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Record Rise for Orientalist Paintings – artmarketblog.com

admin — Fri, 27 Jan 2012 18:19:10 +0000

Record Rise for Orientalist Paintings – artmarketblog.com

As the art market continues to rebound, and new buyers continue to emerge from the middle east, the demand for top orientalist paintings has risen significantly over the last twelve months. Exceeding the market high seen during the 2007/2008 boom, the prices being paid for the work of many orientalist artists have reached record highs. Christie’s 26 January 2012 Old Master & Early British Drawings & Watercolors held at the Rockefeller Plaza in New York saw the fifth highest auction price achieved for British/Italian artist Edward Lear whose orientalist watercolour painting Montenegro - a group of figures in a mountainous landscape – shot past the $120,000 – $180,000 estimate for a final price of $422,500. Previously sold by Christie’s for US$93,400 (excluding premium) in 1992, the painting then passed to the vendor through Artemis, London in 1996. Lear’s View of Gwalior, India, 1880 also sold well fetching $170,500 against an estimate of $50,000 – $70,000.

Over at Bonhams, a new auction record was set for Russian artist Vasilii Dmitrievich Polenov with an orientalist inspired painting titled He that is without sin from the artist’s The Life of Christ series. Estimated to sell for £1,200,000 – 1,800,000, this epic painting by one of Russia’s greatest artists sold for £4,073,250 during Bonham’s The Russian sale held on the 30 Nov 2011 in London. Earlier in the year, on the 6th of June, Sotheby’s achieved a new auction record for one of Polenov’s contemporaries, Vasily Vasilievich Vereschagin, whose orientalist painting of the Taj Mahal sold for £2,281,250 against an estimate of £250,000 – 450,000.

According to French auctioneers Artcurial, they were the world leader in orientalist paintings in 2011, posting a turnover total of 5 million euros for the year. Artcurial set four orientalist auction records during 2011 including:

La Kasbah rouge by Jacques Majorelle, 1924, sold for €1,315,818 on 9 June 2011;
A work on paper by Alexandre Roubtzoff, sold for €60,020 on 9 June 2011, reaching a record of €434,300, on 8 June 2010 for an oil painting from 1935, la Bédouine de Tunis;
La Tikka, l’heure du thé by Edouard-Léon-Louis Edy-Legrand, sold for €378,494 on 9 June 2011;
Les Beautés de Marrakech by Lucien Levy-Dhurmer, pastel on paper, sold for €297,900 on 18 December 2011.

image: Montenegro by Edward Lear

**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.

Jan 2012 Art Market Blog Press Update – artmarketblog.com

admin — Thu, 19 Jan 2012 18:58:48 +0000

Jan 2012 Art Market Blog Press Update – artmarketblog.com

Just a few recently published articles that I wrote. Hope you enjoy !!

In Recognition of an LA-Centric Art Market Trend

http://www.fabrikmagazine.com/content/in-recognition-of-an-la-centric-art-market-trend/

Latest London Contemporary Art Auction Roundup

http://www.arterynyc.com/2011/12/october-2011-london-contemporary-art-auction-roundup/

Pearls prove a collectors best friend

http://www.worthpoint.co.uk/2012/01/pearls-prove-a-collectors-best-friend/

image: Painting by Frederick Hammersley

Singapore to Conquer French Contemporary Art Market – artmarketblog.com

admin — Fri, 13 Jan 2012 17:41:51 +0000

Singapore to Conquer French Contemporary Art Market – artmarketblog.com

Having focused recent posts on the Southeast Asian art market, I found it particularly interesting that Artprice have announced that Singapore should soon overtake France in the field of Contemporary art sales. Although 2011 was a better year for France than 2010, the French art market is still lagging behind other major art market centres. Currently fourth in world art market rankings, France may be heading further down the list if Singapore continues to rise through the ranks.

