Art Market
Workshop
Álvaro Fominaya
tallerdemercadodelarte@hotmail.com
Main Features
• Why?????
• General Plan
• LOOSELY REGULATED &
OPAQUE
• “Market value says little about art” Robert
Storr
9.2 Billion USD
Auction Annual Turnover
Art Market Players
• Auction Houses
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Art Dealers
Art Galleries
Collectors
Museums (AAM definition)
Artists
Primary Versus
Secondary Markets
• Primary: First time the work of art comes to
the market
• Secondary: Succesive transmissions
History Of The Art Market
Reitlinger
• XVI century sees increasing interest on the
value of painting. Painting on canvas and
panel favours purchase and mobility.
• Landed gentry. Not much circulating cash.
• Rivalry London-Paris 1760
• 1771. Reynolds discourse against the School
of Venice (Tiziano, Veronese,…). XVII
century painting increases in value.
History Of The Art Market Reitlinger
• Napoleonic Wars
• English Art Dealers in Madrid
(Wallis,…). Murillo, Velázquez, Tiziano,
El Greco,…
Murillo
“Inmaculada
Concepción”
Louvre
Purchased in
1852 for
24.600
Sterling
William Goetzmann
The art market's "beta"—its synchronised
movement with the stock market—is higher
than one. This means that in boom times art
moves up more, and in crashes art drops
lower. But the effect is lagged. "Returns in art
are something between stocks and bonds
over the long term, but art is a risky and
volatile market, much riskier than the stock
market in my opinion."
The Art Market from the
90s
• Art Market crashes June 1990
• Art Market recovery 1997
• Fresh Art Market crisis 2001
• 2002-08 Unprecedented growth
Selling Art Over The
Internet
• Eyestorm
• Sotheby’s
Amazon.com
eBay
• 2.000 affiliated dealers & 74 million USD
loss
Auction Houses:
90s
Survival
Strategies
• Price collusion
• Cornering the collector
• Guaranteed results 1997
Auctions: 45 %
Auctions
Galleries
World
Distribution
Auction Houses
• Sotheby’s
• Christie’s
• Phillips, de Pury & Co.
Art Martket Hubs
Sales Categories
New York
London
Sales Categories:
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Impressionist and Modern
Postwar
Contemporary Art
Surrealism, LatinAmerican, German, Italian,
Chinese
Calendar
November & May
NEW YORK
February & June
LONDON
BIDDING
• Pre-Auction Viewing
• Register with client card or ID before bidding
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Assignment of a “Paddle”
Types of Bids
Speed 50-120 lots per hour
Increasing bids of approx. 10% of previous
bid
Catalogue Symbols
• † Plus IVA 17,5% Uk
• ‡ Temporary Import
•
Auction House Owns The Work Of
Art
Glossary
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Hammer Price
Buyer’s Premium (19,5%+10%)
Bought in
Withdrawn
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Guaranteed lot O
Estimate
Reserve
Absentee Bid, Telephone Bid
Purchasing at Auction
Successful Bidder
Paying+Collecting the goods
Unpaid purchases. Bidding is Binding (eg:
Michael Jackson)
Warranty“As IS”
Buyers Christie’s
Nueva York May 02
Impressionist Art
America
Europe
Asia
Americans:
58%
Europeans:
33%
Asians:
9%
Private Sales By Auction
Houses
• Post action sales
• Private treaty sales
• Promoting Artists (Cattelan, Sherman,
Damien Hirst...)
• Compete with dealers
• Purchase Art Galleries(Deitch, Spink) =
Art Fairs Ban
Maurizio
Cattelan
Jenny Saville
Jenny Saville
Art Dealers
Associations
• CINOA (Confederation des Negociants en
Oeuvres d’Art) 1935
• ADAA (AMERICAN ASOCIATION OF ART DEALERS)
• SLAD (THE SOCIETY OF LONDON ART DEALERS)
CINOA
Good Practices Code
Mediation Among Members
CLIENTS (SLAD)
• 12% Museums / Collections
• 67% Private Buyers
• 3% Sales Via Auctions
• 18% Othe Dealers / Trade
Ownership of
Inventory
48% Owner by the dealer outright
16% Owned in partnership by the
dealer and others
37% On consignment by vendor
Artists V. Gallerists
Consignment Contract
Discounts
Net Price For The Artist
Cost of Production
Purchase from Dealer
Horror Stories
Art Fairs
Collectors:
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CIFO
Saatchi
Elipse
Sigg
Rubbell
Saatchi – Damien Hirst – Jay
Jopling – Science Ltd.
