
Sluggish Economy Hardly Slowing Art Collectors
Art collectors spent millions at New York auctions last week, although a slightly more cautious tone has entered the market.
30-Second Summary
Auction houses Sotheby’s and Christie’s had predicted their impressionist and modern art sales would bring record-breaking prices last week, and they were proved right for the most part, The Financial Times reports.
The sales included some major purchases. Claude Monet’s “Le Pont du chemin de fer à Argenteuil” went for $41.4 million, breaking the previous Christie’s record: $35 million for a Monet last year.
But despite the high bids, Ian Peck, chief executive of art finance house Art Capital Group, said there was not the usual depth to bidding at the sales, most likely due to current economic conditions.
“There was a pushback on estimates. … Only a handful of the wealthiest collectors were bidding. In a healthy art market, you’ll see a larger and more diverse group of bidders,” he said.
Even if art buyers aren’t bidding with their usual zest, the art market seems to be largely untouched by worldwide economic woes.
The economic climate is not hurting the upper echelons of the housing market, either, where billionaires, like Mukesh Ambani, who recently built the world’s most expensive private home in India, thrive.
New Zealand International Art Centre director Richard Thomson explained to the New Zealand Herald in March that there is a simple explanation for the art market’s success in times of financial trouble. He said that when the stock market is not doing well, investors look for alternative places to put their money, including investing in art.
The sales included some major purchases. Claude Monet’s “Le Pont du chemin de fer à Argenteuil” went for $41.4 million, breaking the previous Christie’s record: $35 million for a Monet last year.
But despite the high bids, Ian Peck, chief executive of art finance house Art Capital Group, said there was not the usual depth to bidding at the sales, most likely due to current economic conditions.
“There was a pushback on estimates. … Only a handful of the wealthiest collectors were bidding. In a healthy art market, you’ll see a larger and more diverse group of bidders,” he said.
Even if art buyers aren’t bidding with their usual zest, the art market seems to be largely untouched by worldwide economic woes.
The economic climate is not hurting the upper echelons of the housing market, either, where billionaires, like Mukesh Ambani, who recently built the world’s most expensive private home in India, thrive.
New Zealand International Art Centre director Richard Thomson explained to the New Zealand Herald in March that there is a simple explanation for the art market’s success in times of financial trouble. He said that when the stock market is not doing well, investors look for alternative places to put their money, including investing in art.
Headline Links: Art still a good investment
The “more volatile” contemporary art market will be put to the test this week, reports The Financial Times, with auction houses Sotheby’s, Christie’s and Phillips de Pury all holding major auctions.
Source: The Financial Times (free registration required)
“When the sharemarket crashed in 1987 the art market did well until 1989 when people ran out of money,” Richard Thompson explained to the New Zealand Herald. Others aren’t so sure, however. Auction house director Emma Fox said the art market has its own cycles, making it hard to tell whether the stock market is down and the art market up, or vice versa.
Source: The New Zealand Herald
Related Topics: Businesses that thrive in bad markets
Despite rising unemployment, financial industry woes and falling real estate prices, consumers are still finding solace in two age-old pastimes: shopping and entertainment.
Source: findingDulcinea
Hollywood could profit this summer from the bad economy, as it usually does when the country is struggling financially. “Attendance actually increased during three of the last four recessions,” reports the Los Angeles Times, and “The ‘movies-cure-all-ills’ formula seems to favor big-budget ‘event’ films.”
Source: The Los Angeles Times (free registration may be required)
What worldwide housing slump? Indian billionaire Mukesh Ambani has built a 27-story custom home, featuring nine elevators and ballroom full of crystal chandeliers. It is the world’s most expensive home, costing roughly $2 billion to construct.
Source: findingDulcinea
Despite the fact that the housing and economic slump hasn’t stopped people like Mukesh Ambani from building their dream homes, Mark Zandi, chief economist for Moody’s Economy.com, expects three quarters of the country’s major markets to experience new and existing-home price declines in the next year. “The coast is not clear,” he says.
Source: Wall Street Journal (subscription required)
Reference: Fine art
The findingDulcinea Fine Art Web Guide provides online resources for learning about art history, visiting museums, locating galleries and buying and selling art online.
Source: findingDulcinea
Auction house Christie’s includes pieces for sale and auction results on its Web site.
Source: Christie’s

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