A comprehensive report on the current art market from the Art Lending Services division at U.S. Trust

U.S. TRUST, AS DO MANY OF THE MOST HIGHLY REGARDED BANKING AND FINANCIAL ADVISORY INSTITUTIONS, OFFERS EXTENSIVE ART SERVICES. AS ART IS NOW CONSIDERED TO BE AN ALTERNATIVE INVESTMENT, AND NOT SIMPLY AN AESTHETIC PLEASURE, BANKING HAS ENTERED VERY FORCEFULLY IN THE COMPETITION TO PROVIDE ART LENDING SERVICES TO HELP BOTH COLLECTORS AND INSTITUTIONS HELP NAVIGATE THE COMPLEX ART WORLD.

RECENTLY U.S. TRUST, THE PRIVATE BANKING ARM OF BANK OF AMERICA,  PUBLISHED AN EXTREMELY COMPREHENSIVE ANALYSIS ON THE STATE OF THE CURRENT ART MARKET. IN A TIME OF TURMOIL AND CHANGE, GENERAL REEVALUATION AND A GLOBAL SHIFT IN THE ART MARKET, IT IS PARTICULARLY RELEVANT AND THE LRFA BLOG IS PLEASED TO SHARE IT WITH YOU. WE ARE DELIGHTED, AS WELL, TO REPORT THAT DANA PRUSSIAN, VICE PRESIDENT AT U.S. TRUST ART LENDING SERVICES, WILL BE CONTRIBUTING TO THE LRFA BLOG IN THE MONTHS AHEAD.

PART ONE

“We feel that you should not buy art purely as an investment. Buy it for love, desire, legacy, culture, pleasure, addiction,

status, and community.”

Art Services Market Update

At Bank of America Private Bank, we maintain a sharp focus on the art market and on the collectors, dealers, auctions specialists and institutions that make it function. We work closely with many of you across four pillars: art lending, art planning, consignment services and institutional arts endowment management. This update features our observations on the current state of the art market from a business perspective.

The Market

• Current low interest rates, solid equity markets and more stratified wealth creation worldwide continues to drive capital toward art. The maturation and globalization of the art market has expanded the collector base and transformed the art market from a niche lifestyle into a $60 billion global industry.1 Still, overall art market growth in terms of total art sales has stalled since 2012, even as the S&P 500has currently more than doubled since that time.
• If the Federal Reserve (Fed) continues its dovish policy, we expect collectors’ continued allocation of capital to art. When interest rates fall, the opportunity cost of holding non-interest-bearing assets like art goes down. The art market is driven by sentiment, so the greatest risk we see is a geopolitical event that impedes the global flow of capital and credit prompting collectors to pause.

• We anticipate that financial returns for contemporary art will be lower in the next decade than some may expect. The market has absorbed a lot of art since the turn of the century. An exceedingly large percentage of those works may be worth close to zero in a generation or so. And because we’re in a more mature and efficient art market, there may be fewer upside surprises than in decades past. We feel that you should not buy art purely as an investment. Buy it for your passion, enjoyment, legacy, culture, status or community.

The Auctions

• During the New York Spring Auctions, the market absorbed over $2 billion of art at Christie’s, Sotheby’s and Phillips, handily above the $1.6 billion pre-sale estimate. It was the first auction season defined by large estates of postwar
and contemporary art. Eye-catching results such as the $91 million Koons “Rabbit”, the $110 million Monet “Haystack” and the rapidly growing market for KAWS belie a more modest 5.1% annualized return2 achieved for repeat sales during the season. Given the recent performance of London auctions and the lack of clarity around a Brexit deal, New York will continue to be the premiere sale site for high-end postwar and contemporary art for the foreseeable future. Fresh-to- market works, typical of the artist’s oeuvre, in good condition, with strong provenance, continue to perform strongest at auction. Works by female and black artists also continue their rise.

• You likely saw that in June, Sotheby’s accepted a $3.7 billion buyout offer from French media entrepreneur Patrick Drahi. Interestingly, Bonhams was also bought out earlier this year. Going private will allow Sotheby’s more flexibility to compete for top lots, which will benefit major collectors, and will provide time and space to evolve its business model, which, like Christie’s, is challenged. Competition for top pictures has become a race-to-the-bottom: China isn’t the growth engine everyone hoped it would be, and online sales have yet to deliver meaningful scale or margin expansion. With business margins at around 10% for the industry, auction houses are officially on the hunt for new revenue streams.

• Look for the auction houses to continue to expand into art advisory, financial services, brand licensing and even investment research as they look beyond their supply-constrained auction business. As a collector, you may see better terms when consigning top works at auction, but expect higher commissions for lower- value works. Buyer premiums will continue to expand at all levels. Finally, get ready for more convenience. Virtual reality will change how you view upcoming sales, and artificial intelligence will soon be sending you an endless array of Netflix-style lot recommendations across all categories based on what you’ve perused across the internet.

The future at Sotheby’s

AS  A SURPRISING CODA TO THE EXCEPTIONALLY INFORMATIVE INTERVIEW WITH COURTNEY KREMERS, SENIOR VP AND CONTEMPORARY ART SPECIALIST AT SOTHEBY’S, THIS NEWS HAS SET THE ART WORLD ABUZZ IN THE LAST FEW DAYS.  SOTHEBY’S HAS DECIDED TO ACCEPT AN OFFER BY FRENCH TELECOM AND MEDIA BILLIONAIRE PATRICK DRAHI AND WILL FORMALLY BE A PRIVATELY HELD COMPANY, AS ARE CHRISTIE’S AND PHILLIPS, IN THE NEAR FUTURE. THAT WILL CERTAINLY DISRUPT THE LANDSCAPE OF THE HIGHLY COMPETITIVE AUCTION WORLD!

IN THEIR OWN WORDS…

SOTHEBY’S PRESS RELEASE JUNE 17, 2019

Sotheby’s (NYSE: BID) today announced that it has signed a definitive merger agreement to be acquired by BidFair USA, an entity wholly owned by media and telecom entrepreneur as well as art collector, Patrick Drahi. Under the terms of the agreement, which was approved by Sotheby’s Board of Directors, shareholders, including employee shareholders, will receive $57.00 in cash per share of Sotheby’s common stock in a transaction with an enterprise value of $3.7 billion. The offer price represents a premium of 61% to Sotheby’s closing price on June 14, 2019, and a 56.3% premium to the company’s 30 trading-day volume weighted average share price. The transaction would result in Sotheby’s returning to private ownership after 31 years as a public company traded on the New York Stock Exchange.

Tad Smith, Sotheby’s CEO, said, “Patrick Drahi is one of the most well-regarded entrepreneurs in the world, and on behalf of everyone at Sotheby’s, I want to welcome him to the family. Known for his commitment to innovation and ingenuity, Patrick founded and leads some of the most successful telecommunications, media and digital companies in the world. He has a long-term view and shares our brand vision for great client service and employing innovation to enhance the value of the company for clients and employees. This acquisition will provide Sotheby’s with the opportunity to accelerate the successful program of growth initiatives of the past several years in a more flexible private environment. It positions us very well for our future and I strongly believe that the company will be in excellent hands for decades to come with Patrick as our owner.”

Domenico De Sole, Chairman of Sotheby’s Board of Directors, said, “Following a comprehensive review, the Board enthusiastically supports Mr. Drahi’s offer, which delivers a significant premium to market for our shareholders. After more than 30 years as a public company, the time is right for Sotheby’s to return to private ownership to continue on a path of growth and success.” 2 “I am honored that the Board of Sotheby’s has decided to recommend my offer,” commented Patrick Drahi. “Sotheby’s is one of the most elegant and aspirational brands in the world. As a longtime client and lifetime admirer of the company, I am acquiring Sotheby’s together with my family. We thank Domenico and the rest of the Sotheby’s Board for its support and look forward to getting started with Tad and the wonderful members of his team to define our future.”

The closing of the deal is subject to customary conditions, including regulatory clearance and shareholder approvals, but is not subject to the availability of financing. The transaction is expected to close in the fourth quarter of 2019 following shareholder approval.

