Strong Art Results for 1st Half of 2011

I have posted in the past on the strong results seen in the art market during the first half of 2011, and Kelly Crow reinforces the encouraging news in a new article in the Wall Street Journal.  If you have been reading the press releases and following the tracking of the Mei Moses All World Art Index you know that the first half of 2011 has been good to the art collector and has outperformed the S&P 500.

Crow reports that demand is strong, and with strong demand comes high prices and more collectors willing to sell due to the markets high demand and prices. This scenario usually brings quality and fresh art to the marketplace. Crow also mentions the increased particpation of private sales at auction houses like Christie's where the seller is looking for discreation.

Crow reports

Collectors who avoided auctions amid recession cleaned out their closets this spring, convinced that art values were once again on a steady climb. That boosted the volume of offerings at both auction houses this season; Christie's June 28 evening sale of contemporary art in London contained 92 pieces, up from a typical 50.

Buyers turned up in nearly equal measure—particularly those hailing from Italy, Switzerland, and China—and took home around 79% of Christie's offerings in the first half. That solid sell-through rate indicates the marketplace may once again be willing to absorb a broad array of goods at varied price levels, not just masterpieces.

"Demand is strong and that's driving up the selling volume, so there's a virtuous circle going on in the art market right now," said Christie's chief executive Stephen Murphy.

The sizable bump in Christie's private sales means collectors may still be putting a premium on discretion, though. With a private sale, a collector hires the auction house to shop their art individually like an art dealer might do, rather than bundle the art into a high-profile, public sale. Art-market watchers say sellers prefer the private route if they need to raise cash or pay debts without tipping off their peers.

Mr. Murphy said private sales are also becoming more common whenever auctions are held in newer hubs like Dubai and Hong Kong. That's because bidders who have arrived to buy the art on offer are also maximizing any downtime between sales to shop for jewelry or art in Christie's other categories. These auxiliary purchases get recorded as private sales.

Overall, collectors from Europe bought $1.3 billion worth of art, up 34% from a year ago, while Asian bidders bought $482.5 million in art, up 60%. American bidders, perhaps because this season contained few blockbusters by American giants like Jasper Johns, held onto their paddles: In all, Americans bought $941.6 million, down 6% from the same period last year.

To read the full WSJ article click HERE.

---