act soon because, as more time passes, it becomes harder to reinstate the tax retroactively for 2010, Becchi said. The plan backed by Kyl and Lincoln would raise $9 billion this year, according to the Tax Policy Center. A 45 percent tax would bring in about $15 billion.

To read the full Business Week article, click HERE.

Appraisal Foundation Redesigns Website

The Appraisal Foundation has redesigned its website. The look is much cleaner, the site more intuitive, and items are much easier to find and navigate to. The left side bar navigation tree is listed below. Visit the new site at www.appraisalfoundation.org

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Sotheby's CEO Salary Restored

Philip Boroff writing for Bloomberg states that Sotheby's CEO, William Ruprecht had his full salary restored last month.  This is after a good 4th quarter, and much cost and expense cutting during 2009. In May of 2009 Ruprecht had his salary reduced  by $100,000.00 from $700,000.00 to $600,000.00 (keep in mind compensation packages include much more than just salary).  Three other Sotheby's executives who had their salaries reduced were also restored.  Some investors/shareholders questioned the move as being too soon, as the auction house still had a net loss for 2009 of over $6 million.

Boroff reports

Ruprecht, 54, who started at the company three decades ago as a typist in the rug department, responded: “Putting a couple of million dollars of cost back into the business for having saved over $160 million in annual costs is a deal I’ll make every day of the week.”

He called the 10-month salary cut “a symbol primarily of personal commitment to the organization as we drove an awful lot of change through the business.”

Graef Crystal, a compensation specialist and columnist for Bloomberg News, said Sotheby’s deserves credit for cutting salaries in the first place.

“That’s unheard of,” he said.

While Sotheby’s “is trying to hew to some pay-for- performance standard,” he called the latest results mixed.

In 2008, Ruprecht received a package valued at $6.4 million, which included car and driver, life insurance premiums and club membership dues. The year before, Sotheby’s earned a record $213 million and he was paid $10.3 million in cash and benefits.

No Cash Bonus

Ruprecht’s total 2009 compensation will be disclosed in the next few weeks. Indications are that it will be relatively modest. Sotheby’s already said it awarded him $1.4 million in stock that vests over four years, the minimum annual grant he’s entitled to under his contract. He requested that he not receive a cash bonus.

To read the full article, click HERE.

UK Gaining on US as Top Art Market

The Antique Trade Gazette is reporting on a recent study showing the UK is very close to equaling the US in art sales by value. Keep in mind the ATG is a British publication, but they do report on a study by The European Fine Art Foundation which claims the two countries are locked in what might be considered a statistical dead heat for art sales by value. The report sates the US has 30% of the sales by value, closely followed by the UK with 29%, and China a distant, although growing third with 14%.

The ATG reports

The changes have taken place against a significant fall in the value of the global market, which rose to 48.1bn euros in 2007, before dropping back to 42.2bn euros in 2008 and then descending dramatically to 31.3bn euros in 2009.

Other headline statistics show that the UK art market employs more than 52,000 people directly in over 9000 businesses, generating more than 14bn euros in auction and dealer sales in 2008. And when the market was at its peak in 2008, close to two million people were directly employed by the art market worldwide.

The 69% share of the European Union market that the UK enjoyed in 2008 fell to 57% in 2009, almost wholly because of the 374m-euro Yves St Laurent sale staged in Paris in February that year. However, that is expected to rise again in 2010.

To read the full ATG article, click HERE.

NY Art Dealer to Retire

Lindsay Pollack reporting for Bloomberg states that New York art dealer Bernard Goldberg plans on closing his Madison avenue art gallery. Goldberg claims he is retiring because of age, and not for business reasons, as he sees the future of the art market only getting better. His entire gallery collection will be sold at several upcoming Christie's sales, and the pre-sale estimates indicate the collection is worth near $10 million.

Pollock reports

Goldberg’s works will be offered in six separate auctions during Christie’s spring and fall sales. Goldberg, who has two daughters and funds a program in Israel to train women as advocates in rabbinical courts, didn’t say how he will spend the sales proceeds.

Among Christie’s projected top lots is a 2-foot-tall graceful Jacques Lipchitz 1914 cubist “Spanish Dancer” sculpture, expected to fetch between $400,000 and $600,000. Goldberg had been retailing the bronze for $850,000 at the gallery. “Is it going to bother me if it sells for $400,000? Absolutely.” said Goldberg. “There are things I paid top dollar for and will not get those prices today.”

Goldberg’s landscape of Central Park by American Impressionist Frederick Carl Frieseke will be sold Sept. 28. Goldberg paid $40,000. Christie’s estimate: $15,000 to $25,000.

He is best known for selling American art dating from 1900 to 1950, and these works span a range of styles, from Ashcan to Modernism. The auctions will include everything in his gallery, even those Goldberg says he’s tempted to keep.

To read the full article, click HERE.

Amory Week Sales Mixed

Kelly Crow reporting for the Wall Street Journal states sales have been mixed at this weeks contemporary art fairs and satellite shows during Armory Week.  She mentions prices of art above $500,000.00 are few and far between, and some of the lesser known galleries have had a hard go of it.  But the expectations, especially when compared to last years event remain positive and upbeat.

Crow reports

Organizers expect 60,000 people to attend the fair, up from 56,000 last year. The turnout at Wednesday's VIP preview included such celebrities as Kyra Sedgwick, Sofia Coppola and Jason Schwartzman, along with major New York collectors like Susan and Michael Hort. The Horts paid dealer Daniel Reich $15,600 for an untitled portrait of a young man by painter Paul P.

Earlier this week, New York's Nicholas Robinson Gallery sold nine canvases by Wei Dong, who paints cheeky nudes into Old Master-style interiors. Asante International, a Swiss art foundation, paid roughly $720,000 for the works. Geneva-based dealer Laura Gowen also sold at least 25 paintings by Lynette Yiadom-Boakye, Ghana-born painter whose stoic portraits evoke Alice Neel and varied in price from $3,500 to $17,000.

Ms. Gowen said her year-old gallery spent over $14,000 on fair-related fees, so she would have faced "financial disaster" if Ms. Yiadom-Boakye's paintings had gone unsold.

Also popular: Whitney Biennial artists James Casebere and Curtis Mann, whose elaborate photographs of suburbia and refugee camps sold for $48,000 and $22,000, respectively.

A number of smaller satellite fairs run concurrent to the Armory Show in New York, often highlighting work by emerging artists. Newcomers this year include fairs devoted to Dutch and Korean art, along with Independent New York, which takes over the former Dia Gallery space in Chelsea.

To read the full WSJ article, click HERE.