Sotheby's Hong Kong Wine Sale

I have been traveling for a few days, so please forgive the few skipped posts.  I was in Chicago for an International Society of Appraisers Board meeting.  We had a very busy agenda with some outside presentations, open discussions/strategic planning as well as our regular meeting.  We welcome Sally Ambose, ISA CAPP to the board, and I was re-elected to the position of Treasurer.  We accomplished much and I look for many new initiatives in coming months from ISA.

Bloomberg has a good recap of the recent wine sale in Hong Kong.  Perhaps the most interesting item is that out of the last 6 wine sales in Hong Kong, all have obtained a 100% sales rate.  That is correct, 100% of the lots over the past 6 sales in Hong Kong have sold.  Certainly reinforces the idea of the strength of the economy, puchasing power and allure of luxury goods are in the east. 284 lots were offered, bringing a total of $8.4 million, more than triple the pre sale high estimate of $2.5 million.  The sale included three bottles of Chateau Lafite’s 1869 vintage selling for $233,972.00 each.  This was against a pre sale estimate of around $8,400.00.  All of the top ten lots went to Asian buyers.

Bloomberg reports

All eight of the wine sales Sotheby’s has held in Hong Kong this year achieved 100 percent selling rates, the New York-based company said. As the Asian buyer had acquired three bottles of Lafite 1869, there was a likelihood that at least one of them may be opened and drunk, dealers said.

Wines produced before the phylloxera epidemic devastated France’s vineyards in the 1870s rarely appear on the market, Sutcliffe said.

“There will be a huge curiosity to try a great pre- phylloxera vintage,” Sutcliffe said. “There’s a lot of speculation about why the Chinese like Lafite so much. People say it’s because the name is easy to pronounce in Mandarin. Actually, they like the taste, otherwise they wouldn’t pay such high prices for these wines.”

All 10 of the auction’s most expensive lots fell to Asian private collectors. A single bottle of Lafite 1870 sold for HK$1.3 million, and a 12-bottle case of the chateau’s 1982 vintage for HK$1 million, against low estimates of HK$80,000 and HK$280,000 respectively.

Lafite came top of the first official quality-based classification of Medoc wines in 1855. The chateau was bought by Baron James de Rothschild in 1868, and bottles have since been labeled Lafite-Rothschild.

To read the full Bloomberg article, click HERE.

The Changing Art World - Power Base Shifting East?

Anders Petterson writing for the Artnewspaper has a very interesting article that combines issues of economic growth, the art world and possible shifting power bases. As the Chinese economy continues to grow, while the US and European countries continue to show signs of slow growth or worse (Greece, Ireland to name only a few )the art world power and influence base is slowly shifting east, and not necessarily to the Hong Kong offices of Sotheby's or Christie's.

Petterson points out that Hong Kong sales for Sotheby's and Christie,s have totaled a combined $554 million, while mainland Chinese auction house has totaled $497 million during 2010, it best year ever.

The American and European economic frailty is now starting to impact and again slow the growth of contemporary art. More will be known after the fall auctions, but the earlier signs of growth in this sector are showing some signs of cooling.
The article is very interesting and should be a must read for appraisers.  The question is can China maintain its growth, and when may the US and European economies rebound.  If all world markets were functioning at a high level, prices within many fine and decorative arts sectors would certainly improve.

Petterson states

Whilst the Western economies are struggling many of the larger emerging markets are still growing at neck breaking speed. China and India are both forecasted to grow close to 10% in 2010, closely followed by Brazil’s 7.5%. China also became the second largest economy in the world this year.

As a result of the changing world economic order the global art market could also be on the verge of a structural geographical shift, mainly towards the East. Recent Sotheby's auctions in Hong Kong supports this thesis, when a jam-packed week of auction sales raised a record $400m—the highest ever for a sales season in Hong Kong.

Another interesting aspect is what is happening in mainland China. Despite Sotheby's and Christie's domination of the international trade in Chinese art, it's the local auction houses such as Poly and Guardian that are experiencing the strongest growth.

Although the main growth has been in the traditional collecting categories such as Chinese ceramics and antiquities, as well classical Chinese paintings, the Chinese contemporary art market is currently experiencing a rapid recovery towards 2007 levels. Again, domestic players, such as Poly Auction, are showing strong commitment to this collecting category. In Spring 2010, Poly Auction achieved a turnover of $22.6m for contemporary Chinese art, which was 45% higher than Christie’s and 57% higher than Sotheby’s.

Whilst major sale records used to be achieved in Hong Kong, this year has shown the strength of the domestic collector base, and the ability of domestic auction houses to attract top quality consignments. Poly Auction’s spring sales (all categories) from 2010 became the highest ever grossing auction season in mainland China. The total of $497m was significantly higher than Christie’s Hong Kong ($297m) and Sotheby’s Hong Kong ($257m) and shows a clear indication of the strength of mainland Chinese buyers.

To read the full Artnewspaper article, click HERE.

RICS 3rd Quarter 2010 Arts and Antiques Survey

The 3rd Quarter 2010 RICS Arts and Antiques Survey shows the All Lot price increasing for the third quarter. This is the seventh consecutive positive reading for the All Lot price indicator. One of the more interesting indicators is a sign that prices are rising in the middle market and staring to build some momentum.  We will seem, but the news is positive.  Future price growth is also encouraging with demand increasing as well as supply. So long as demand stays ahead of supply, prices should show signs of growth.

This report is always good for tracking market trends.

Interesting is the best performing sub sectors were silver and jewelry, while books and contemporary art struggle.  I know the contemporary art market at the top has been encouraging, so I am assuming this is geared more toward the middle market.

I will soon be posting the results of the Appraiser Workshops Fine and Decorative Arts Confidence Survey.  It will be interesting to compare the two.  Hope to post the results next week.

RICS states

The latest RICS Arts and Antiques Survey showed prices continued to rise in Q3 2010. The All Lot price balance edged up from +24 to +26 i.e. 26% more respondents saw prices rise rather than fall during the last quarter.

A breakdown of the survey shows that price increases were most noticeable in the mid-range category of £1,000-£5,000, with the price balance jumping from +16 to +33. The wider category of £5,000-£50,000 also saw a marked rise in prices, with the price balance rising from +25 to +36. Prices in the lower and higher end of the spectrum still recorded increases albeit at a slower pace. Anecdotal evidence from respondents suggests that reasonably priced items are moving well.

Ten of the eleven sub-sectors showed a positive balance with only Contemporary Art recording a slightly negative balance (–1). The best performing sub-sectors continues to be Silver and Jewellery. Although prices are still rising, the pace of growth has declined in both the Silver and Jewellery sectors, with the balance falling from +58 to +55 and from +48 to +42 respectively. The continued buoyancy of these two sectors reflects the historically high prices that precious
metals are commanding.

Respondents were asked to name the strongest performing sector in their opinion, and while the majority unsurprisingly opted for gold, silver and jewellery, oriental art and ceramics was also frequently mentioned.

Looking forward, over the next 12 months respondents expect to see a rise in demand and availability. Expected demand is expected to outstrip supply, although the gap between the two is narrowing. Indeed, expected demand increased from +36 to +44 while expected supply increased from +17 to +36.

To read and view the full RICS Arts and Antiques Survey (PDF) click HERE.

AQB Releases Personal Property Qualification Criteria - First Exposure Draft

This is appropriate timing as I am now taking the 15 hour USPAP class taught by ASA appraiser and newly elected chair of TAFAC Sandie Tropper, ASA.  Although tests have not been taken as I write this post, she is an excellent instructor.  I should be reviewing USPAP and instead I am posting to the blog.

