Art Market Is Picking Up

The triumphant tonality prevailing in reports of auction houses at the beginning of the year and spring of 2010 can justifiably be compared to the fanfares of the end of 2007. It is true that sales have dropped and prices in some market segments are considerably lower, but as of now, there are no more reasons for pessimism. Having gone through a purifying melting pot of reduction of estimates and painful firing of staff, and having lost one half of their income, today, auction houses, galleries and art fairs look at the world merrier. If we take percentage of sold lots as a basis, then we can state that calmness returned to trading floors: currently, the volume of sold art pieces climbed back to about 75%, the acceptable level, versus 45-50% during more trying times.

And it has its explanation. The Forbes magazine asserts that the estate of the wealthiest people in the world increased during one year (by March 2010) from 2.4 to 3.6 trillion dollars. The number of the richest people included on the Forbes list has also gone up, from 793 to 1011. Rumors started to emerge about three-digit prices on oil, which first of all will impact prices on Russian art. With all these breakthroughs, why would it surprise anybody that auction houses, fairs and other trading floors of the art market do not miss a chance to talk about their success?

And success is observed not only in the segment of old masters, which is now taken for granted, but also in the venues selling contemporary art. The fact that the auction house of Phillips de Pury that is fully dedicated to working with contemporary art has expanded the staff serves as an indirect confirmation of the above. Although, certainly, it is impossible not to notice that for the sake of economy, the New York division of the auction house has moved from the High Line district where prices have skyrocketed despite of everything. A new location is at a better-priced but equally prestigious address at 450 Park Avenue, closer to Christie's and Sotheby's.

So, this is the background against which the major events of the beginning of 2010 were unfolding.

January auctions in the segment of old masters offered very interesting artworks. But then results of the auctions did not provide grounds for huge optimism. The painting named The Entrance to the Turkish Garden Café by not so well known to us master, one of the leading painters of France of the eighteenth century Louis-Léopold Boilly, became the top lot of the auction at Christie's. Appraised between 3 and 5 million dollars, it sold for 4 million dollars, a record for the artist. The work by Jan Brueghel II The Entry of the Animals into Noah's Ark (estimate of 2.5-3.5 million dollars) sold for 2.5 million dollars. The overall sentiments were brought down by the fact that a magnificent landscape painting by Thomas Gainsborough Wooded Rocky Landscape with Mounted Peasant, Drover and Cattle, and Distant Building (estimated at 3 to 5 million dollars) did not sell, together with equally important work by Lucas Cranach the Elder Bacchus at the Wine Vat (estimated at 2.5 to 3.5 million dollars).

At Sotheby's auction offering old masters not much cash was changing hands as well. One of the top lots was the canvas Jupiter and Antiope by Hendrick Goltzius, a large work (122x178 cm), the most important one from his artistic legacy. The piece was not shown on auctions for a long time and it has been restituted, which allowed the auction house to put a rather high estimate on it, i.e. 8 to12 million dollars. However, it was sold for 6 million dollars, considerably lower than the estimate. Another star of the catalogue – the artwork by Rembrandt Portrait of a Young Woman with a Black Cap, appraised at 8 to 12 million dollars – also did not sell. Three years ago, this same piece was sold at Sotheby's for 8 million dollars. Nonetheless, there were some highlights that were very rewarding. It is necessary to mention a remarkable success of Van Dyck: all three listed works were sold within their estimates, including Two Studies of a Bearded Man (6.4 million dollars).

Unknown disciple of Leonardo da Vinci La belle ferronnière, 55x43.5 cm. Canvas, oil. Sold at Sotheby’s for 1.5 million dollars.

Niki De Saint-Phalle LILI OU TONY, 1965, 206x130x130 cm. Painted polyester, fabric, collage. Sold at Sotheby’s for 340,000 euro.

Speaking about the January auction at Sotheby's, it is necessary to mention the most interesting event that took place there, i.e. selling of the painting by the unknown disciple of Leonardo da Vinci that is a copy of La belle ferronnière exhibited in Louvre. It may seem that selling of a copy can hardly attract serious public attention. But this piece is one of the most famous and notorious copies known in the history of art. There were plans to sell it as original at the beginning of the twentieth century. But in 1920, Joseph Duveen, a well-known art dealer, caused a scandal by his negative conclusion. The scandal lasted for ten years and ended with the most famous legal proceedings in the field of art throughout the entire twentieth century. In 2010, the canvas changed hands for 1.5 million dollars, the triple of the estimate.

Further on, things unfolded in a more and more uplifting way. Christie's and Sotheby's held auctions of works of impressionists and modernists in London at the beginning of February (February 2 and 3). The catalogue of Christie's day auctions estimated that the expected sales should amount to 56.5 to 80.8 million pounds. The result was quite a success – 66.7 million pounds. La Gitane by Kees Van Dongen became the star of the trading session and sold for 7.0 million pound, within the estimate. The canvas is dated 1910-1911, a very productive period for the master. Another highlight of Christie's was a marvelous canvas by Natalia Goncharova who in 2008 received the title of the most expensive female artist in the art market. Her painting Espagnole set a new record for the record-holder – 5.7 million pounds, within the estimate.