Evidence of the growing profile of Singapore as an art market hub is the success of the Art Stage Singapore art fair first held in 2010 and currently taking place in Singapore from the 12th to the 15th of January. According to their website: “Art Stage embraces Singapore’s unique position as a bridge between the East and the West in a celebration of both emerging new regional artists and international superstar names.” The inaugural edition of the fair attracted 121 galleries from 26 countries and regions, and 30 special projects, with the number of visitors hitting 32,000. This year, the show will host 120 exhibitors from 18 diverse nations and will be introducing 50 special projects. Adding to the hype of the 2012 edition of the fair is the inclusion of major international galleries such as White Cube, Haunch of Venison and Victoria Miro.

What first alerted me to the importance of Singapore to the market for Southeast Asian art was the number of works by Indonesian and Filipino artists being sold by Singaporean auction houses. The main auction houses with a presence in Singapore are Masterpiece Fine Art Auction, Borobudur Auction, Larasati Auctioneers and 33 auction. Enticing bidders with the lowest buyers premium in Singapore of between 10% – 12%, 33 auction auction have proven to be one of the main players in the Singapore art market. Having moved major sales of modern and contemporary South-East Asian paintings from Singapore to Hong Kong in 2007, both Christie’s and Sotheby’s may now be regretting this move. The move did, however, allow the regional auction houses to gain a foothold that has resulted in a strong regional art auction market that continues to grow.

Without the same high profile as artists coming out of Indonesia and the Philippines, Singaporean contemporary artists still have a long way to go before they catch up to the success of Singapore as a destination for Southeast Asian art. But, with the way the Singapore art market is heading, it may only be a matter of time before we see some big prices for Singaporean artists – and the French being left behind by the Singapore art market machine.

Why Indonesian Artists are Hot Property – artmarketblog.com

admin — Fri, 06 Jan 2012 16:02:51 +0000

Why Indonesian Artists are Hot Property – artmarketblog.com

My previous post revealed some recent auction results that suggest that the market for the work of some of Indonesia’s top artists is gaining strength. One of the factors that has contributed to the strength and resilence of the market for Indonesian art is the existence of a cross cultural dialogue between east and west that is due to the Dutch colonisation of Indonesia that ended in 1942. This dialogue is not limited to the influence of Eestern art on Indonesian artists; many Western born artists such as Walter Spies, Theo Meier, Le Mayeur de Merprès and Hofker spent time in Indonesia and produced work that was heavily influenced by Indonesian society and culture. An indication of the close connection between the Netherlands and Indonesia is the partnership between Larasati, an Indonesian auction house, and Glerum, an Amsterdam based auction house. In 1990 Glerum became the first Dutch auction house to organize specialist auctions of Dutch colonial and modern Indonesian art. Their first joint sale with Larasati in 2000 resulted in a new world record W.G. Hofker when the artist’s ‘Ni Noneh’, offered by a collector in the Netherlands, sold for € 386,000. Also achieving a high price was a work by Hendra Gunawan titled ‘Fruit Seller’ which soared past the Rp 180 – 240 million estimate for a final price of Rp 550 million.

Although the frequency of high prices has not reached 2008 levels, the prices being achieved for the work of many Indonesian artists have, importantly, not gone down – and in some cases, have continued to increase. 2011 proved one of the best years for Indonesian art since 2008 with many new auction records set. An example of the demand for works by Indonesian artists was Christie’s November 27 Asian 20th Century Art (Day Sale) in Hong Kong which saw some excellent prices achieved for works by Indonesian artists. The seventh highest price of the sale went to S. Sudjojono’s ‘Ngaso’ which blitzed the 800,000 – 1,200,000 HKD (102,612 – 153,919 USD) estimate for a final price of 3,860,000 HKD (495,106 USD). Hendra Gunawan’s ‘Bathing by the river’ achieved the tenth highest price of the sale with a final price of 3,620,000 HKD (464,322 USD) against an estimate of 700,000 – 1,000,000 HKD (89,786 – 128,265 USD).

