The 2010 Art Market Review – artmarkeblog.com

The 2010 Art Market Review – artmarkeblog.com

2010 has been one of the most confusing, unpredictable and unexplainable years for me as an art market analyst. So many of the trends, events and fads that emerged during 2010 did not appear to be caused by the sort of conditions, have the same effects, or follow the same path of logic that one would expect they would given the way things have panned out in past years. This leaves me with no doubt that the art market is evolving at such a rapid pace that there is little point trying to justify or explain the events of today using logic that is based on the progression and events of previous years. In fact, more of the art market events that took place during 2010 appeared to defy logic than ever before. I do, however, strongly believe that one of the reasons that it has become even more difficult to determine what is going on with the art market is that the art market (auction houses in particular) has become adept at making the situation appear much better than it really is. Whether it be by skewing figures or manipulating the way results are perceived – galleries, fairs and auction houses have become the plastic surgeons of the art world.

What has also made 2010 such a hard year to analyse was the contraction, and slow regeneration, of the market for the work of trendy emerging artists and recent works by top contemporary artists – both of which are usually the most global, visible and publicised sectors of the market. As the market moves towards the work of artists with a proven track record, collectors and investors have shifted their focus from the usually dominant and globally relevant contemporary art market to the work of artists from a wide of variety of styles, mediums and movements that cannot appear to have very little in common. This has resulted in a situation where there is not one dominant global trend that art market analysts such as myself can focus on, but a number of smaller and disjointed trends that make reading the market particularly difficult.

A few months ago I wrote a series of posts on what I believed was a move towards a more sentimental art market, which appears to be exactly the direction that the market has headed. General disillusionment with the contemporary art market has sent many collectors and investors take a more sentimental approach to fine art that is characterised by a focus on the safety of more established artists and the familiarity of artists that they can relate to. When art collectors or investors seek safety and familiarity they are most likely to gravitate towards works by artists from the era and culture that they have the greatest connection to. This would explain the large number of seemingly unrelated trends that emerged during 2010 many of which involved previously unfashionable styles and movements that are distinctly associated with a particular era or culture.

There is no doubt that the art market has recovered far quicker than many people thought possible. Again, the unexpectedly rapid recovery has thrown a spanner in the works when it comes to analysing the art market and trying to make sense of what is going on. Some journalists and analysts have gone as far as to admit that they cannot explain how a market that seemed to be at breaking point could make such a rapid recovery. To give you an idea of how quickly the art market has recovered, in March of this year (2010) Walter Robinson, editor of Artnet Magazine, said that “Art Market Watch has been on something of a hiatus during the last few months. What with the recession, reporting on auction results just isn’t as compelling as it was during the boom years”. Six weeks later a painting by Picasso become the most expensive work of art ever sold at auction when it fetched a staggering $106.5 million. A week after that an Andy Warhol self portrait sold at Sotheby’s for $32.6 million (more than twice the estimate) setting a new record for a Warhol self portrait at auction. Compelling enough?

When it comes to rationalising art market events there is much to be gained from knowing who has money to spend and how much they have to spend. The top end of the market is fuelled by super wealthy collectors whose level of wealth would not have been affected enough by the financial crisis to deter them from buying art. Therefore at the high end of the art market things have been pretty solid as is evident from the number of record auction prices set in 2010. The lower end of the market is fuelled by collectors who focus on edgy and trendy contemporary art by emerging and newly established artists, and who will usually have a high level of interest in the cultural and artistic side of fine art. Collectors at the lower end of the market are a very determined group who are always going to be around even if they appear a little less active at times. Things at the lower end have improved but have done so at a less than rapid pace which makes it difficult to judge where this sector of the market is heading. Without a doubt the sector of the art market that has suffered for the longest period of time due to the effects of the global financial crisis and the art market downturn is the middle market. The middle market includes lesser works by big name artists, and the more expensive (less justifiable) works by the trendy contemporary artists, which makes the middle market a sort of currently un-necessary compromise for the super rich, and a stretch too far for the modestly well off. Middle market works are, however, perfect for the financial advisor and hedge fund manager types who are more interested in art as a status symbol than the quality or art historical importance of the works they are buying. With the pay packets of hedge fund managers and financial advisors taking a massive hit due to the financial crisis, there is little interest in the middle market works. The super rich are still rich enough to not have to compromise and settle for middle market works and the modestly well off continue to fuel the lower end of the market.
My next post will be the top ten art market 2010 so stay tuned……..

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

Halsey Minor Battles Sotheby’s Again – artmarketblog.com

Halsey Minor Battles Sotheby’s Again – artmarketblog.com

In my previous post I made reference to a court case involving CNet founder Halsey Minor who sued Sotheby’s in 2008 for allegedly failing to fully declare when they had an ownership stake in works that they sold him. Sotheby’s won the case and were awarded $6.64 million in outstanding debts. I mentioned that I was not aware of whether Minor had appealed the decision – well, just after publishing this post, I received an email from Halsey Minor to inform me that he had in fact made an appeal on the 24th of November 2010.  Minor will be hoping for another positive outcome like the one he received when he sued Christie’s in December 2008 for waiting too long to return some of his art after failing to sell the works on his behalf, and not returning the works when they said they would.  Minor won the case against Christie’s and was awarded $8.5 million which was the calculated drop in value that the works in question experienced while in Christie’s possession. According to Minor in an email sent to myself: “in 8 hours a jury found Christie’s guilty of Fraud, Theft and Failure to Honor a Contract and awarded me $8.5 million”.