The Sotheby's auctions of modern art in London infused a hefty portion of optimism. One of the most interesting and most recognizable works of Gustavus Klimt Church in Cassone – Landscape with Cypresses estimated at 12 to 18 million pounds was sold for 24 million pounds. This piece had been returned to the heirs after restitution, similarly to other works of art by Klimt which became top lots in their time. Another sensation of the auctions was the figure by Alberto Giacometti Homme qui marche I. While estimated at 12 to 18 million pounds, the sculpture sold for 58 million pounds. In addition, the canvas by Cezanne Fruit and Jug on a Table, the most sought after theme with Cezanne, also sold successfully (10.5 million pounds, within the estimate), as well as a gouache by Egon Schiele Sitting Woman in the Violet Stockings for 4.3 million pounds, also within the estimate. After this session, PR department of the auction house was not shy in evaluating the success and called the auctions historical.

The accolades were justified: practically all subsequent sessions were held successfully.

The auction of the post-war and contemporary art was held in London on February 10 in the evening. The auction fetched 54.07 million pounds, which significantly exceeded expectations of the organizers who counted on getting between 32.16 and 44.99 million pounds. During the auction, 97.9% of lots were sold. And 21 records were set.

The highlight of the auction was selling of artworks from the collection of Lenz Schönberg titled Zero-Art. This collection, having an interesting provenance, vividly showed growing interest among buyers towards art of the artists belonging to the group Zero that was formed in 1957 in Dusseldorf. Among other artists, Yves Klein and Lucio Fontana were members of the group. By the way, later at the Maastricht fine art fair in March, this tendency was discussed in-depth, and many gallerists shared their intention to raise prices for works of these artists in the near future.
The monumental piece Feu 88 by Yves Klein was the most expensive work of this session of the auction. This work – one of the largest pieces in the famous series “Fire Paintings” – went for 3.29 million pounds (estimate 2.8 to 3.5 million pounds) and became the most expensive “fire” painting by Klein.
The next evening, on February 11, the evening session of Christie's was held in London under the name Post-War and Contemporary Art. The sale realized 39.15 million pounds, selling 90% by lot and 96% by value. The pre-sale estimate in the amount of 26.29 to 38.26 million pounds was surpassed.
Yves Klein again became the star of the auction. Gold Sponge RE47II was the most expensive work of the session. It changed hands for 5.87 million pounds (estimate 5 to 7 million pounds). It is one of the two similar works from the series of “sponge reliefs” and “gold monochroms” that survived. It was the first time that the work was offered at an auction; it was in a private collection since 1980.

This wave, set by the giants, was followed during the Phillips de Pury evening sale of contemporary art in London on February 12. The auction brought 6 million pounds, with the pre-sale estimate being 5 to 7.3 million pounds. Forty-three lots were presented at the auction, of which 37 (86%) found their buyers. If compared to the last year's results (4.2 million pounds for 53 lots, 34% unsold), this year results are an obvious success. The aluminum sculptural composition by a renowned minimalist Donald Judd became the top lot. It was sold for 735,700 pounds.

These few days of sales in February not only confirmed the fact that confidence returned to the art market, but also showed that interest of collectors from around the world towards post-war and contemporary artworks has substantially increased. The growing number of high-quality art objects offered for sale led to climbing demand which resulted in a lengthy and thrilling fight over the lots.

March brought more news, and they were not disappointing.

The fine art fair Armory Show took place in New York from March 4 to March 7. This year, the number of participants was the highest in the twelve-year history of the fair. Sellers were noticeably nervous, since on the opening day the consumer confidence index plunged to 30-year lows. However, a refreshing February wind from London was felt immediately after the opening. Many offers of the gallerists found their buyers within several hours. Some did within several minutes. For example, a new participant from Amsterdam, Upstream Gallery, reported a 100% sale of the works by painter David Haines within first 35 minutes of the auction. The famous Marlborough Gallery sold Manolo Valdez’s sculpture for 350,000 dollars within several minutes. The most expensive lot was a landscape by Edvard Munch sold by gallery Faurschou from Copenhagen for 6 million dollars.

With this triumphant performance serving as a background, the New York auction of Phillips de Pury on March 6 under the title Now did not look so impressive. The art pieces presented at the auction were of the twenty-first century only. Less than 36% of lots sold. The total result, including commissions, amounted to 1.3 million dollars.

On the other hand, the sale at Sotheby’s in Amsterdam on March, 8, featuring the collection owned by the Dutch branch of the tobacco giant British American Tobacco, continued the up trend. While the pre-sale estimate was 4.3 to 6.2 million euro, the result came to 13.5 million euro. The focal point of the collection were works of the artists from the group Cobra including Alechinsky and Polyakov, as well as pieces from the groups Analytical Art, New Realism, Arte Povera, and later trends such as Neue Wilden.