Christie’s November 26 Asian 20th Century Art (Evening Sale) in Hong Kong again produced some stellar results for Indonesian art. Adrien Jean Le Mayeur de Merprés’ ‘Three dancers in the garden ‘ produced the fifth highest auction price for the artist selling for 7,940,000 HKD (1,018,431 USD) against an estimate of 2,700,000 – 3,700,000 HKD (346,318 – 474,584 USD). ’Barong dance’ by Indonesian born artist Affandi achieved 4,220,000 HKD (541,282 USD) against an estimate of 1,800,000 – 2,500,000 HKD (230,878 – 320,664 USD) – the second highest price for the artist at auction.

Although the market for Indonesian art centres around the work of more established artists, there is still considerable interest in younger contemporary Indonesian artists. A retrospective exhibition of the work of contemporary Indonesian artist Heri Donow was held at the Tropenmuseum in Amsterdam in 2009 and represented an important recognition of the global relevance of contemporary Indonesian art. According to the Tropenmuseum: “Dono can truly be called a glocal artist: a term which contracts the words local and global. The story of his images is about the changing face of Indonesian society that is not separate from developments in the rest of the world. This story is meant for a broad audience; though it is coded (criticizing politicians has long been a dangerous activity), it recognizable and accessible. Glocal art shows how local sources can still nourish artists in a time of globalization to say something about the world around them. Dono dislikes the distinction between high art and low art. He never literally copies traditional art; he plays with the image material in a personal style influenced by various European artists such as Matisse and Picasso, and artistic trends such as Cobra, nouveau réalisme and fluxus.”

Overall, the high auction prices being achieved for Indonesian artists combined with the significant number of works by Indonesian artists that frequently exceed the auction estimate suggests that works by such artists are currently undervalued. As Asian buyers continue to become more wealthy and more interested in collecting art, and Western buyers continue to search for undervalued and untapped sources of “new” art, the work of Indonesian artists is likely to only become more popular.

image:

‘Ngaso’ by S. SUDJOJONO
(Indonesian, 1914-1986)

Ngaso

Description S. SUDJOJONO

(Indonesian, 1914-1986)

Ngaso

signed ‘S. Sudjojono’ (lower right); signed with artist’s monogram, titled and dated ‘Ngaso 1964′ (lower centre)

oil on canvas

140 x 100 cm. (55 1/8 x 9 3/8 in.)

Painted in 1964

Medium oil on canvas

Year of Work 1964

Indonesian Art Soars at Hong Kong Auction – artmarketblog.com

admin — Fri, 30 Dec 2011 18:52:14 +0000

Indonesian Art Soars at Hong Kong Auction – artmarketblog.com

On the 26th of November 2011, an auction was held in Hong Kong of Modern and Contemporary Art that produced results which allude to a continued desire for the work of the top modern and contemporary Indonesia artists. The auction was held by United Asian Auctioneers, “a consortium of four of Asia’s leading modern & contemporary Asian art auctioneers – Asian Art Auction Alliance (A|A|A|A) the overseas arm of Japan’s Shinwa Art Auction, Korea’s K-Auction, China’s Beijing Hanhai Auction Co. and Singapore’s One East Larasati”, and included works by a range of artists from China, Japan and South East Asia as well as works by Western artists such as Warhol and Dali.

The top price of the auction went to the young Indonesian artist Handiwirman Saputra whose witty surrealist style painting, Pose No. 6 – Sofa, sold for HK$870,000 against an estimate of 700,000 – 1,200,000 HKD. Solid support from the cultural sector combined with the nature of his work, which appeals to both Western and Eastern collectors, seems to have shielded Handiwiriman’s prices from the effects of the financial crisis. Falling just short of the price achieved for Handiwiriman’s work but selling much closer to the high estimate was lot number 21, Masih panas (Still hot), a large acrylic on canvas by Indonesian artist Nyoman Masriadi. Estimated to sell for 500,000 – 900,000 HKD, Masriadi’s painting fetched a final price of HK$840,000. The first solo exhibition of Masriadi’s work was held at Paul Kasmin Gallery from April to May 2011 which would have significantly aided the artist’s reputation and helped justify the high prices paid for his work.