FROM THE OFFICE OF PATRICK DRAHI

PRESS RELEASE ACQUISITION OF SOTHEBY’S JUNE 17, 2019

I am very honored that the Board of Sotheby’s has decided to recommend my offer.

With my family, we are very enthusiastic to build together with its current management
and their teams the future of Sotheby’s, a fascinating and multi-secular company with such a celebrated history of uniting people all over the world through culture and arts.

For my entire life, I have been passionate about this industry and I believe the opportunities and growth potential are significant for Sotheby’s.

I am making this investment for my family, through my personal holding, with a very long-term perspective. There is no capital link with Altice Europe or Altice USA.

As the future owner, I have full confidence in Sotheby’s management, and hence do not anticipate any change to the Company’s strategy. Management and their exceptional teams and talent around the world will continue to operate with my full support.

This investment will further demonstrate the anchoring of my family in the United States, a country where we have been very welcomed since the successful acquisitions of Suddenlink in 2015, Cablevision in 2016 and just recently Cheddar.

The telecom and media industries will keep being my main focus where I remain 100% committed to our businesses and to our continued growth. I will of course keep leading the management team in the development and growth of Altice Europe, as well as remain Chairman of the Board of Altice USA to support Dexter and his team who are doing a great job.

The acquisition of Sotheby’s will be funded by financings arranged and underwritten by BNP Paribas as well as by equity provided from my own funds. To help fund this transaction, I do not intend to sell any shares in Altice Europe NV; my intention is to monetize a small position in Altice USA up to $400 million by the end of the year. Due to Altice USA’s share repurchase program, the total economic stake of my holdings in Altice USA has increased over the last 12 months from approximately 34% to 38 %.

Sotheby’s now and ahead with Senior VP and Contemporary Specialist, Courtney Kremers

Sotheby’s New York

In 2015, Tad Smith was appointed to head Sotheby’s. Prior to that, Mr. Smith had spent a year as chief executive of the Madison Square Garden Company, which, among other businesses, owns the New York Knicks basketball team, the New York Rangers hockey team and Radio City Music Hall. Before that, he spent five years at Cablevision Systems, which like MSG is controlled by the family of Charles Dolan.

In an interview, Mr. Smith said he could not add to the expertise of Sotheby’s art experts, but he could act as a business catalyst. “The market for art is very large, it is global and there is an immense amount of new wealth being created every year,” he said. Sotheby’s said it was also splitting the jobs of chief executive and chairman of the board, both of which had been held by Mr. Ruprecht. Domenico De Sole, former chief executive of the Gucci Group and chairman of the luxury retailer Tom Ford International, who is currently Sotheby’s lead independent director, became its new chairman.

Tad Smith
President and CEO
Sotheby’s

In January 2016, Schwartzman and Cappellazzo joined Sotheby’s as Chairmen and Co-Heads of its newly formed Fine Art Division and the traditional structure of the auction house radically changed in an effort to adapt to an industry in flux.

https://www.sothebys.com/en/auctions/2019/by-women-for-tomorrows-women-n10041.html

A recent auction was just one way in which Sotheby’s reflects and responds to the social and political issues of our times: an art exhibit and auction hosted by Sotheby’s and Miss Porter’s School called “By Women, for Tomorrow’s Women.” The event was the first all-women-artist benefit held at a major auction house.

Carmen Herrera
Sotheby’s By Women, For Tomorrow’s Women auction

Sotheby’s has taken a major leap into the 21st Century with its acquisition of Thread Genius, an AI-based recommendation platform, and Viyet, a high-end furniture design consignment platform focused on an emerging generation of antique and high-end interior design enthusiasts, just two of its recent corporate acquisitions since Mr. Smith took charge.

Viyet at Sotheby’s

TODAY, THE LRFA BLOG IS DELIGHTED TO CONTINUE ITS CONVERSATION WITH COURTNEY KREMERS, SENIOR VP AND CONTEMPORY ART SPECIALIST AT SOTHEBY’S.

COURTNEY, WELCOME BACK.

IN 2015, TAD SMITH WAS APPOINTED PRESIDENT AND CEO OF SOTHEBY’S. SOTHEBY’S HAS BEEN RESTRUCTURED AND TRANSFORMED, ACQUIRING SEVERAL BUSINESSES THAT EXPAND OUR IDEA OF THE ROLE OF AN AUCTION HOUSE.  HOW HAS SOTHEBY’S GROWN AND CHANGED SINCE HIS APPOINTMENT?

We have changed a lot in the last few years, and that change has been exciting. We are adapting to a more global market and one that increasingly operates on digital platforms and outside the traditional auction seasons. Our business has become a 360 degree endeavor – and we are investing as much in new collectors, across all categories, as we are in those bidding in the blockbuster evening sales.  

Sotheby’s BIDnow
Live Online Bidding

SOTHEBY’S IS, UNLIKE CHRISTIE’S OR PHILLIPS, A PUBLICLY HELD COMPANY. HOW DOES THAT AFFECT ITS BUSINESS DECISIONS AND POLICIES?

As a public company, Sotheby’s has to maintain the highest standards of transparency and accountability. In a business that has a reputation for not always being those things, this distinction sets us apart. Trust is an advantage. 

Sotheby’s London

WITH A SOFTENING ART MARKET, POLITICAL UNCERTAINTY, A HIGHLY VOLATILE STOCK MARKET AND A SLOWDOWN OF GLOBAL GROWTH IN GENERAL, HOW IS THE ART MARKET AFFECTED BOTH SHORT TERM AND LONG TERM?

The art market isn’t immune to the global financial markets and political turmoil. But it is remarkably more resilient and less volatile than it was 12 years ago; it is a much more global market. I was in London in June 2017, when we held our Contemporary Sales only a few days after the Brexit vote. We had no idea what would happen, but we didn’t think it would be good. Contrary to expectations, any slack in UK bidding was far outweighed by the enthusiastic paddle raising from US and Asian collectors saw an opportunity because of currency fluctuations. The auctions were likely stronger than they would have been with no-Brexit. 

Sotheby’s Hong Kong

WHAT ARE YOUR IMMEDIATE PLANS AND FUTURE PROFESSIONAL AMBITIONS?

If I am doing exactly what I am doing now, in 20 years, I would consider myself lucky. I love my job, the artworks, the collectors I work with, and the team of people I work with. If it sounds unambitious to hope for more of the same, then so be it. 

IT DOESN’T SOUND UNAMBITIOUS AT ALL- BUT THE LRFA BLOG IS CERTAIN THAT IN MUCH LESS THAN 20 YEARS, YOU WILL HAVE RISEN HIGH IN THE RANKS AT SOTHEBY’S OR ANY OTHER ENDEAVOR YOU PURSUE. COURTNEY, THANK YOU SO MUCH FOR YOUR INSIGHTFUL CONTRIBUTION.

Sotheby’s Paris

IN OUR NEXT LRFA BLOG POST, WE WELCOME TIMOTHY MACDONALD, FOUNDER AND PRESIDENT OF TIMOTHY MACDONALD INCORPORATED, A NEW YORK BASED INTERIOR DESIGN FIRM. TIM HAS BEEN A LONG TIME COLLEAGUE, FRIEND AND SOURCE OF CLIENT REFERRAL AND WE WILL LEARN ABOUT THE MANY PROJECTS HE HAS OVERSEEN, BOTH HERE AND ABROAD AND HIS LOVE OF ART AND DESIGN.

PLEASE JOIN US!