On March 16, The European Fine Art and Antiques Fair in Maastricht or, abbreviated – TEFAF, finished its work. Sales went noticeably better than last year. The organizers of the fair reported that participants brought art objects and antiques for the total amount of over 2.7 billion dollars. The event was visited by 72,500 people, which is 7% more than last year. Within three hours after the VIP opening, practically all displays were covered with red dots signifying sold pieces. Among the major sales, which were reported in the news of ARTINFO and Bloomberg, Lucas Cranach the Elder's David and Bathsheba that sold for 7.1 million dollars.

Buyers’ huge desire to buy works of contemporary artists but at “reasonable” prices manifested itself at New York March sales of Christie's First Open. The proceeds amounted to 7.6 million dollars, while the pre-sale estimate was 3.5 to 5 million dollars. 87% of lots found their buyers. The tenfold exceeding of an estimate at an auction does not happen often. Therefore, results of Christie's First Open can be viewed as really impressive, where two works of art showed such “agility”: Andy Warhol’s silkscreen Two Jackies (1964) and early graphic art by Keith Haring Untitled (1978). The first piece was sold for 446,000 dollars (estimate 40,000 to 60,000 dollars), and the second one – for 221,000 dollars (estimate 20,000 to 30,000 dollars).

A similar Sotheby's session was held in New York featuring works of impressionists and modernists. Artworks by Goncharova, Anisfeld and Burlyuk from the well-known collection of the Schreiber family were also offered for sale. The auction realized 3.5 million dollars.  

The upcoming quarter of the year has most interesting events for us in store and, most probably, new records.

One interesting event will take place in New York on May 11 where Christie's will offer outstanding art objects from the collection of Michael Crichton, the author of such bestsellers like Andromeda Strain, Jurassic Park, Timeline, The Lost World, Rising Sun and State of Fear. Michael Crichton is also a recognized connoisseur of the creative work of Jasper Johns, and he knew well many modern artists. Collectors will be offered works by Pablo Picasso, Jasper Johns, Roy Lichtenstein and Robert Rauschenberg. The appraised total value of the four paintings is around 20 million pounds. Johns’ Flag, which is one of the most memorable images of the twentieth century, deserves special attention.
 
Sotheby's auctions in New York June 21 and 22 featuring a collection of the firm Polaroid promise to be interesting. The collection is comprised of the works of many leading photographers and artists of the second half of the twentieth century, such as: Peter Beard, Chuck Close, Robert Frank, David Hockney, and Robert Mapplethorpe. Possibly the most significant part of the collection presents creative work of Ansel Adams whose more than 400 photos are included therein. The collection is sold within the framework of the bankruptcy process. It is expected that it will be raised between 7.5 and 11.5 million dollars. A group of lawyers resists the sale finding it unlawful, but the auction house has its counter arguments and it looks like the sale will take place and it will be very successful. 

The Christie's auction house has announced that during the 2010 summer sale in London the house will offer artworks that earlier were kept in Owlthorpe, the family mansion of the Spensers, and the Spenser House: rare items of English and French furniture, porcelain and two outstanding canvases of old masters. One of them – A Commander being armed for Battle by Rubens – is appraised at 8 to 12 million pounds. The total estimate of all lots is about 20 million pounds.

The New York dealer Bernard Goldberg, who during twelve last years sold works of American artists of the first half of the twentieth century, decided to close his gallery and offer the entire contents of the gallery (both works of art and furniture) to be sold at Christie's. One hundred seventy-five objects will be sold at six auctions which are scheduled for spring and summer of this year and will be held in New York. It is expected that they will bring about ten million dollars. On May 20, Christie's will present 70 American paintings and sculptures from Goldberg’s gallery. Many lots have been appraised considerably below the prices set by Goldberg in his gallery.

As a result of decision to issue a guarantee, Christie's will bring to auctions a magnificent collection of Frances Lasker Brody, a philanthropist from California. The collection whose value exceeds 150 million dollars will appear in May auctions in New York. The gem of the collection is a masterpiece of Pablo Picasso Nude, Green Leaves, and Bust (1932). 

The famous work by Henri Matisse Bouquet pour le 14 Juillet 1919 will be featured during May auctions at Sotheby's which will be dedicated to impressionists and modernists. The painting that was dedicated to the first day of the storming of the Bastille after the First World War is estimated at 18 to 25 million dollars. In 1982, it was purchased by some European collector who paid for it 1.3 million dollars, which at that time was a record-setting price.

A masterpiece of Picasso’s “blue period”, Portrait of Angel Fernandez de Soto will be presented at the London auction of Christie's on June 23. The Portrait, the second name of which is Absinth Lover has been offered for sale earlier but was withdrawn because of some legal mix-up. The seller is Andrew Lloyd-Webber. A pre-sale estimate is 30 to 40 million pounds, which is a record-high estimate for European auctions.


Vitaly Leschenko
Art Banking expert