Sandie just sent me an email/news release from the Appraisal Foundation which released the First Exposure Draft of Proposed Personal Property Appraiser Qualification Criteria. The release states the personal property qualification criteria should become effective sometime in 2011, with numerous exposure drafts being released. The comment period of the first exposure draft ends on February 15, 2011.

The exposure draft covers the following topics:

• Qualifying Education (Academic)
• Qualifying Education (Specific)
• Qualifying Distance Education
• Experience Requirements (Amount)
• Other Experience Requirements
• Continuing Education (Reaccreditation)

The exposure draft is only about 10 pages in length and has a lot of information in it.  I recommend all appraisers follow the link to see this first but not final draft.  It does reveal the direction the Appraisal Qualifications Board is taking the criteria for personal property appraisers. These pending qualifications are something all professional personal property appraisers should be aware of and be prepared for.

The exposure draft states the following for experience hours.

1. Seven hundred (700) hours of personal property appraisal experience in  area(s) of specialization AND
2. Additional experience as follows:

a. One thousand eight hundred (1,800) hours of market-related personal  property appraisal experience, of which at least nine hundred (900) additional hours are in area(s) of specialization; or
b. Four thousand five hundred (4,500) hours of market-related personal property non-appraisal experience in area(s) of specialization; or
c. Any equivalent combination of personal property appraisal experience and market-related personal property non-appraisal experience in area(s) of specialization, using the one thousand eight hundred (1,800) hour – four thousand five hundred (4,500) hour (1.0:2.5) ratio.

Click HERE to download the full Proposed Personal Property Appraiser Qualification Criteria.

Chrisite's on the Block?

Scott Reyburn writing for Bloomberg states that Emir of Qatar, Sheikh Hamad bin Khalifa al-Thanimay may be interested in purchasing Christie's. He already owns property in London as well as Harrods and is an avid collector who has purchased from Christie's in the past. French billionaire Francois Pinault controls the private company that owns Christie's, Groupe Artemis SA and recently stated that despite the rumors, there has been "no sale process initiated".

The rationale behind the Qatar interest seems interesting and makes sense in building the country's cultural status.

Reyburn reports

“Qatar is interested in Christie’s for three reasons,” Philip Hoffman, chief executive of the London-based Fine Art Fund, said in an interview. “It wants long-term value in the art market, it’s looking to diversify its economy and it’s after advice.”

Christie’s is a private company owned by the French billionaire Francois Pinault. The auction house was bought by his holding company, Groupe Artemis SA, for $1.2 billion in May 1998. It sold 1.71 billion pounds ($2.73 billion) of art in the first half, a 46 percent increase on 2009. Offerings of paintings, watches and jewelry in Dubai -- where the company’s Middle Eastern operations are based -- raised $23.7 million.

Artemis Statement

“Following recent press articles, Artemis indicates that no sale process has been initiated regarding Christie’s, the world’s leading art business, which is one of its strategic assets,” Artemis said in an e-mailed statement today. “Artemis reaffirms its intention to pursue the long-term development of Christie’s and its support of the company’s plan to build upon its global position.”

To read the Bloomberg article, click HERE.

Warhol Foundation

Fellow appraiser Pam Mayo sent me a post from ArtInfo with more news of the strong arm tactics taken by the Warhol Foundation in authentication issues.  I just posted last week on a change in opinion for the Brillo boxes.  Now the London owner of a 1964 Warhol self portrait (see image) deemed to be not authentic is dropping a lawsuit against the Foundation as he can no longer afford the expense as Foundation lawyers churned documents and motions. I had early posted on this litigation, but was not expecting this outcome, not even getting to court.

The Warhol Foundation is said to be worth $309 million (from 2008 tax records) and hired the prominent litigator David Boies.  With that sort of legal power, and numerous motions, the plaintiffs were not able to keep up and decided to drop the case. Given the financial resources the Foundation has, it now seems well insulated from any future protracted legal battles as potential plaintiffs will be scared off due to the cost of litigation.


The ArtInfo article is an excellent review of what has happened along with the strong armed legal tactics to out maneuver the pending law suits.  It is well worth reading.

ArtInfo reports

Simon says he does not have funds to hire additional counsel and is unable to enlist other firms willing to work on contingency.

Simon and others had hoped that the lawsuit would uncover the committee’s secretive deliberations and open the door to claims that could result in reassessment of numerous rejected works, potentially resulting in many millions of dollars worth of art being reinstated in the Warhol canon. The stakes are extremely high. The auction record for a Warhol is the $71.7 million paid for his 1963 "Green Car Crash" silkscreen canvas at Christie's in May 2007.

Simon's complaint further alleged that the Warhol Foundation and its authentication board engaged in an illegal conspiracy to control the Warhol market by limiting the number of approved Warhols, and thereby increasing the rarity and value of the hundreds of works owned and sold by the foundation. They sought damages and an injunction against the Warhol Foundation, the authentication board, the Warhol estate, and executor Vincent Fremont — the sales representative for the foundation’s paintings — alleging antitrust violations, collusion, and fraud.

That broad allegation would have been difficult to prove, but Simon has presented compelling evidence to support the more limited claim that his Warhol should be deemed authentic. Last year Redniss revealed that Warhol himself deemed the self-portrait an autograph work. An identical red silkscreen self-portrait from the same series was signed by Warhol in 1969 and dedicated to his Swiss dealer Bruno Bischofberger, who owned it at the time. The painting not only was included in the 1970 catalogue raisonné of Warhol’s paintings and works on paper from 1960 to 1967, compiled by art historian Rainer Crone in collaboration with the artist — it was reproduced in color on the dust jacket.

Nevertheless, the authentication board twice rejected that painting, in 2003 and 2005. Simon's work from the same series was rejected in 2003 and again in 2004 when he re-submitted it with additional supporting material. T

To read the full article, click HERE.

Recovered Art Claim

The Boston Globe ran a piece on a painting that was stolen back in 1975. The painting was valued at $25,000.00 by an appraiser, and the insurance company paid the claim in the amount of $32,500.00. There were several other items stolen, but the policy was limited to $32,500.00.

The painting was located, discovered and turned in to the Concord police. The painting was now said to be valued at between $400,000 and $800,000 and the insurance company was claiming ownership.

Many times the fine print favors the insurance company, but in this case there was a statement in the contract that allowed the claimant (now the estate) to either pay the $25,000.00 back and reclaim the painting if found, or return simply return it to the insurance company. Given the increase value, the estate of course wanted the painting and to return the $25,000.00. The Insurance company believed it should now own the painting.  So off to the courts the case goes.

Massachusetts courts ruled in favor of the claimant's estate which now gets ownership of the painting which has increased tremendously in value and only has to pay the $25,000.00 back. The main decisions appears to be the contract wording use the term "or".

I dont really think this is totally fair for the insurance company,  but that is what was in the contract and I assume it was surely their contract. Chalk one up to the little guy

The Globe reports

One Beacon Insurance Group LLC, the successor to Northern Assurance, believing the painting was worth from $400,000 to $800,000, argued that the painting belonged to the company.

But the appeals court ruled, in a nine-page decision written by Judge Cynthia J. Cohen, that an agreement signed by Thompson allowed her estate two options: to turn the painting over to the insurance company or to simply pay the insurance company back the $25,000 it had paid out.

"The plain and unambiguous language … anticipates the possible reacquisition of the lost or stolen property, and, by the use of the word 'or,' provides that the insured may resort to either of two methods of compensating the insurer should that occur," the court said.

"One alternative is that the insured may turn over the recovered property to the insurer; however, the second alternative … is that the insured may pay back the amount that the insurer paid for that particular loss," the court said, upholding a lower court decision.

The picture was painted by Angelica Kauffman, a Swiss painter who worked in Italy and England, mostly in the neoclassical style, the court said.