Life in a jewel box with Courtney Kremers, Sotheby’s VP and Contemporary Art Specialist

The History of Now: The Collection of Daniel Teiger
Sotheby’s London

THE COLLECTION OF DAVID TEIGER, A MANAGEMENT CONSULTANT AND FORMER TRUSTEE OF THE MUSEUM OF MODERN ART, WAS SOLD AT SOTHEBY’S STARTING IN LONDON LAST OCTOBER DURING FRIEZE WEEK. THE COMPETITION BETWEEN THE AUCTION HOUSES VYING FOR SUCH A SUPERB, VARIED AND LEGENDARY COLLECTION MUST HAVE BEEN FIERCE BUT SOTHEBY’S MARKETING STRATEGY WON THE DAY. TITLED “THE HISTORY OF NOW”, THE COLLECTION FEATURED EXCEPTIONAL EXAMPLES OF MODERN, FOLK AND CONTEMPORARY ART, FEATURING EXCEPTIONAL EXAMPLES BY SUCH ARTISTS AS JASPER JOHNS, DAVID HOCKNEY, JOHN CURRIN, PETER DOIG AND MARK GROTJAHN IN A SERIES OF TEN TARGETED SALES WORLDWIDE.

Mark Grotjahn
The History of Now- The Collection of David Teiger

DAVID TEIGER CREATED A LIST OF PRINCIPLES TO GUIDE HIM IN HIS COLLECTING. SOTHEBY’S ADVOCATED THE SAME FOCUS AND CONCENTRATION IN ITS MARKETING AND SELLING OF IT: TRAVELING WORKS TO MANY CITIES, THREE IN ASIA ALONE; RESEARCHING, DOCUMENTING AND CATALOGUING EACH LOT; SELECTING THE VENUE THAT WOULD BEST SERVE EACH WORK OF ART, RESULTING IN AN OVERALL TOTAL OF MORE THAN $100 MILLION.

http://www.sothebys.com/en/auctions/2018/history-of-now-collection-david-teiger-l18623.html

Peter Doig
Buffalo Station 1
The History of Now- The Collection of David Teiger sale

THE HARD WORK, DEDICATION AND KNOWLEDGE OF WORKS  OF ART AND OF THE ART MARKET REQUIRED FOR THE SALE OF THE TEIGER COLLECTION IS JUST ONE EXAMPLE OF THE VIRTUALLY DAILY DEMANDS ON SPECIALISTS IN A TOP AUCTION HOUSE. CONSISTENTLY PLEASANT, CHEERFUL AND POLITE TO EACH AND EVERY DEMANDING COLLECTOR AND ADVISOR IS ANOTHER REQUISITE.

TODAY, THE LRFA BLOG IS DELIGHTED TO WELCOME BACK COURTNEY KREMERS, SENIOR VP AND CONTEMPORARY ART SPECIALIST, TO SPEAK FIRST HAND OF HER SOTHEBY EXPERIENCE.

WHEN DID YOU START AT SOTHEBY’S AND WHAT PROMPTED YOUR DECISION TO JOIN AN AUCTION HOUSE?  CUSTOMARILY, MANY PEOPLE START AT AN AUCTION HOUSE AND THEN GO ON TO WORK AS A DEALER OR ADVISOR?

Yes I did it backwards. But I am so thankful I did. I was able to understand the ecosystem that the auction house serves by first being a part of that ecosystem. Sotheby’s approached me about an opportunity to revamp their mid season sales in early 2013; that fall, we introduced the Contemporary Curated sales. It was an exciting new challenge, and when I left Kim to pursue it, she couldn’t have been more supportive.

Vija Celmins
Burning Plane
Good to Go: Property from the Collection of Joni Gordon

WHAT DO YOU LIKE THE MOST ABOUT WORKING IN AN AUCTION HOUSE?

I am surrounded every day by people that love what they do. My colleagues, both in and outside the Contemporary department, are some of the most passionate, inspiring, and hard-working people that I have ever encountered. The energy is contagious. Not to mention the thousands of objects I get to see, handle, basically live with, every year. And not just Contemporary works… Our office is a rotating museum of Old Master paintings, jewels, photographs, Japanese scrolls, the most beautiful mid-century design objects. I spend most of my waking life in a jewel box essentially. It is a privilege to work at Sotheby’s, so I try to earn it every day. 

Ed Ruscha Broken Pencil In Its Own Light: Collection of Ed Cohen and Victoria Shaw

WHAT ARE SOME OF THE MAJOR AUCTIONS OR SINGLE OWNER SALES OR SPECIFIC LOTS THAT STAND OUT AS HIGHLIGHTS DURING YOUR TIME AT SOTHEBY’S?

The Joni Gordon Sale in 2014 – we sold a rare Vija Celmin’s plane painting (now on view in the SFMoMA show) and achieved a record price for the artist. In 2017, the sale of works from the Collection of Ed Cohen and Victoria Shaw which included the most breathtaking works on paper by Anselm Kiefer, Michael Andrews, and Brice Marden… These weren’t the most high value consignments, or the biggest single owner sales in recent years, but the works were rare connoisseurs’ gems.   

Cecily Brown
Bonus
In Its Own Light: The Collection of Ed Cohen and Victoria Shaw

HOW DOES S/2, SOTHEBY’S GALLERY, WORK IN CONJUNCTION WITH THE SALES DEPARTMENT?  HOW DO YOU DECIDE WHAT THE BEST VENUE WHEN ADVISING A CLIENT INTERESTED IN SELLING A WORK THEY OWN?

Simply stated, when advising collectors regarding auction versus private sale, we need to understand what it is that they value most. For some, privacy and control of the sale process is paramount, and so private sale would be our recommendation. For others, the auction platform, which can present a unique opportunity for upside at a particular moment, is more appealing. With that said, every conversation is highly circumstantial and takes into account any number of factors. One that comes up frequently is depth of an artist’s market in relation to works currently consigned for an auction season (e.g. if we have four Calder mobiles already consigned for auction, we are likely not going to recommend adding a fifth).

Alexander Calder
Art Contemporain
Sotheby’s Paris, June 5, 2019

HOW FAR IN ADVANCE DO YOU WORK ON A FORTHCOMING AUCTION?  DO YOU HAVE A FEW LOTS THAT COME IN THAT ANCHOR A SALE AND THEN SEEK OUT WORKS COLLECTORS MIGHT HAVE THAT WOULD COMPLEMENT THE SALE AND BE ENHANCED BY EXISTING LOTS?

Yes – you nailed it. We generally work on sales six months in advance, but naturally the intensity ramps up about two months out. Roughly half of the sale comes in from collectors who reach out to us directly. The other half we seek out proactively. Based on what has come into the sale in the first few months, we seek out artists and periods that we don’t yet have. We start to create ‘wish lists’ that we work from. If we are a month away from deadline and see that we don’t have a great Joan Mitchell or Donald Judd, we will go out and try to find one. Our wish list changes a bit every season depending on what we know collectors are looking for, and also, opportunities we may see to tell a particular story in an auction season. We look at the ingredients on the table, and then figure out how to make a well balanced meal! 

Joan Mitchell
L’Arbre de Phyllis
Lumieres: The Levy Family Collection
Sotheby’s NY May 16, 2019

IN OUR NEXT LRFA BLOG POST, COURTNEY WILL SHARE HER PERSPECTIVE ON SOTHEBY’S PRESENT AND FUTURE.

PLEASE JOIN US!

AND HAVE A HAPPY AND LONG-AWAITED MEMORIAL DAY WEEKEND!

Collecting advice from an expert: Sotheby’s contemporary auction specialist Courtney Kremers

Courtney Kremers
Sotheby’s

AUCTIONS ARE BIG BUSINESS WITH EVER INCREASING INTEREST AND PARTICIPATION FROM ALL CORNERS OF THE WORLD. THANKS TO THE GLOBALIZATION OF THE ART MARKET AND THE DEMOCRATIZATION OF ART BOOSTED BY INSTAGRAM IN PARTICULAR AND SOCIAL MEDIA IN GENERAL, AND BY THE HEADLINE MAKING SUMS THAT ARE BEING REALIZED, EVERYONE FINDS THIS AN INTRIGUING SUBJECT TO FOLLOW WHETHER THEY ARE COLLECTORS OR NOT. THE COMPETITION BETWEEN HOUSES IS FIERCE AND THIS WEEK, IN NEW YORK, PRESENTS MANY OPPORTUNITIES TO PROVE THESE POINTS.