Booth Clibborn - Gagosian
Opium
Murder
me
Other
Criteria
Science
Ltd
Damien Hirst
Pharmacy
Hotell
Record
Label
Takashi Murakami:
• Kaikai Kiki
• Geisai Art Fair
• Louis Vuitton
• Film
• New York/Tokyo
Photography Sales
MOMA
April 2001Sotheby’s 4 million USD
October 2002 Sotheby’s 2’7 million USD
Eugene Atget 20 million USD
Eugene
Atget
Museum
As Producer
• New Museum New York:
• Production of Limited Editions
• Participation in Art Fairs
P
Tom Friedman
INFORMATION
• WWW.THEARTNEWSPAPER.COM
• WWW.ARTNET.COM
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WWW.ARTPRICE.COM
WWW.SOTHEBYS.COM
WWW.CHRISTIES.COM
ARTNEWS, ART&AUCTION
Art Sales Index
VALUATION OF WORKS OF
ART
First Contact:
– Description Sheet + Transparency
– Catalogue Entry + Reproduction
Contents:
– Basic Relevant Info: Author, title, year,
mesueraments, media (and edition
number)
– Provenance
– Bibliography
– Exhibition History
Valuation Process
• Analysis of bibliography (including
catalogues with illustration)
• Analysis of condition (further
documents)
• Check legal status (provenance)
• Check previous sales either private
treaty or auction (databases + first hand
knowledge)
Valuation Process
• Final Estimate/Price taking into account
similar works sold on the secondary
market or primary market
Thomas Struth “Chicago Art Institute I”
Thomas Struth “Art Institute
of Chicago I” 1990 ed.7/10
Estimate:
150-220.000 USD
Premium:
145.289 USD
Buyer: USA Art Dealer
Christie’s Contemporary Art 6 Feb 2002
London Evening Sale
Thomas Struth Art Index
Thomas Struth Lots &
Turnover
Art Market
Workshop
Álvaro Fominaya
tallerdemercadodelarte@hotmail.com
Bibliography, exhibitions
• Catalogue Raisonné Entry (Zervos, de
la Faille, Wildestein, etc)
• Illustrations (colour, b/w, full page)
• Museum Exhibitions
• RELEVANCE WITHIN THE ARTIST’S
BODY OF WORK
Condition
• Visual Inspection. Paint loss, stains, ,
(Dealer, Curator, Registrar,...)
• Inspection by a Conservator. Condition
Report
Auction Houses
• Condition Report on request
• Preview-Public viewing
Provenance
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Good provenance adds value
Check suspicious transmitions
Safeguard against legal claims:
The Art Loss Register (1991)-IFAR
(International Foundation for Art
Research) Certificate. Due diligence
Compare With Other
Results
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Insider information
Secondary Art Market Databases:
Artnet, ArtPrice, ArtSalesIndex
Primary Market (Contemporary Art)
Claude Monet “Praire de Limetz”
Claude Monet “ Prairie de
Limetz” 1888
oil on canvas 73x92 cm.
Estimate:
3-4,4 millones de dólares
Buyers Premium:
4,2 millones de dólares
Buyer: Richard Green
Christie’s Arte Impressionist & Modern, 4
Februrary 2002, London
Gerhard Richter
Gerhard Richter “A B, Brick
Tower” oil on canvas 200 x
140 cm. 1987
Estimate:
500-700.000 USD
Buyer’s Premium: 534.000 USD
Unknown buyer Christie’s Postwar, 13
November 2001, New York
NOW: MY ESTIMATE 3-4 MILLION USD
Price Index Gerhard Richter
• in 1997 in a work
100 EUR invested in 1997 have an average value of 334 EUR in July 2008
Indicadores econométricos Gerhard Richter
Price Index Painting
Gerhard Richter
100 EUR invested in 1997 in a work of Gerhard RICHTER
(1932) have an average value of 631 EUR in November
2007
ANDY WARHOL
WARHOL “Little Electric Chair”
acrylic and silkscreen on
canvas 56 x 71,2 cm 1964
• Estimate: 800,000-1,200,000 Sterling
Pounds
• Buyer’s Premium: 1,106,650 Sterling
• Sotheby’s, 26 June 2002, London
ANDY
WARHOL
• ANDY WARHOL
• Turnover & Artprice Index