To read the short but interesting article, click HERE.

Rembrandt Discovery?

CNN World is reporting an oil on painting hanging in a Rotterdam museum (Museum Boijmans Van Beuningen) attributed to Barent Fabricius, a student of Rembrandt, may actually be by the master himself. The painting (see image)is entitled Tobias and his Wife is dated at 1659, and if authenticated as a Rembrandt may be worth $11 million. The previous insurance value was placed at $4 million as a Fabricius, and increased in value by $7 million as a Rembrandt. The attribution and increased value certainly shows the importance of the authentication process.

As can be expected, there is a debate on the true authentication of the painting. With past museum curators who researched the painting think it is not a Rembrandt, while Rembrandt expert Ernst van de Wetering believes it is.

An interesting article.

CNN reports

In the latest volume of "A Corpus of Rembrandt Paintings," van de Wetering explained his reasons for believing that "Tobias and his Wife" is by Rembrandt. He argues that the painting bears stylistic similarities to an etching made by the artist in the same year. The attention to detail and the arrangement of the figures also swung him to the opinion it is genuine.

Van de Wetering is widely thought to be the most influential Rembrandt scholar in the world, and chairs the Rembrandt Research Project, which was set up in 1968.

Giltaj may not be convinced of his theory, but it is accepted in Old Master circles that when it comes to Rembrandt, whatever van de Wetering says, goes.

Paul Raison is head of Old Master paintings at Christie's auction house in London. He agreed that van de Wetering is the first port of call when it comes to verifying a Rembrandt.

Van de Wetering authenticated a portrait entitled "Portrait of a man, half-length, with his arms akimbo," which fetched $31.7 million (£20.2 million) at a sale at the London branch of the auction house last December.

Click HERE to read the full CNN article.

South African Art

Kelly Crow writing in the Wall Street Journal has an article on the growing influence and collectible of South African art.  Crow points out that during apartheid the art world deliberately overlooked much South African art.  Since the end of apartheid, interest in South African art has been mixed, but it now appears to be on the rise.  Bonhams London has an upcoming specialty sale for South African art and expectations are high.

Art Research Technologies recently analyzed sales results for three South African artists, and as can be expected, some showed some very positive sign with others being more neutral. View the WSJ article for the Art Research Technologies artist information and to view a short slide show on South African art.

Crow reports

Dealers say collectors are starting to come back, especially those with ties to mining companies who have benefited from soaring gold prices. The South African diaspora in London and Sydney are also buying more art as status symbols. Last week in Cape Town, Strauss & Co. auctioned off a floral still life by South Africa's favorite Expressionist, Irma Stern, for a record 13.4 million rand, or $1.9 million, nearly doubling its high estimate. Johannesburg art adviser Julia Meintjes says collectors have been reassured lately by the success of the local Joburg Art Fair and the recent launch of a South African art-advisory division of financial giant Sanlam.

To read the full article, click HERE.

Christie's Frieze Week Sale - London

Bloomberg has a good review of the recent Christie's Frieze Week evening art sale held in London.  I reported on the contemporary sale and results earlier this week.  The Bloomberg review gives some good analysis and also includes info on the 20th Century Italian art sale.  There were two sales, contemporary art followed by 20th century Italian art. The two sales totaled $61.15 million.  The Italian sale totaled $29.2 million against pre sale estimates of $22.43 million with a respectable 78% buy through rate.

The contemporary art sale totaled $30.74 million against a pre sale estimate of $25.1 million and a strong buy through rate of 86%.  The two sales more than doubled the value of the 2009 auctions.  25% of the lots selling went for above the catalogs high estimate, showing continued strength in the contemporary sector.

Bloomberg reports 

“The auction house managed to keep the estimates more realistic than June and there’s confidence among buyers,” the New York-based dealer Christophe van de Weghe said. “People really want to spend money on art again.”

Much presale attention had been focused on the 2006 Damien Hirst “butterfly” painting, “I am become death, shatterer of worlds.” The 17 foot (5 meter) abstract was estimated at as much as 3.5 million pounds, making it the most valuable work by the artist to have appeared at auction since 2008.

Featuring circular explosions of color inspired by nuclear physicist Robert Oppenheimer’s quotation from the Bhagavad Gita, it was being sold by a U.S. collector, Christie’s said.

Hirst ‘Butterfly’

On the night, it attracted little competition, selling to a telephone bidder for 2.2 million pounds, against a low estimate of 2.5 million pounds. Another Hirst butterfly work of the same size sold for 4.7 million pounds at Phillips de Pury & Co. in October 2007.

“We know that the market for Hirst is difficult,” van de Weghe said. “It’s positive that it sold, and $3 million is a lot of money for a painting.”

To read the full Bloomberg article, click HERE.

Warhol Brillo Boxes Deemed Copies

The Art Newspaper is reporting that more than 100 Brillo boxes thought to have been works by Andy Warhol have been downgraded and deemed copies by the Andy Warhol Authentication Board.  As many appraisers are aware there have been numerous controversies about the Warhol authentication board process, and some of its decisions including charges of conflict of interest and market supply manipulations.

There still is some confusion on these boxes and if they were authorized by Warhol or not.  It now appears official that the board has decided they are copies, and not officially authorized works by Warhol. Many of the boxes have been bought and sold in the past as works by Warhol, and some had previously received conformation from the board that they were in fact authentic. An interesting article for the appraiser and great background on authentication and how attributions can change over time.

The Artnewspaper states

In 1994, the Belgian dealer Ronny van de Velde bought 40 boxes from Hultén for $240,000. Van de Velde told us in 2007 that he had certificates from Hultén confirming he was authorised by Warhol to extend the series. Between 2004 and 2006, Van de Velde secured stamps from the board confirming these were 1968 Brillo Soap Pads Box [Stockholm Type]. In 2004, the London dealer Brian Balfour of Archeus Fine Art bought 22 boxes from Hultén for around £640,000. Ten were sold through Christie’s shortly afterwards to a UK buyer for £475,650, who turned out to be the art dealer Anthony d’Offay. Balfour also had letters from Hultén and the Warhol authentication board.

In July, the board sent a report to Lars Nittve, director of the Moderna Museet, which holds six of the disputed boxes in its collection. It said it had “examined and re-examined” the “box sculptures”, Hultén’s personal papers and other museum archives, and were now downgrading the boxes to “copies”.

The board now says there are two sets of Hultén-­produced boxes: a small number (about 10 to 15) made in 1968, straight after the show. The board refers to these as “Stockholm type boxes”. The rest, 105, were produced at Hultén’s request by carpenters for a 1990 exhibition in Russia. The board refers to these as “Malmö type boxes”.

To read the full Artnewspaper article, click HERE.

More Madoff Auctions

Jenny Roth writes of 400 items from disgraced investor Bernard Madoff will be auctioned by the US Marshall Service in New York City on November 13th.  The sale will be held at the Sheraton New York Hotel & Towers in mid town and features a Steinway grand piano and a 10.5 carat diamond ring (see image).

Most of the Madoff property that has sold at auction over the past year or so has done very well. I dont expect this sale to be any different as luxury items are in demand, especially with a bit of provenance.

Roth reports

One year ago, the first government auction of items seized from the Madoffs' New York residences, expected to bring in $500,000, raised more than twice that amount. Roughly 200 items nearly sold out in four hours of brisk bidding.

The Nov. 13 session, to be held at the Sheraton New York Hotel & Towers in midtown Manhattan, will also include a desk and monogrammed black velvet slippers. More details will be issued about the auction in the coming weeks, said the Marshals Service.