A work by one of Indonesia’s more senior artists, S. Sudjojono, took the third highest price of the auction with his emotive painting Tiga orang majus. Given an estimate of 600,000 – 800,000 HKD, Tiga orang majus sold for a fantastic HK$720,000 – the third highest price achieved for Sudjojono’s work at auction. Falling just short of the second highest auction price of USD 108,318 (841,247.13 HKD) achieved for the painting Gunung Gede dan Pangrango, as sold by Singapore’s Masterpiece Fine Art Auction house in November 2011, the price achieved for Tiga orang majus is evidence that the desire for Sudjojono’s work remains strong post financial crisis.

To be continued……..

image: Tiga Orang Majus ( The Three Wise Men) by S. Sudjojono

The Overlooked Italian Post-War Artist Domenico Gnoli – artmarketblog.com

admin — Tue, 08 Nov 2011 17:25:22 +0000

The Overlooked Italian Post-War Artist Domenico Gnoli – artmarketblog.com

See part one here:

http://www.artmarketblog.com/2011/11/01/rising-stars-of-italian-post-war-art-market-pt-1-artmarketblog-com/

When it comes to overlooked artistic talent, Italian born realist painter Dominico Gnoli (1933-1970) would have to be one of the most compelling. Born to an art historian father and artist mother, Gnoli never undertook formal training as a visual artist instead choosing to learn the art of drawing and printmaking from the Italian artist Carlo Alberto Petrucci. Best known for his known for his portrayal of details of dress and domestic objects, Gnoli’s work ranges from Escher like surrealist illustrations to richly detailed paintings of hair and clothing. An artforum article from 2001 suggests that one of the reasons that Gnoli’s work not have received the attention it deserves is that he spent much of his life away from his native Italy and has therefore been almost ignored by Italian museums which rarely revisit the output of this seminal postwar artist

Very little information is available on Gnoli, but that is likely to change very soon given the rapidly increasing desirability of Gnoli’s work. According to a book written in 1975 by Luigi Carluccio dedicated to the final period of Gnoli’s work that extends from 1954 to 1969:

“Gnoli’s work is rich and lucid in a super-realistic style with subtle colors that somehow radiate light. His elegant, almost enameled , perfection often has the luster we notice in Vermeer. Gnoli has created an intimate world that focuses on single details with an absorbed, uncanny attention that reveals a household in a rumpled bedspread, the story of a man’s life in the parting of his hair, the social values of an entire decade in a lady’s brassi re. Here are passive people and objects that quiver with life, boats that turn into towers and towers that seem to be siling: here are the humble and banal mass-products of daily life painted in the most accurate and realistic manner that somehow transforms them into a source of wodner, beauty and pleasure.”

A new world auction record was set for Gnoli by Christie’s on the 14th of October when the sold for Busto femminile di dorso (Female Bust from the Back) for £2,337,250 against an estimate of £500,000 – £800,000. The previous auction record for a work by Gnoli was also set by Christie’s who sold the artist’s Branche de Cactus for £1,049,250 against an estimate of £280,000 – £350,000 during their 28 June 2011 Post-War and Contemporary Evening auction. The third highest price at auction for a work by Gnoli was also set by Christie’s on the 14th of October 2011 with the artist’s Pelliccia (Fur) which achieved £881,250 against an estimate of £250,000 – £350,000. This work was previously offered by Sotheby’s in 2005 for £160,000 against an estimate of £180,000 – £250,000.