Claude Monet
Meules
Sotheby’s May 2019

ON TUESDAY OF THIS WEEK, SOTHEBY’S TRIUMPHED, OPENING THE NEW YORK AUCTION WEEK, WITH THEIR IMPRESSIONIST AND MODERN SALE. ARTnews DESCRIBES IT AS SUCH:

Powered by a stunning Claude Monet landscape that doubled its estimate and elicited hearty applause in the grand salesroom, Sotheby’s Impressionist and Modern evening sale in New York on Tuesday galloped to a market-affirming $349.9 million tally.

Only five of the 55 lots offered failed to sell, yielding a svelte buy-in rate by lot of 9.1 percent.

The buoyant result surged past pre-sale expectations of $252.6 million to $333.2 million. Those estimates do not include the buyer’s premium. (The hammer tally for the evening, before fees, was $300.5 million.)

The total also shot past last May’s $318.3 million result for the 32 lots that sold. The top lot at that sale was Amedeo Modigliani’s Nu couché (sur le côté gauche), 1917, which fetched $157.2 million, making it the most expensive work ever to sell at Sotheby’s.

Tuesday’s auction ranks as the highest-earning Impression-modern evening sale at Sotheby’s since one in May 2015 that took in $368 million.

http://www.artnews.com/2019/05/15/sothebys-imp-mod-monet-meules-record/

Hans Hofmann

BEFORE WORKS CAN REACH THE DAZZLING HEIGHTS OF THE AUCTION WORLD, THEY MUST FIRST BE ACQUIRED BY PRIVATE COLLECTORS AND THAT TAKES CAREFUL DELIBERATION, INFORMATION AND KNOWLEDGE AS WELL AS THE GOOD FORTUNE OF A GREAT EYE AND/OR A GREAT ADVISOR.

TODAY, THE LRFA BLOG IS DELIGHTED TO HAVE SOTHEBY’S SPECIALIST, SENIOR VP, COURTNEY KREMERS, TO SHARE HER ASTUTE INSIGHTS ON THE ART OF COLLECTING.

COURTNEY, WELCOME BACK! THE LRFA BLOG IS VERY HAPPY TO HAVE YOU HERE.

SOME COLLECTORS, SUCH AS THE MUGRABIS,  FOCUS ON A HANDFUL OF ARTISTS, BUYING NUMEROUS EXAMPLES OF WORK FROM ALL PERIODS OF THE ARTIST’S CAREER, THUS CONTROLLING TO SOME EXTENT THE MARKET FOR THE WORK?

WHAT IN YOUR OPINION ARE THE ADVANTAGES AND THE DISADVANTAGES?

There is a big difference between trying to control an artist’s market, by acquiring a significant number of works, and collecting an artist in depth. The pros/cons of this strategy are no different than having undiversified risk in any other asset class. It is high risk, high reward.

Lucio Fontana

WHEN YOU ARE WORKING WITH A RELATIVELY NEW AND UNSEASONED COLLECTOR, WHAT IS THE BEST ADVICE THAT YOU CAN GIVE THEM?

Collecting involves a careful balance of restraint and gut. At the beginning, the formula should be weighted toward restraint and research, but as you develop a real eye, gut becomes a crucial part of the equation.

HOW DO YOU EDUCATE THE POTENTIAL COLLECTOR IN THE ART OF COLLECTING? WHAT ARE THE PRIMARY CRITERIA AND GUIDELINES DO YOU GIVE THEM?

It isn’t only about buying what you love. For an unseasoned collector, that advice can be a recipe for disaster, or at the very least, for overpaying. The word, “love”, is also confusing to collectors, because what does that mean when it comes to art? Your relationship with an object can grow from something that first would be described as discomfort, because it gets under your skin, stays with you, challenges something you thought you knew. In other words, the reaction to a great object doesn’t always start out as positive experience in a traditional sense, but it can evolve into that. Aside from the gut reaction you feel, which is what makes collecting so emotionally rewarding, you should always ask questions and understand what you are buying, how the work fits into the artist’s overall body of work, what the condition is, which galleries support the artist, which museums have shown the artist, etc. The list of questions is long and you should consider the answers to each one.

Sam Francis

YOU WORKED FOR KIM HIERSTON, WHOM I LIKE AND ADMIRE, IN HER ART ADVISORY FIRM.  WHAT WERE YOUR RESPONSIBILITIES?

Tons of research, among other things. Kim is extremely thorough and disciplined about every artwork she puts forward for a collector’s consideration. It was an information gathering operation first, art advisory second; you can’t advise unless you have all the facts. We spent a lot of time reviewing the artworks on offer through galleries, at art fairs, and in the auctions, and then thinking about how those works might fit into a particular client’s collection, and if so, what the right price was. Once an acquisition was made, we handled all the back end logistics that come with building an art collection – insurance, shipping, framing, conservation. It was a soup to nuts job.

George Condo

WHAT WERE THE MOST IMPORTANT LESSONS YOU LEARNED WHEN WORKING AS AN ADVISOR?  YOU MUST INTERACT WITH A GREAT MANY ADVISORS NOW, AS A SPECIALIST AT SOTHEBY’S. WHAT CHARACTERIZES THE BEST AND THE WORST OF THEM?

There are advisors who do their own research and who spend a considerable amount of time looking at art and understanding the objects, and then there are advisors who just repeat what they hear elsewhere. The parrots are just that, parrots.

NB- THE WORKS ILLUSTRATED IN THIS BLOG (EXCEPT THE MONET) ARE FORTHCOMING LOTS IN THE SOTHEBY’S CONTEMPORARY DAY SALE, ON FRIDAY, MAY 17th.

IN OUR NEXT LRFA BLOG, COURTNEY WILL SPEAK ABOUT LIFE AT SOTHEBY’S IN THIS AGE OF COLLECTING. WE CAN’T WAIT!

The career path leading to Sotheby’s New York with Courtney Kremers, Senior VP and Senior Contemporary Specialist

Sotheby’s New York

SOTHEBY’S IS CELEBRATING ITS 275TH ANNIVERSARY BUT IS HARDLY AN OLD FOGEY, DYNAMIC IN ITS EVER INNOVATIVE EXPANSION IN TERMS OF ACQUISITIONS OF NEW COMPANIES, FROM EVERYTHING AS DIVERSE AS THREAD GENIUS, A COMPANY THAT DEVELOPED ADVANCED TECHNOLOGY TO IMPROVE CLIENT EXPERIENCE BY MATCHING AN OBJECT TO AN INDIVIDUAL’S PREFERENCE AT A CERTAIN PRICE POINT, TO THE MEI MOSES ART INDICES, THEREBY GAINING UNIQUE ACCESS TO AN ANALYTIC TOOL THAT PROVIDES OBJECTIVE AND VERIFIABLE MEASURES OF THE ART MARKET BY TRACKING THE VALUE OF AN OBJECT OVER TIME. IN 2016, SOTHEBY’S BROUGHT SCIENTIFIC RESEARCH IN-HOUSE WITH THE ACQUISITION OF ORION ANALYTICAL AND THE APPOINTMENT OF ITS FOUNDER, THE RENOWNED ART WORLD SCIENTIST JAMES MARTIN, KNOWN AS A TOUR DE FORCE IN USING TECHNOLOGY TO UNCOVER NEARLY UNDETECTABLE MISTAKES IN COPIES THAT APPEAR FLAWLESS TO THE NAKED EYE.

New Sothebys Galleries
designed by OMA

THIS SPRING, SOTHEBY’S NEW YORK, IN TIME FOR OUR FORTHCOMING IMPRESSIONIST AND MODERN, POST-WAR AND CONTEMPORARY MAJOR AUCTIONS, OPENED ITS NEW DAZZLING RENOVATION TO THE PUBLIC. ARCHITECT SHIGEMATSU OF OMA, NEW YORK HAS UPDATED THE INTERNATIONAL AUCTION HOUSE’S HEADQUARTERS. THE INCREASED EXHIBITION SPACES, THE MIX OF VARIOUS SHAPED ROOMS, CORRIDORS AND GALLERIES  AND EXPANSION OF PRIVATE SALE VIEWING ROOMS, AS WELL AS  THE CREATION OF A DOUBLE-HEIGHT SPACE ON THE GROUND FLOOR ALL CONTRIBUTE STUNNINGLY TO SOTHEBY’S AMBITION TO BE THE BEST IN A HIGHLY COMPETITIVE ALTHOUGH REMARKABLY SMALL INDUSTRY.