The diamond engagement ring is 10.5 carats, according to the U.S. Marshals spokesman. He declined to comment on whether it belonged to Mrs. Madoff.

U.S. Marshall Joseph Guccione said in a statement that the items in the sale are the last of what were in the Madoffs' New York and Montauk, Long Island, homes. The real estate was sold last year for a combined $18 million.

To read the full WSJ article, click HERE.

Nazi Looted Art Database Now Online

A database of art looted by the Nazi's from France and parts of Belgium is now online at http://www.errproject.org/jeudepaume/ The database contains over 20,000 items of art many of which have yet to be returned to the rightful owners and families.  The database has some images of original inventory cards recording information on the stolen art.

Bloomberg also reports on the database, stating  that about half the database of 20,000 items have yet to be returned. Items in the database can be searched by artist, owner, inventory number and medium.  Bloomberg states Items range from abstract art to 18th-century furniture, from medieval crucifixes to African masks. To read the full Bloomberg article, click HERE.

It is an interesting site that many appraisers, dealers and auction house specialist should visit.

The Database of Art Objects at the Jeu de Paume site states

The Einsatzstab Reichsleiter Rosenberg (ERR), the “Special Task Force” headed by Adolf Hitler’s leading ideologue Alfred Rosenberg, was one of the main Nazi agencies engaged in the plunder of cultural valuables in Nazi-occupied countries during the Second World War. A particularly notorious operation by the ERR was the plunder of art from French Jewish and a number of Belgian Jewish collections from 1940 to 1944 that were brought to the Jeu de Paume building in the Tuileries Gardens in Paris for processing by the ERR Sonderstab Bildende Kunst or “Special Staff for Pictorial Art.”

This database brings together for the first time in searchable illustrated form the remaining registration cards and photographs produced by the ERR covering more than 20,000 art objects taken from Jews in German-occupied France and, to a lesser extent, in Belgium. Searchable by individual objects and by the owners from whom these objects were taken, the database is a detailed record of a small but important part of the vast seizure of cultural property that was integral to the Holocaust.

Dead Sea Scrolls to be Digitized

A partnership between Israeli antiquities authorities and Google announced that the Dead Sea Scrolls will be digitized and placed online for all to view and see. The cost is estimated at $3.5 million.

The multi-spectral imaging will be of an extremely high nature using technology developed by NASA. The scrolls are now only partially viewable by the general public and are shown on a rotating basis at at the Israel Museum in Jerusalem in order to minimize exposure that may damage or erode the documents.

Discovery News states

He said the project would build on similar efforts by Google to put the public domain material of several European libraries online.

Shor said the first images should be posted online in the next few months, with the project completed within five years.

"From the minute all of this will go online there will be no need to expose the scrolls anymore, and anyone in his office or (on) his couch will be able to see it," she said.

The 900 biblical and other manuscripts, comprising some 30,000 fragments, were discovered between 1947 and 1956 in the Qumran caves above the Dead Sea and photographed in their entirety with infra-red technology in the 1950s.

The parchment and papyrus scrolls contain Hebrew, Greek and Aramaic writing, and include several of the earliest-known texts from the Bible, including the oldest surviving copy of the Ten Commandments.

The oldest of the documents dates to the third century B.C. and the most recent to about 70 A.D., when Roman troops destroyed the Second Jewish Temple in Jerusalem.

The artifacts are housed at the Israel Museum in Jerusalem, where the larger pieces are shown at the dimly lit Shrine of the Book on a rotational basis in order to minimize damage from exposure.

When not on show, they are kept in a dark, climate-controlled storeroom in conditions similar to those in the Qumran caves, where the humidity, temperature and darkness preserved the scrolls for two millennia.

To read the full Discovery News article on the Dead Sea Scrolls, click HERE.

Results: Chrisite's Post War & Contemporary Art Evening Sale, London

Chrisite's was pleased with the results of its October Post War and Contemporary Art evening sale.  The sale offered 51 lots of which  44 were sold for a very respectable buy through rate of 86%.  The sale totaled $31.36 million against a pre sale estimate between $25.4 million and $36.1. Buyer breakdown (by lot) was 66% Europe including the UK and 34% Americas. Nine lots sold for over $1 million.

The top selling lot was by Damien Hirst (b. 1965), I am Become Death, Shatterer of Worlds, 2006 and sold for 4.37 million against a pre sale estimate of $3.97 million and $5.6 million (see image).

Christie's states about the sale

“Today’s auctions built on the recent growth of confidence in the market for contemporary art and saw consistent bidding throughout. We welcomed many new collectors for the first time, a significant number of whom were bidding at high levels on some of the top lots at the sales, and there was particular excitement for works by many of the younger artists.”

The top price was paid for I am Become Death, Shatterer of Worlds, an epic butterfly painting by Damien Hirst (b.1965) which sold for £2,169,250 / $3,472,969 / €2,462,099. In total, 40% of lots sold above estimate and record prices at auction were established for 5 artists; Ged Quinn, Kelley Walker, Otto Piene, Roman Opalka and Liza Lou.

Further highlights included Kaikai Kiki, 2005, by Takashi Murakami (b. 1962) which realized £1,945,250 / $3,114,345 / €2,207,859 against an estimate of £400,000 to £600,000; and Negro Period, 1986, by Jean-Michel Basquiat (1960-1988) which achieved £1,497,250 / $2,397,097 / €1,699,379 (estimate: £1.2 million to £1.8 million).

Results: Contemporary Art Evening Sale, London

Sotheby's London just held its Contemporary Art Evening sale and the results were decent, but not exceptional. The sale offered 39 sales with 35 selling for a very respectable 89.7% sell through rate. The sale totaled $21.24 million including buyers premium, and reached just over the total low estimate of the sale.

The top selling lot was by Andy Warhol, Diamond Dust Shoes, acrylic silkscreen ink and diamond dust on canvas, 1980 which sold for $2.49 million (see image).

Scott Reyburn of Bloomber reported on the sale, stating

Dealers said the event offered encouragement to a contemporary market that is still in recovery mode after prices halved for some artists during the financial crisis.

“The sale was solid,” Paul Shoenewald, a Dusseldorf-based dealer, said. “The estimates are still a little bit high, making it difficult for dealers to buy. The real test will be in November in New York, where the quality will be better.”

Warhol’s vibrantly colored “Diamond Dust Shoes” from 1980 had never been offered at auction before. It sold in the room to the London-based dealer Alan Hobart of the Pyms Gallery, bidding for a client. Its minimum estimate was 1.3 million pounds.

“It’s rare to see a Warhol of this scale come up for auction and it was fresh to the market,” Hobart said. “Buyers are still selective, even though the bidding has never been more international.”

To read the Bloomberg review of the sale, click HERE.

Egyptian Market Heats Up

Kelly Crow has an article in the Wall Street Journal on how Egyptian entrepreneurs are starting to invest heavily in art in general and Egyptian art in particular.  Crow notes there has been growth in Galleries in Cairo and Alexandria.  As wealth flows into many countries, current and previous examples are Russia and now China, there becomes a renewed interest in indigenous cultural property, and a desire to invest and repatriate.

The article also has a nice slide presentation with some very good examples of Egyptian art.

Crow reports

Collectors credit the steady growth of modern-art galleries in Cairo and Alexandria with reviving local interest in the tumultuous 20th-century era, when Egyptian artists began painting life as they saw it, from slums to Sufi dancers. The working-class figures of Abdul Hadi El-Gazzar and Hamed Nada's scenes of musicians also make up some of the nation's top modern work.

he museum-building boom in the Gulf has elevated the global profile of Arab artists across the region, including Egypt. Qatar's Mathaf: Arab Museum of Modern Art is scheduled to open Dec. 30.