Given that so few of Gnoli’s works appear at auction, it may take a while for his reputation as an artist to receive the recognition it deserves. Nevertheless, the signs are positive that the work of Dominico Gnoli, an artist whose life was cut short by cancer at the age of 37, is on its way to becoming as popular as that of other famous post-war Italian artists.

image:

Domenico Gnoli (1933-1970)
Busto femminile di dorso (Female Bust from the Back)
signed, titled and dated ‘D. Gnoli “Busto femminile di dorso” 1965′ (on the reverse)
acrylic and sand on canvas
39 3/8 x 47¼in. (100 x 120cm.)
Painted in 1965

Re-evaluating the Canadian Art Market Pt. 2 – artmarketblog.com

admin — Sun, 09 Oct 2011 16:07:08 +0000

Re-evaluating the Canadian Art Market Pt. 2 – artmarketblog.com

The Canadian art market and the market for Canadian art exist within a particularly interesting framework that has limited the extent to which the market for Canadian art can explore its potential. Although many of Canada’s most famous and highly desirable artists sought to establish a distinctly Canadian aesthetic and a uniquely Canadian artistic heritage, the strong connection with Europe that influenced many of these artists led to the adoption of styles and techniques that are universally admired and highly marketable. For this reason, combined with what would seem to be a prime geographical location, it would therefore make sense that the market for Canadian art would be a dominant force on the world stage and that Canadian art would be a strong feature of important international art auction catalogues. Except, for a number of reasons, the market for Canadian art has failed develop the sort of strong international market that it deserves.

A clue alluding to one of the reasons for the current status of the market for Canadian art comes in the form of a statistic provided by Heffel’s, Canada’s top art auction house. According to their website, Heffel “holds over 60% market share of worldwide Canadian art auction sales, with over $275 million in art auction sales since 1995″. Considering that Heffel only operates in Canada, and is not one of the big international auction houses, the market share that Heffel has is rather impressive. Even more impressive is the fact that having hammered down the sixth highest grossing Canadian fine art auction at their May 2011 live sale in Vancouver, Heffel have now conducted all 11 of the top grossing sales of Canadian fine art. Although impressive, these stats suggest that even though Canada’s artistic heritage is inextricably international thanks to its European roots, the framework and mechanics of the Canadian art market are decidedly nationalistic and remain relatively cloistered.

A statistic even more indicative of the level of dominance that Canadian auction house Heffel has over the market for Canadian art comes from a recent Heffel press release which states that: “As the industry leader, Heffel, in the spring 2011 sale, sold more than all of our competitors’ sales totals combined in the 2011 spring season and realized a total value of over 168% of the pre~sale low estimate, with 87% of the consigned lots sold”. A dominant art market force if ever I saw one!!. This is not to suggest that Heffel are in any way doing anything wrong as it is through no fault of their own, or of any other auction house, that the Canadian art market is the way that it is. In fact, Heffel should be commended for their efforts to reach an international audience and promote the work of Canadian artists around the world. Heffel should also be congratulated for becoming so successful in a market where others have failed. My purpose for highlighting these Heffel statistics is to show how reliant the Canadian art auction market has been on a single Canadian national auction house and to provide evidence that suggests a highly nationalistic and insular art market.

The last serious attempt by an international auction house to attain a significant share of the market for Canadian art ended in disaster. In 2001, Sotheby’s joined forces with Canadian auction house Ritchies in an agreement that saw Ritchies provide the space and handle payments for auctions for which Sotheby’s had located the items as well as provided the appraisals and estimates. Failure by Ritchies to pay consignors within an appropriate time frame after an auction in 2009 saw Sotheby’s sever ties with Ritchie’s who declared bankrupt soon after the split. According to an article from liveauctioneers.com at the time:

“Visitors to the Web site for Canadian auction house Ritchie’s will find that the company’s last connection to the sector it once dominated no longer exists. A notice on the company’s site, www.ritchies.com, confirms that a bankruptcy order was issued against Ritchie’s Inc. on Oct. 26, 2009, with Grant Thornton Limited of Royal Bank Plaza, Toronto, shown as the court-appointed trustee.”

The fact that Sotheby’s already had a presence in Canada that had been active since the late 1960′s suggests that Sotheby’s knew how nationalistic the Canadian art market was and that they would need to join forces with a Canadian national auction house if they were to infiltrate the market for Canadian art to a worthwhile degree. Unfortunately, it seems that the business model chosen by Sotheby’s was not the right model for the Canadian art market.