As the appeal against Sotheby’s is still being processed I cannot comment on the case, but I would like to revisit the case Minor won against Christie’s.   The reasoning behind Christie’s holding the paintings by Richard Prince that Minor had consigned to Christie’s, but had failed to sell, was that Minor owed Christie’s $12 million at the time for works that he had purchased through the auction house.  Christie’s essentially held the Prince paintings to ransom in the hope that they would be able to recoup some of the money that Minor owed them.  Unfortunately for Christie’s, this was not an ethical means of encouraging Minor to pay them what he owed, and was what essentially won the case for Minor.  Christie’s also had a $1.5 million breach of contract counterclaim for when Minor declined to pay for work that he had purchased at auction which Christie’s won.  Mind you, the win for Christie’s was no-where near as significant as Minor’s win.

At the end of the day one expects a reputable and highly respected business like a major auction house to act ethically, morally and legally at all times regardless of how their clients act.  Although I would never condone illegal or immoral action by a client of an auction house, considering the number of clients that the large auction houses deal with it is almost inevitable that some of them will not play by the rules.  A major auction house, on the other hand, should never be seen to conduct their business in a way that breaches ethical, moral or legal boundaries – yet there is plenty of evidence that they have.  What is even more disturbing is that the auction houses are so powerful that even the most discrediting mud seems not to stick.

To be continued……..

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

Do Art Auction Houses Camouflage Results? – artmarketblog.com

Do Art Auction Houses Camouflage Results? – artmarketblog.com

I received an email on December 2nd from one of Australia’s leading art auction houses, Menzies Art Brands, with the subject ‘Defamation Alleged’. The email read:

DEFAMATION ALLEGED

Menzies would like to bring to your attention this story on Page 10 of The Age newspaper today:

LEADING art auctioneer Rod Menzies has described as ”scurrilous” allegations made by Robert Le Tet and Rick Anderson about his business practices, in The Age yesterday.

Mr Menzies, an entrepreneur, cleaning business tycoon and owner of Menzies Art Brands, said he ”always honoured every deal” and was ”well known for carrying out every commitment and for his integrity”.

He said he observed the ”highest ethical standards” and denied suggestions to the contrary. He said in a statement that he had instructed his lawyers to start proceedings for defamation and damages claiming $38 million.

Enquiries
sydney@menziesartbrands.com

Before we continue, this is not the first time that allegations have been made regarding Menzies’ business practices. In 2008 complaints were made by other auction houses in Australia regarding Menzies’ alleged failure to adequately disclose details regarding guarantees provided by Menzies, as well as details regarding works being sold by Menzies that Menzies either owned or had a share in. Menzies denied the charges which were dropped in March of this year by the Australian Competition and Consumer Commission.

This time around, Menzies is being accused of misleading reporting of art sales through his auction house. The accusations were aired in the Melbourne, Australia based newspaper ‘The Age’ where details of a transaction involving a painting by Brett Whiteley, one of Australia’s most famous and valuable artists, were questioned. According to The Age, the painting in question was reported by Menzies Art Brands as having been sold in Sydney on the 25th of March for A$1.44 million. Apparently, however, only two months later Mr. Menzies was offering the painting in question for sale privately through his company for A$1.25 million, which suggests that it wasn’t sold at all. It is then alleged that Mr. Menzies struck a deal with a collector, named as a Mr. Anderson, to swap the Whiteley painting, and another painting, for two paintings owned by the collector. The swap apparently took place in June of this year.

If this allegation wasn’t enough, ‘The Age’ alleges further issues regarding ownership of the Whiteley painting. Apparently a Melbourne financier launched a court case to retrieve the Whiteley painting, which he claims he owns because his company, Questco Pty Ltd. , loaned money to an art dealer to purchase the Whiteley painting – a dealer who is now having financial difficulties. The Melbourne financier apparently then asked Menzies to sell the painting through private treaty for A$1.25 million, but Menzies reneged on the deal a short time later. Menzies is being accused of then returning the painting to the dealer, not the financier, and purchasing it off the dealer for A$850,000. Mr. Menzies then put the painting up for sale in March of this year, which is where this story began. Menzies sought to retrieve the painting from Mr. Anderson whom he sold the painting to by private treaty and apparently even offered several other paintings in exchange which had also been reported as having been sold at auction. Mr. Anderson has so far declined to return the painting.

According to the article in ‘The Age’:

Mr Anderson claimed Mr Menzies has been ”ramping” up the art auction market, and he said it was in the public interest to know how the prominent auctioneer operated: ”He reported the Whiteley painting as sold and then he offered it to me for $200,000 less than what it was supposedly sold for at auction,”.

No charges have been laid against Mr. Menzies or his company and, as you can see from the email I was sent, Mr. Menzies strongly denies the allegations made against him and his company. The question of who is telling the truth will presumably come to light if the defamation case goes ahead.

The reason that I have alerted you to this case is that I have been on a bit of an art auction house crusade of late in an attempt to inform the public about what goes on behind the scenes and hopefully encourage the art auction houses to be more transparent and ethical with their dealings. With transparency being one of the biggest issues, I thought it was important to highlight this case even though none of the allegations have been confirmed as being true.  I will be doing a series on this issue as there are lots of allegations to cover.

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

The Art Auction House Sin Files – artmarketblog.com

The Art Auction House Sin Files – artmarketblog.com

Where does it all end? When will people realise that although the questionable practices exhibited by some auction houses are legal, they should not be tolerated? How far will art auction houses be able to go before someone steps in and says ENOUGH IS ENOUGH !! Let’s take a look at the history of sins committed, and those allegedly committed, by the big three art auction houses.

The most famous art auction house scandal took place in 2000 when Christie’s and Sotheby’s were dragged through the mud because of allegations that they had formed a “cartel” and were agreeing in advance to fix commission rates. The price-fixing scheme violated federal antitrust law by eliminating competitive choice and cost customers millions of dollars. Christie’s dobbed on Sotheby’s and were given immunity from prosecution for their information. Sotheby’s ended up taking most of the flak with several senior members getting the boot and two senior managers, A. Alfred Taubman and Dede Brooks, both getting jail sentences. Sotheby’s, Christie’s and their owners also paid a civil lawsuit settlement of $512 million.

