A Look at Damien Hirst

Businessweek takes a look at the declining interest and value of Damien Hirst.  This is a very interesting situation, and perhaps it is from over-exposure and hype from his work and brand, but given that in the middle of difficult economic times, contemporary art, at the upper end is doing rather well.

Businessweek reports

For all his celebrity, Hirst’s stock in the art market has experienced a stunning deflation. According to data compiled by the firm Artnet, Hirst works acquired during his commercial peak, between 2005 and 2008, have since resold at an average loss of 30 percent. And that probably understates the decline—judging from the dropoff in sales volume, collectors aren’t bringing their big-ticket Hirsts to market. A third of the more than 1,700 Hirst pieces offered at auctions since 2009 have failed to sell at all—they’ve been “burned,” in the terminology of the art world. “He has way underperformed,” says Michael Moses, a retired New York University business professor who maintains a financial index for art. “He has lots and lots of negative returns.”

Hirst’s crash is all the more perplexing because it comes at a time when the contemporary art market has sharply rebounded, with auctions pulling in proceeds that rival the giddiest pre-recession highs. And it has continued through what would appear to be a year of accomplishments for Hirst. Following the spot exhibition, there was a retrospective at the Tate Modern, which drew record crowds. For the London Olympics, Hirst designed a stadium floor that looked like one of his signature “spin” paintings—a woozy Union Jack.

Hirst declined interview requests, as did Gagosian. James Kelly, chief executive of Hirst’s private company Science Ltd., says his boss “has transcended all confines of the art world” and is unconcerned about the auction results. “Certain artworks that come to auction are being priced, one could say, more realistically at today’s values,” Kelly says. “However, the long-term view is that prices for Damien’s work will be strong.”

Source: Businessweek