As I discussed in my last post, there is strong evidence to suggest that the market for Canadian art is beginning to emerge from the stifled confines of the Canadian art market and achieve the sort of international recognition and market activity that it clearly deserves. My next post, the final on the Canadian art market, will take a further look at some more evidence that supports the positive trend towards a stronger international market for Canadian art.

To be continued………………..

Exposing the Chinese Art Market With 6 Questions Pt. 2 – artmarketblog.com

admin — Mon, 11 Jul 2011 13:01:15 +0000

Exposing the Chinese Art Market With 6 Questions Pt. 2 – artmarketblog.com

see part 1 here:

http://www.artmarketblog.com/2011/07/01/exposing-the-chinese-art-market-with-6-questions-pt-1-artmarketblog-com/

3. What specific indicators would suggest a price bubble for Chinese art, and is this “bubble” a general feature across all art sectors in China, or specific to contemporary art since the 1990s, for example?

The characteristics of an art price bubble are an unjustifiable sudden and rapid increase in the prices being paid for works of art combined with an increase in the number of works of art being sold on either a market-wide scale or within a particular sector of the art market. Given The rapid rate at which the unprecedented yet unjustifiable rise in prices for Chinese art is progressing, combined with the large increase in the sheer volume of works of art by Chinese artists being sold at auction, I think that there can be no doubt that this is what is currently happening and that all indications point to a price bubble for Chinese art.

Without doubt the price bubble for Chinese art extends across all categories of Chinese art from 14^th century Chinese scroll paintings to works by emerging Chinese contemporary artists. The bubble is, however, most evident in the contemporary and modern sectors.

4. There’s evidence to show that gallerists and artists in China pay for positive critical reviews. But Chinese contemporary artists generally lack the level of critical attention given by critics, historians and galleries in comparison to Western artists. Is the lack of criticality a major contributor to the volatility of the contemporary market? What other factors are there?

The lack of critical review is one of the main problems that the Chinese contemporary art market is facing. Without adequate critical review, buyers do not have the information that they need to make justifiable and discerning decisions when buying works of art. Another factor that causes contemporary art price volatility is the rate at which the careers of young emerging artists are progressing. Once finishing art school, young artists usually go through a process of development and progression that includes several crucial steps. One of those crucial steps is exposure to critical review; another step is establishing a primary market through private gallery representation.

Without the private gallery step in the process of natural progression, young artists end up being thrust into the limelight ill-prepared and without having been through that crucial process of critical review that the private gallery system is a major part of. It is that private gallery system that would usually separate the true stars from the posers and direct the marketplace towards the true stars. Artists whose work is taken directly from the art school to the auction house are essentially being thrust into a position of authority and responsibility without the proper credentials.

The long term value of an artist’s work depends on the level of support and patronage that they receive from the cultural and private gallery sectors. It is pretty much inevitable that the super-heated Chinese art market will begin to cool at some point in the near future which means that buyers will have to begin to justify their purchases and the amount of money they are spending on fine art. If an artist has not been through the traditional route of progression, and does not have the support of a strong private gallery sector, it is unlikely that they would be able to survive the justification process.

An influx of wealthy yet impressionable and uneducated buyers, combined with an art market littered with strategically placed artworks by unseasoned young contemporary artists whose work is seen as being “trendy”, is a recipe for disaster.

to be continued…………….

An Art Market Bubble Chinese Style Pt. 3 – artmarketblog.com

admin — Mon, 23 May 2011 00:11:00 +0000

An Art Market Bubble Chinese Style Pt. 3 – artmarketblog.com

It seems that most people associate an art market boom with a sudden and rapid increase in the prices being paid for works of art combined with an increase in the number of works of art being sold on either a market-wide scale or within a particular sector of the art market. Applying this definition to the current progression of the Chinese art market leaves no doubt that we are in the midst of a Chinese art market boom. This is all well and good, but what happens when the boom ends?