In September of 2004, Forbes magazine reported that Christie’s were allegedly withholding information regarding the authenticity of objects from clients. These allegations were made by Canadian newspaper heiress Taylor Lynne Thomson who went on to sue Christie’s. According to Forbes magazine: “Thomson sued and British courts ruled in May that Christie’s had been too lax in its catalog description, leaving out qualifications to its classification of the urns as being “Louis XV.” The judge highlighted the auction specialists’ decision to remove the qualifying words “possibly Italian,” which would’ve raised the possibility of the urns being far less valuable 19th-century copies.”

Christie’s controversial purchase of the highly regarded gallery Haunch of Venison in 2007 caused a flurry of opinions, many of called the sale a conflict of interest and accused Christie’s of blurring the lines between what galleries and auction houses offer. Christie’s wasn’t the first auction house to purchase a gallery though as Sothebys also made a foray into the gallery world by purchasing Noortman Master Paintings in 2006.

In 2008, CNet founder Halsey Minor sued Sotheby’s for allegedly failing to fully declare when they had an ownership stake in works that they were selling. Sotheby’s won the case and were awarded $6.64 million in outstanding debts. Minor can appeal but, as far as I know, has yet to do so.

In February of this year Christie’s allegedly settled with a brother and sister who sued Christie’s for allegedly failing to identify a painting that they consigned to the auction house as being by Titian. The painting was sold for £8,000 by Christie’s in 1993 as a painting ‘from the school of Titian’. It was determined after the painting had been sold by Christie’s that it was in fact a genuine Titian which was worth in the region of 4 million pounds. The siblings claimed that Christie’s failed to competently research and advise on the painting’s value when it was sold in 1993.

In May of this year (2010), Jeanne Marchig, a Swiss animal philanthropist, launched a law suit against Christie’s for failing to identify a painting owned by Marchig, which was sold by Christie’s for $19,500 in 1998, as a painting by Leonardo worth upwards of 100 million pounds. Christie’s sold the painting as a mere ‘19th century German’ work for which Marchig is suing Christie’s for ‘wilful refusal and failure to investigate the plaintiff’s believed attribution, to comply with its fiduciary obligations, negligence, breach of warrant to attribute the drawing correctly, and making false statements in connection with the auction and sale’. Christie’s disagrees with the claims that the painting is a Leonardo. Reaching an outcome with this case is likely to take quite a while.

The most recent art auction scandal involves auction house Phillips de Pury and their ‘Carte Blanche’ sale which took place on November the 8th (2010). So many issues have been raised in relation to this auction that it would take a series of posts to explain them all so I will only mention the most serious allegations. To begin with, the so called “curator” of the auction, Philippe Ségalot, not only was directly responsible for negotiating and organising the consignment of works for the sale, but he also advised some of the buyers – a situation that could be seen as a serious conflict of interest. If this wasn’t enough of a conflict of interest, Segalot is reported to have bid on works himself presumably on behalf of his clients. There have also been several reports that the auctioneer on the night, Simon de Pury, failed to make it clear to the audience when works failed to sell, which auctioneers are legally required to do. By failing to announce the failure of a work to sell the auctioneer could be seen to be attempting to deceive the audience by inducing a false sense of success and excitement.

These are only a few of the more serious scandals that have arisen as a result of some questionable tactics and practices adopted by the world’s top art auction houses. Are these the sort of businesses that you want to business with? Would you trust such a company to treat you fairly and honestly? I have made it my mission to make art collectors and investors more aware of what is happening in the art auction world and hopefully at the same time encourage the art auction houses to be more honest, ethical and transparent. Stay tuned, there is more to come………

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

Are Art Auction Houses Mocking Art Buyers? – artmarketblog.com

Are Art Auction Houses Mocking Art Buyers? – artmarketblog.com

A couple of posts ago I said that I have great respect for art auction houses – well, after the events of the last few weeks that respect is rapidly declining. If you have read my last few posts on contemporary art auctions then you will know that I have issues with the way some auction houses conduct their business. Unfortunately, over the last few days it has come to my attention that the problems that I identified are only the tip of the iceberg. Not only does there seem to be the potential for art auction buyers to be influenced by incorrectly categorised and catalogued works, but apparently some auction houses now appear to conducting auctions in a manner that suggests that art buyers are unable to make decisions for themselves when buying at auction, and need to be told what they should be buying. There are two recent events that have lead me to this opinion the first being the Phillips De Pury “Carte Blanche” auction, and the second being the recent Sotheby’s November contemporary art auction.  Before I begin I want to state that the following is purely my opinion and not in any way a statement of fact.

A comment by Alex Rotter, head of the Contemporary Art Department at Sotheby’s in New York, was the first indication I received that the extent to which auction houses are influencing what buyers purchase may have increased recently. Yes, auction houses have been influencing what art buyers purchase for many years, and as businesses are more than entitled to do so, but it seems that they have begun to exert an even stronger influence of late with the seemingly blatant tactics that have caused me to write this post. According to Rotter, commenting on the Sotheby’s November contemporary art auction, “The success of tonight’s sale was the result of editing – getting the right young, Pop and Abstract Expressionist material into the sale”. So, is this an indication that auction houses are doing something that I am sure many suspect they have been doing for some time – deliberately orchestrating sales to encourage potential buyers to pay more for works than they should, or purchase works that they didn’t originally intend to buy? Is Rotter suggesting that by including a certain array of works, and arranging the catalogue in a particular way, that the auction houses are able to influence buying behaviour? Or, is he suggesting that the contemporary art sales are so carefully planned to ensure that the auction consists of works that they know they have buyers for, that they auction house can guarantee themselves a successful sale before the sale has taken place? Or is the meaning of this comment something else entirely? I will leave the answers to these questions up to you for the mean time. Food for thought though……

Now for the “Carte Blanche” sale. Having a themed auction that allows buyers who are looking for something very specific to be offered a range of related objects is something that I have no problem with; Phillips often hold themed sales such as their music themed sales. I do, however, have issues with a blatant marketing tactic being masked as a cultural and curatorial exercise, which appears to be what has taken place with the Phillips De Pury “Carte Blanche” sale. Philippe Segalot, the so called “curator” of the sale, is quoted as saying in a Phillips De Pury press release that:

“I have always been interested in the concept of curated sales, where the artworks are selected not for their market value but for their artistic quality, historical importance and coherence within the group. Here, I tried to push this idea further by bringing together a small “collection” comprised of my favourite works by my favorite artists. The result is a true self-portrait, a close representation of my life as an art lover, an art collector and an art advisor.”

