What the rest of the world thinks about us … thanks for the support Sidney!
Archive for the ‘Artnet News’ Category
This ran last week and then got buried by fluff. Charlie Finch gets political and it’s a very interested read.
While we in DC are aware of our progress and success, now the rest of the art world knows thanks to this month’s Capital Roundup.
Thank you Sidney Lawrence
So the results from the London auctions are in, discussions with my associates who visited Frieze were had, Richard Polsky published his official (and kinda cheesy) buy, sell, hold “art market guide 2007” and then a handsome financial advisor from Chicago sent me this article from yesterday’s WSJ.
After processing all of this – these are my thoughts:
The most important info from the WSJ article is at the bottom when Rubell, the alpha collector, claims that its not the credit crunch affecting him, its the exchange rate. That was the same thing I heard from those with dollars at Frieze.
Then the article went on to say that only 19% of the buyers at Sotheby’s Contemporary auction in London were American. That is low (12% Asian, Middle Eastern & 42% European), really low and very telling of the future. So is the fact that the Chinese Contemporary sales did so well.
I missed the art market’s passing from Paris to New York, but I think I will live to see its move to London.
As for Polsky’s art market guide published on ArtNet News, his advice resonated well with WSJ and the auction results. He stamped Doig, Hirst, Yuskavage with a SELL in his guide. But re: his Yuskavage commment, I didn’t get it, I thought the opposite was true.
Overall, I thought his advice was very conservative and was surprised that Warhol was a BUY – but maybe he is doomed to claim that forever (if you don’t get it, you should be ashamed, please click here)
So, are the young contemporary Western artists going to suffer from this financial uncertainty? We will have to wait until December for the next round of auctions and fairs to see.
and she’ll be at tonight’s Corcoran preview of A Photographer’s Life. I’m definitely going to talk to her. I don’t know what I’m going to say (other than sorry it’s so hot here) I have 4 hours…
Also DC is going to get some coverage on ArtNet News in the Capital RoundUp – I’ll post it as soon as I can – curious to see what and who they are going to mention…
Those of you who read the article, Liquid Skies, written by Charlie Finch published this week on Artnet News may feel a little anxious about your recent and future purchases.
Readers – Stay calm. The world isn’t going to end, not even the contemporary art world, but Charlie Finch is right – the art market has been over-inflated by players who aren’t realizing the distortions they are creating by their high volume manipulations, I mean transactions… but, those dealing in the alpha market (think Warhol and Hirst) are the most vulnerable.
In the beginning of the piece, Finch compares the characteristics of hedge funds to the art market and investing in fine art – high fees, information opacity, low regulation, long hold periods, and difficult/slow turnover – basically high risk, and possible high reward.
In response to Finch’s comments regarding German and British banks – Yes, the subprime market (the subprime market serves borrowers who have poor or no credit histories or limited incomes and can’t meet the credit standards to get loans in the prime market) has destabilized their banks – but according to a British statistician friend of mine who I sent a panicked email to – they’ll survive.
Everyone knows that an increase in leveraging, in any sector, equals a less stable marketplace. So one could argue that, looking back, this is a good example of what happens when risk advisors don’t estimate all the variables involved – a small increase in interest rates was enough to seriously refute their assumptions.
Although I agree with Finch, Collectors – don’t panic Please don’t look with disdain at the contemporary art on your walls, just start learning to appreciate the psychic benefits and enjoyment of owning it… instead of fantasizing about its resale value.