Cecily Brown

SENIOR VP AND SENIOR CONTEMPORARY SPECIALIST, COURTNEY KREMERS, WAS KIND ENOUGH TO PROVIDE A TOUR OF THE NEW GALLERIES AND IT IS WITH GREAT PLEASURE THAT THE LRFA BLOG CONTINUES OUR CHAT.

TODAY, COURTNEY WILL TRACE HER PROFESSIONAL PATH FROM UNIVERSITY ACADEMICIAN TO SOTHEBY SPECIALIST WITH A HISTORY OF HER ART WORLD EXPERIENCE PRIOR TO JOINING THEIR RANKS.

WELCOME!

COURTNEY, DO YOU THINK THESE ACADEMIC ACHIEVEMENTS HAVE BEEN PUT TO GOOD USE IN THE WORK YOU DO TODAY, AS AN AUCTION SPECIALIST AND, IF SO, HOW?

There were plenty of confused parents when I said I was getting an Art History degree (from Duke). They would ask, perplexed, “Well what will you do with that?” A kid growing up in NYC probably received a different reaction, but in Frederick, where no one knew anyone who worked in the art world, I think they thought I was wasting a good college education. I feel very lucky that my undergrad/grad time was a precursor to what I do on a daily basis now. As a Specialist, I am constantly researching art works, analyzing importance, condition, etc. My job now involves an assessment of value, which wasn’t part of my formal education, but it is certainly an extension of it.  

Kerry James Marshall

WHAT WAS YOUR FIRST JOB IN THE ART WORLD?  WHAT WERE THE MOST IMPORTANT LESSONS YOU LEARNED THERE?

My first job out of college was working for the Mugrabi Collection. I had no idea who they were. I remember trying to Google them before the interview. In the first week, both Tobias Meyer and Larry Gagosian called. I answered the phone, and asking if they could spell their last names for me please almost ended my employment. 

The Mugrabi family taught me a lot, and they still do. They are tough businessmen who know their markets cold. If someone thinks the price they are quoting is too high, they will pull out five auction catalogues in which comparable works were sold and walk you through each result, and how that example stacks up to theirs and also where the markets were then/now. And for artists where they see future growth, they are more than happy to hold their position, and their asking prices, and wait for everyone else to catch up.  

Mark Rothko

THE MUGRABI FAMILY IS KNOWN AS MARKET MOVERS, TAKING MAJOR POSITIONS ON ARTISTS SUCH AS JEAN-MICHEL BASQUIAT AND DAMIEN HIRST. THE VALUE OF THEIR COLLECTION, WHICH INCLUDES THE LAREST PRIVATE CACHE OF WORKS BY ANDY WARHOL, HAS BEEN ESTIMATED AT OVER $100 MILLION.

WHAT WERE YOUR RESPONSIBILITIES AT THE MUGRABI COLLECTION?  WHAT ASPECTS OF THE JOB WERE THE MOST REWARDING?

Day one through Day 365, I did a lot of answering the phone and fixing the printer, but also, noting auction prices in the catalogues, creating fact sheets for new acquisitions, and providing clients with research, images, etc. for works under discussion. My responsibilities grew. The Mugrabis were incredibly generous in opening doors, and encouraging me to attend gallery openings, dinners, and art fairs on their behalf. When we loaned works to a Basquiat exhibition in Rome, I flew over to make sure the installation was as promised. For a 22 year old, new to New York, and new to the art world, it was all pretty thrilling. Looking back now, probably nothing was more impactful than meeting the artists who would come in for lunch, and the artworks that would come and go from the walls.

WHAT WONDERFUL TRAINING FOR THE TIME AHEAD!

IN OUR NEXT LRFA BLOG, COURTNEY WILL GIVE US HER VERY INFORMED RECOMMENDATIONS ABOUT COLLECTING ART!

PLEASE JOIN US!

Christopher Wool

NB The artworks featured in today’s LRFA blog post are lots in the forthcoming Contemporary Evening Auction on May 16th at their New York headquarters at 1334 York Avenue.

Shifting tastes: the market for American art with expert Debra Force of Debra Force Fine Art

AT THE AMERICAN ART AUCTIONS, FINE PAINTINGS, SCULPTURES AND WORKS ON PAPER ARE OFFERED FROM THE COLONIAL TO THE POST-WAR PERIOD, INCLUDING WORKS BY THE HUDSON RIVER SCHOOL, THE AMERICAN IMPRESSIONISTS AND THE ASH CAN SCHOOL. OVER THE PAST DECADE, THE AMERICAN ART DEPARTMENT AT CHRISTIE’S STATES THAT IT HAS SET MORE THAN 100 WORLD RECORDS, ACHIEVING RECORD PRICES FOR IMPORTANT NAMES SUCH AS EDWARD HOPPER, ANDREW WYETH AND GEORGIA O’KEEFFE. HOWEVER, BOTH THE AUCTION HOUSES AND GALLERIES SPECIALIZING IN THIS AREA HAVE SEEN A DOWNTURN IN THIS MARKET.

https://www.christies.com/departments/American-Art-3-1.aspx

ONE OF THE EXCEPTIONS WAS THE CHRISTIE’S SALE OF THE EXTRAORDINARY DAVID AND PEGGY ROCKEFELLER COLLECTION THAT REPRESENTED ONE OF THE BEST SINGLE OWNER COLLECTIONS TO COME TO MARKET. HIGHLIGHTS OF AN AMERICAN ART COLLECTION DESCRIBED AS “VIRTUALLY ENCYCLOPAEDIC” INCLUDED EDWARD HOPPER’S CAPE ANN GRANITE, PAINTED IN THE SUMMER OF 1928 ($8.4m), GEORGIA O’KEEFFE’S NEAR ABIQUIU, NEW MEXICO ($8.4m) and MILTON AVERY’S WOMEN WITH REBOZA ($2.5m). THIS SALE, HOWEVER, WAS AN EXCEPTION TO THE GENERAL CLIMATE OF THE AMERICAN MARKET.

WE ARE FORTUNATE TO HAVE DEBRA FORCE, OF DEBRA FORCE FINE ART, A SEASONED EXPERT IN AMERICAN ART OF EVERY PERIOD, PROVIDE HER ANALYSIS OF THE PRESENT AND FUTURE MARKET IN AMERICAN ART.

http://www.debraforce.com/

DEBRA, HOW DO YOU VIEW THE AMERICAN MARKET AT THE PRESENT TIME AND HOW HAS IT CHANGED IN THE LAST DECADE?

The traditional American art market is stable.  It had been at its height up to 2008, but became much softer after that date.  As collectors become older, they are no longer buying as much and younger people do not seem to have an interest in this aspect of Fine Art.  Thus, we are dealing with a more limited market base and of course, do not have international interest in this area. 

Prices for many things are much reduced from what they were over ten years ago, particularly for early and historical material, genre painting, Hudson River painting, and Ashcan artists.  However, we are seeing some revitalization with certain artists in these areas as well as with the American Impressionists.  For those looking for this type of material, there are more reasonable prices and, in some cases, bargains to be had.  Museums are finding that they can now buy artists on their wish lists that fall into these categories. 

Joseph Stella
The Red Pitcher
Oil on canvas

American Modernism and Regionalism, as well as works by African-American and women artists, are very hot, while Surrealism and Magic Realism are rising in popularity. Many of the post-war second- and third-tier Abstract Expressionists are also coming under the umbrella of traditional American art as we move more solidly into the 21^st Century.

WHAT DO YOU SEE AS THE FUTURE OF THE AMERICAN ART MARKET? DO YOU FEEL THAT SOME OF THE LESSER KNOWN ARTISTS WHO WERE WILDLY COLLECTED BY THE LAST GENERATION WILL REBOUND IN TERMS OF PRESENCE AND PRICE?

