Archive for the ‘Hedge funders fine art’ Category

Because Mike is Bored

November 5, 2008

When you have a friend call you on a Sunday night, asking you to write a new post because, “Frankly Lauren, I’m bored” you realize it’s time to get over the PTSD from selling 450 Shepard Fairey prints (more on that subject) and blog about something.

My apologies, here is what has happened in the last 2 weeks:

1. Rich people are still rich.  If you click on the link, that IS a Degas image Art Daily used to lead the story – ?

4

KAZIMIR MALEVICH (1879-1935)  SUPREMATIST COMPOSITION        sold $60,002,500

2. I really don’t have ptsd from selling the Rose Girl print and was happy to help out people that could not make it in to the gallery from Australia, the Philippines, California… to acquire one.  What I wasn’t happy about was the presumptuous flippers that POSTED THE PRINT ON EBAY BEFORE I EVEN SENT IT TO THEM.

Listen, I’ve been doing this for 10 years and I’m not some bimbo (and once you read the next line, also obviously crazy). I went under an assumed Ebay name “Rosa Grrl” (creative right?) and found out what edition numbers were being sold, checked my records, and pulled them before they were shipped.

So if you didn’t get your print yet, this is why, I have already sold it to someone else and please don’t waste any more of my time by contacting me.  AND to the young man in NJ whose “girlfriend” flipped the print (right after she bought it) I hope you broke up with her like I asked you to.

3. The art market has not crashed, everything is going to be okay, just keep a close eye on the European banks because if something big and bad happens over there before Miami… I don’t need to finish that sentence, but you will be able to find me crying in booth 180 at SCOPE.  What I am also keeping a close eye on are the winter auction catalogues, will there be works from the former AIG and Lehman Brother’s collections? I bet so

4.  In regards to my promised review of The International Art Markets: The essential guide for collectors and investors, I kinda left the book on a Croatian Airlines flight and just got it back this weekend… so Kogan Page, Limited, it’s coming soon – I promise!

5. If you live in DC, there are some important dates to mark on your calendar.

November 14 – Fixation

November 15 – Transformer Auction

November 15 – 22 – FotoWeek

December 3 – 7 – Miami

December 13 – Aspect:Ratio Opening

6. Update on a post I made a while back about an MFA at the Corcoran – The MFA program is still being worked on and the estimated launch date is for 2012.

7. I hope that is enough for now (Mike, still bored?). Off to the election night parties with my stuffed donkey!

Pigeonholing the Player

January 30, 2008

On January 28th, Artprice.com, a pretty reliable, yet clunky price database primarily used for European artists, has devised a way to measure the art “Players’ confidence” with their new Art Market Confidence Index (AMCI), live.

What’s become one of my favorite things is when a group or individual attempts to use an assessment created for financial services to gauge the art market. There are characteristics intrinsic to the art market which make this impossible (quickly: information asymmetry, absence of mark-to-market prices, no price standardization or transparency, costs, conflicts of interest, the fact that the art market is the largest unregulated money market, etc…).

So back to AMCI. All you have to do is go to their website and answer these 4 simple questions:

According to you, would now be the appropriate time to buy art works?

YES

NO

INDIFFERENT

Is your financial situation better or worse than it was 3 months ago?

BETTER

WORSE

STABLE

In the next 3 months, will you expect the economic climate to be:

FAVORABLE

UNFAVORABLE

IDENTICAL

What do you expect art prices will be in the next 3 months:

RISE

FALL

STABLE

You are then taken to this screen (link takes you into my account so you don’t have to share your info with ArtPrice or use LAUREN@IRVINECONTEMPORARY.COM and password – LAUREN) to see the live graph.

Looks like the Consumer Confidence Index doesn’t it? Generalized, and vague – self-fulling rather than foretelling. This indicator is not revealing. I just hope it will not influence behavior.

(confidence has decreased from -5.8 to -8.6 in the time it took me to write this)

Hirst – the unwise investor

September 2, 2007

Rob Cox from the Dow Market Watch presents a new way to look at the skull

The skull cost $24m to create (in raw materials) – that was probably split with his dealer and assembled with the help of Bond Street jewellers Bentley & Skinner. Thus, the price paid represents just four times the cost of production.

Assume that Hirst split the $100 million with the White Cube Gallery or his dealer, Jay Jopling (who financed 1/2 the cost of the materials)

That leaves Hirst with $13 million after deducting his original investment.

“But if the art market is really turning, perhaps Hirst should go back to the sharks. The up-front investment is a lot lower” (Rob Cox).

Someone Bought It!

August 30, 2007

and randomly MSN reports on it: http://www.msnbc.msn.com/id/20517869/?GT1=10252

An investment group? Couldn’t be Philip Hoffman of The Fine Art Fund in London – they know better. Maybe it’s that British trader Chris Carlson who has become known for his cheeky quotes, “I love the fact that the art market is unregulated – it’s a nice change from the other markets I’ve worked in” (The Art Newspaper, July/Aug. p. 48).

(I mean we all think this in the private sector, but who actually goes on record with that, he even has worse ones – - – “unregulation” means our clients are “unprotected”)

But Carlson’s self-proclaimed “first hedge fund for art”, The Art Trading Fund, is only worth $50 million, so they couldn’t even afford it.

The Art Newspaper also reports that the £50m ($100m) price was dropped to £38m ($76m), which of course Hirst’s agent denies…

And there is also huge speculation that Americans bought it !?

More thoughts on Liquid Skies

August 10, 2007

In addition to my first commentary on Charlie Finch’s article Liquid Skies, another point I found interesting was his reference to the use of an art inventory’s value as collateral for a gallery. This practice is in fact new and is due to a new generation of lenders who don’t understand how to evaluate levels of risk and can be directly related to the shaky subprime market I spoke in an earlier post. As for the galleries who engage in this borrowing activity, it’s foolish unless they are sure they can repay the loan.

In some ways, the skull is still for “re-sale”

August 5, 2007

Another interesting twist on “the investment group” that bought the Hirst skull – Hirst is a member



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