To begin with, I have a problem with the notion that such a wide range of Segalot’s favourite works from his favourite artists just happened to be available for sale at the right time. AmI really to believe that the owners of Segalot’s favourite works of art were for some reason willing to sell those works just because he asked nicely? Phillips De Pury mentioned in the same press release that I got the above quote from that “He (referring to Segalot) has developed the Carte Blanche sale with the same focus and attention to quality that a private collector would develop their own collection”. So, Segalot spent 50 years putting this sale together did he? Secondly, I have a problem with Segalot suggesting that the mechanics of the sale were not financially motivated – I mean why else would an auction house hold such a sale? It is not as though the sale had any art historical or cultural significance, yet Segalot seems to be suggesting that it does. Thirdly, and perhaps most importantly, I have a huge issue with Phillips De Pury suggesting, in my opinion, that buyers need someone like Segalot to tell them what they should be buying. Because the auction houses seem to be making such an effort to dictate buying trends, there is a huge risk of the works associated with these trends dropping in value significantly when the auction houses move onto promoting the next profitable trend. I believe that the more the decision of what to purchase is taken out of the hands of the collectors and investors, the less stable and sustainable the art market becomes. The reasoning behind this philosophy is that collectors (and even investors) create and strengthen long term trends whereas the market is interested in making as much money from whatever trend seems most profitable at the current time.

The reason that I have such a problem with the developing and strengthening trend of auction houses dictating what art people should be buying, and encouraging buyers to pay more than they should be paying for works of art, is that some time in the future the buyers who fell for this ploy will likely find out that they paid too much. What Phillips De Pury seem to be inferring with their “Carte Blanche” sale is that the works included in the sale somehow become more valuable or desirable because they were chosen by a well known and respected art world figure. And, judging by the success of the sale, plenty of buyers fell for the ploy. I just hope these buyers don’t expect to be able to recoup what they spent anytime soon.

There are even more issues with the “Carte Blanche” sale than the ones I have outlined, but those will have to wait for another post.

Disclaimer: Auction houses are well within their rights to conduct their business in the ways that I have discussed above.  I do not claim to have any proof that the auction houses are doing anything wrong, but am merely raising questions in the hope that they encourage discussion and dialogue.  The above post is purely my opinion and is in no way a statement of fact.

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

A New Sentimental Art Market Era Pt. 4 -artmarketblog.com

A New Sentimental Art Market Era Pt. 4 -artmarketblog.com

It has been said before that nostalgia prospers during recessionary times so, considering that the western world has just begun to recover from a major recessionary period, it would make sense that the art market is trending towards a focus on the nostalgic and sentimental.  The length of time that this era of sentimentality and nostalgia will last is anyone’s guess, but given that the boom lasted longer than most expected, the recovery time for the contemporary sector of the market could be just as long – except that it probably won’t be.  It would be nice to be able to report that the saying ‘Once Bitten, Twice Shy’ applies to the contemporary art market but, unfortunately, there are signs that the next puppets are already being groomed in preparation for the next inevitable contemporary cozenage.  The only question is how long it will take for the art market to once again become hypnotised by the glitz and glamour of the consumerist contemporary art regime.  In the mean time, it is great to see a level of intimacy, passion and involvement being brought back into the market that was conspicuously absent during the contemporary driven boom.

According to an article titled ‘Investors renew passion for modern masters’ ,which appeared in the Guardian newspaper, “When an alluring seated nude, La Belle Romaine, broke all records for a painting by the Italian artist Modigliani on Tuesday – selling for $69m (£42.7m) at auction in New York – the extraordinary price tag marked a historic moment in the art market. It shows that investors are turning back to the relative certainties of the modern masters and away from more risky contemporary art”.  This statement confirms that buyers are taking a much more cautious approach to the art market by buying works that they are more familiar with and have some sort of affinity with – a key characteristic of a sentimental art market era.  The care and thought that buyers are exhibiting when making purchases shows that they are seeking a much more intimate and passionate connection with the works of art that they are purchasing which is a trend that one would expect to see during a sentimental art market era.  Another key characteristic of this sentimental art market era is a sort of nationalistic sentimentalism that is likely to emerge as disillusioned collectors and investors who experienced the contemporary art market correction seek more genuine and justifiable reasons for purchasing works of art – reasons that provide a more fulfilling, intimate and involved art collecting experience as opposed to the cold and calculated commercialism that characterised the contemporary art market boom. Nationalistic sentimentalism can be defined as the purchase of works of art from one’s own country out of a sense of pride and sentimentality.

Both these characteristics allude to a market that is seeking a more intimate and involved connection with the works of art they are collecting or investing in.  I would expect that this trend will continue to develop throughout 2011 as the global art market attempts to heal the wounds that the emerging contemporary art market bubble inflicted.  This will be the last post on this topic for the time being unless any further corroborating indicators come to light.

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

A New Sentimental Art Market Era Pt. 3 – artmarketblog.com

A New Sentimental Art Market Era Pt. 3 – artmarketblog.com

If you want some further examples of the sentimental and nostalgic direction that the art market is beginning to take then I shall provide you with two more. The first example is the direction that the Australian Aboriginal art market has taken recently in response to a severe drop in prices and a major change in perception caused by several factors that I will discuss shortly. Australian Aboriginal art experienced a huge boom roughly in conjunction with the global contemporary art market boom, which saw prices for Australian Aboriginal art skyrocket, and the market for said works expand at a rapid rate. Unfortunately, that boom turned to a spectacular bust for much the same reasons and at roughly the same time that the global contemporary art market took a massive hit.