It is my hope that younger people will turn to and revere traditional American art, which suffers somewhat like the American furniture and decorative arts market, as time marches on.  To do so, American history needs to be taught at both secondary and college levels, museums need to exhibit this type of art and not just focus upon what is “sexy” or of the moment, and auction houses and galleries need to embrace it, rather than shying away from it. 

Milton Avery
Woman with Rebozo, 1946
Christie’s sale, David Rockefeller Collection

Much of the material that is less collectible today does not receive adequate recognition in the marketplace and is routinely relegated to lesser sales or online auctions rather than in the mainstream or in prominent sales.  [Certainly, although the provenance had added cache to the works sold at the Rockefeller sale at Christie’s, the overwhelming exposure did wonders to attract buyers to much of the 19^th-century material that sold for double or more what they had been making.]  The validity of the past that has much to teach us in understanding the world today as well as the evolution of Contemporary art, needs to be made apparent to younger generations. 

Georgia O’Keeffe
New Mexico – near Taos 1929
Christie’s sale, David Rockefeller Collection

The other challenge is garnering international interest in American art, as we head toward a more global society.  This is already happening to a degree as the Terra Foundation and others sponsor exhibitions of American art abroad that have been well received to the audiences there; hopefully, this will translate into the market as well. 

As older collectors divest their collections, more major works of art will presumably enter the market and therefore, should generate renewed interest among known buyers as well as attracting new ones.

Presently, buyers are more attracted to well-known artists rather than those less renowned.  Until the market for traditional American art is more buoyant overall, I fear that more minor artists will continue to be neglected.  The only departure from this state is the collectability of lesser Modernist and Post-War artists who are now embraced, as prices for the more blue-chip works from this era are escalating.

DEBRA, THANK YOU SO MUCH FOR YOUR KNOWLEDGE, EXPERTISE AND ANALYSIS OF AMERICAN ART.

IN OUR NEXT LRFA BLOG, I AM HONORED TO INTRODUCE WENDY CROMWELL, WHO SERVES ON THE BOARD OF DIRECTORS OF THE ASSOCIATION OF PROFESSIONAL ART ADVISORS (APAA), AN OUTSTANDING NON-PROFIT ORGANIZATION MADE UP OF LEADING ART ADVISORS, CURATORS AND CORPORATE ART MANAGERS. APAA IS DEDICATED TO ESTABLISHING AND MAINTAINING THE HIGHEST PRINCIPLES AND GUIDELINES FOR ACQUIRING, MAINTAINING AND SELLING ART.

PLEASE JOIN US!

 

Tracking contemporary art history at Mary Boone with director Ron Warren

Ai Wei Wei
Installation at Mary Boone Gallery

ONE OF THE MOST DOMINANT TRENDS IN RECENT YEARS HAS BEEN CROSS-COLLECTING, EXPOSING COLLECTORS TO WORKS OF DIFFERENT PERIODS AND ENCOURAGING THEM TO “MIX IT UP” – CONTEMPORARY AND OLD MASTER, MODERN AND CONTEMPORARY, LATIN AND NORTH AMERICAN. THE AUCTION HOUSES, AND GALLERIES AS WELL, ARE MAKING AN ART-HISTORICAL STATEMENT TO EXPAND A COLLECTOR’S VISION, BASED ON QUALITY AND PROVENANCE AND NOT DATE.

AT TEFAF NEW YORK THIS SPRING, ONE OF THE MOST BEAUTIFUL BOOTHS, DAVID ZWIRNER, JUXTAPOSED THE IMPECCABLE JOSEF ALBERS’ HOMAGE TO A SQUARE – ALL RED IN A ROW – AND THE QUIET POTENCY OF GIORGIO MORANDI’S SEEMINGLY EFFORTLESS STILL LIFES. CHRISTIE’S, AS EVERYONE IS WELL AWARE, SOLD THE $450m LEONARDO DA VINCI IN THE POST-WAR AND CONTEMPORARY EVENING SALE, AND SOTHEBY’S VERY SUCCESSFULLY, IN THE CONTEMPORARY ART EVENING AUCTION, HEIGHTENED THE APPRECIATION AND REALIZED IMPRESSIVE AUCTION RESULTS FOR BLACK AMERICAN AND AFRICAN ARTISTS, IN THE SECTION OF THEIR SALE THAT BENEFITTED THE STUDIO MUSEUM IN HARLEM’S EXPANSION. AT CHRISTIE’S SINGLE OWNER ROCKEFELLER SALE, THE JOY OF COLLECTING IN MANY PERIODS, IMPRESSIONIST, MODERN, AMERICAN AND ASIAN SPOKE OF THE PASSION AND COMMITMENT TO THE ARTS OF ALL OF THE GENERATIONS OF ROCKEFELLERS. IT IS ALWAYS GRATIFYING WHEN A COLLECTOR IS INTERESTED IN COLLECTING NOT ONLY THEIR GENERATION BUT ALSO THE ARTISTS THAT INFLUENCED THEM- FOR EXAMPLE, A LICHTENSTEIN WORK ON PAPER, A POLKE RASHER PAINTING AND A NATE LOWMAN BULLET HOLE.

Francis Picabia

MARY BOONE HAS AN IMPRESSIVE HISTORY OF SHOWING HISTORICAL WORKS THAT HAVE GREATLY INFLUENCED THE MORE CONTEMPORARY ARTISTS SHE REPRESENTS. TODAY THE LRFA BLOG WELCOMES RON WARREN, PARTNER AND DIRECTOR OF THE MARY BOONE GALLERY, TO RECOLLECT SOME OF THE MANY MARVELOUS EXHIBITIONS IN THE GALLERY’S LONG HISTORY.

https://maryboonegallery.com/

RON, SOME OF THE OUTSTANDING HISTORICAL SHOWS THAT SHOW THE INFLUENCE OF A GENERATION OF MASTER ARTISTS ON THE ARTISTS WORKING TODAY INCLUDE FRANCIS PICABIA, DAN FLAVIN, CLYFFORD STILL AND MY FAVORITE, AS CLIENTS KNOW, THE MIRROR PAINTINGS OF ROY LICHTENSTEIN.

Clyfford Still

PLEASE DESCRIBE THESE EXHIBITIONS AND THE WAYS IN WHICH THEY EXERTED SUCH A STRONG INFLUENCE ON THE CURRENT GENERATION OF ARTISTS.

All amazing exhibitions. Although I came to the gallery after the Picabia show (1983), I do remember how eye-opening that show was. Definitely before its time… did you know that show was thoroughly panned by the New York Times art critic? A direct legacy of that show is that over thirty years later MoMA mounted their extremely well-received Picabia retrospective. Clyfford Still (1990) was a show that at the time was considered impossible to do – Patricia Still was still living and enforcing the artist’s draconian regulations.

Dan Flavin
Monument (for V. Tavlin)

Working with loans from Museums and private collections, we were able to put together what amounted to a small but comprehensive survey. Roy and Dan were still alive at the time of their shows so it was fascinating to see them engage with their own historical works. Besides the impact and importance of the works, my lasting impression of their shows was the way they were lit. The Roy Lichtenstein mirrors (1989) were spot-lit like icons, which in a sense they were. For our Dan Flavin show (1991) of his Monument (for V. Tatlin)works, we relied only on the light emitted from the works. The gallery had a highly polished terra cotta tile floor, and the reflection of the vertical fluorescent tubes gave the darkened space the aura of a sanctuary.  

Ai Wei Wei’s Fairytale Project
Documenta

AN ARTIST OF GREAT AESTHETIC AND POLITICAL SIGNIFICANCE IS AI WEIWEI. THE GALLERY HAS REPRESENTED HIM FOR SOME TIME. WHAT IS THE HISTORY OF THE GALLERY’S RELATIONSHIP WITH AI WEIWEI IN TERMS OF PROJECTS AND EXHIBITIONS?