Dubai-based collector Farbod Dowlatshahi says prices for Arab modern art didn't skyrocket before the recession, so values didn't plummet like they did for some Iranian art stars like Farhad Moshiri. As a result, Egyptian buyers entering the market now aren't as skittish to bid big, even as other collectors remain cautious.

Saudi real-estate developer Mohammed Said Farsi was the seller of that $2.4 million Said at Christie's this spring, and he has consigned another 60 Egyptian paintings to Christie's sales of modern and contemporary art Oct. 26 in Dubai and Nov. 7 in Paris.

To read the full article, click HERE.

Investigating Caneletto

Martin Gayford of Bloomberg has a good review of the new National Gallery, London exhibition on Caneletto and his followers.  The interesting aspect is the exhibition compares and contrasts Caneletto's works to his rivals.

I found the article interesting as it mentions the use of the camera obscura which many early artists appeared to have used. Click HERE for a Wikipedia post on the camera obscura.  The article states that many artists used the camera obscura in order to obtain true and correct architectural features. If there is a catalog to the show, it might be interesting to have for an appraisal library as the exhibition compares and contrasts many subtle differences in the paintings.

Gayford writes

It’s an old-fashioned show, all about connoisseurship -- that is, who made which picture, and when? Views of 18th-century Venice present thorny problems of that kind, as so many of the artists who did them were connected in some way to Canaletto, otherwise known as Giovanni Antonio Canal (1697-1768).

The exhibition is made up of his work, plus that of his predecessors, pupils, competitors, and two of his nephews. On show are numerous paintings that closely resemble each other. Never before can so many views of the Grand Canal and Doge’s Palace have been shown together in one place.

The show makes close comparisons between highly similar pictures. Here’s a view of “Campo Santa Maria Formosa” by Canaletto, and here’s one of the same subject by his nephew Bernardo Bellotto (1722-1780). Spot the difference! There are certainly conclusions to be drawn from such juxtapositions. In this case, the Bellotto is plainly better than his uncle’s work.

All those comparisons are likely to bemuse visitors who aren’t specialists in 18th-century Venetian view painting (close, presumably, to 100 percent of them). That’s a shame, because the show contains fabulous pictures, including moody early Canalettos in which he almost seems like a pre-Romantic artist.

To read the complete article on the Canelleto exhibtion, click HERE.

Sandie Tropper to Head TAFAC

The American Society of Appraisers recently announced that fellow personal property appraiser Sandra Tropper, ASA has just been elected to chair The Appraisal Foundation Advisory Council (TFAC).

Congratulations to Sandie and thanks for her dedication and promotion of the personal property profession.  Her election to Chair of TFAC certainly shows the progress and growing influence personal property appraisers have gained in the past few years with Appraisal Foundation.

ASA released

HERNDON, VA— The American Society of Appraisers is pleased to announce that Sandra Tropper, ASA, has been elected to the chair of The Appraisal Foundation Advisory Council (TAFAC). TAFAC is comprised of members from associations who accredit appraisers (about 120 of them), and government bodies such as IRS, Justice Department, Fannie Mae & Freddie Mac. The TAFAC council makes recommendations to the Foundation, Appraisal Qualifications Board (AQB) and Appraisal Standards Board (ASB) on issues that address changes and current circumstances in the appraisal universe. Sandra has served on TAFAC for 4 years, and is an accredited appraiser with a specialty in Fine Art.

ASA Executive Vice President Jane Grimm notes, ”Sandie has been a well-respected member of ASA for many years and has taken leadership positions within its Personal Property (PP) Committee, most notably as its chair and education chair. Sandie is not only an instructor of USPAP for PP, but worked with the Appraisal Standards Board (ASB) in the creation of the USPAP for Personal Property course. Her passion for the profession is obvious and it’s no surprise that her knowledge and talent has put her in others’ leadership. We wish her great success in her new position!”

Sandie Tropper, ASA states, “I am both proud and excited to be the new chair of The Appraisal Foundation Advisory Council (TAFAC). It is important to both the personal property discipline and the ASA organization, as a sponsor of The Appraisal Foundation. The upcoming year will be an important one for the entire profession and a great year to have an ASA representative elected as leader of the council. Personal property appraisers have made great strides towards credibility in the world of professional appraisers; this is another step in the right direction.”

ASA’s Director or Government Relations John Russell, JD, comments, “Every time I’ve had the opportunity to work with Sandie on behalf of ASA, I am impressed with her ability to see how policy implications will impact day-to-day professional appraisal practice and make recommendations that benefit every stakeholder. She will be a champion for the profession in her new role as chair of TAFAC.”

Results: Steiff at Christie's London

TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey. The survey will close on Friday, October 15.  

On October 13th Christie's London had a sale of Steiff stuffed toy collection which totaled $1.7 million.  Steiff is credited with inventing the Teddy Bear in 1902. The sale offered 655 lots of stuffed animals and toys, with 585 selling, for a very respectable 89% buy through rate.  The top lot was a Harlequin teddy bear, circa 1925 which sold for just over $74,000.00 including buyers premium (see image).  The bear was estimate to sell between 50,000 and 80,000 GPB, but sold for just under the low estimate including buyers premium.

According to Bloomberg, the collection was owned by former hedge fund manager Paul Greenwood who is under indictment for defrauding investors of $554 million. Greenwood has turned over assets to be disposed of and the collection is part of the asset seizure.

In any event, the sale is a good reference point for comps on Steiff toys for appraisers to be familiar with. The article states many prices were good and above estimates and that demand was strong. It is stated the market for collectible stuffed toys has not been strong, just like so many other sectors.

Bloomberg states

Christie’s sale included a Steiff “Harlequin” bear, dating from about 1925, featuring alternating halves of red and blue plush. Acquired in June 1999 at the German company’s annual auction of toys, it was “possibly unique.” It was estimated to fetch between 50,000 pounds and 80,000 pounds at hammer prices, said Christie’s. It sold to a bidder in the room for 46,850 pounds including the buyer’s premium.

A lace-up teddy bear with a hot-water bottle carried a high estimate of 30,000 pounds at the auction. Just 90 examples of the Hot-Water Bottle Bear were made by Steiff between 1907 and 1914, said Christie’s. It sold for 18,750 pounds including fees.

A 1953 black original teddy was another of the other successful bears, reaching 30,000 pounds against a high estimate of 20,000 pounds.

Bonzo, Mickey

The collection was amassed over the last 15 years. More than 80 percent of the sale’s 641 lots were Steiff animals. One of a small number of samples of a never-manufactured Bonzo the Dog toy fetched 16,250 pounds, while a perfectly preserved Mickey and Minnie Mouse was among the 11 percent of failures. They had been expected to fetch as much as 20,000 pounds and 15,000 pounds respectively.

To read the full Bloomberg article, click HERE.

Michelangelo in Buffalo?

The Buffalo News is reporting the possibility of a Michelangelo in the city.  It is an unfinished painting of the Virgin Mary and Christ and is owned by a retired airline pilot. The fine is attributed to author Antonio Forcellino, a Michelangelo biographer and art historian, who wrote the new Italian book, "La Pieta Perduta". He is convinced the painting is a true Michelangelo, and it could be worth millions of dollars if authenticated.

The painting is to be restored and the displayed in Italy. No word yet on the authentication process or from other Michelangelo connoisseurs.

The Buffalo News reports

Forcellino spent time in Buffalo examining the painting and several years looking for documentation to authenticate it.

In his book, Forcellino claims the painting was created by Michelangelo in 1545 and was first mentioned in records a year later.

It was offered to an Italian cardinal, found its way to a baron in Croatia and was owned by a German baroness, who passed it to her lady-in-waiting, Gertrude Young. When Young died, the painting remained with her brother-in-law -- Martin's great-grandfather.