Only four years ago in 2007 the art market experienced a period of Chinese domination, similar to that which we are experiencing now, that ended abruptly at the beginning of 2009 thanks to the global financial crisis. As a result of the bust a number of Chinese galleries were forced to close and a large number of contemporary Chinese artists were dropped by galleries then were left to fade into obscurity. Because galleries and dealers failed to properly nurture and cultivate the careers of the young Chinese contemporary artists who were swept up in the boom, these artists did not have the experience or level of career development that they would have needed to survive the bust.

After the demise of the Chinese art market boom in 2009, galleries and dealers admitted that they had made mistakes and said that they would act more cautiously in the future and properly nurture artist’s careers. The question is, has this occurred? As far as I am concerned there is more than enough evidence to suggest that the same problems are recurring this time around. Ill prepared young contemporary artists are still being flung into the limelight in a market that has an underdeveloped gallery and dealer network which cannot support the long term careers of all the artists involved in this boom.

An art market boom is almost always treated as a positive event regardless of whether or not the boom will end positively for the market and for the artists involved. As an art market analyst my primary concern is what the outcome of the boom will be – because all booms have to end at some stage. There are generally two ways that a boom can end. The first is what we know as a bust – or in other words a sudden and rapid decrease in the prices being paid for works of art and the number of works being sold. The second option is the most favourable and involves a stagnation of prices and the number of works being sold as opposed to a massive drop in prices and the number of works being sold.

In order for prices to merely stagnate at the end of art market boom there would have to be significant evidence that the prices being paid during the boom were in some way justifiable. This is not such a problem for works by historic and modern masters that will always be in high demand, and for which higher prices are more easily justified. History has shown that the historic and modern masters are relatively resilient even after a drop in prices as a result of a major negative art market event. To justify paying higher prices for works by contemporary artists whose work increased in price during the boom is much more difficult and would require some sort of career progression involving the sort of curatorial and critical recognition that adds true value to an artist’s career. Young emerging contemporary artists who do not have the experience and reputation to justify the prices that have been paid for their works during a boom are often just completely forgotten once prices for their works plummet. Without the reputation and desirability that they would have needed to survive the negative fallout from the massive drop in prices that their work experienced, many young emerging contemporary artists end up fading into obscurity once an art market boom ends.

In my opinion the most damning evidence of a bleek future for the Chinese art market is the direction that China’s property market is heading. What China is doing is boosting their economy by building massive cities in anticipation of the massive rise in the number of Chinese people who can afford to purchase their own home that the Chinese government thinks will take place. The problem is that many of these cities remain empty long after construction was completed and offer no signs of filling up with people. Commenting on China’s property market, a recent article by Bloomberg stated that: “China’s property market may be heading into a bubble as the economy’s reliance on real estate reaches a level close to the housing peaks in the U.S. and Japan, according to Citigroup Inc.”. This statistic from Bloomberg is particularly relevant because it compares China’s property market boom to the Japanese property market peak – the collapse of which caused the art market collapse of the early 90′s. With so much money being invested in property and being made from China’s property boom it is highly likely that a significant proportion of the money being spent by the Chinese on antiques and fine art comes from the property boom. It is therefore also highly likely that the ability to pay any debt that Chinese buyers are racking up to pay for their trinkets is reliant on the continued positive progression of China’s property boom.

All the evidence that I have come across points to a negative end to China’s art market boom at some time in the near future. I do, however, also believe that China has the money, power and resources to continue the current rate of art market progression for a while yet. How long they can maintain the momentum remains to be seem.

See part 1 here:

http://www.artmarketblog.com/2011/05/03/an-art-market-bubble-chinese-style-pt-1-artmarketblog-com/

See part 2 here:

http://www.artmarketblog.com/2011/05/10/an-art-market-bubble-chinese-style-pt-2-%e2%80%93-artmarketblog-com/

An Art Market Bubble Chinese Style Pt. 1 – artmarketblog.com

admin — Tue, 03 May 2011 06:03:33 +0000

An Art Market Bubble Chinese Style Pt. 1 – artmarketblog.com

There can be no doubt that the global art market is currently experiencing a period of increased confidence and positive sentiment that is being defined and driven by an influx of wealthy Chinese buyers who are not only having a significant influence on the western art market, but are also propelling the Chinese art market to new heights at an alarmingly rapid rate. But, then you probably already new this unless you have been living on another planet for the last twelve months. Because any competent journalist could combine the results of recent art auctions with the rise of the Chinese art market to the top of the global art market charts and come to the conclusion that there is a Chinese art market boom, there have been plenty of reports along such lines.