In 2007 Mary went to Documenta where Weiwei presented his ambitious Fairytale project. From discussions there with Weiwei, we had our first show in March 2008 – still one of my favorite installations at our Chelsea gallery. Weiwei created an enormous lighted brass and red glass crystal chandelier that lay twisted on the floor as if it had fallen. He brought a crew from China that spent a week in the gallery constructing the work. We later showed, in January 2012, a smaller version (5 tons) of the Sunflower Seeds that had been shown to great acclaim at the Tate Modern. The millions of handmade porcelain seeds are a metaphor for modern China, each individual, but creating a deceptively unified field.

Ai Wei Wei
Sunflower Seeds
Porcelain

The Ai Weiwei we know today – international political activist and champion of human rights – really took shape following his “citizens’ investigation” into the May 2008 Sichuan earthquake. By Fall 2012, his work had become a vehicle for his cause. Our exhibition Forge was an arrangement of twisted metal rebar pulled from the rubble of collapsed buildings. An interesting footnote is that the exhibition was up during Hurricane Sandy, and the rebar was briefly submerged in three feet of flood water. Weiwei liked that the work now bore witness to two natural disasters from opposite political and cultural sides of the earth.

 

 

IN OUR NEXT LRFA BLOG, RON SPEAKS ABOUT THE CURRENT ART MARKET, THE ASIAN MARKET AND SOME OF THE FUTURE PLANS FOR THE GALLERY.  HE IS A WEALTH OF INFORMATION AND EXPERTISE. IF YOU HAVE QUESTIONS ABOUT THE GALLERY OR ITS ARTISTS, FIRE AWAY.

THANKS TO THE READERS, NEW AND OLD SUBSCRIBERS, AND MOST OF ALL THE CONTRIBUTORS TO THE LRFA BLOG- YOUR LABOR-INTENSIVE INTERVIEWS AND GENEROSITY MAKE THE LRFA BLOG COME ALIVE!

The art market, current and future with expert Gabriela Palmieri, founder and president of PFA, Inc.

Gabriela Palmieri

AT THE SECOND NEW YORK ART BUSINESS CONFERENCE THAT TOOK PLACE AT TIME WARNER LAST WEEK, ONE OF THE PANELISTS SPEAKING ON THE SUBJECT OF REGULATION IN THE ART WORLD WAS ELIZABETH SZANCER, WHO SERVES ON THE BOARD OF DIRECTORS OF THE ASSOCIATION OF PROFESSIONAL ART ADVISORS. SHE SPOKE OF THE MISSION OF THE APAA TO ESTABLISH THE BEST POSSIBLE GUIDELINES AND PRINCIPALS EMPHASIZING INTEGRITY, CONNOISSEURSHIP AND EDUCATION AS THE FOUNDATIONS OF PROFESSIONAL PRACTICE. IN 1962, THE ART DEALERS ASSOCIATION OF AMERICA WAS FOUNDED WITH THE STATED PURPOSE OF PROMOTING THE HIGHEST STANDARDS OF CONNOISSEURSHIP, SCHOLARSHIP AND ETHICAL PRACTICES WITHIN THE ART DEALING PROFESSION.

ADAA at the Park Avenue Armory, 2018
303 Gallery

IN AN INDUSTRY IN WHICH MOST OF ITS PARTICIPANTS ARE ART- AND ARTIST-LOVING, HONEST AND PROFESSIONAL PEOPLE, WE TEND TO HEAR AND REMEMBER ONLY THE NEWSWORTHY, SENSATIONALIST TALES OF FAKES AND FORGERIES, THE STUFF OF LEGEND, THE SUBJECT OF BOOKS, FILMS AND TELEVISION. THE LEGIONS OF HARD-WORKING AUCTION SPECIALISTS, GALLERY OWNERS, PRIVATE ART DEALERS AND ADVISORS OFTEN GO UNMENTIONED.

THROUGHOUT HER PROFESSIONAL CAREER AT SOTHEBY’S, GABRIELA PALMIERI DEMONSTRATED ALL THE QUALITIES OF PROFESSIONALISM, CONNOISSEURSHIP AND INTEGRITY THAT THE INDUSTRY’S “POLICE” ADVOCATE.

 

Gabby Palmieri and collector Adam Sender

WE ARE DELIGHTED TO WELCOME HER INTO THE RANKS OF ADVISOR AND PRIVATE DEALER. GABBY CAN BE REACHED AT PFA, INC, 4 EAST 78th STREET, IN NEW YORK.

Video, Frieze New York, on highlights of the 2013 Frieze New York art fair

http://www.sothebys.com/en/news-video/videos/2013/06/Exclusive-Video-Inside-Frieze-New-York-Gabriela-Palmieri.html

GABBY, WHAT PROMPTED YOUR DECISION TO BECOME A PRIVATE DEALER AND ADVISOR AND LEAVE THE AUCTION WORLD?

The auction house was changing, many of my closest and trusted colleagues had moved on to different ventures, and the timing was perfect to focus on being able to work with my clients in the most direct and transparent fashion; without bias in advising them on the purchases and sales.

Gabriela Palmieri
Maestro Cares Foundation Gala

WHAT ARE SOME OF THE SERVICES THAT YOU, WITH YOUR VAST EXPERIENCE, CAN PROVIDE YOUR CLIENTS?

I find that for every client that I work with, I have curated a different strategy for different needs – whether it is advising on private or auction acquisitions; sourcing opportunities for private sales; being their client advocate as they negotiate selling through the auction houses; identifying guarantee opportunities from auction houses; valuation services. Virtually nothing unchanged from the services I provided in-house; now simply without the bias.

WHAT ARE SOME OF THE WARNINGS THAT YOU WOULD CAUTION YOUR CLIENTS OR COLLECTORS IN GENERAL?

READ THE FINE PRINT. Limitations on contracts and condition reports seem to be some of the more frequent headaches that seem to keep resurfacing.

Claude Monet
Waterlilies
The Collection of Peggy and David Rockefeller Sale, Christie’s NY, May 2018

WHAT DO YOU THINK OF THE CURRENT ART MARKET?  HOW LONG WILL IT SUSTAIN ITSELF AT THIS LEVEL?

I think that we are definitely in for a strong May, due largely part to what will be the unprecedented prices and depth of bidding we are certain to see with Rockefeller.

n.b. The Collection of Peggy and David Rockefeller will be sold at Christie’s New York in May 2018. The sale will support David Rockefeller’s pledge to direct the majority of his wealth to philanthropy and provide for the cultural, education, medical and environmental causes long supported by his family. The sale ranges from Impressionist and Post-Impressionist works of art, American paintings, English and European furniture, and the decorative arts. 

English and European Furniture
The Collection of Peggy and David Rockefeller
Christie’s, May 2018, New York

WHAT ARE SOME OF THE MOST SIGNIFICANT CHANGES YOU HAVE SEEN IN THE ART MARKET IN THE LAST DECADE?

The most fascinating phenomenon that I have witnessed first-hand has been the extraordinarily regenerative nature of the market, which has led to the unparalleled trajectory of the art market since 2010.  In other words, if one buyer or region for that was significantly active stepped away from the market, there was another buyer or participant in the market that replaced them. This simply illustrated the depth and diversity of the global art market and attests to art being a prescient art investment.

WHAT DO YOU ANTICIPATE ARE SOME OF THE MOST SIGNIFICANT CHANGES WE WILL SEE IN THE ART MARKET IN THE FUTURE?

One topic that concerns me (and many at the moment) is primarily what the impact of the abolishment of like-kind-exchanges (1031s) will have on the market place. I feel that the detriment will be that it will have adverse effects on supply on the market as it will become increasingly difficult for auction houses (and individuals) to convince collectors to part with pictures with significant capital gains. Therefore, while the market often directs its concerned focus on the demand in the marketplace, the bigger foreseeable issue could very well be supply. 

n.b. See the LRFA blog on March 15, 2018 in which Ian Prior and Evan Beard of U.S. Trust speaks in detail on the effect of phasing out swap exchanges.  