While the Renaissance artist is best known for his statue of David and his frescos on the ceiling of the Sistine Chapel, the 25-inch-by-19-inch Pieta would be one of the few surviving Michelangelo oil paintings created on a panel made of wood.

"The first time I saw it, I was so struck by the strength of it that I felt breathless," Forcellino told the newspaper. "Only a genius could have painted this -- the darkness which underscores the suffering, the Virgin who looks as if she's screaming and the figure of Christ after he has been deposed from the cross. It's small, but the technique is extraordinary."

Martin told the Sunday Times he plans to have it restored and displayed at exhibitions in Italy next year. He didn't disclose whether he would sell it.

Since the story ran Sunday, it has been circulating over the Internet on news Web sites worldwide.

"He's an icon of Italian Renaissance art," Charles H. Carman, an associate professor at the University at Buffalo, said of Michelangelo. "People who know very little think of Da Vinci, Raphael, Michelangelo. He's a huge name."

Carman, whose expertise is Italian Renaissance art, said it's perfectly possible there are Michelangelo paintings yet to be discovered.

"Whether this painting is by Michelangelo, I don't know until I would be able to at least see a photograph," he said.

To read the full article, click HERE.

Fine and Dec Arts Survery Closes on Friday

To take the survey, click HERE.

The Appraiser Workshops Fine and Decorative Arts Market Confidence Survey closes on Friday, October 15th.  If you have not as of yet completed the survey, please take a few minutes and and answer the simple questions.  All you have to do is select positive/negative/neutral for your confidence level in selected fine and decorative arts category.

The results will be posted on the Appraiser Workshops blog for appraisers to use in understanding and analyzing market trends.  We plan on running th survey on a quarterly basis so changes in confidence trends can be noted and indexed.  The survey has been very well received by appraisers, so make sure you confidence vote is counted.  I am very pleased with the survey particiapation and very excited about the interesting results.  Thanks to all who have particpated. and made the survey possible.

To take the survey, click HERE.

Update: Estate Tax Bill - More Uncertainty

TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey. The survey will close on Friday, October 15.  

With the upcoming lame duck session watchers on the Hill are not sure what is going to happen with the estate tax legislation, or perhaps I should say lack of legislation.  If you are a reader of the AW Blog you know how many times I have posted on this topic, and how many starts and stops I have reported.

Unfortunately there is still no solid information or consensus on what or if anything will happen before the end of the year.  It appeared to have been close, then too much debate over the Bush tax cuts pushed any decision further back into late 2010.

The Hill is reporting on estate tax Legislation

One issue is how to stop the estate tax from returning to pre-2001 levels, which means estates worth more than $1 million are hit with a tax that could be as high as 55 percent.

The levy is currently repealed but, barring congressional action, it will return next year to the aforementioned level. Republicans and more than a few Democrats oppose returning to pre-2001 law, but there doesn’t seem to be a consensus for how the tax should be modified.

“Unfortunately, I think there is a pretty good chance that they just run it out and let [the repeal] expire,” said Phil Kerpen, vice president of policy at Americans for Prosperity.

Democratic lawmakers were supposed to have wrapped an estate-tax fix in legislation extending the middle-class tax cuts enacted under President Bush.

Sources close to the matter said the fix resuscitated 2009 law, which placed a 45 percent tax on estates exceeding $3.5 million. The levy would be indexed for inflation so fewer people would become ensnared by it.

But Democratic leaders opted to delay action on the Bush-era tax cuts until after the election, thereby punting a resolution on the estate tax into the lame-duck session.

“Inaction is certainly possible, particularly in the lame-duck, which tend to be unproductive,” Chuck Marr, director of federal tax policy at the Center on Budget and Policy Priorities, told The Hill. “We certainly saw last year that inaction is possible.”

Lawmakers last year vowed to fix the estate tax before January of this year, but then blew past the deadline and promised that the situation would be addressed in the new year. Ten months have passed and Democrats still have not resolved the issue.

To read the full article from the Hill, click HERE.

The Chinese Market - High Demand and Shrinking Supply

(TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.)  

Jason Chow of the Wall Street Journal has an interesting article on the Chinese Art market. I am getting a bit tired of all of the news the oriental market is making, but when a market is hot, it naturally gets much press and interest.  Appraisers need to stay aware of these market trends.

The article states many dealers are concerned about replenishing inventory levels as so many top quality purchases and sales have recently taken place. I would assume this increased demand will place more upward pressure on second level and mid market items as well.

The increase in demand of Chinese fine and decorative arts can been seen in some local auction house results.  Just last week one of our local Washington DC area auction houses, the Potomack Company in Alexandria, VA had a sale with some very fine Chinese lots, some setting records.

Potomack stated in a press release The Potomack Company set a world record for a Chinese Jade Partial Zodiac Set (Lot 61) that sold for $164,500 and achieved the third highest record worldwide for a Chinese Carved White Jade Table Screen (Lot 74) that brought $411,250.

This sale at Potomack followed an earlier sale at Quinn's Auction Galleries in Falls Church which also had some excellent Chinese decorative art lots which sold extremely well with much competitive bidding.

Chow reports

But the ferocity of demand has created a new problem for dealers: Lack of inventory.

“If you told me, before this fair, that I’d sell out of everything, I’d say that was a good thing,” said Marcus Flacks of MD Flacks. The New York gallery sold seven of the nine antique chairs and tables it brought to the show. “But now, I’m wondering how I’m ever going to replace any of these items. You have to have supply to meet demand. Demand is huge. But where are we going to find supply?”

Players in the art market said that the new riches of the Chinese wealthy class have upended the traditional order. In decades past, works would be taken from China — sometimes under dubious circumstances — and sold to wholesalers in Hong Kong, who in turn would sell them to art dealers in the Western world. Those dealers would then sell to wealthy collectors in the U.S. and U.K. as well as museums.

But that pool of antiques has dried up, thanks mostly to interest from Chinese buyers: “This Chinese appetite for Chinese art is totally unprecedented,” said Michael Goedhuis, owner of Michael Goedhuis, a London gallery that specializes in Chinese art. “It’s remorseless, relentless — nothing is stopping them from buying. Nothing.”

To read the full WSJ article, click HERE.

An Unflattering Look at Appraisals - Ouch

(TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.)  


Bloomberg has an interesting, and unfortunately an unflattering piece about appraising, initially based on a lawsuit and valuation of a Anish Kapoor sculpture. It appears the sculpture, while being stored in a London warehouse was lost and assume destroyed. A court case ensued in order to determine value to compensate the owner.
As usual in court disputes, two appraisers had two very different valuations of the lost sculpture. According to the article one appraiser found the sculpture to be an excellent example of the artists work and valued at around $900,000.00. The other appraiser was not impressed with the piece, and valued it near $400,000.00. The judge disagreed with both appraisals and set his own value of around $590,000.00 based on a previous sale of the artist.

The article then goes into more ethical issues of appraising and interest in the property as well as biases and motives.  We of course know this is not the case, or should not be the case, but there will probably always be appraisers in the profession who are advocates, one way or the other, for their clients and for benefiting their own self interests.  It is a shame, but a reality.

A very interesting article to read. The article has several comments about both the value and importance of appraisals as well as the potential for widely different and ineffective values.

Working at large banks, auction houses and small firms, appraisers exert influence in every corner of art finance. In a secretive market where accurate information is scarce, these experts guide high-end collectors in setting sale prices, making tax deductions, buying insurance and establishing collateral for loans.

While the appraisers’ reach is broad, their valuations are influenced by everything from their personal tastes to the desire to make higher commissions, says Philip Hoffman, chief executive officer of the $100 million Fine Art Fund Group Ltd. in London.