Much like the global contemporary art market, the Australian Aboriginal art market boom saturated the market with a plethora of rubbish, which in turn diluted the overall quality and relevance of the works of Australian Aboriginal art that were available on the market. Although it may seem that such a situation would serve to increase the value and desirability of the top quality works, it is just as likely (if not more likely) to make people question the value of the entire market and become rather disillusioned with the whole sector or genre – which is exactly what happened. Rampant fakery, forgery and mimicry, combined with obstructive and useless attempts at regulating the Australian Aboriginal art market, caused collectors and investors to fly the white flag of defeat in the face of seemingly insurmountable obstructions. As an indication of how far the Aboriginal art market has fallen as result of the problems associated with the market, the Australian Art Sales Digest has calculated that the value of Aboriginal art put up for auction has fallen from a high of just under $24 million in 2007 to just under $11 million in 2009. 2010 is shaping up to be yet another disappointing year for Australian Aboriginal art with total auction offerings likely to be even less than last 2009.

In response to the rather dire situation that the Australian Aboriginal art market is facing, the market and cultural sector has begun to focus on the Aboriginal master artists of the past who were the real reason that Aboriginal art became so popular. With most art movements and styles there are a small group of artists who pioneer the movement/style and whose work is considered to be the most legitimate and authentic. As a new movement/style progresses it is inevitable that other artists will begin to imitate the characteristics of the work of the pioneering artists in the hope of reproducing their success. In conjunction with the progression of that movement/style there is a tendency for the original purpose and intent of that movement/style to become severely diluted as more and more artists join the procession. The further the movement/style progresses, the more disconnected the movement/style becomes from the original purpose and intention. This is what happened with the Aboriginal art market and also with the global contemporary art market. Fixing such a problem means regaining the integrity, legitimacy and validity that the movement /style once had. To regain the integrity and legitimacy of the beginnings of a movement/style one must return to the roots of that movement/style – a process that is happening with the Australian Aboriginal art market and the global contemporary art market. Australian Aboriginal art dealers and other interested parties have begun to “rediscover ” the work of the early pioneers and disassociate themselves with the work of the plethora of imitators. Because most of the original Aboriginal master artists are either dead or very elderly so focussing on this sector of the market is a very sentimental affair indeed – especially for the families of the deceased artists.

The other example I want to use is the recent reconnection that the French have made with Monet – one of their most famous sons. Although the western world has embraced Monet and made him one of the most valued and respected artists to have ever laid paint to canvas, the French have long considered his work to be far too commercial for their sophisticated tastes. The Paris’ Galleries Nationales recently launched the first retrospective of Monet’s work since 1980 in the hope of reviving interest in the work of one of the world’s most highly valued artists. What makes this exhibition so significant is the reasoning behind the decision to hold this exhibition at this particular time. Guy Cogeval was appointed to the Presidency of the Musee d’Orsay in 2008 and is the curator of the Monet exhibition which is currently on show at the Grand Palais in Paris. When Cogeval was asked by Juliette Soulez of ARTINFO France (fr.artinfo.com): Why have a Claude Monet retrospective today?, Cogeval replied “Fifteen years ago, I personally felt that everything had been said about Monet and that people talked about him too much. I lived in North America for eight years and there were many Monet shows — it was almost a craze”. Then when asked if he was happy with the retrospective, Cogeval said “Overwhelmingly, visitors walking through this exhibition — including Impressionist specialists and college professors and my fellow curators — feel that they’re seeing a Monet they didn’t know before”. Both these statements suggest to me that a similar thing happened to Monet to what happened to the Australian Aboriginal art market and the global contemporary art market. It seems that a long period of western commercialisation of Monet’s work combined with what was essentially an overabundance of Monet focused scholarship effected a gradual diversion away from the “real” Monet.

The French, who were on the outside looking in, obviously cottoned on to what was happening to people’s perception of Monet’s work and were quite rightly disgusted by what was happening. I recently read a review of a book called The Unknown Monet: Pastels and Drawings by Grace Seiberling of the University of Rochester who I think summed up the situation perfectly when she said about the book that: “Their focus on Monet as an artistic genius is in accord with the demands of a particular kind of inquiry into Impressionism, connected with museum exhibitions, and focused on the formal achievements of the sort of artistic superstars who attract paying visitors”. What Guy Cogeval is doing is taking a sentimental and nostalgic approach to Monet’s work in the hope that it will fix the damage that has been done.

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

A New Sentimental Art Market Era Pt. 2 – artmarketblog.com

A New Sentimental Art Market Era Pt. 2 – artmarketblog.com

The demise of the world famous Polaroid Company, and the subsequent sale of many iconic and nostalgic images from the Polaroid Company collection, is yet another example of an event that ties in with the onset of a new sentimental art market era that I began writing about in my previous post. A casualty of the digital age, the bankrupt Polaroid Company was forced to sell off 1200 photographs by artists such as Ansel Adams, Mr. Close, Mr. Wegman, Robert Rauschenberg, David Hockney, Robert Frank, Robert Mapplethorpe, Warhol and Lucas Samaras to pay off creditors. The June 2010 sale conducted by Sotheby’s attracted huge interested and managed to exceed expectations with a final total of $12.5 million – well above the high estimate – and a new auction record for Ansel Adams whose ‘Clearing Winter Storm, Yosemite National Park’ achieved the sale’s top price of $722,500. Along with the sale of the Lehman Brothers collection, the sale of the Polaroid collection is yet another art market event that evokes a sense of nostalgia; the sale of the Polaroid collection was a particularly sentimental occasion because it essentially represented the demise of an entire artistic medium. Together, these two events signalled the beginning of the end of an era that started with the art market losing its innocence with the Sotheby’s price fixing scandal that surfaced in 2000, and the world losing its innocence with the life changing events of 11th September 2001.