Gabriela Palmieri, auctioneer
Skowhegan Awards Dinner, 2017

SO MANY THANKS TO GABBY PALMIERI FOR HER EXPERTISE AND EXUBERANCE. ON THE MOST PERSONAL NOTE, HER FRIENDSHIP AND COUNSEL HAS MEANT A GREAT DEAL TO ME OVER THE YEARS. MANY MORE TO COME!

IN OUR NEXT LRFA BLOG, I AM DELIGHTED TO WELCOME RON WARREN, PARTNER AT MARY BOONE GALLERY, ONE OF THE MOST ESTABLISHED AND INNOVATIVE GALLERIES, OpENING IN 1977 IN SOHO AT THE LEGENDARY “LEO CASTELLI” BUILDING, 420 WEST BROADWAY.

LOOKING FORWARD TO SPEAKING WITH RON, AND THANKING YOU ALL FOR YOUR READERSHIP AND SUPPORT!

The art market, present and future, with Phillips post-war and contemporary expert, Robert Manley

 

Edward Dolman, second from left, chairman and chief executive of Phillips, with, from left, the house’s art experts Jean-Paul Engelen, Robert Manley and Scott Nussbaum.
Credit Alex Welsh for The New York Times

NEWS OF ONE OF MANY MAJOR SHIFTS IN THE AUCTION WORLD POSTED IN AUGUST, 2015, IN THE ART INDUSTRY’S NEWSLETTER,  JOSH BAER’S BAER FAXT,  ANNOUNCING THE DEPARTURE TO PHILLIPS AUCTION HOUSE OF CHRISTIE’S SPECIALISTS, JEAN-PAUL ENGELEN (POST WAR AND CONTEMPORARY ART, CURATOR OF PUBLIC ART AT THE QATAR MUSEUM), HUGUES JOFFRE  (19th AND 20th CENTURY ART) AND ROBERT MANLEY  (DEPUTY CHAIR, POST WAR AND CONTEMPORARY ART). WITH THIS TRIUMVIRATE IN PLACE, PHILLIPS MADE ANOTHER LARGE STRIDE AWAY FROM ITS EARLIER MONIKER, “THE THIRD AUCTION HOUSE”, TOWARDS BECOMING TODAY’S POWERHOUSE WITH A GLOBAL PRESENCE.

HAND-PICKED FROM SOTHEBY’S AND CHRISTIE’S, PHILLIPS HAS OFFERED MANY SPECIALISTS FROM THOSE VENERABLE HOUSES THE PROSPECT OF JOINING A TEAM HEADED BY EX-CHRISTIE’S AUCTION VETERAN, ED DOLMAN, CEO AT PHILLIPS SINCE 2014, AND THE OPPORTUNITY TO SHAPE A NEW PLATFORM FOCUSING ON THE TASTES AND VIEWPOINT OF THE CURRENT CONTEMPORARY COLLECTOR.

http://www.artnews.com/2015/03/24/ed-dolman-at-phillips-auction-house/

Edward Dolman
CEO Phillips

Dolman’s years at Christie’s coincided with a sea change in collecting habits. “The profile of the collector when I started in this business was someone fairly late in life who had gotten interested in a niche market and would spend 10 to 15 years building that collection,” he said. “But now the profile is completely different. They are much younger, they have much more money to spend, and they want to put together a collection a lot more quickly. They’re a little more impatient, and the supply problem is solved by the contemporary market.”

https://news.artnet.com/market/phillips-three-hires-christies-323427

IT IS A PRIVILEGE FOR THE LRFA BLOG TO CONTINUE ITS DIALOGUE WITH ROBERT MANLEY, DEPUTY CHAIR AT PHILLIPS, WHOSE UNDERSTANDING OF THE ART AND AUCTION MARKETS AND HIS DEEP RAPPORT WITH COLLECTORS BOTH ESTABLISHED AND NASCENT, SETS A HIGH STANDARD.

Robert Manley and Jean-Paul Engelen
Phillips’ Worldwide Co-Heads of 20th Century & Contemporary Art

ROBERT, WHAT DO YOU ANTICIPATE WILL BE THE EFFECT OF THE CORRECTION THAT IS TAKING PLACE IN THE ART MARKET? IN WHAT WAYS, CAN COLLECTORS PROTECT THE VALUE OF THEIR COLLECTIONS DURING THESE SHIFTS IN THE MARKET?

I don’t see much effect of the so-called correction on any area of the market, with the exception of works over $20 million. And even in that heady territory, there is still demand, just not quite as deep. The market is alive and well although maybe a bit of the froth has subsided. You might have to fight a tiny bit less for certain works and your place on the waiting list at a top gallery might be a little bit shorter, but fundamentally, things haven’t changed much.

I try to maintain the same outlook whether it is a down market or an up market. At the risk of lapsing into an extended art world cliché, you should buy the things you love and buy as well as you can. It’s also important to put together a collection that has some themes or some kind of focus, that make it more than the sum of its parts. Get some good advice from people you trust, like Leslie Rankow for instance!

BANKSY
Submerged Phone Booth
2006
Phillips London Evening Sale October 2014

One important thing to do is decide on personal financial thresholds for your collection. Under a certain amount, you should be buying purely for the love of it, and with no hope or expectation of resale or appreciation of value. Above a certain amount, you expect a work to maintain its value, which in effect, makes it more of an “investment”.  

I hate talking about art as an investment, but if you want to protect the value in your art collection, the best way to do that is to avoid putting yourself in the position of having to sell something quickly. Most quality works of art by established artists can be sold at a price that is commensurate with its quality, if you have a long enough time horizon.

The best investment advice for art is…don’t invest in art. Invest in things that make you lots of money, and then your reward is the art you buy with it. The joy you get from it is your dividend, and if it goes up in value, it’s icing on the cake. Like any form of investing, it’s a pursuit for professionals. It’s a hard business to thrive in, with high opportunity costs and massive capital risk, so I wouldn’t recommend it unless you want to make it your full-time occupation.

Interior view
Phillips Auction House, London

THAT IS VERY GOOD ADVICE.

WHAT IS PARTICULARLY EXCITING ABOUT JOINING PHILLIPS AND WHAT ARE SOME OF YOUR GOALS AND RESPONSIBILITIES?

It was a great year on garden leave but I very much looked forward to joining Phillips. I am working side by side with Jean-Paul Engelen, providing strategic planning and vision for the Contemporary department worldwide. Most of my time is spent doing the same things I’ve always been doing, working with top clients and important works of art. Essentially I’ve been doing the same thing for about 26 years, but it never gets old because there are always new things to learn, and great collections to see.

The new challenge I welcome very much is working with Jean-Paul and CEO Ed Dolman, and many others, to create a strong team mentality, with complete trust and transparency. Phillips has put together an incredible team, some of the best and most experienced from all of the top auction houses, in all of the fields that matter to Phillips. The shareholders of Phillips are passionate art collectors themselves, have a long-term vision and are willing to invest in it. We have some innovative ideas about how we are going to organize our auctions and reach into new markets…at a smaller company like Phillips, we can do things that are impossible at a larger corporation. I’m very bullish on the contemporary art market in general and feel Phillips is positioned like no other company to play a leadership role in it.

Phillips New York

ROBERT, THIS WAS SUCH A VALUABLE CONTRIBUTION TO THE LRFA BLOG. SO MANY THANKS!

IN THE NEXT POST, THE LRFA BLOG IS DELIGHTED TO VISIT THE LORETTA HOWARD GALLERY IN CHELSEA. THE GALLERY SPECIALIZES IN CLASSIC POST-WAR AMERICAN ART WITH AN EMPHASIS ON ARTISTS WHO CAME INTO PROMINENCE IN THE 1950s AND  1960s.  THE FORTHCOMING SOLO EXHIBITION OF MAJOR CANVASES BY EDWARD DUGMORE FROM THE !960s OPENS ON THURSDAY, FEBRUARY 23rd AND CONTINUES THROUGH MARCH 25th, AT 521 WEST 26th STREET, IN CHELSEA, NEW YORK.

UNTIL THEN, THANKS FOR FOLLOWING THE LRFA BLOG!