Fudged Valuations

“Appraisers give a lot of meaningless valuations,” says Hoffman, who relies on the ones he trusts to value his funds’ holdings. “Their work can be based on fashion and connoisseurship. The art world is complicated, and valuation is a part of that.”

Appraisers who negotiate the sale of artwork sometimes jack up valuations to boost their commissions, says Lewis Baer, owner of decorative-arts gallery Newel LLC in New York. Auction house experts play a different pricing game, regularly giving low-ball values in catalogs with the hope of creating bidding wars.

Adding to the variation in pricing, appraisers fudge valuations submitted to the U.S. Internal Revenue Service so clients pay less tax on inherited art and get bigger deductions on donated works. The IRS says that from 2006 through 2008, a majority of audited estate and gift tax appraisals understated the worth of the art by an average of 44 percent.

To read the full Bloomberg article, click HERE.

Frieze Fair – London

Kelly Crow has good, but short article in the Wall Street Journal about the Frieze contemporary art fair being held in London next week. Crow notes many dealers that passed on exhibiting at the Frieze last year have returned. The Frieze will have 173 dealers, up from the 164 who displayed at the fair last year. More dealers at show I think usually bodes well, unless it is an act of desperation which I dont think it is, especially in the contemporary art sector.

There are 63 new dealers or galleries displaying at the show, which shows a relatively high turnover of dealers. Crow reports that dealers believe fairs are the way to sell in todays contemporary art marketplace, with a large selection of art in one location. They also stated the auction or secondary market has rebounded first and hopefully that success will trickle down to fairs, shows and galleries.

Crow states

When London's biggest contemporary art show, the Frieze Art Fair, opens next week, a group of psychics will be on hand to help visitors conjure advice from late greats like Vincent van Gogh. One likely question: Is it safe to go shopping again?

 

The global art market began recovering this spring, but dealers say collectors returned first to the auction houses, where art often comes with a reassuring track record of past sales. Contemporary art galleries have had a tougher season since they must convince buyers to invest in untested newcomers.

To read the full article, click HERE.

Consumer Confience - Economic News

(TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.)  
 
Given that we here at the AW Blog are working on developing a professionally developed and practical fine and decorative arts confidence survey I thought I would post on the Conference Boards September Consumer Confidence Survey,  although the responses are not positive for the economy. The September figures were posted about a week ago, and given how consumer confidence and expectations can greatly impact our appraisal practices it is something we should be aware of. Unfortunately, the September figures are not strong, with confidence levels dropping from an indexed figure of 53.2 in August, to 48.5 in September. In addition to the main confidence index declining there were declines in the present index, and perhaps even worse news is the expectations index dropped from 72 to 65.4.


I wish there was better news to report, but unfortunately, that is not the case.  I know many appraisers are finding it difficult to find clients, it I believe the decline is widespread between many small and independent businesses.  I was talking with a business neighbor that is just up the street from my shop, an architect. He stated he was advertising and promoting his business with little to show in return, thinking he was doing something run, but after careful analysis  he then came to the conclusion it was not him or what he was doing, but the effects of the economy.  He is right, its not solely us as appraisers, but the state of the economy and the low levels of confidence as shown in the recent Conference Board survey.
The Conference Board states

Says Lynn Franco, Director of The Conference Board Consumer Research Center: “September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook. Overall, consumers’ confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months.”

Consumers’ assessment of current conditions weakened further in September. Those saying business conditions are “bad” increased to 46.1 percent from 42.3 percent, while those claiming business conditions are “good” declined to 8.1 percent from 8.4 percent. Consumers’ appraisal of the labor market was also less favorable. Those claiming jobs are “hard to get” rose to 46.1 percent from 45.5 percent, while those stating jobs are “plentiful” decreased to 3.8 percent from 4.0 percent.

Consumers’ expectations took a turn for the worse in September. The percentage of consumers expecting business conditions will worsen over the next six months rose to 16.4 percent from 13.4 percent, while those anticipating business conditions will improve declined to 14.9 percent from 16.9 percent.

Consumers are also more pessimistic about future employment prospects. Those expecting more jobs in the months ahead remained essentially unchanged at 14.5 percent in September, compared to 14.7 percent in August. However, those anticipating fewer jobs increased to 22.7 percent from 19.6 percent. The proportion of consumers expecting an increase in their incomes declined slightly to 10.2 percent from 10.6 percent.

Sotheby's Mobile

(TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.)  

Sotheby's has just announced that much of its website has now been optimized for smartphone usage. Christie's has had a specific native application for the iPhone and now Sotheby's has made the leap into the mobile market as well. As the large auction house development of mobile programs shows, smartphone usage and mobile connections to the internet are directly linked.  Mobile computing has become one of the main viewing and interactive solutions for many collectors.   Appraisers need to be aware of this trend and ensure they have the proper mix of online exposure through website, social media, and content management.

The Sotheby's smartphone is a web based application and is not a native application designed for a specific smartphone operating system. That means the application should work on all smart phones and be optimized for the small screen size. The full site is not available which is too bad as it would be nice to have the full past auction database and search function.  It does list upcoming sales and recent closed sales with results.

To access the new Sotheby’s mobile site, visit www.sothebys.com on your smartphone web browser.

Survey Progress

The response to the new Appraiser Workshops Fine and Decorative Arts Market Confidence Survey has been very positive. As a test program and experiment in interactivity for the AW Blog, it has certainly shown the readers of the AW Blog can and will interact and supply valuable information.

I am going to keep the survey up until the end of next week, then compile the final results and develop graphs for each category showing the results.  I also  plan on using the calculations for an ongoing index for tracking and trend analysis. I will place the full list of categories and results on the blog. 

With this survey and results, appraisers should obtain a strong indication of market trends, excellent for inclusion in a market analysis for appraisal reports.  Appraisers are always looking for ways to document market trends, currently much information is anecdotal, especially for the decorative arts.  The survey results are an excellent tool for appraisers to use when analyzing and documenting the confidence levels of the fine and decorative art markets.

The below table shows some of the results for three of the survey categories, Fine Art Middle Market, Fine Art Upper Market and Household Contents.  It is easy to see that confidence is very strong in the Fine Art Upper market sector, neutral to negative for Fine Art Middle and negative for Household contents.

Category	Positive	Negative	Neutral
FA Middle	9%	32%	43%
FA Upper	85%	5%	10%
Household Contents	14%	62%	24%

More results for all of the categories to come after I close the survey next week.  If you have not taken the survey please take a few minutes to do so.  The more results and answers we have, the greater the significance of the responses. Click HERE to take the Appraiser Workshops Fine and Decorative Arts Market Confidence Survey.

I would like to thank everyone who took the time to complete the survey. The results are excellent and the collected data and output will be very useful to our profession.

Results: Sotheby's Chatsworth, The Attic Sale

(TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.)  

Sotheby's just completed a three day sale at Chatsworth, one of the estates belonging to the Duke of Devonshire. The sale was to raise money so the Duke can make improvements to Chatsworth as well as other properties he owns. As in the past with large and historic estates, known collections and provenance, the interest was strong, the bidding was competitive and the prices realized were above expectations.

Pre sale estimates expected the three day on site sale to total $4 million. When the last lot was sold, the three day sales totaled over $10 million. The sale offered 1,416 lots, with an amazing 1,391 selling. Only 25 lots failed to sell, for a sell through rate of over 98%. The top lot was a George II carved white marble chimneypiece,circa 1735, the design attributed to William Kent, possibly carved by John Boson. It sold for $893,000.00. This set a record for a chimneypiece at auction. The top ten items sold between $172,000 and $893,000.  The sale included primarily fine and decorative arts, and architectural pieces.