The art market era we are in the process of farewelling will be remembered for three things: the rise of emerging markets, conspicuous consumption and a voracious appetite for the work of daring young contemporary artists. As much as I am enjoying an art market far less obsessed with daring young artists and conspicuous consumption, I am sure that we have not seen the last of either of them. I do, however, believe that we have almost seen the last of the mania associated with emerging markets. The maturation of what were some of the last undeveloped art markets capable of playing on the world stage makes me think that the global art market of the future may be struggle to fill the void that these now rapidly developing markets have left. South East Asian countries such as Vietnam, Indonesia, Singapore, the Philippines and Malaysia have all experienced rapid rates of art market development that have thrust many artists from these countries onto the world stage. Also experiencing considerable development are markets in regions such as Latin-America and the Middle East. Even China is taking steps to develop a more mature and accountable art market with the development of an art trading organization that will set an example in helping to regulate the art market. The Beijing Imperial City Art Trading Center is, according to an article from Xinhuanet, a “two-story art-trading center covers 3,700 square meters and includes different sections for displaying, trading and education”.

Sentimentality is an unavoidable consequence of the maturation process that the few previously undeveloped art markets have undergone over the last few years. The hype that usually surrounds the “discovery” of an untapped, undeveloped art market has to be replaced by something when there are no longer any underdeveloped markets to discover. Those previously undeveloped markets also need to replace the momentum that an emerging, developing market experiences with a more long term and sustainable source of momentum. Emerging art markets are usually developed using fresh, emerging talent because it is easier to introduce unknown fresh talent into the contemporary art market than it is to introduce unknown (from a global perspective) established masters to the modern/classical art market. As one would expect, when the momentum associated with an emerging art market runs dry, that market will begin looking to the past for new sources of momentum and thus automatically develop a more sentimental and nostalgic market.

To be continued……………..

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

Social Networking for Art Collectors Update – artmarketblog.com

Social Networking for Art Collectors Update – artmarketblog.com

social-networkThis is an update of my previous post with a few new additions. Social networks are all the rage at the moment so I thought that I would put together a list of the top social networks that would be of benefit to art collectors and art investors. Joining a social network gives you access to the knowledge of other art collectors and investors as well as the opportunity to view the work of artists from all over the world.  Below is a list of the top ten social networking sights that cater specifically to people interested in visual art.

http://www.openartcollection.com/

Open up your collection — and reap the rewards. By sharing your collection with other members you can nurture a network of fans and followers. As a collector you will benefit from the feedback and input of discerning art lovers, which could raise the profile of your work.

http://www.artween.com/

Register for free and you can link up with all the galleries that enthuse you and receive their latest news, as well as invitations to events. You can also discover artists from close to home or further afield and give international exposure to your own art before a public which is inspired by a common passion: art.

http://artkabinett.com/

Make new art friends from around the corner or globe. Discuss, blog, critique, and interact with other fine art enthusiasts just like you. Join the world’s free and fun social network which allows independent savvy collectors to link up and share their passion for art!

http://fineartamerica.com/communicate.html

FineArtAmerica.com is home to more than 10,000 artists, art collectors, and gallery owners from around the world.   Each day, these members are busy: posting new artwork, participating in online discussions, issuing press releases, advertising upcoming events, forming new art groups, chatting live online, and much more!

http://www.myartspace.com
myartspace is an online community with more than 50,000 artists, collectors, students, teachers, gallerists, curators, critics and art appreciators across the world. myartspace is free and open to all. Members can create a profile of themselves and upload an unlimited quantity of their work including images, music, audio narration and video.

http://www.artreview.com
artreview.com is an exciting new social networking site for the artworld, creating a global forum for discussion, interactivity and debate. artreview.com is a unique blend of editorial and community content, combining the insight and critical weight of some of today’s most important artworld voices with the input and opinions of everyday enthusiasts from around the world.

http://www.artmesh.org
#artmesh is an inspiring and innovative network for those who live and love the fine arts. The difference to other art communities is the fact that – additionally to just showcasing artist’s work – #artmesh focuses on the interests of art lovers and art professionals as well.#artmesh is about communication and collaboration, about inspiration and the exploration of the boundless possibilities of a progressive and innovative virtual art-network.

http://www.artslant.com
ArtSlant.com, the #1 contemporary art network, launched in Los Angeles in February, 2007. It is a sophisticated website that brings a local and in-depth focus to the contemporary art scene. ArtSlant’s profiles put the spotlight on everyone in the art community. Artists, art professionals, art orgs, and art lovers can have their own showcase to exhibit their work, expose their business or talk about their involvement in the scene. In our community you will also find picks and reviews, jobs and opportunities, schools, blogs, and groups.

http://www.artlog.com
Artlog is the place for you to connect with folks, share your work and discover innovative new art & design. Artlog is for art makers, insiders, organizations and art lovers. This global community of art lovers, artists and industry insiders is only as vibrant as you make it. So follow interesting artists, make professional connections, post your work and let your voice be heard – “If you see something, say something!

http://www.independent-collectors.com/
Independent Collectors is an online tool targeted at modern and inquisitive collectors. It makes building a personal network and sharing information about topics like artists, galleries or events much easier and faster. In their personal profiles, collectors can talk about art preferences and present their own collection. Specific search functions help to find like-minded collectors or those living in the same area.

http://www.artselector.com
The artselector contemporary fine art collective was originally set up by MA Fine Art graduates of Central Saint Martins College of Art and Design and the Royal College of Art. artselector offers an innovative visual directory of international contemporary fine artists, independent curators and galleries

http://www.rhizome.org
Rhizome’s community includes thousands of artists, academics, curators, critics, and other new media art enthusiasts. Profiles is a collection of community profiles that contains artist portfolios, blogs, biographies, and other details on each individual member. Profiles was developed in the hope of sparking connections and collaborations across regional or cultural boundaries and strengthening the new media art scene as a whole.

http://www.labforculture.org/en/labforculture/browse
We work with and for artists, arts and culture organisations and networks, cultural professionals and audiences in the 50 countries of Europe, as well as providing a platform for cultural cooperation between Europe and the rest of the world. Our mission is both to ensure that all those working on cultural collaboration have access to up-to-the-minute information and to encourage the cultural sector to become more experimental with online technologies.

http://www.artbistro.com
ArtBistro brings members of the visual art community together to network, advance careers, and to foster a community with exclusive benefits where information about artists and designers is provided by artists and designers.