The problem as I see it is that a majority of mainstream journalists report what they see and take what they see at face value. This means that a lot of what is written about the art market is pure reportage of current events that does not take into account past events or what is happening “behind the scenes”. As such, many of the conclusions that are reached regarding the progress of the art market are seriously flawed, which is why I write this blog and why lots of journalists come to me for my opinion before reporting on art market events. Please note that I am not suggesting that journalists are not doing their job properly, or are somehow at fault, because their job is to report on current events – and that is what they are doing. Since a majority of journalists are not art market experts one cannot expect them to have the sort of specialist knowledge or experience that is required to make accurate predictions about the art market.

One of the biggest mistake most people make when it comes to analysing the art market is failing to recognise and acknowledge the difference between a short term bubble and a sustainable long-term trend. To be able to distinguish between the two is no easy task and requires an in depth knowledge of the history of the art market and the mechanics of the art market as well as a good understanding of what outside factors influence the art market. However, with adequate knowledge and research it is possible to make accurate predictions as I have proven in the past. When it comes to the Chinese art market there are many factors that indicate a short term art market bubble as opposed to a long-term sustainable trend. In a previous post titled ‘Is the Chinese Art Market Doomed?’ I looked at some of the reasons I believe that the Chinese art market boom is not sustainable. With this series of posts I would like to continue this topic and offer some more insights into the current progression of the art market with a focus on China.

With one of the world’s fastest growing economies and a burgeoning middle class it is no surprise that the Chinese are madly spending huge amounts of money on antiques and fine art – prime symbols of wealth for the status obsessed Chinese. It is also no surprise that the emergence of Chinese buyers as a dominant force at auctions of both Western and Chinese antiques and fine art has sparked a plethora of reports and predictions that China is on the way to becoming the centre of the global art market. This would be an interesting and perhaps even positive development for the global art market if it weren’t for that fact that serious cracks are already beginning to appear in what one could be forgiven for thinking is an Eastern based art market renaissance.

What concerns me most about the Chinese art market is the fact that the Chinese are not only showing a keen interest in the work of modern master “trophy” artists, just as the Japanese did, but unlike the Japanese are also showing a keen interest in the work of their own young contemporary artists. The first reason that this is concerning is the obvious issue of inflated pricing that arises when uneducated and indiscriminate buying of “trophy” works takes place – especially when the reasons for purchases are related to status, vanity and games of one-upmanship. The second reason that this is concerning is that China does not have the sort of private gallery infrastructure in place that is needed to support young contemporary artists and nurture their careers over the long term. Without the private gallery step in the process of natural progression, young artists end up being thrust into the limelight ill-prepared and without having been through that crucial process of critical review that the private gallery system is a major part of. It is that private gallery system that would usually separate the true stars from the posers and direct the marketplace towards the true stars. Artist’s whose work is taken directly from the art school to the auction house are essentially being thrust into a position of authority and responsibility without the proper credentials. This is fine while the going is good but as soon as the money runs out and these artists are asked to prove their worth the whole foundation that their career has been built on comes tumbling down.

As I have mentioned many times before, the long term value of an artist’s work depends on the level of support and patronage that they receive from the cultural and private gallery sectors. It is pretty much inevitable that the super-heated Chinese art market will begin to cool at some point in the near future which means that buyers will have to begin to justify their purchases and the amount of money they are spending on fine art. If an artist has not been through the traditional route of progression, and does not have the support of a strong private gallery sector, it is unlikely that they would be able to survive the justification process.

To be continued………….

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