Sotheby's also reported on the sale

Number of helicopters that landed by the marquee: 12

Number of horseboxes used to collect lots purchased at the sale: 15

Number of people who came to the pre-sale exhibition: nearly 6,000

Number of catalogues sold prior to the sale: 12,500 Number of clients who bid at the sale: 1,719

comprising:

Bidders in the room: 915

Absentee bidders: 254

Telephone bidders: 180

Clients registered to bid online: 250

Lots sold to online bidders: 120, ranging from £50 to £42,500

Lot with the highest number of individual bids: lot 1339 (Dowager Duchess’s brooch), 80 bidders

Sotheby's Divine Comedy

(TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.)  

Alexandra Peers has a review of the Sotheby's Divine Comedy exhibition which recently opened at the auction houses NY headquarters. The exhibition is a mix of art based around Dante's poem of afterlife including Hell, Purgatory, and Heaven.

As reported early in an AW Blog post, the exhibition is offering many of the items for sale.  Many of the pieces have originated from art galleries.  This continues with the blurring of lines between auction houses and retail galleries.  Sotheby’s has the exhibition prominently displayed on its website home page.   In this instance there almost seems to be partnership between the two.  Thinking outside the box.

Peers reports

Many of the works on view are actually on loan from art galleries—Sperone Westwater and Paul Kasmin among them—seeking to use Sotheby's client list and contacts to market art privately. While it was originally announced that about half of the "Divine Comedy" art is for sale, virtually everything is, Sotheby's later confirmed. Commissions and split of the profits is being decided on a deal-by-deal basis.

 

London dealer Johnny Van Haeften has lent Franz Francken's 17th-century masterpiece Mankind's Eternal Dilemma—The Choice Between Vice and Virtue, which sold at a European auction for about $7 million; he hopes to flip it for $10 million here.

 

The show appears designed to generate controversy and attention—a kneeling Hitler is thrown in for good measure, along with that crucified frog, which is a work by Martin Kippenberger that the Pope actually declared blasphemous in 2008. The auctioneer's celebrity client list was used for the opening party. (The resulting "gets" were Julianne Moore, Emily Mortimer and Alan Cumming.)

 

Ms. Dennison granted the financial motives for the show—"We are an auction house," but said the show had provided viewers the opportunity to see "remarkable works" that otherwise would never have been on public view. As for courting controversy, Ms. Dennison said that's not the case, but "we couldn't ignore art that comments outside established traditions."

To read the full NY Observer article on the Sotheby’s exhibition, click HERE.

Results: Sotheby's Contemporary Asian (Hong Kong)

(TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.)
 
Sotheby's is in the middle of a group of sales being held in Hong Kong. So far, the result, I think as expected, can be considered strong. The Contemporary Asian Art sale totaled $32.8 million, which surpassed the high estimate for the sale of $25.6 million. 38 lots were offered in the sale with 29 selling for a respectable 76% buy through rate. The top lot was Appearance of Crosses - 6 by Ding Yi selling for $1.08 million.  If consolidated results for the Hong Kong sales are released later this week  I will post.
From Sotheby's

Evelyn department velyn Lin, Head of Sotheby's Contemporary Asian Art department, discussing the sale, said: : “We are very pleased with today’s sale in which we established a world record for the artist Zhang Xiaogang whose Chapter of a New Century - Birth of the People’s Republic of China II sold for HK$52.18 million / US$6.69 million.

These results indicate the steadily improving condition of the market; since 2004 buyers have continued to grow in both the sophistication of their tastes and the selectivity of their purchases. Important early contemporary Chinese art in today’s sales fetched very strong and solid prices, which is beneficial and positive for the long-term health of the market.”

Artist Tax Deductions

TAKE THE SURVEY – Don’t forget to take the Appraiser Workshops Fine and Decorative Arts Market Survey.  Click HERE to be part of the survey. Participation in the survey has been very good, but the more input we have, the stronger and more significant the results.  Please take a few minutes and complete the online survey.  Click HERE to take the survey.


Bloomberg has a good article on possible legislation for changing artist charitable donation tax rules. As most appraisers are aware, the current law only allows artists to deduct the cost of materials when donating their art. For years many cultural organizations have lobbied congress to change the law so the artist would be able to deduct the fair market value of their art. Different legislation has been discusses and promoted, but still no action has been taken.

The article does not indicate action will be taken, but there is a decent amount of support for a bill on the hill. The Bloomberg articles notes there are 90 house members co-sponsoring a bill and 23 senators backing a bill by Senator Patrick Lehahy to change the tax code. The current tax law for artist donations has been in effect since 1969. The statics show a large decline in artists gifts when compared to prior to the change in tax law.  This amounts to much lost cultural property for our museums.

This is the first article that I found that looks at both sides of the issue. A point is made that artist would get a double benefit, no income tax to pay on the created work plus a deduction.
The article states

While Congress debates tax cuts, U.S. artists wonder if they’ll ever get the same tax break extended to the people who buy their work.

Ninety lawmakers are co-sponsoring legislation introduced by Representative John Lewis of Georgia and 23 senators are backing Senator Patrick Leahy of Vermont’s measure to change the tax code so that artists can take a deduction for the fair market value of their work when they donate it to a museum, as collectors do.

Before a 1969 change in the tax code, artists did enjoy the same tax benefits as collectors. Now they can deduct only the cost of tools used to create the piece of art, like brushes and canvas.

Representative Lewis, who sits on the tax-writing House Ways and Means Committee, said in an e-mail that “the current tax code has the end result of robbing this nation of so many highly celebrated works.”

In the three years up to 1969, according to art-advocacy group Americans for the Arts, the Museum of Modern Art in New York received 321 gifts from artists; in the three years after, the museum received only 28 works from artists -- a drop of more than 90 percent.

To read the full article, click HERE.

TAKE THE SURVEY

(Click HERE to take the survey.)

The Appraiser Workshops readership following is now to the point where I would like to experiment with online interactive content activities. In this case by initiating a quarterly fine and decorative arts confidence survey.

The number of visitors to the site continues to grow with an increasing subscription base and dedicated readership, populated with professional appraisers, dealers and auction house specialists.  I would now like to leverage that dedicated viewership into occasional interactive online activities that result in newly generated content that is both needed and important to the profession. (Click HERE to take the survey)

Because of the strength in readership and direct access to professional appraisers through the blog I have decided to start a quarterly confidence survey of the fine and decorative arts markets.   As a profession we need to include reliable and useful market data, metrics and statistics in our work product, valuations and market analysis.  The Appraiser Workshops Fine and Decorative Arts Market Confidence Survey should assist appraisers and dealers in documenting confidence and market trends. The survey form  and link will be on the Appraiser Workshops for the next few weeks for those interested in participating.

The survey is a short non-scientific market confidence survey asking what confidence level appraisers have for several market sectors and levels. Initially the survey will be rather basic and elementary in its approach, and should only take a couple of minuets of your time to compete.  I plan on circulating the survey on a quarterly basis. Results will be posted on the on the Appraiser Workshops Blog for all readers to view and hopefully use in preparing market analysis.  (Click HERE to take the survey)

As I get more experienced and as the responses merit I will of course try to improve the survey and expand the questionnaire with more details, specialty areas and potential analysis.

Please take a few moments and answer the survey questions. Dont forget to click on the submit button at the end of the form to record your responses. Click HERE to take the survey. Please feel free to pass along the survey link to other appraisers and dealers to take. The direct link (shortened) to the survey is http://bit.ly/aTrVN7 if you wish to forward the link to a fellow appraiser, dealer or specialist.

Thanks,

Todd
(Click HERE to take the survey.)