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

A New Sentimental Art Market Era Pt. 1 – artmarketblog.com

A New Sentimental Art Market Era Pt. 1 – artmarketblog.com

As the tainted artistic fruits of the great Lehman Bros. deception begin new lives in the hands of far less unscrupulous owners, the art market continues along a path of reminiscence and reflection that I believe signals a new, yet perhaps to be short lived, era of sentimentality. The beginning of a series of much hyped fire sales of the Lehman Bros. art collection could be seen as the start of a symbolic cleansing – the moment that the unjustifiable excesses of a once heady contemporary driven art market were finally laid to rest (at least for now). Ironically, one of the most successful lots of the recent Sotheby’s auction of Lehman Bros. items was a Lehman Bros. sign from their UK office which fetched 34,000 pounds, more than 15 times the 2-3,000 pound estimate.

The Lehman Bros. sale revealed two types of sentimentalism driving the market. Firstly, there is the sentimentality being exhibited by those investors and collectors whose unpleasant experience of the contemporary art market correction has evoked a highly nostalgic response that seeks the safety and stability of the historically familiar. Secondly, there is the sentimentality being exhibited by more optimistic collectors and investors who see events such as the collapse of Lehman Bros. as historically significant events, albeit significant in a negative way, that offer the potentially profitable opportunity to acquire a souvenir of the event to be sold some time in the future. The successful sale of the Lehman Bros. signs, and the popularity of works from the Lehman Bros. collection that were by more established artists with proven track records, is evidence of both forms of sentimentalism.

Although the runaway train that was the contemporary art market has now well and truly been run off the rails, the wounds of the fall from grace that the contemporary art market experienced are only just beginning to heal. In the absence of the superficial and short lived pleasures that the contemporary art market provided, and with memories of the correction still fresh in their minds, collectors and investors appear to be seeking solace in the familiarity and safety of the past. It is important to note that not all contemporary artists have been completely abandoned; however, the focus has shifted from freshly created works by emerging talent to more classic and historically important works by the doyens of the contemporary art world – the classic contemporary if you like. In other words, when I refer to a focus on the past, I am referring to the recent past as well as the distant past.

The recent major auctions of Asian art at Sotheby’s and Christie’s are a good example of the focus on classic antiquarian objects as well as the classic contemporary with buyers paying well above the odds for works considered to be historically significant and museum worthy. With regards to the wider Asian art market, there has been a noticeable process of maturation that has been taking place over the last year or so. This maturation has seen collectors and investors develop a more considered and connoisseurial approach to the art market. According to a spokesperson from Sotheby’s regarding the recent Asia week sales “The market is getting mature and we can see the results. Collectors want important historical works from big artists”. Another Sotheby’s expert, Kevin Ching (Sotheby’s CEO in Asia), mentioned in a press release that “Along with Asia’s growing wealth is a hunger for collecting and owning great art that is broader and deeper than ever before. There is also a healthy and growing awareness that the experience of collecting requires an investment of passion that can pay great aesthetic dividends”

To be continued…………..

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

Portraits as Art Market Currency Pt. 4 – artmarketblog.com

Portraits as Art Market Currency Pt. 4 – artmarketblog.com

With this post I want to explore an analogy between music and fine art that I believe will help make further sense of the portraits as art market currency concept that I am attempting to explain. When it comes to classical music – ie. art music produced in, or rooted in, the traditions of Western liturgical and secular music, encompassing a broad period from roughly the 9th century to present times – a situation exists where the skill and ability of the musician/s playing the music is more important than their profile or level of fame. Although it would be preferable to have the original composer play the music if that were an option, at the end of the day it is the quality of the music being played that takes precedence over who is actually playing the music. In other words, the actual music produced is usually more important than the person who produced it.  The reason this is significant is that the concept I am trying to explain focuses on the value of the actual result of the artistic process, the artistic product, as opposed to the value placed on the artist and their persona or profile.  I chose classical music to illustrate this point because of the high level to which instrumental classical music can be disassociated from the people producing the music and valued according to the technical and constructional characteristics of the composition – in a similar way that figurative portraiture can be valued independent of the profile of the artist (a concept I will explore later on).

When it comes to the eligibility of something to be used as currency, one of the most important characteristics that something must have is the ability to be able to be judged/evaluated according to a universal set of criteria and standards.  It is the universality of the classical music language combined with the technical and intellectual nature of the compositions that should theoretically allow any classical expert from any country to judge a composition or performance by the same standards and criteria, and come up with the same or similar results.  Although opinion regarding a particular piece of classical music may differ from critic to critic due to personal preference, a critique of the technical and compositional characteristics of a traditional classical musical score by a classical music expert should theoretically be similar to that of every other classical music expert because such  a critique is more of a scientific analysis than an artistic analysis.  According to Joshua Fineberg, a composer and Harvard University music professor, in an article titled ‘Classical Music: Why Bother?’ written for salon.com, “If one believes in the intrinsic value of art, then — contrary to most contemporary ways of thinking — taste and social construction are of decidedly secondary importance. Composers often speak of pieces being well constructed or clever, sometimes even brilliant, and then go on to say that they don’t particularly care for them. This is because personal preference is seen as being much less important and enduring than these other, harder-to-define criteria. Even real Shakespeare-haters are unlikely to criticize the quality of his verse. We can all feel the genius even if we are not all sensitive to its charms (or at least this is what I tell myself)”.  What is interesting is that Fineberg’s musings about classical music are totally applicable to classical figurative art, and classical figurative portraiture in particular – just replace the term “composers” with art historians or art critics.

