Hirst and Koons Art Show Large Auction Price Declines

Scott Reyburn of Bloomberg writes about the significant loss of value of two of the more popluar and pricey contemporary artists, Damien Hirst and Jeff Koons.  Bloomberg reports that auction values for the two artists works have seen recent declines of near 50%.  Reyburn reports many dealers claim it will take close to a decade before Hirst and Koons values return to their pre 2008/2009 level.

In the past on the AW Blog I have posted about the significant declines in the contemporary art sector, so the drop in value is not really that shocking, and is actually expected.  Yet, the large decrease in value becomes all the more meaningful when looking at actual drops in values and price changes for specific artists as reported by the various tracking groups.

Reyburn reports

Contemporary-art auction sales dropped 75 percent this year as sellers were no longer guaranteed minimum prices.

“Right now, people are nursing significant losses on Hirst,” Philip Hoffman, chief executive of the London-based Fine Art Fund, said in an interview. “They’re reluctant to sell until prices start to rise again.”

Worldwide auction sales of contemporary art grew more than 10-fold between 2003 and 2008, according to the France-based research company Artprice. Its price index, based on total annual auction sales for Hirst, was up 996 percent over the 10- year period that culminated in his “Beautiful Inside My Head Forever” event in September 2008. The two-day auction, which coincided with the collapse of Lehman Brothers Holdings Inc., is seen by dealers as the end of the boom.

“That auction was such a freak,” Robert Sandelson, a London dealer, said in an interview. “It skewed the statistics. Damien is down, like most other artists are down. The market now feels like 2000 or 2001. It’s not going to be anything like it was for many, many years.” Sandelson held a Hirst show in his Mayfair gallery during the Sotheby’s sale.

Kitsch Skull

Koons, 54, known for his super-sized kitsch sculptures, was the top-selling artist at auction with 81.3 million euros ($117.2 million) of sales in the year to June 2008, said Artprice. Hirst, 44, famed for his pickled animals and diamond skull, overtook Koons with his 111.5 million-pound ($178.5 million) Sotheby’s sale.

Auction sales of high-value works by Koons dropped 50 percent in 2009, when nine pieces fetched more than $1 million, according to the U.S.-based database ArtNet.

Koons’s chromium steel “Baroque Egg With Bow (Turquoise/ Magenta)” from his “Celebration” series, owned by hedge fund manager Daniel Loeb, sold for $5.5 million, less than its estimate at Sotheby’s New York in March 2009. The $47 million total at that auction was 87 percent down on that achieved the previous year.

To read the full Bloomberg article, click HERE.