To be continued……..

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications

Portraits as Art Market Currency pt. 3 – artmarketblog.com

Portraits as Art Market Currency pt. 3 – artmarketblog.com

The last installment of “Portraits as Art Market Currency” received an interesting comment from a reader who said: “Is that why we have portraits on our banknotes? hehe! Maybe that’s what they thought when they designed them….”. All jokes aside, this comment is actually a good introduction to the concept of the portrait as a historical document – a concept that I want to explore with this post. Although we tend to think of paper money as merely a means of acquiring goods, the coins and notes that we use everyday are in fact historical documents of great value. The fact that there is such a vibrant and growing market in old and obsolete coins and notes confirms the fact that we place a considerable level of value on the historical value of money. I constantly hear of coins and currency notes being sold for astronomical amounts of money, thousands of times beyond their face value, because of their rarity and historical significance. There is no doubt in my mind that bank currency often has an intrinsic historical value and that most forms of bank currency could be considered to be historical documents in themselves. Considering that one of the most recognisable and common features of paper money is a portrait of some sort, it would be reasonable to assume that those portraits which appear on notes and coins also have a significantly high level of historical value. And if you think that people don’t care what the portraits on money look like then think again. When Australia changed over to decimal currency in 1966 a new portrait of Queen Elizabeth appeared on the one dollar bill . The new decimal currency bills were designed by Gordon Andrews who was widely criticised for portraying the Queen with what some people thought was a look of unhappiness, and for giving the Queen what some people saw as a slight scowl. Mr. Andrews defended the portrait by pointing out that “if you have someone grinning at you on a bank note, which you have to look at over and over again, you get to hate the sight of it”. A fair point I think. Another example of the extent to which the portraits on paper money are assigned value is a newspaper article from 1962 about counterfeit currency in which a US Secret Service Chief advised people to look at the portrait. According to Chief James J. Rowley “Counterfeit currency has a lifeless portrait, the fine cross-lines are not clear or distinct”. Sounds more like the musings of an art critic than a secret service agency.

Some may disagree with the concept of historical value as a type of intrinsic value but I think there is more than enough proof to suggest that the historical value that many portraits have can be considered to be intrinsic. The sort of value I am talking about is the value of what a portrait can tell us about various areas of history, not the value we place on a portrait because of the positive opinion we have for the person depicted – an opinion that could change depending on the information we have about that person. The US National Archives conducted an investigation into the Intrinsic Value In Archival Material in 1982 which came up with some useful definitions and information that is relevant to this post. According to the ‘Report of the Committee on Intrinsic Value’ it was determined that “Intrinsic value is the archival term that is applied to permanently valuable records that have qualities and characteristics that make the records in their original physical form the only archivally acceptable form for preservation. Although all records in their original physical form have qualities and characteristics that would not be preserved in copies, records with intrinsic value have them to such a significant degree that the originals must be saved.The qualities or characteristics that determine intrinsic value may be physical or intellectual; that is, they may relate to the physical base of the record and the means by which information is recorded on it or they may relate to the information contained in the record.” It is also worth noting that the committee determined that one of the characteristics of records with intrinsic value is “General and substantial public interest because of direct association with famous or historically significant people, places, things, issues, or events”. The findings of this committee confirm that historical documents can have intrinsic value.

One of the best sources of evidence that supports the idea that a portrait can have value as a historical document is the fact that the National Library of Australia has Guidelines for the acquisition of portraits that are acquired to “provide a documentary record of Australian life and achievement”. According to the guidelines “The National Library collects portraits of Australians of national significance as well as portraits of individuals and groups who are not necessarily known but who are representative of different occupations or of various social, racial or cultural aspects of Australian life. Portraits are acquired to provide a documentary record of Australian life and achievement”. Even more revealing is one of the selection criteria that the library uses to determine whether a portrait is worth acquiring. The following is one of the selection criteria:

2.2.2 The documentary value of the portrait

Portraits acquired must provide an authentic record of the physical appearance of the subject. In addition, some suggestion of the field of achievement of the subject is looked for in background details, dress or any objects shown in the portrait.

The extent to which the portrait offers insights into the personality and character of the sitter, and the originality of the portrayal, are also considered important. For some individuals an original portrait as well as a photographic portrait may be acquired if it is considered that they provide differing insights. However, for an original portrait to be preferred to a photographic portrait when both are available, the original work should display this quality to a much greater degree (see 2.2.1).

In the case of original works, a portrait painted from life is preferred to one painted from a photograph, as being more likely to provide the added dimension of character insight. The relationship of the artist to the sitter may also be of relevance here.
From a really young age, we learn to read faces. They have a language and can articulate themselves with nuance in a way that nothing else in the world around us can quite reach. The way an artist paints a face is highly distinctive, and portraiture tells you far more about the artist than it does about the subject. Get to know the vernacular of one artist’s face compared to another, and you can use that knowledge to hunt down other examples.

Non-representational works of subjects are not collected as generally these do not convey documentary information about the subject’s appearance.

Cartoons that offer insights to personality and character will be considered for acquisition.

As far as I can see the value that can be placed on portraits because of their status as historical documents is the sort of future proof intrinsic value that will always remain with the portrait and cannot be disassociated from the portrait.  It is this sort of intrinsic value that makes the portrait a good candidate for use as currency – a concept that I will continue to explore.

To be continued……………….

**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of http://www.artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications