The last installment of “Portraits as Art Market Currency” received an interesting comment from a reader who said: “Is that why we have portraits on our banknotes? hehe! Maybe that’s what they thought when they designed them….”. All jokes aside, this comment is actually a good introduction to the concept of the portrait as a historical document – a concept that I want to explore with this post. Although we tend to think of paper money as merely a means of acquiring goods, the coins and notes that we use everyday are in fact historical documents of great value. The fact that there is such a vibrant and growing market in old and obsolete coins and notes confirms the fact that we place a considerable level of value on the historical value of money. I constantly hear of coins and currency notes being sold for astronomical amounts of money, thousands of times beyond their face value, because of their rarity and historical significance. There is no doubt in my mind that bank currency often has an intrinsic historical value and that most forms of bank currency could be considered to be historical documents in themselves. Considering that one of the most recognisable and common features of paper money is a portrait of some sort, it would be reasonable to assume that those portraits which appear on notes and coins also have a significantly high level of historical value. And if you think that people don’t care what the portraits on money look like then think again. When Australia changed over to decimal currency in 1966 a new portrait of Queen Elizabeth appeared on the one dollar bill . The new decimal currency bills were designed by Gordon Andrews who was widely criticised for portraying the Queen with what some people thought was a look of unhappiness, and for giving the Queen what some people saw as a slight scowl. Mr. Andrews defended the portrait by pointing out that “if you have someone grinning at you on a bank note, which you have to look at over and over again, you get to hate the sight of it”. A fair point I think. Another example of the extent to which the portraits on paper money are assigned value is a newspaper article from 1962 about counterfeit currency in which a US Secret Service Chief advised people to look at the portrait. According to Chief James J. Rowley “Counterfeit currency has a lifeless portrait, the fine cross-lines are not clear or distinct”. Sounds more like the musings of an art critic than a secret service agency.

Some may disagree with the concept of historical value as a type of intrinsic value but I think there is more than enough proof to suggest that the historical value that many portraits have can be considered to be intrinsic. The sort of value I am talking about is the value of what a portrait can tell us about various areas of history, not the value we place on a portrait because of the positive opinion we have for the person depicted – an opinion that could change depending on the information we have about that person. The US National Archives conducted an investigation into the Intrinsic Value In Archival Material in 1982 which came up with some useful definitions and information that is relevant to this post. According to the ‘Report of the Committee on Intrinsic Value’ it was determined that “Intrinsic value is the archival term that is applied to permanently valuable records that have qualities and characteristics that make the records in their original physical form the only archivally acceptable form for preservation. Although all records in their original physical form have qualities and characteristics that would not be preserved in copies, records with intrinsic value have them to such a significant degree that the originals must be saved.The qualities or characteristics that determine intrinsic value may be physical or intellectual; that is, they may relate to the physical base of the record and the means by which information is recorded on it or they may relate to the information contained in the record.” It is also worth noting that the committee determined that one of the characteristics of records with intrinsic value is “General and substantial public interest because of direct association with famous or historically significant people, places, things, issues, or events”. The findings of this committee confirm that historical documents can have intrinsic value.

One of the best sources of evidence that supports the idea that a portrait can have value as a historical document is the fact that the National Library of Australia has Guidelines for the acquisition of portraits that are acquired to “provide a documentary record of Australian life and achievement”. According to the guidelines “The National Library collects portraits of Australians of national significance as well as portraits of individuals and groups who are not necessarily known but who are representative of different occupations or of various social, racial or cultural aspects of Australian life. Portraits are acquired to provide a documentary record of Australian life and achievement”. Even more revealing is one of the selection criteria that the library uses to determine whether a portrait is worth acquiring. The following is one of the selection criteria:

2.2.2 The documentary value of the portrait

Portraits acquired must provide an authentic record of the physical appearance of the subject. In addition, some suggestion of the field of achievement of the subject is looked for in background details, dress or any objects shown in the portrait.

The extent to which the portrait offers insights into the personality and character of the sitter, and the originality of the portrayal, are also considered important. For some individuals an original portrait as well as a photographic portrait may be acquired if it is considered that they provide differing insights. However, for an original portrait to be preferred to a photographic portrait when both are available, the original work should display this quality to a much greater degree (see 2.2.1).

In the case of original works, a portrait painted from life is preferred to one painted from a photograph, as being more likely to provide the added dimension of character insight. The relationship of the artist to the sitter may also be of relevance here.
From a really young age, we learn to read faces. They have a language and can articulate themselves with nuance in a way that nothing else in the world around us can quite reach. The way an artist paints a face is highly distinctive, and portraiture tells you far more about the artist than it does about the subject. Get to know the vernacular of one artist’s face compared to another, and you can use that knowledge to hunt down other examples.

Non-representational works of subjects are not collected as generally these do not convey documentary information about the subject’s appearance.

Cartoons that offer insights to personality and character will be considered for acquisition.

As far as I can see the value that can be placed on portraits because of their status as historical documents is the sort of future proof intrinsic value that will always remain with the portrait and cannot be disassociated from the portrait.  It is this sort of intrinsic value that makes the portrait a good candidate for use as currency – a concept that I will continue to explore.

To be continued……………….

**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

Courtesy Brunk Auctions:

Auction to take place on September 11-12, 2010

Few painters loved hunting dogs more than classically trained American artist Percival Rosseau (1859-1937). “A man should paint what he knows best and I know more about animals than anything else,” he said. Rosseau’s benefactor, industrialist Samuel G. Allen
(1870-1956), shared his affection for hunting dogs. He helped found the Amateur Field Trials Clubs of America (1917) and the English Spaniel Field Trial Association (1922). Two of the Rosseau paintings in the sale are of Allen’s spaniels: A Tripple (sic) Point: Bob, Prince and Ned 1924 and End of a Perfect Day, Allen’s Flag and Queen 1923. Each carries a pre-sale estimate of $40,000/$60,000. Samuel Allen owned at least five Rosseau paintings; Perfect Day was one of them and there is a possibility that Allen also owned Tripple Point.

Rosseau immortalized Samuel Allen’s dogs. Andrew Wyeth (1917-2009) did the same for the people he knew and loved. “I’m involved with the people I paint,” he once said. “They are not people I paint and send home.” The sportsmen who posed for Wyeth’s Shore Pine 1939 were his life-long friends, Milton Teel and Maine fisherman Walt Anderson. The scene is Turkey Cove, an inlet near Port Clyde, Maine. The 22 ½ inch by 30 inch watercolor over pencil on paper (est. $60,000/$90,000) was sold by Macbeth Gallery in New York in 1940 and given to the consignor in 1955. Walt Anderson also posed for Wyeth’s Sea Dog, a portrait of the red-bearded old salt owned by the North Carolina Museum of Art.

Lot 0322 Andrew Wyeth (Pennsylvania/Maine, 1917-2009), "Shore Pine, © 1939",

Andrew Wyeth is one of America’s most popular painters. His Shore Pine,
1939 depicts two of his many friends in a skiff on Turkey Cove, Maine. Signed lower left “Andrew Wyeth” the 22 ½ inch by 30 inch watercolor is expected to bring $60,000 to $90,000.

Lot 0317
Percival Leonard Rosseau
(Louisiana/Connecticut/Fayetteville, North Carolina, 1859-1937), “A Tripple [sic] Point; Bob, Prince and Ned, 1924″, signed lower right “Rosseau 1924″ and signed and titled verso, oil on canvas, publishing rights label verso for Brown & Bigelow “Subject Number 1312″, 26-1/8 x 38-1/8 in., original wood shallow-cove frame, draw crackle, fiberboard between canvas and stretcher, crackle, flaking top left, abrasions at edges, canvas loose, grime, retouch in areas of draw crackle mainly located in background; frame with popped corners, abrasions
Possibly Samuel Allen, Denton, North Carolina; Brown & Bigelow, New York (label verso); Private Collection, North Carolina
Estimate: $40,000 – $60,000
Reserve: $35,000

Lot 0318
Percival Leonard Rosseau
(Louisiana/Connecticut/North Carolina, 1859-1937), “End of a Perfect Day, Allen’s Flag and Queen, 1923″, signed lower right “Rosseau/1923″, title, notes and date inscribed by the artist verso, oil on canvas, 26-3/8 x 50 in., original carved and giltwood frame,
original stretcher and tacking edge, crackle, cupping, points of abrasion, points of retouch in sky and at draw crackle, card between canvas and stretcher (by artist), recently cleaned.
Acquired from artist by Samuel G. Allen; owner of the dogs; by descent to the consigner.
Estimate: $40,000 – $60,000
Reserve: $40,000

Lot 0319
Percival Leonard Rosseau
(Louisiana/Connecticut/Fayetteville, North Carolina, 1859-1937), “Stylish Work”, signed lower left “Rosseau 1923″, dated, inscribed and titled verso card, oil on canvas, 9-1/4 x 23 in., original gilt wood frame with glass,
good condition, card between canvas and stretcher; frame with chips and losses to corners
Arthur Ackermann & Son, Inc., New York (label verso); Private Collection, North Carolina
Estimate: $2,000 – $3,000

Lot 0322
Andrew Wyeth
(Pennsylvania/Maine, 1917-2009), “Shore Pine, © 1939″, signed lower left “Andrew Wyeth” and stamped verso with reference number “A667″, watercolor over pencil on Arches paper, 22-1/2 x 30 in. (page), modern gilt wood frame,
hinged in, paper tape and adhesive residue verso all edges with toning through to front approximately 3/4 in.
Macbeth Gallery, New York, 1940; by gift to consignor, 1955
Estimate: $60,000 – $90,000
Reserve: $60,000

For more information, contact Jerry Israel (telephone: 828-254-6846 begin_of_the_skype_highlighting              828-254-6846      end_of_the_skype_highlighting begin_of_the_skype_highlighting              828-254-6846      end_of_the_skype_highlighting) at Brunk Auctions,
Asheville, North Carolina

http://www.brunkauctions.com

Welcome to part 2 of my series on the concept of portraits as an art market currency.  Before I continue, I would like to explain exactly what I mean by an art market currency for those that are perhaps slightly perplexed by the concept. Obviously, fine art is never going to replace paper money as the dominant form of currency.   My research focuses less on the actual use of currency as a medium of exchange, and more on the concept of currency as an indicator and a benchmark.  It is important to understand that my concept of an art market currency is merely a theoretical concept – the analysis of which I believe can provide valuable information and knowledge for investors and collectors.

In the currency world, the US dollar is used as a benchmark (world reserve currency) for all other currencies because of the political and military strength of the US, as well as the very strong gold reserves that the US held when the Bretton Woods system was introduced after World War II. Although the art market doesn’t have an official genre, period or style that acts as a benchmark for the rest of the market, the popularity and visibility of the contemporary art market means that it tends to be used as a de-facto barometer for the state of the art market.  Unfortunately, the contemporary sector of the art market would have to be the worst sector to use as an indicator for the health of the entire art market.  As we all know, the contemporary sector of the art market is a highly volatile and unstable market that is constantly at the mercy of cultural and social trends – and is often assigned a value that has very little to do with the actual art object.  So, if the contemporary art market is not a suitable indicator of the status of the art market, is there a category of art that is?  This is just one of the questions that I hope to answer with this series of posts.

Let me throw a scenario your way that will hopefully help make the reasoning behind the concept of portraits as an art market currency much clearer.  If I were to give someone who knew nothing about art 100 works of art consisting of: 20 cubist paintings, 20 conceptual  works, 20 figurative landscape paintings, 20 religious icons and 20 figurative portrait paintings – and asked that person to look at each category separately and rank the works in each category according to how much they thought each work was worth based purely on the physical characteristics of the art object (without knowing anything about who the artist is, when they were painted, who the portraits are of, the location of the landscapes etc.) – which category do you think they would find the easiest to rank?  I think that conceptual art would be the hardest, because with conceptual art the main component of the work is the concept, not the art object.   Because abstract art is so nonrepresentational, it is extremely difficult to assess unless the purpose or motivation of the artist is known, which rules out the cubist paintings as the easiest to rank.   Religious icons could be compared to portraits – however, the symbolic nature of religious icons means that their value is closely tied to the cultural, religious, social and art historical context in which they were created, which makes valuing such works difficult for experts, and virtually impossible for anyone who does not have a thorough knowledge of the genre.  Figurative landscape paintings would seem like a good candidate for the most easy to rank because of the representational nature of such works, the general familiarity people have with the way nature should be depicted, and also because the skill and talent of the artist are so easy to determine from the way the picture is presented.  What lets the figurative landscape paintings down is the lack of consistency in terms of setting, location, season, angle etc. which means making a comparison between two landscape paintings is likely to be very difficult.  Finally, we come to portraiture.  There are several factors that make the physical characteristics of portraits so easy to compare and rank, including:

- the consistency of the subject (human face)

- the universal nature of the face

- the common goal of figurative portrait painters (to accurately depict the human face)

- the ease with which virtually anyone can determine how skilled or talented the artist is at accurately depicting the human face

In my opinion the physical characteristics of figurative portraiture are the most comparable and easily ranked of all the genres and types of fine art.  I cannot think of another genre or type of fine art that has such consistent characteristics and is so universally decipherable.  The fact that the physical characteristics of figurative portraits are so comparable across the whole genre, and so easy to rank, means that they are also easier to value when compared to other genres.  It is the characteristics of figurative portraiture that I have discussed above which give figurative portraiture an edge over other genres when it comes to the concept of fine art as currency.

Stay tuned for part 3……….

**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

The popularity of figurative art took a real dive post WWII when abstraction began to really hold take, which meant that portraiture, one of the purest forms of figurative art, suffered considerably along with the other forms of representational art.  More recently, conceptual art captured the imagination of the art world and, like the abstract movement, overshadowed the less glitzy world of the classical and the traditional.  The contraction of the art market that took hold in 2008 – primarily a result of the severely overheated market for contemporary art -  did, however, cause the art market to re-evaluate the value it placed on contemporary art as well question the reasoning behind the justification of the phenomenal prices being paid for contemporary art. Because the value of much of the contemporary art being produced is dependent upon the culture of the market in which the art is being sold, any major changes to the dynamic of that market are bound to have a severe effect on the value people put on contemporary art.  As is always the case, when the latest short term fashion driven trend begins to crumble, people turn to the safety and assurance of the traditional and the classical.  It is during or after major art market corrections that the difference between a short term fad and a particular style or movement temporarily going out of fashion becomes clear.  By definition, a fad is a temporary state of affairs that, once the novelty fades, is gone forever.  A considerable percentage of the contemporary art that enters the market will only retain the value it is given for as long as the fad it is associated with lasts.  Because the fads that drive the contemporary art market rarely get the sort of scholarly attention, cultural patronage or art historical recognition that ensure longevity of an artist and their work, many contemporary artists fail to survive the demise of a trend or the onset of an art market contraction.  Although portraiture fell out of fashion, as it has done on several occasions, the fact that there is so much scholarly, academic and art historical support for the genre means that there will always be a market for portraits – a market that can only continue to get stronger each time the genre comes back into fashion.

Philip Mould is a world renowned expert on historical British portraiture and, as well as regular appearances on the British version of Antiques Roadshow, has written several books that regale the reader with thrilling tales of the serial sleuther’s many quests to unearth the true identity of an artist or their subject.  Although he started dealing in portraits because they were cheap, Mould developed an infectious passion for British portraiture that even made me want to start dealing in portraits.  The great poet Charles Baudelaire once said that “A good portrait always appears to me like a dramatized biography, or rather like the natural drama inherent in every man” – a statement that I totally agree with.  Although the classical portrait may have a certain stigma attached to it, and may seem to many to be a rather boring category of art – once one begins to discover the biographical, socio-historical and cultural associations that a portrait is likely to have, the portrait can quickly go from being a humble representational picture to an extremely interesting and important historical document that can reveal fascinating historical, cultural and social information.  Uncovering the often hidden delights of a portrait is usually a time consuming project but is also an extremely rewarding and fascinating journey which more people are beginning to see the benefits of.  Uncovering the secrets of a portrait can not only be an exciting and educational experience, it can also be financially rewarding in cases where the information uncovered adds historical, cultural or provenencial value to the portrait in question.

Portraits have featured heavily in many of the most successful art auctions that have taken place over the last few months.  Asa an example of what I am talking about, check out the top results (from mutualart.com) of the July 14th Deweatt-Neate Old Masters and 19th Century Pictures auction.

The flower girl By Bartolomé Esteban Murillo 3,840 GBP 380% above estimate

Immortality: A Nymph Presiding in the Temple… By Angelica Kauffmann 79,200 GBP 340% above estimate

Portrait of a lady Half length seated By British School, 18th Century 2,160 GBP 209% above estimate

Head study of a man (fragment) By Titian 1,560 GBP 160% above estimate

Stay tuned for part 2 for a detailed explanation of the reasoning behind my portraits as art market currency theory.

**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

Although investing in fine art is considered to be a hedge more mainstream investment markets, a new trend has emerged that has seen numerous attempts to launch projects that aim to introduce alternative methods of investing in art as a hedge against the traditional method of investing in art – purchasing a work of art and taking physical ownership. One such project is the collaboration between artist Tom Saunders and art collective Idefix Bloc which with an exhibition of Saunders’ work titled SHOP + OFFICE held at murmurART gallery East London. What makes the SHOP + OFFICE exhibition so unique is that Saunders was not offering his work for sale in the traditional sense. Instead of collectors and investors purchasing physical ownership of an art object that Saunders had produced, as would normally be the case, Saunders offered potential clients the opportunity to purchase the right to buy his art in 10 years’ time for £1 for an immediately payable fee of £2000 pounds, the price that Ferguson Solicitors, the UK law firm, believes is the correct price for an “option” contract, which is essentially what Saunders is offering. Basically, you can pay £2000 now for the right to purchase any piece of the artist’s work in 10 years time for only £1. The lure for investors is the potential to earn huge profits if Saunders becomes a highly successful artist whose work sells for large sums of money, or at least significantly more than the £2000 investment. Saunders’ work could, of course, turn out to be worth less than the £2000, but that is the risk investors take. There are, however, contract provisions that cover premature death or non-production.

Over in India, another innovative art investment project has been started by an Indian entrepreneur. Indian investor Arun Rangachari, chairman of venture capital firm DAR Capital, has purchased the rights to the entire life’s work of a reclusive Italian artist by the name of Montanari, who has lived in seclusion for the past 18 years. Rangachari is building up an art collection, of which the work of Montanari will play a significant part, with the intention of setting up an art fund in the future. Before selling any of the paintings, Rangachari plans to increase the value of Montanari’s work by holding exhibitions and building a foundation dedicated to the artist’s work. According to artnewspaper.com ‘His (Rangachari’s) first art investment consists of 40 paintings by the Italian artist Americo Montanari, with the option to buy many more……..When asked why his art fund would succeed when other ventures, including Indian-based funds, had recently failed he said: “Our entry level will be affordable, we’ll be focusing on artists who have not yet built a reputation and we will have no hidden costs, everything will be up front, so we’ll be quite different from everyone else.”’

The Chinese are also getting in on the act with Chinese financial corporation Shenzhen Artvip Cultural Corporation recently going public with China’s first openly traded art portfolio. The portfolio, which comprises of 12 paintings by contemporary artist Yang Peijing, is being traded on the Shenzhen Cultural Assets and Equity Exchange (SZCAEE) in the form of 1000 shares. All 1000 shares sold out on the first day of trading for a total of US$354480 with profits from trading the works of art to be dispersed by Artvip as the works are traded. According to artinfo.com: ‘Established in 2009 by the Chinese government, SZCAEE functions as an alternative platform for the trading of a wide range of cultural assets — including artworks, luxury goods, and films — as part of the Chinese government’s attempt to commercialize, diversify, and regulate the public exchange of such cultural properties. SZCAEE plans to offer a second 1000-share portfolio, featuring 40 works by Yang Peijiang, sometime in the future.’

Interestingly, each of the above projects are focused entirely on the work of a single living artist, which is comparable to investing in a single business. The benefit of focusing on the work of a single living artist is that the future output of the artist can be controlled by a certain degree by those with a vested interest. There is also the potential for a much larger return from the work of a living artist as a result of the progression of the artist’s career. In terms of downsides, the most obvious downside of investing in the future of a living artist is the uncertainty. Whether the rewards are worth the risk is yet to be seen……..

**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

The art market has found its self in a rather interesting predicament.  On the one hand, confidence in the art market has increased considerably since the beginning of the year.  On the other hand, the ever increasing likelihood of a major financial crisis has seen more cautious and selective buying.  Adding to the drama is the increasingly obvious lack of top quality paintings by the Old Masters, which the market is currently showing a very healthy appetite for.

On the 13^th of July an impression of Edvard Munch’s controversial work Madonna sold for an amazing £1,252,000 at Bonhams – twice its lower estimate of £500,000. This makes it the most expensive print ever sold in the UK and the second most expensive print in the world. At Bonham’s 19th Century Paintings sale held on the 22nd Apr 2010, ‘Female figure study’ , a drawing on paper by John Constable with a hidden history, sold for four times it pre-sale estimate to make £24,000. Also achieving success was an interesting  ‘Portrait of a Gentleman’ by George Dawe (British 1781-1829) which was the subject of fiercely competitive bidding and finally sold for £43,200 against a pre-sale estimate of £4,000-6,000.

At Christie’s Victorian & British Impressionist Pictures Including Drawings & Watercolours sale on the 16^th of June,  Sir George Clausen’s ‘Head of a young girl (Rose Grimsdale)’ made £505,250 against an estimate of 250,000 – 350,000 setting a new world auction record for a work on paper by the artist. The same sale also saw a new record for Archibald Thorburn with yet another work on paper titled ‘Grouse in flight’ which made £217,250 against an estimate of 60,000 – 80,000

At Christie’s 23 June 2010 auction of Impressionist and Modern Art the top price was achieved by ‘Portrait of Angel Fernández de Soto’, 1903, a Blue Period masterpiece by Pablo Picasso (1881-1973), which sold for £34,761,250 against an estimate of 30,000,000 – 40,000,000.  Another portrait titled ‘Frauenbildnis (Portrait of Ria Munk III)’, one of the last great female portraits painted by Gustav Klimt (1862-1918), sold for £18,801,250 against an estimate of £14 million to £18 million.

Yet more portraits achieved high prices at Christie’s Old Masters & 19th Century Art sale held on the 9^th of July at their South Kensington saleroom. Margaret Sarah Carpenter’s ‘Portrait of a young girl’, who is thought to be Henrietta Carpenter, reached £32,450 against an estimate of 7,000-10,000 and achieved a new world record price for the artist at auction. A work from the Studio of Sir Peter Lely titled ‘Portrait of King Charles II’ also fetched £32,450 against an estimate of 6,000-8,000.

Over at Sotheby’s the ‘An Exceptional Eye: A Private British Collection’ sale held on the 14^th of July saw a watercolour over pencil by John Robert Cozens titled ‘The Lake of Albano and Castel Gandolfo’ reach £2,393,250 against an estimate of 500,000 ‐ 700,000 –  the top price of the sale and a new record for the artist at auction.  The portrait miniatures performed particularly well with the Sotheby’s press release stating that “a very high price achieved for an early work by John Smart (lot 17, £56,450), and a record for a work by Bernard Lens (lot 10, Portrait of King Charles I, sold for £58,850)”

At Sotheby’s Impressionist & Modern Art Evening Sale held on the 22^nd of June, the top price paid was again for a portrait.  Edouard Manet’s ‘Portrait de Manet par lui-même, en buste (Manet à la palette)’ fetched £22,441,250 against an estimate of £20,000,000-30,000,000 -  a record for the artist at auction. The top-selling lot of the June Russian Paintings Day Sale was Boris Grigoriev’s oil on canvas Portrait of the artist’s son, Kirill, which sold for the sum of £253,250, above its high estimate of £200,000.  Another portrait, Alexander Evgenievich Yakovlev’s ‘Titi and Naranghe, Daughters of Chief Eki Bondo’, took top spot at the 7 June Important Russian Art Sale selling for £2,505,250 – more than triple the £700,000 – 900,000 estimate .  Sotheby’s sale of the long-lost art trove of Ambroise Vollard saw more records set for works on paper held in Paris on the 29^th of June. According to the Sotheby’s press release from the sale: “Key works among the highlights of the group were an extremely fine impression of Picasso’s celebrated 1904 etching ‘Le Repas frugal’ (another portrait), which more than doubled its high estimate of €300,000 to bring €720,750 (£584,078), the highest price of the sale. A monotype by Edgar Degas, ‘La Fête de la patronne’, circa 1878-79 soared past pre-sale estimates (€200,000-300,000) to bring €516,750. Paul Gauguin’s ‘Trois Têtes Tahitiennes ‘sold for €312,750 (£253,445) well above the estimate of €100,000 to €150,000 and a record was set for a print by Pierre-Auguste Renoir when ‘Le Chapeau Epinglé, Deuxième Planche’ more than tripled its high estimate of €80,000 to bring €252,750 (£204,822). Man Ray’s ‘Autoportrait solarié’ fetched €168,750 ($206,138)”

On the 2^nd of June at Sotheby’s in London, in the sale of 19th Century European Paintings, one of the finest figure paintings by Jean-Baptiste-Camille Corot ever to have appeared on the market was purchased by the Musée d’Art et d’Histoire in Geneva for £1,609,250, exceeding its pre-sale high estimate of £1.2 million.  According to Sotheby’s “‘Jeune femme à la fontaine’ enjoyed an exceptional early provenance before it was requisitioned during the Nazi period, and was recently restituted to the heirs of its erstwhile owners.”

The results that I have highlighted above give a good indication of the current market sentiment and the market trends that are likely to define the market for the near future.  To start with, the popularity of portraits is a major indication that buyers are seeking the safety of the academic and the scholarly.  With portraits in particular, the level of skill and talent of the artist is pretty much immediately obvious to even the most untrained eye. When it comes to fine art, and portraits in particular, I do not think that people use the term craftsmanship to describe the work carried out by some artists.  To accurately portray the physical attributes and the personality of the sitter is, in my opinion, a craft that requires skill, training and a healthy dose of talent.  When one adds the historical value and importance of portraiture, the appeal of a famous (or not so famous) face from history to an investor becomes even more apparent.

I have spoken about the concept of fine art as a form of currency in previous posts.  If ever there was a type of art that was more suited to being used as a form of currency, it would have to be portraiture.   The number of common features that most portraits share, combined with the ease with which one can judge and value a portrait based on intrinsic and extrinsic characteristics, makes the portrait a prime candidate for an art world currency.  As I have said before, scholarship is the key to successful art investment, and successful wealth preservation using art for that matter.  Portraits are usually afforded the honour of in depth scrutiny and attention by scholars and academics because of the information that portraits can provide about various branches of history.  For this reason, among others, portraits are given the sort of long term continued attention that constantly adds value.

The second trend that I have alluded to is a greater interest in works on paper – in particular original drawings and watercolours.  I personally of the opinion that the increased popularity of watercolour paintings, particularly those by British artists, is due to the greater interest in the art of the Victorian era which was the golden age of British watercolour painting. Although original works on paper, such as drawings and watercolours, are often looked upon as the less valuable mediums in the scheme of things, the tide can change very quickly as it has recently.  As well as the revival of interest in Victorian art, a shortage of major works by the Old Masters and the Impressionists has driven buyers to seek the qualities that they are looking for in other mediums and periods. An article titled ‘Young masters in an old game’ from The Guardian newspaper written by John Windsor in November 2009 sums up the situation surrounding works on paper perfectly with the following statement: “Taste is shifting from new, ill-conceived conceptual art of the Brit-pack variety – costing thousands but faltering at auction, towards old, traditional skill-based art……. but you do need to develop an eye for quality – the easy, confident line of a master draughtsman, the luminosity of a watercolourist’s washes.” It is a shame that the watercolour painting is considered the poorer cousin of the oil painting because there are so many amazing watercolours by some of the world’s greatest artists that do not receive the exposure that they deserve.

**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

One of my favourite contemporary artists, Volkan Diyaroglu, not only produces incredible paintings, but also creates awesome collages.  In February of this year an exhibition of Volkan’s collage was held in New York by the Italian Gallery AR / Contemporary Art .  According to the catalogue:

The Collages of Volkan Diyaroglu are intrinsically related to his entire artistic creations. Their irony and synthesis are the mirror of canvases’ explosive profusion. It’s a silhoutte, it is a filter that brings down to essence what is the core of the work of the artist: sudden jumps in times and spaces.

In the canvases, as well as the Collages ,Diyaroglu seems to propose a “prehistoric future of humanity”. It is not just playing with words, but according to Volkan “ We come from where we will go” ; the past and the future are in the same direction inside his works. To look forward is to look at our genesis, digging us into it.

On the 12 Collages proposed by AR / CONTEMPORARY ART, the present meets the past and the past meets the future passing through doors, holes, windows, spatiotemporal tunnels. Past, present and future move through Wormholes: sudden surreal passages created by the artist. Cows, Humans, Fishes, Hands appear or look for an escape. Leak loose water. Windows and closets show the street that opens a tear into reality

The irony and an immediate and balanced sense of composition give to these images a taste of the Absurd pregnant of the dramatic research of an escape, an entrance, a Wormhole.

Is art a long term investment?

Yes, art is definitely a long term investment.  In fact, art is really only a good investment if it is able to be held for long periods of time. As an indication of how long an investment in fine art should be held, most fine art funds require a ten year commitment  – the same length of time that I would recommend anyone investing in art should be prepared to hold on to their investment for.   Although it is quite old, a study completed in 1985 by Michael F. Bryan on behalf of the Federal Reserve Bank of Cleveland titled ‘Beauty and the Bulls: The Investment Characteristics of Paintings’ provides a good insight into the characteristics of the art market.  According to Bryan:  ‘Over the 15-year period (1970-1984), the rate of appreciation in paintings typically outpaced the rate of increase in the general price index (consumer price index). However, within short intervals (1973-1977and 1980-1982), painting’s price appreciation did not keep pace with inflation. During one year of inflationary pressure (1980-1981) paintings actually depreciated in value. In short, while the rate of appreciation in paintings is positively related to the general price level, and moreover has outpaced inflation over the full period of analysis, its year-to-year performance has been considerably volatile.’

Dr Rachel Campbell, an Assistant Professor of Finance at the University of Maastricht , came to a similar conclusion as Bryan in her paper ‘The Art of Portfolio Diversification’.  According to Campbell:  ‘High volatility stems from the whimsical nature of the Art market to current trends and fads in society’s taste for Art. The nature of Art shall always be subject to such trends and as such results in a higher volatility portrayed in the prices and returns found in the Art market. A more prudent investor can alleviate the peaks and troughs from the returns on the Art market by focussing on the longer-term investment. Moreover, the high transaction costs involved with investing in Art result in the benefits tending to be reaped on the longer term.’

What the two studies above show is that although the average yearly return is quite high over a long period of time, those paintings that did increase in value often did not do so in a linear fashion.  In fact, the year to year change in value can be considerably volatile.  What the two studies also show is that just because you hold your investment in art for a long period of time, you are by means guaranteed to end up with a painting worth more than when you purchased it.  Due to the changing tastes and fashions of the art world, as well as the various economic factors that play a role in what people are willing to pay for fine art, the rate of return over the short term can undergo major and rapid changes.

The key to successful art investment is being able to know when the best time to sell is which may mean utilising the services of an advisor or consultant.  It is also extremely important to know how much you need to sell your art investment for to cover the selling costs, and to make a percentage profit that you are happy with.  Because of the nature of the art market it is important not only expect to have to hold your art investment for a long period of time, but also to expect to have to sell your investment at any time if the opportunity comes along to make a considerable profit.  A particular event or occurrence could potentially have an extremely positive effect on the value of your art investment which would be too good to ignore, but could also eventuate at any time with short notice.  Therefore, I cannot stress enough how important it is to know how much you need to sell your art investment for to cover the selling costs, and to make a percentage profit that you are happy with, so that if an opportunity comes up to sell your investment you are able to make an informed and quick decision.  In short, be prepared to hold your art investment for a long period of time, and also be prepared to sell at any time.

**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

Due to popular demand, I have posted the entire ‘What Art Investors Can Learn from Gold Investors’ series from start to finish, and have also added a further conclusion. I also changed the title to better reflect the subject matter. Hope you enjoy !!!!

What Art Investors Can Learn from Gold Investors Pt. 1 – artmarketblog.com

If am sure that everyone who is reading this post will be aware that the price of gold has increased significantly in recent times, and is poised to increase even more over the coming months. The long bull run that gold has been able to sustain has made the gold market one of the most watched and analysed markets on the planet, and has given people even more reason to consider acquiring a physical position in gold. As an art market analyst and art investment expert I try and keep an eye on as many different investment markets as I can in an effort to acquire knowledge and skills that I can apply to the art market. Although the art market is a unique market that appears to have very little in common with other investment markets, I often come across small yet very important similarities when comparing the art market to other markets that usually turn out to be very useful. In fact, even analysing small differences between the art market and other markets can prove to be beneficial when assessing the art market as a whole or when assessing a particular sector/event. For this reason I always find it interesting and useful to make comparisons between what is happening in the art market and what is happening with other investment markets.

One investment market that I have paid particularly close attention to recently is the gold market. I am not only keeping an eye on the gold market because of the progress it is making, but also because one can learn a lot about the art market and art investment from what many people consider to be the ultimate safe haven investment. Gold has been used as a store of value/wealth and a form of currency for thousands of years, and continues to remain the ultimate universal representation of wealth and value. To understand what the gold market has to teach us about the art market and art investment one must first know a few important things about gold and the gold market. One of the most significant reasons that gold is such a highly prized metal is that is a very rare and finite resource. In fact, it is estimated that if all the gold that has been mined on earth to date were put together, it would not quite even fill a 20mx20m cube. Add to this the fact that the amount of gold mined every year would only add 12cm to this cube and one can see exactly how rare gold is. Not only is gold rare, but it also has particular physical properties that make it even more desirable and more suitable as an investment. It is partly because gold does not corrode, rust or tarnish, and cannot be counterfeited, that it is such a suitable store of value and such a popular investment. By purchasing physical positions in gold one can feel pretty confident in the knowledge that it is extremely unlikely that their gold will ever be destroyed.

An article in the National Geographic magazine from January 2009 said that: “Gold is not vital to human existence; it has, in fact, relatively few practical uses. Yet its chief virtues—its unusual density and malleability along with its imperishable shine—have made it one of the world’s most coveted commodities, a transcendent symbol of beauty, wealth, and immortality.” Although the physical properties and rarity of gold contribute significantly to the value bestowed upon the precious metal, there is one other extremely important characteristic of gold that makes it so attractive and that characteristic is beauty. As the National Geographic article says, gold has an imperishable shine as well as a lovely lustre and beautiful gold glow that seems to make most human beings weak at the knees. The website gold.org sums up the attractiveness has this to say about the attractiveness of gold: “Since the beginning of time, the intrinsic beauty, warmth, sensuality and spiritual richness of gold has earned it pride of place as the favourite metal of jewellers. Gold has inspired craftsmen to create objects of desire that unite us with our emotions. In the Middle Ages, alchemists attempted to use their magic to make gold from other metals. They believed that gold was a source of immortality, and so it was used in medicines designed to fight old age and prolong life.”

What does all this have to do with art I hear you ask? Stay tuned for part 2 !!!

What Art Investors can Learn from Gold Investors Part 2 – artmarketblog.com

All one has to do is look at the jewellery people are wearing to realise that gold is considered by most people to be a substance of great beauty.  Since gold has very few uses other than as a material for making jewellery and other precious objects, were gold not physically attractive, it would not be anywhere near as desirable as it is.   It is because so many people find gold desirable and attractive that there is such high demand for gold.  If only a small percentage of the population were to find gold attractive and desirable then demand would be much lower. However, it is not just the fact that gold is physically attractive to human beings that makes it an excellent investment and a highly valuable substance.  As I have shown, the desirability of gold can be linked to three main factors:  physical beauty, mass appeal and rarity.  Without any one of these three factors, gold would not be anywhere near as valuable as it is, so it is these three factors that I want to explore in relation to art investment.

Gold is a finite resource which means that only a limited amount of gold exists on the earth.  At some stage in the future all the gold that remains in the earth’s crust will be extracted by mining companies and that will be that.  Gold cannot be artificially produced so only a certain amount of gold will ever exist.  When it comes to fine art, rarity is a factor that comes into play on a regular basis, and is extremely important to consider when approaching art as an investment.  Original works of art are pretty much always one offs and therefore rare in their own right, so it is important for art investors to look at the bigger picture.  Let me explain.  Just like gold, the work of a deceased artist is finite resource, whereas a contemporary artist who is still alive could go on to produce any number of subsequent works of art.  A good example of an artist with a small oeuvre is Vermeer whose oeuvre consists of an extremely small number of works; thirty seven paintings are known to have been definitely painted by Vermeer with a further 13 or so attributed to his hand.  Because there are so few works by Vermeer in existence there is huge demand for his work which usually sells for tens of millions of dollars.  Rarity can also apply to the number of works on the market as opposed to just the number of works an artist produced.  The work of artists whose work is in high demand from public museums and galleries will often fetch higher prices when their works to come on the market because so many of their works are owned by galleries and museums, which leaves less works for private collectors and investors to purchase.

Art investors who want a safer long term investment as a hedge against more speculative investments should therefore be purchasing the work of deceased artists who produced as small a body of work as possible.  When it comes to art investment I firmly believe that art investment should not be a short term speculative investment, as some people believe it should, and should only be approached as a long term hedge against speculative investment markets such as the share market.

Stay tuned for part 3………

What Art Investors can Learn from Gold Investors Pt. 3

In my last post I began to make comparisons between the gold market and the art market from an investment perspective.  Today I want to begin winding up this series of posts by looking at one of the most important, but also one of the most controversial qualities, which is common to both art and gold, and which is crucial to both the gold and art market.  And that quality is beauty.  Gold undoubtedly has an intrinsic beauty, and hence an intrinsic value, that makes it attractive to a large number of people.  Just take a look at how many people wear gold jewellery and you will get an idea of how popular gold really is.  The World Gold Council summarises the allure of gold quite nicely with the following statement:

“Since the beginning of time, the intrinsic beauty, warmth, sensuality and spiritual richness of gold has earned it pride of place as the favourite metal of jewellers. Gold has inspired craftsmen to create objects of desire that unite us with our emotions. In the Middle Ages, alchemists attempted to use their magic to make gold from other metals. They believed that gold was a source of immortality, and so it was used in medicines designed to fight old age and prolong life.”

With art, however, the debate continues to rage as whether or not art actually does have intrinsic value.  I think that it is time for me to settle this debate once and for all.  Some art does have intrinsic value and some art doesn’t.  Let me explain.  Many people struggle to define beauty when it comes to art, but I don’t find it that difficult.  As art is a visual medium it would make sense that beauty, in relation to visual art, must therefore involve the art object it’s self.  What else would it involve,  I hear you ask.  Well, a lot of art these days involves much more than the visual component of art (ie. the art object). Take conceptual art for instance.  Conceptual art may not even involve a visual component at all; the art object is usually replaced by a concept.  You may have noticed that contemporary art often involves a component other than the art object, even if the work is not conceptual, and even if there is an art object.  If you go to any contemporary art gallery or museum, you are likely to find that many of the works are accompanied by lengthy explanations that on needs to read to fully appreciate and understand the visual component of the work.  Combine this fact with the fact that many modern and contemporary art objects would NOT be considered beautiful by most people (if by anyone at all) and one begins to understand that visual art is no longer about beauty, or the art object for that matter. The purpose of art underwent a fundamental change with the onset of the modern era.  Social, political, philosophical and cultural issues infiltrated the art world to an extent that had never been witnessed before.  When it came to priorities, beauty began to take a back seat during what was essentially a second renaissance that saw the role of the artist change from that of an artisan to something more akin to a cross between an avant-gardist, an activist, a revolutionary and an entertainer. Professor Terry Eagleton famously said that `to the avant-garde truth is a lie, morality stinks and beauty is shit’. The task of art, he believes, `is to be a hammer, not a mirror…Art’s job is to unleash contradictions . . . to shatter and wound.’

Eleni Gemtou of the University of Athens summed up the situation relating to beauty and art perfectly in her paper “The Role of Beauty in Art and Science’ in which she said: ‘Many are the works of art that have been created in order to satisfy philosophical and intellectual concerns, to provoke, to alert or even to serve social, religious and political objectives. In these cases, beauty and aesthetic satisfaction are either coincidental or completely absent.’ Gemtou then goes on to say ‘In the first half of the 20th century, art disengaged from its role to represent reality and to express beauty. Artists and movements expressing various world-perceptions, such as Fauvism, Expressionism, Cubism, Futurism etc. abolished traditional styles and introduced the principles of two – dimensionality, deformity, splitting and the projection of the process on the completed work. Form functioned as a revolutionary vehicle, while the subject in many works of art acquired a secondary and even a non-existent role (abstraction)’ (THE ROLE OF BEAUTY IN ART AND SCIENCE by Eleni Gemtou)

To be continued………

What Art Investors Can Learn from Gold Investors Pt. 4 – artmarketblog.com

The definition of an investment, in financial terms, is basically the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money (definition from investorwords.com). Although gold is often referred to as an investment, it really is not a good investment, especially over the long term. James Turk, founder and chairman of GoldMoney as well as co-author of the investment bestseller ‘The Collapse of the Dollar’, says that “Gold is not an investment. It is money. Gold doesn’t generate a rate of return like investments do. The price of gold is rising against all the world’s currencies because currencies are losing purchasing power, while gold is preserving purchasing power”. Instead of calling this article ‘What Art Investors can Learn from Gold Investors’, I should probably have called it ‘What People who use Art for Wealth Preservation can Learn from People who use Gold for Wealth Preservation’. However, if I had used the more correct title I do not think as many people would have read this series of posts.

The sort of investment I am writing about is an investment in one’s future financial security; an investment in wealth preservation, not wealth creation. I am not suggesting that art is as good a substitute for paper money (currency) as gold is. You may, however, be surprised to learn that fine art IS actually used as a form of currency in the criminal underworld. Stolen paintings are often used as collateral for drug or weapons deals which means that there is a black market for works of art which, interestingly, value works of art at as little as one tenth of their auction price (a great topic for a future post !!!). For a work of art to have value as a form of currency there are certain characteristics that the work of art needs to have. It would make sense that the more people who find a stolen work of art desirable, the more valuable the work of art would be on the black market. The most universally appealing and desirable characteristic that a work of art can have is the sort of instantly gratifying beauty that characterised the work of the old masters, and also the work of the more modern movements such as Romanticism, Realism and Impressionism where beauty and aesthetic satisfaction were still prime motivators. Essentially what I am referring to is the traditional and transcendental definition of beauty that aims to induce pleasure through physical attractiveness. An article that appeared in Forbes magazine in 2001 titled “Old Masters Soothe New Troubles” (by Anna Rohleder) described why the work of the old masters is so widely admired and universally accessible with the following statement: “At times like this, it isn’t fair to tax viewers with the opaqueness or abstraction of more modern works. Old Masters are accessible, their attractions obvious and their effects immediate. Old Masters convey a “feeling of peace and tranquility, a sense of timelessness that we are all searching for in our frantic lives,” says Arthur K. Wheelock Jr., curator of northern Baroque painting at the National Gallery of Art. “Great art makes you see the world differently.”

As you already know, wealth preservation is about protecting the wealth you already have. In the short term, wealth preservation is about maintaining a hedge against investments you have in more volatile markets such as the stock market. In the long term, wealth preservation is about maintaining some sort of protection from potentially devastating and crippling events such as a major financial crisis.  It is long term wealth preservation that I am most interested in as it is the most relevant to the art investor.  Legendary author and financial advisor Howard Ruff, in an article he wrote titled ‘Gold and Silver Insurance’, explained one of the reasons that gold is such a good long term wealth preservation vehicle.  According to Ruff: “It’s there (gold) to use as real money in the case of a worst-case, like an inflationary currency collapse, or terrorist hackers shutting down the power grid so no one has access to their dollars at the bank or at the ATM and they can’t open the supermarket cash registers. It’s in case the same terrorist-financed hackers break into the computers of the money-center banks where most of the world’s dollars are there in hyperspace, insert a destructive virus and the world’s dollars disappearing in a nano-second.

Remember, only about 5% of the worlds’ dollars are minted, printed or coined. The rest are only on the computers of banks. If the computer data is wiped out, there could go the monetary system of the world, because the dollar is the world’s reserve currency. This would mean the instant collapse of the American economy, and maybe Western Civilization. Then the world would instinctively go back to gold and silver as a means of exchange and store of value until the computers are fixed and a new paper-money system is cobbled together.”

To be continued………….

What Art Investors Can Learn from Gold Investors Pt. 5 – artmarketblog.com

The reason that I finished my last post with a description of a possible economic and financial doomsday like scenario is because such an event would really expose how secure and how safe the various different methods of wealth creation and wealth preservation are. A large majority of the vehicles of wealth creation that we choose to invest our money are dependent on the continued stability of the cultural, social, monetary and economic systems that are currently in place (ie. share market, money market, bond market, currency market etc.). One of the most vulnerable stores of wealth that pretty much everyone has positions in is fiat currency, better known as money. The definition of a fiat currency is: state-issued money which is neither legally convertible to any other thing, nor fixed in value in terms of any objective standard. These days most national currencies are fiat currencies including the US dollar, the Euro and the UK Pound, which makes the currency of most countries very vulnerable. Not only would a currency collapse have a devastating effect on the price of goods, it would also cause any positions in an investment vehicle that is only redeemable in a fiat currency, and is not a tradeable commodity (ie. stock market, bond market etc.), to essentially become as valueless as the currency that the investment relies on. The 0nly way to protect one’s self from total devastation in the event of a currency collapse is to have physical positions in a tradeable commodity such as gold. Gold is an asset with inherent value that is also a tradeable commodity. According to an article in Time magazine: “Gold, then, can be considered a currency, unique in that it is not directly tied to any country’s economy. With a global recession that is bound to continue to shake up the purchasing power of all foreign currencies, gold is safer from political and economic instability than cash.”

So where does art fit in to all this?. As we all know, a major financial or economic crisis (or even a little one for that matter) can have a major negative effect on the art market, especially the speculative contemporary art market. Because the perceived investment potential of contemporary art relies heavily on the progression of the artist’s career, which in turn relies on the continued stability of the cultural, social, monetary and economic systems that are currently in place (like the share market), contemporary art is likely to be devalued to a much greater extent in the event of a major economic than the work of the old masters or the impressionists. According to Jim Morris of art and antiques firm Corfield Morris: ‘buyers of contemporary art may be disappointed with returns. He defines contemporary art as works produced by artists who are still alive. “The problem with buying contemporary works is that many of the artists don’t have track records,” said Morris. “I’m afraid an awful lot of it is not going to stand the test of time.”’ Contemporary art is therefore a very risky investment and is not a good store of wealth; contemporary art is essentially the fiat currency of the art world. The work of the Old Masters, the Impressionists and many of the modern masters are, however, a different story. As well as already having a market track record and an already established legacy, the work of the Old Masters, the Impressionists and many of the modern masters have the benefit of having been endowed with some or all of the inherent characteristics that have a quantifiable and qualifiable intrinsic value such as subject matter, style, technical complexity, historical documentation, artistic proficiency, etc. Although some people may disagree that art can have intrinsic value, I believe that the work of certain movements or periods can. Regardless of whether or not you agree that art can have inherent properties of intrinsic value, the fact remains that if the work of the Old Masters did not have intrinsic value, then the art objects would not have any value independent of any and all other factors, which they do. If a work of art in the style of an old master were to be sold as the work of an unknown artist from an unknown period and without any provenance, the art object would still have value even without all other associations and therefore must have intrinsic value. The reason that these inherent properties have a quantifiable and qualifiable value in the case of the work of the Old masters, the Impressionists and many of the modern masters is that there are usually other similar works with which one can make comparisons and judgements and thus determine the value of these inherent properties in relation to another similar work. Particularly in the case of the Old Masters there are often artistic and technical standards that can also assist in the valuation of the inherent physical characteristics of a work.

To be continued…….

What Art Investors Can Learn from Gold Investors Pt. 6 – artmarketblog.com

One of the biggest problems with contemporary art, from a long term investment and wealth preservation perspective, is the seemingly ever decreasing focus on the art object. The focus that was once placed on the art object is being placed more and more on the art concept as well as the increasingly popular notion of the artist as a performer and celebrity. According to a Newsweek article titled Pop Goes the Market, ‘In the era of easy money, artists readily forsook the cliché of the tortured, penniless bohemian, and instead sought fame and fortune by branding their own glamorous, eccentric personas as a tradeable commodity’. Valuing a concept or a performance is almost impossible, especially when there is really no apparent standardisation or continuity from one artist to another. Without the ability to grade or judge the work of one artist with similar work from another artist, determining value becomes even harder. The value we place on what is termed “art” (in a contemporary market context), has less to do with the art object, the tangible result of the artistic process, and more to do with the persona of the artist and their artistic approach. With less emphasis being put on the art object, the value of contemporary art is being based on intangible characteristics and factors that have no perceivable intrinsic value. This means that much of the contemporary art being produced is a speculative and risky investment that would not be suitable as a means of preserving wealth.

As we all know, the contemporary art market is driven by speculation and a quest for social and cultural superiority that has resulted in, and continues to result in, a plethora of short lived fads. The artists involved in these fads often find themselves suddenly thrust into the art world spotlight by rich and powerful patrons who are more interested in the attention their purchases receive than what they actualloy purchase. Unfortunately, when the next fad comes along, many (if not all) of the artists who were the heroes of the previous fad are subsequently dumped just as quickly as they were found, never to be heard of again. The fact that very few contemporary artists survive long enough to preserve their place in the annals of art history makes investing in any contemporary artist a risky business and therefore not a safe means of accumulating wealth or a good means of preserving wealth.

The works of art that are most suitable for long term investment and wealth preservation are those works that have the potential to be used as a tradeable commodity. As I wrote in a previous post, fine art has been proven to be able to act as a tradeable commodity by criminals, who are known to use fine art as collateral for drug and gun deals. According to Dick Ellis, the former head of Scotland Yard’s Art and Antiques Squad and an expert on art crime, “thieves get nowhere near full value, usually only 10 to 12 percent. But even if a thief trades a multi-million dollar Picasso for, say, $500,000-worth of AK 47′s, he still comes out okay. Regional wars involving old tribes, new gangs have made it worst says Julian Radcliffe, citing the Balkan War of the 1990′s. Ellis then goes on to say that “art is often held as security at an arms deal. Then, once the guns are paid for, the art is gradually sold back to Western Europe through shady dealers or art fares”.

One of the most important characteristics of a tradeable commodity is standardisation. Gold is an excellent example of a tradeable commodity because of the fact that it is an extremely standardised good which makes it very easy to trade. One particular luxury good that has been the focus of much speculation due to differing opinions regarding the good’s status as a tradeable commodity is the diamond. Martin Rapaport, a highly regarded diamond dealer and advocate for the commoditisation of diamonds, says that diamonds are definitely a commodity because: “You buy and sell them for cash. They’re a natural resource with limited supply; they’re well defined; they’re certified; they’re analyzed, graded, tradable around the world”. The only artists whose work can be considered have the characteristics that Rapaport identifies, ie. are in: limited supply; well defined; certified; analyzed; graded, and tradeable around the world, are the Old Masters and some artists from more modern movements such as impressionism which still retain many of the characteristics of the movements associated with the Old Masters. The work of the Old Masters are also relatively standardised and are therefore the most likely candidates for being used as a tradeable commodity should an global economic collapse take place. My advice, therefore, is to have at least some positions in the work of Old Masters as a form of wealth preservation and a hedge against the likely economic collapse that is soon to take place.

What Art Investors Can Learn from Gold Investors: The Conclusion

People who speculate on contemporary art are essentially betting that the artistic, social, cultural and economic framework which gave birth to the work of the artist whom they speculated on will continue to develop and progress.  The problem is that the chances of that framework completely disintegrating are becoming increasingly higher as the likelihood of a global economic crisis increases.  Since the future development and continuation of the public and private organisations that nurture and patronise contemporary artists need financial support just like any other organisation, a major economic collapse could spell disaster for these institutions as well as the artists that they were, or were going to, help nurture.

Regardless of what happens to the global economy, there will always be people who are better off than others and can afford more luxuries such as art.  There will, therefore, always be a market for art even during a global economic crisis - albeit a very different and highly selective market.  If your game is wealth preservation, and especially if you believe in the soon to eventuate economic apocalypse, you should be asking yourself the question: “Would there be a demand, and how great would that demand be, for the fine art I have in my collection if a global financial crisis took place which completely destroyed the art market and cultural framework of society as we know it?.  The answer you give will depend on whether you have the sort of art whose value is dependant almost entirely on the artistic, social, cultural and economic framework of contemporary society, or whether you own art which has characteristics (for more information read above thesis) that will have value regardless of the context in which they are valued.

If you want a fool proof and financial apocalypse proof investment that gives you the benefits of owning art and gold then get a 24 karat gold statue made for youself !!!

I will leave you with these words from the Fine Art Wealth Management website:

‘Art like gold, is an irreplaceable, unleveraged real assset which is why many investors turn to as a safe haven in times of economic uncertainty. Since the turn of the millenium we have seen the AMR Art 100 Index perform in a similiar manner to gold. Historically, both art and gold have shown similiar characteristics and performance, especially over the last decade.  Art like gold provides a historically proven vehicle for hedging against inflation.’(http://www.fineartwealthmgt.com)

**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

I have read and heard so much incorrect information regarding art investment of late that I think it is about time that the cold hard truth about art investment is made available.  So, here it goes.

Should I invest in art?

The answer to this question depends on how much money you have to invest. Only a very small percentage of the works of art in existence will experience an increase in value that is rapid enough and sufficient enough to provide the investor with a worthwhile return on their investment. Those works of art that can provide a good return are inevitably going to cost significant sums of money due to the fact that the characteristics that make a work of art a good investment are really only found in highly valued works of art. There is really no inexpensive way of successfully investing in art. Another option is to invest in a fine art fund, which essentially allows investors to purchase a share in a managed portfolio of carefully selected works of art. Once again, however, the minimum investment for such funds is quite high at around the US$250,000 mark, which is more than the average person is likely to be able to afford. The other problem with fine art funds is that the investors do not get to experience any of the pleasures of owning the works of art which, quite frankly, is one of the very few benefits of art investment. It is fair to say that people who want to buy art generally want to see it and enjoy it. That is, unless one has enough money to be able to invest in a fine art fund and purchase art for their own pleasure. Investors in fine art funds should expect to get a 10-15% a year return on their investment according to Philip Hoffman, manager of an art fund called The Fine Art Fund. Proper art investment, ie. using fine art to generate a worthwhile return on your investment, is really only a pursuit for the wealthy as success really is relative to the amount of money one can invest. For those that do have the money, however, the returns can be quite high and the risk quite minimal.

Can I successfully invest in contemporary art?

Since contemporary art appears to be relatively cheap compared to the work of, say, the old masters, it is often presumed that buying contemporary art is an easy and Large profits can be made from investing in contemporary art, but investing in contemporary art is a very risky business. Successful investment in contemporary art usually requires a “flipping” approach that involves buying and selling works in relatively quick succession to take advantage of short term trends. This approach is very, very risky and requires that the investor have large sums of money to invest that he/she is willing and able to lose. Not only does one need lots of money and bravery to be a successful “flipper”, one also needs to have the right knowledge and contacts at hand, which very few people do. With the right advisor it is possible to profit from investing in contemporary art over the long term but the risks are still high. What it comes down to is that there are plenty of way better investment vehicles for those investors who are wanting high risk with the potential for high returns. In other words, contemporary art is not a good investment.

To be continued………..

**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

One of the biggest problems with contemporary art, from a long term investment and wealth preservation perspective, is the seemingly ever decreasing focus on the art object. The focus that was once placed on the art object is being placed more and more on the art concept as well as the increasingly popular notion of the artist as a performer and celebrity. According to a Newsweek article titled Pop Goes the Market, ‘In the era of easy money, artists readily forsook the cliché of the tortured, penniless bohemian, and instead sought fame and fortune by branding their own glamorous, eccentric personas as a tradeable commodity’. Valuing a concept or a performance is almost impossible, especially when there is really no apparent standardisation or continuity from one artist to another. Without the ability to grade or judge the work of one artist with similar work from another artist, determining value becomes even harder. The value we place on what is termed “art” (in a contemporary market context), has less to do with the art object, the tangible result of the artistic process, and more to do with the persona of the artist and their artistic approach. With less emphasis being put on the art object, the value of contemporary art is being based on intangible characteristics and factors that have no perceivable intrinsic value. This means that much of the contemporary art being produced is a speculative and risky investment that would not be suitable as a means of preserving wealth.

As we all know, the contemporary art market is driven by speculation and a quest for social and cultural superiority that has resulted in, and continues to result in, a plethora of short lived fads. The artists involved in these fads often find themselves suddenly thrust into the art world spotlight by rich and powerful patrons who are more interested in the attention their purchases receive than what they actualloy purchase. Unfortunately, when the next fad comes along, many (if not all) of the artists who were the heroes of the previous fad are subsequently dumped just as quickly as they were found, never to be heard of again. The fact that very few contemporary artists survive long enough to preserve their place in the annals of art history makes investing in any contemporary artist a risky business and therefore not a safe means of accumulating wealth or a good means of preserving wealth.

The works of art that are most suitable for long term investment and wealth preservation are those works that have the potential to be used as a tradeable commodity. As I wrote in a previous post, fine art has been proven to be able to act as a tradeable commodity by criminals, who are known to use fine art as collateral for drug and gun deals. According to Dick Ellis, the former head of Scotland Yard’s Art and Antiques Squad and an expert on art crime, “thieves get nowhere near full value, usually only 10 to 12 percent. But even if a thief trades a multi-million dollar Picasso for, say, $500,000-worth of AK 47′s, he still comes out okay. Regional wars involving old tribes, new gangs have made it worst says Julian Radcliffe, citing the Balkan War of the 1990′s. Ellis then goes on to say that “art is often held as security at an arms deal. Then, once the guns are paid for, the art is gradually sold back to Western Europe through shady dealers or art fares”.

One of the most important characteristics of a tradeable commodity is standardisation. Gold is an excellent example of a tradeable commodity because of the fact that it is an extremely standardised good which makes it very easy to trade. One particular luxury good that has been the focus of much speculation due to differing opinions regarding the good’s status as a tradeable commodity is the diamond. Martin Rapaport, a highly regarded diamond dealer and advocate for the commoditisation of diamonds, says that diamonds are definitely a commodity because: “You buy and sell them for cash. They’re a natural resource with limited supply; they’re well defined; they’re certified; they’re analyzed, graded, tradable around the world”. The only artists whose work can be considered have the characteristics that Rapaport identifies, ie. are in: limited supply; well defined; certified; analyzed; graded, and tradeable around the world, are the Old Masters and some artists from more modern movements such as impressionism which still retain many of the characteristics of the movements associated with the Old Masters. The work of the Old Masters are also relatively standardised and are therefore the most likely candidates for being used as a tradeable commodity should an global economic collapse take place. My advice, therefore, is to have at least some positions in the work of Old Masters as a form of wealth preservation and a hedge against the likely economic collapse that is soon to take place.

Part 5:

http://artmarketblog.com/2010/06/08/what-art-investors-can-learn-from-gold-investors-pt-5-%E2%80%93-artmarketblog-com/

Part 4:

http://artmarketblog.com/2010/05/31/what-art-investors-can-learn-from-gold-investors-pt-4-artmarketblog-com/

Part 3:

http://artmarketblog.com/2010/05/18/what-art-investors-can-learn-from-gold-investors-pt-3/

Part 2:

http://artmarketblog.com/2010/05/07/what-art-investors-can-learn-from-gold-investors-part-2-artmarketblog-com/

Part 1:

http://artmarketblog.com/2010/04/30/what-art-investors-can-learn-from-gold-investors-artmarketblog-com/

**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

The reason that I finished my last post with a description of a possible economic and financial doomsday like scenario is because such an event would really expose how secure and how safe the various different methods of wealth creation and wealth preservation are. A large majority of the vehicles of wealth creation that we choose to invest our money are dependent on the continued stability of the cultural, social, monetary and economic systems that are currently in place (ie. share market, money market, bond market, currency market etc.). One of the most vulnerable stores of wealth that pretty much everyone has positions in is fiat currency, better known as money. The definition of a fiat currency is: state-issued money which is neither legally convertible to any other thing, nor fixed in value in terms of any objective standard. These days most national currencies are fiat currencies including the US dollar, the Euro and the UK Pound, which makes the currency of most countries very vulnerable. Not only would a currency collapse have a devastating effect on the price of goods, it would also cause any positions in an investment vehicle that is only redeemable in a fiat currency, and is not a tradeable commodity (ie. stock market, bond market etc.), to essentially become as valueless as the currency that the investment relies on. The 0nly way to protect one’s self from total devastation in the event of a currency collapse is to have physical positions in a tradeable commodity such as gold. Gold is an asset with inherent value that is also a tradeable commodity. According to an article in Time magazine: “Gold, then, can be considered a currency, unique in that it is not directly tied to any country’s economy. With a global recession that is bound to continue to shake up the purchasing power of all foreign currencies, gold is safer from political and economic instability than cash.”

So where does art fit in to all this?. As we all know, a major financial or economic crisis (or even a little one for that matter) can have a major negative effect on the art market, especially the speculative contemporary art market. Because the perceived investment potential of contemporary art relies heavily on the progression of the artist’s career, which in turn relies on the continued stability of the cultural, social, monetary and economic systems that are currently in place (like the share market), contemporary art is likely to be devalued to a much greater extent in the event of a major economic than the work of the old masters or the impressionists. According to Jim Morris of art and antiques firm Corfield Morris: ‘buyers of contemporary art may be disappointed with returns. He defines contemporary art as works produced by artists who are still alive. “The problem with buying contemporary works is that many of the artists don’t have track records,” said Morris. “I’m afraid an awful lot of it is not going to stand the test of time.”’ Contemporary art is therefore a very risky investment and is not a good store of wealth; contemporary art is essentially the fiat currency of the art world. The work of the Old Masters, the Impressionists and many of the modern masters are, however, a different story. As well as already having a market track record and an already established legacy, the work of the Old Masters, the Impressionists and many of the modern masters have the benefit of having been endowed with some or all of the inherent characteristics that have a quantifiable and qualifiable intrinsic value such as subject matter, style, technical complexity, historical documentation, artistic proficiency, etc. Although some people may disagree that art can have intrinsic value, I believe that the work of certain movements or periods can. Regardless of whether or not you agree that art can have inherent properties of intrinsic value, the fact remains that if the work of the Old Masters did not have intrinsic value, then the art objects would not have any value independent of any and all other factors, which they do. If a work of art in the style of an old master were to be sold as the work of an unknown artist from an unknown period and without any provenance, the art object would still have value even without all other associations and therefore must have intrinsic value. The reason that these inherent properties have a quantifiable and qualifiable value in the case of the work of the Old masters, the Impressionists and many of the modern masters is that there are usually other similar works with which one can make comparisons and judgements and thus determine the value of these inherent properties in relation to another similar work. Particularly in the case of the Old Masters there are often artistic and technical standards that can also assist in the valuation of the inherent physical characteristics of a work.

To be continued…….

Part 4:

http://artmarketblog.com/2010/05/31/what-art-investors-can-learn-from-gold-investors-pt-4-artmarketblog-com/

Part 3:

http://artmarketblog.com/2010/05/18/what-art-investors-can-learn-from-gold-investors-pt-3/

Part 2:

http://artmarketblog.com/2010/05/07/what-art-investors-can-learn-from-gold-investors-part-2-artmarketblog-com/

Part 1:

http://artmarketblog.com/2010/04/30/what-art-investors-can-learn-from-gold-investors-artmarketblog-com/

**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

The definition of an investment, in financial terms, is basically the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money (definition from investorwords.com). Although gold is often referred to as an investment, it really is not a good investment, especially over the long term. James Turk, founder and chairman of GoldMoney as well as co-author of the investment bestseller ‘The Collapse of the Dollar’, says that “Gold is not an investment. It is money. Gold doesn’t generate a rate of return like investments do. The price of gold is rising against all the world’s currencies because currencies are losing purchasing power, while gold is preserving purchasing power”. Instead of calling this article ‘What Art Investors can Learn from Gold Investors’, I should probably have called it ‘What People who use Art for Wealth Preservation can Learn from People who use Gold for Wealth Preservation’. However, if I had used the more correct title I do not think as many people would have read this series of posts.

The sort of investment I am writing about is an investment in one’s future financial security; an investment in wealth preservation, not wealth creation. I am not suggesting that art is as good a substitute for paper money (currency) as gold is. You may, however, be surprised to learn that fine art IS actually used as a form of currency in the criminal underworld. Stolen paintings are often used as collateral for drug or weapons deals which means that there is a black market for works of art which, interestingly, value works of art at as little as one tenth of their auction price (a great topic for a future post !!!). For a work of art to have value as a form of currency there are certain characteristics that the work of art needs to have. It would make sense that the more people who find a stolen work of art desirable, the more valuable the work of art would be on the black market. The most universally appealing and desirable characteristic that a work of art can have is the sort of instantly gratifying beauty that characterised the work of the old masters, and also the work of the more modern movements such as Romanticism, Realism and Impressionism where beauty and aesthetic satisfaction were still prime motivators. Essentially what I am referring to is the traditional and transcendental definition of beauty that aims to induce pleasure through physical attractiveness. An article that appeared in Forbes magazine in 2001 titled “Old Masters Soothe New Troubles” (by Anna Rohleder) described why the work of the old masters is so widely admired and universally accessible with the following statement: “At times like this, it isn’t fair to tax viewers with the opaqueness or abstraction of more modern works. Old Masters are accessible, their attractions obvious and their effects immediate. Old Masters convey a “feeling of peace and tranquility, a sense of timelessness that we are all searching for in our frantic lives,” says Arthur K. Wheelock Jr., curator of northern Baroque painting at the National Gallery of Art. “Great art makes you see the world differently.”

As you already know, wealth preservation is about protecting the wealth you already have. In the short term, wealth preservation is about maintaining a hedge against investments you have in more volatile markets such as the stock market. In the long term, wealth preservation is about maintaining some sort of protection from potentially devastating and crippling events such as a major financial crisis.  It is long term wealth preservation that I am most interested in as it is the most relevant to the art investor.  Legendary author and financial advisor Howard Ruff, in an article he wrote titled ‘Gold and Silver Insurance’, explained one of the reasons that gold is such a good long term wealth preservation vehicle.  According to Ruff: “It’s there (gold) to use as real money in the case of a worst-case, like an inflationary currency collapse, or terrorist hackers shutting down the power grid so no one has access to their dollars at the bank or at the ATM and they can’t open the supermarket cash registers. It’s in case the same terrorist-financed hackers break into the computers of the money-center banks where most of the world’s dollars are there in hyperspace, insert a destructive virus and the world’s dollars disappearing in a nano-second.

Remember, only about 5% of the worlds’ dollars are minted, printed or coined. The rest are only on the computers of banks. If the computer data is wiped out, there could go the monetary system of the world, because the dollar is the world’s reserve currency. This would mean the instant collapse of the American economy, and maybe Western Civilization. Then the world would instinctively go back to gold and silver as a means of exchange and store of value until the computers are fixed and a new paper-money system is cobbled together.”

To be continued………….

Part 3:

http://artmarketblog.com/2010/05/18/what-art-investors-can-learn-from-gold-investors-pt-3/

Part 2:

http://artmarketblog.com/2010/05/07/what-art-investors-can-learn-from-gold-investors-part-2-artmarketblog-com/

Part 1:

http://artmarketblog.com/2010/04/30/what-art-investors-can-learn-from-gold-investors-artmarketblog-com/

**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

Presented by Barlow Fine Art
http://www.barlowfinedrawings.com/

World Premier of En Avant Exhibiting in London

Young artists from China, Russia, Europe and USA exhibit Idem Sonans to the international contemporary
art world.

Parallax, the world premier exhibition of En Avant, will take place in London on Monday 22nd November 2010 at La Galleria, Royal Opera Arcade, Pall Mall. Invites are exclusive.

Some artists exhibiting are: Sarah Tse (China, b. 1985); Pasquale Abbatiello (Italy, b. 1985); Matthew Collins (USA, b. 1970); Van Rainy Hecht-Nielsen (USA, b. 1974); Adam Reeder (USA, b. 1976); Robert Bodem (USA, b.1971); Aaron Camilleri Cauchi (Malta, b. 1979); Alexey Golovin (Russia, b. 1977).

Contributors to the e-catalogue are: Alun Munslow: Visiting Professor of History and Historical Theory at University of Chichester, UK; he is the Founding Editor of Rethinking History: the Journal of Theory and Practice, editor of the book series History: Concepts Theory and Practice and the author of five books, including New History (2003), Narrative and History (2007) and The Future of History (2010); Donald Preziosi: Emeritus Professor of Art History at University of California, USA; he is the author of Rethinking Art History: Meditations on a Coy Science (1989), The Art of Art History: A Critical Anthology (1998), and Brain of the Earth’s Body: Museums & the Fabrication of Modernity (1999); he has held the Slade Professorship of Fine Art at the University of Oxford, UK; Paul Gladston: Professor of Visual Cultures and Critical Theory at University of Nottingham, UK/China; he is the author of numerous articles on Contemporary Chinese Art and the book Art History after Deconstruction: Is There Any Future for a Deconstructive Attention to Art History? (2005).

Why is the Parallax exhibition important?

Parallax exposes how we use Art History, History and Museology to fabricate and buttress an illusion of Modernity. Key to this is the assumption that meaning, often in the form of Artists’ ideas or a zeitgeist, inheres in Art Objects (Painting, Sculpture, Installation etc.). Our belief that we can “read” Andy Warhol or Damien Hirst from their Films and Paintings involves an element of anthropomorphic projection, the personification of inert and inanimate objects. The fantasy that “art” is a visual “language”delimits meaning and is the possible basis for a cultural and pedagogical technocracy. In conjunction, we have also constructed an Art History archive of periods, styles and genres often forgetting that this artificial system is an interpretation of an inaccessible Past. Our Modernity (and Postmodernity) then is contrived and ideologically formatted. We construct the Past, and its representative Art or Objects, in order to stage our desired Present and Future. Our expectation of the “art” that can, and should, embody our sense of modernity in the Present, is a choiceand not an objective reality of some kind. Drawing poetically on the semantic paradoxes of “parallax”, “en avant” and “idemsonans”, Parallax exposes the pretence of our artistic Modernity by visually metaphorising its internal contradictions as well as celebrating the rhetorical nature of knowledge creation.

The 300 guests attending at this stage include international art collectors in the UK, Europe, China and USA; politicians and ambassadors; celebrities from the film and music industries; CEO’s and directors from major financial institutions and hedgefunds; directors, trustees and curators from national museums and galleries in China, New Zealand, Australia, Europe, Russia, Middle East, US and UK.

- Parallax is the world premiere of En Avant
- Young international artists from China, UK, Russia, Europe and USA
- “Parallax”, La Galleria, Pall Mall, Royal Opera Arcade, London, UK: Monday 22nd November, 2010
- Exhibition is open from 23rd-27th November 2010
- E-catalogue essays by: Alun Munslow, Donald Preziosi and Paul Gladston
- International high-profile guest list

Matthew Collins, An En Avant, 2010

This press release is available on the Media Section of the website: http://www.barlowfinedrawings.com/page4.html

Further information is available on request. Please contact the communications department below for further details or
images.
-ENDPress
contacts:
Mr Adam Clark
parallax@barlowfinedrawings.com

In my last post I began to make comparisons between the gold market and the art market from an investment perspective.  Today I want to begin winding up this series of posts by looking at one of the most important, but also one of the most controversial qualities, which is common to both art and gold, and which is crucial to both the gold and art market.  And that quality is beauty.  Gold undoubtedly has an intrinsic beauty, and hence an intrinsic value, that makes it attractive to a large number of people.  Just take a look at how many people wear gold jewellery and you will get an idea of how popular gold really is.  The World Gold Council summarises the allure of gold quite nicely with the following statement:

“Since the beginning of time, the intrinsic beauty, warmth, sensuality and spiritual richness of gold has earned it pride of place as the favourite metal of jewellers. Gold has inspired craftsmen to create objects of desire that unite us with our emotions. In the Middle Ages, alchemists attempted to use their magic to make gold from other metals. They believed that gold was a source of immortality, and so it was used in medicines designed to fight old age and prolong life.”

With art, however, the debate continues to rage as whether or not art actually does have intrinsic value.  I think that it is time for me to settle this debate once and for all.  Some art does have intrinsic value and some art doesn’t.  Let me explain.  Many people struggle to define beauty when it comes to art, but I don’t find it that difficult.  As art is a visual medium it would make sense that beauty, in relation to visual art, must therefore involve the art object it’s self.  What else would it involve,  I hear you ask.  Well, a lot of art these days involves much more than the visual component of art (ie. the art object). Take conceptual art for instance.  Conceptual art may not even involve a visual component at all; the art object is usually replaced by a concept.  You may have noticed that contemporary art often involves a component other than the art object, even if the work is not conceptual, and even if there is an art object.  If you go to any contemporary art gallery or museum, you are likely to find that many of the works are accompanied by lengthy explanations that on needs to read to fully appreciate and understand the visual component of the work.  Combine this fact with the fact that many modern and contemporary art objects would NOT be considered beautiful by most people (if by anyone at all) and one begins to understand that visual art is no longer about beauty, or the art object for that matter. The purpose of art underwent a fundamental change with the onset of the modern era.  Social, political, philosophical and cultural issues infiltrated the art world to an extent that had never been witnessed before.  When it came to priorities, beauty began to take a back seat during what was essentially a second renaissance that saw the role of the artist change from that of an artisan to something more akin to a cross between an avant-gardist, an activist, a revolutionary and an entertainer. Professor Terry Eagleton famously said that `to the avant-garde truth is a lie, morality stinks and beauty is shit’. The task of art, he believes, `is to be a hammer, not a mirror…Art’s job is to unleash contradictions . . . to shatter and wound.’

Eleni Gemtou of the University of Athens summed up the situation relating to beauty and art perfectly in her paper “The Role of Beauty in Art and Science’ in which she said: ‘Many are the works of art that have been created in order to satisfy philosophical and intellectual concerns, to provoke, to alert or even to serve social, religious and political objectives. In these cases, beauty and aesthetic satisfaction are either coincidental or completely absent.’ Gemtou then goes on to say ‘In the first half of the 20th century, art disengaged from its role to represent reality and to express beauty. Artists and movements expressing various world-perceptions, such as Fauvism, Expressionism, Cubism, Futurism etc. abolished traditional styles and introduced the principles of two – dimensionality, deformity, splitting and the projection of the process on the completed work. Form functioned as a revolutionary vehicle, while the subject in many works of art acquired a secondary and even a non-existent role (abstraction)’ (THE ROLE OF BEAUTY IN ART AND SCIENCE by Eleni Gemtou)

To be continued………

Part 2:

http://artmarketblog.com/2010/05/07/what-art-investors-can-learn-from-gold-investors-part-2-artmarketblog-com/

Part 1:

http://artmarketblog.com/2010/04/30/what-art-investors-can-learn-from-gold-investors-artmarketblog-com/

**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

Lady Writing a Letter with Her Maid by Vermeer

All one has to do is look at the jewellery people are wearing to realise that gold is considered by most people to be a substance of great beauty.  Since gold has very few uses other than as a material for making jewellery and other precious objects, were gold not physically attractive, it would not be anywhere near as desirable as it is.   It is because so many people find gold desirable and attractive that there is such high demand for gold.  If only a small percentage of the population were to find gold attractive and desirable then demand would be much lower. However, it is not just the fact that gold is physically attractive to human beings that makes it an excellent investment and a highly valuable substance.  As I have shown, the desirability of gold can be linked to three main factors:  physical beauty, mass appeal and rarity.  Without any one of these three factors, gold would not be anywhere near as valuable as it is, so it is these three factors that I want to explore in relation to art investment.

Gold is a finite resource which means that only a limited amount of gold exists on the earth.  At some stage in the future all the gold that remains in the earth’s crust will be extracted by mining companies and that will be that.  Gold cannot be artificially produced so only a certain amount of gold will ever exist.  When it comes to fine art, rarity is a factor that comes into play on a regular basis, and is extremely important to consider when approaching art as an investment.  Original works of art are pretty much always one offs and therefore rare in their own right, so it is important for art investors to look at the bigger picture.  Let me explain.  Just like gold, the work of a deceased artist is finite resource, whereas a contemporary artist who is still alive could go on to produce any number of subsequent works of art.  A good example of an artist with a small oeuvre is Vermeer whose oeuvre consists of an extremely small number of works; thirty seven paintings are known to have been definitely painted by Vermeer with a further 13 or so attributed to his hand.  Because there are so few works by Vermeer in existence there is huge demand for his work which usually sells for tens of millions of dollars.  Rarity can also apply to the number of works on the market as opposed to just the number of works an artist produced.  The work of artists whose work is in high demand from public museums and galleries will often fetch higher prices when their works to come on the market because so many of their works are owned by galleries and museums, which leaves less works for private collectors and investors to purchase.

Art investors who want a safer long term investment as a hedge against more speculative investments should therefore be purchasing the work of deceased artists who produced as small a body of work as possible.  When it comes to art investment I firmly believe that art investment should not be a short term speculative investment, as some people believe it should, and should only be approached as a long term hedge against speculative investment markets such as the share market.

Stay tuned for part 3………

**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

If am sure that everyone who is reading this post will be aware that the price of gold has increased significantly in recent times and is poised to increase even more over the coming months. The long bull run that gold has been able to sustain has made the gold market one of the most watched and analysed markets on the planet, and has given people even more reason to consider acquiring a physical position in gold. As an art market analyst and art investment expert I try and keep an eye on as many different investment markets as I can in an effort to acquire knowledge and skills that I can apply to the art market. Although the art market is a unique market that appears to have very little in common with other investment markets, I often come across small yet very important similarities when comparing the art market to other markets that usually turn out to be very useful. In fact, even analysing small differences between the art market and other markets can prove to be beneficial when assessing the art market as a whole or a particular sector/event. For this reason I always find it interesting and useful to make comparisons between what is happening in the art market, and what is happening with other investment markets.

One investment market that I have paid particularly close attention to recently is the gold market. I am not only keeping an eye on the gold market because of the progress it is making, but also because one can learn a lot about the art market and art investment from what many people consider to be the ultimate safe haven investment. Gold has been used as a store of value/wealth and a form of currency for thousands of years, and continues to remain the ultimate universal representation of wealth and value. To understand what the gold market has to teach us about the art market and art investment one must first know a few important things about gold and the gold market. One of the most significant reasons that gold is such a highly prized metal is that is a very rare and finite resource. In fact, it is estimated that if all the gold that has been mined on earth to date were put together, it would not quite even fill a 20mx20m cube. Add to this the fact that the amount of gold mined every year would only add 12cm to this cube and one can see exactly how rare gold is. Not only is gold rare, but it also has particular physical properties that make it even more desirable and more suitable as an investment. It is partly because gold does not corrode, rust or tarnish, and cannot be counterfeited, that it is such a suitable store of value and such a popular investment. By purchasing physical positions in gold one can feel pretty confident in the knowledge that it is extremely unlikely that their gold will ever be destroyed.

An article in the National Geographic magazine from January 2009 said that: “Gold is not vital to human existence; it has, in fact, relatively few practical uses. Yet its chief virtues—its unusual density and malleability along with its imperishable shine—have made it one of the world’s most coveted commodities, a transcendent symbol of beauty, wealth, and immortality.” Although the physical properties and rarity of gold contribute significantly to the value bestowed upon the precious metal, there is one other extremely important characteristic of gold that makes it so attractive, and that characteristic is beauty. As the National Geographic article says, gold has an imperishable shine as well as a lovely lustre and beautiful gold glow that seems to make most human beings weak at the knees. The website gold.org sums up the attractiveness has this to say about the attractiveness of gold: “Since the beginning of time, the intrinsic beauty, warmth, sensuality and spiritual richness of gold has earned it pride of place as the favourite metal of jewellers. Gold has inspired craftsmen to create objects of desire that unite us with our emotions. In the Middle Ages, alchemists attempted to use their magic to make gold from other metals. They believed that gold was a source of immortality, and so it was used in medicines designed to fight old age and prolong life.”

What does all this have to do with art I hear you ask? Stay tuned for part 2 !!!

**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

My good friends at Saffronart have just launched a new business for the sale of premium homes in India.  Although not specifically art related, it is something that I am sure my readers will be interested in.

Cushman & Wakefield and Saffronart Launch

Online Sales and Auctions of Premium Homes

• First ever public platform in India for sales and auctions of prime residential properties
• The only service focused on marketing Indian luxury properties on a national and global platform
• Building greater transparency and professionalism in the market through public auctions, published prices and detailed information about properties
• Launching with a catalogue of seven properties for sale on Saffronart’s flagship website at www.saffronart.com

Mumbai, April 23, 2010: With the residential real estate market in India showing clear signs of recovery by the end of 2009, the luxury residential sector has also undergone a marked revival. Aiming to be at the forefront of innovation and customer service during this period of resurgence, Cushman & Wakefield, the largest privately held fully-integrated real estate services firm in the world, and Saffronart, India’s leading auction house have announced a strategic alliance to deliver the next generation in real estate marketing for premium residential and vacation homes across India.

Through this new initiative, Prime Properties, Saffronart and Cushman & Wakefield will offer a trusted online sales and auction platform to the premium residential market giving owners an opportunity to realize appropriate value for their assets while allowing some of the most exclusive luxury homes to be made available for sale.

Leveraging Saffronart’s online presence and global reach, along with the sector intelligence and expertise of Cushman & Wakefield, Prime Properties aims to offer clients around the world a selection of the most exclusive properties available for sale in India – both new properties in the primary markets, as well as the best properties for resale.  The alliance would add a new dimension to real estate marketing through an advanced technology platform for online marketing, sale and auctioning and a wide network of buyers and sellers comprising both an Indian audience and the global Indian diaspora.

The launch of this partnership coincides with the first quarterly catalogue – in print and on www.saffronart.com – of seven distinctive properties available for sale.  The catalogue includes luxury apartments in premium residential areas of Mumbai, New Delhi, Gurgaon and Bangalore, in addition to a lush holiday estate in Alibaug and a secluded villa getaway in Rishikesh.

The recent real estate market recovery in India has given an impetus to not only the primary housing segment, with an increased focus by developers in launching high–end projects, but also to prime residential in the secondary market. Despite restrained availability in the secondary market for premium housing, there are some exclusive prime opportunities that cater to strong demand from high-end customers, who are extremely conscious of their requirements and require the highest standards, not only in the product but also in service levels. As per C&W market research, the residential market witnessed stability or marginal correction in the range of 2-10% in the high end capital values across major locations over last year. The demand for this niche segment however is still strong; yet the segment needs a unique marketing strategy to realize its true potential.

Encouraged by positive demand many developers have shown renewed attention towards the super luxury residential segment.  A recent C&W research report estimated approximately 9,000 homes in this segment are planned in major cities over the next 2-4 years.  Innovative marketing is key in distinguishing these super-luxury developments from other similar products whilst ensuring targeted reach to the audience of global affluent Indians.

Speaking about Prime Properties, Dinesh Vazirani, CEO and Co-founder of Saffronart, noted, “Our partnership is geared to redefine the luxury residential real estate market through a unique approach to marketing properties locally and globally. Our combined expertise will allow buyers and sellers access to quality products and audiences, and a transparent process for acquisition and disposition of residential real estate. The newly released catalogue of exclusive properties is valued at approximately Rs. 100 crores.”

The online platform affords advantages to both buyers and sellers. Property owners benefit by understanding market demand, having an opportunity to showcase their home or property to a larger base of serious buyers in a manner befitting their premium aesthetic, and being able to realise appropriate value for their premium properties. Similarly, buyers are also at a great advantage as online auctions provide open access and information and ensure each property is purchased at a fair market value. Another significant benefit for both buyers and sellers is participation in a process with a defined start and end.

“This partnership, the first of its kind in India, is an innovative step within the residential services sector and will help us better position ourselves to provide continued success in one of the fastest growing industries in India,” said Anurag Mathur, Managing Director, Cushman & Wakefield India.

“Given the vast growth potential that India’s premium housing sector offers, this combined force will give us a significant advantage and further strengthen our abilities to meet the increasingly complex needs of our clients,” Mr. Mathur added.

All properties selected for the Prime Properties catalogue are identified through a meticulous process of assessment, and must meet with several selection criteria relating to exclusivity and quality.

In addition to a lavish print catalogue published every quarter, available properties will be listed on the Saffronart website on an ongoing basis, along with professional photographs, descriptions, amenity highlights, floor plans and location profiles, to provide prospective buyers across the globe with access to information on each apartment, house or estate. By offering detailed information in the Prime Properties catalogues, Saffronart and Cushman & Wakefield aim to make this one of the leading sources of information in the market.

Saffronart, the world’s leading auction house for Modern and Contemporary Indian Art has tied up with Cushman Wakefield to announce its foray in the real estate online auction business. Cushman Wakefield is a global specialist providing real estate solutions to home buyers and sellers. This will be a unique partnership that will focus on the online auction of some of the finest and most premium properties available in India. Saffronart will utilize the auction technology platform to put the properties on auction, while Cushman Wakefield will conduct the task of sourcing properties, collation of data and post sale procedures.

Saffronart has completed a decade of successful operations in the Online Art Auction business and will utilize the superior auction technology platform putting the most premium of properties on offer. Bidders can bid with the same level of transparency coupled with privacy as afforded through its highly anticipated art and jewelry auctions. Using Saffronart’s robust auction platform, buyers and participants can experience a seamless bidding experience from any where in the world.

The list of properties available now for sale includes:

• Charming Seaside Apartment in a Heritage Art-Deco Residence – Breach Candy, Mumbai
• Luxurious South Mumbai Apartment with Stunning Sea Views – Cuff Parade, Mumbai
• Shanti Niketan – A Verdant Holiday Estate – Nandaipada – Zirad, Alibaug
• Belvedere Court – A Spacious Duplex Apartment with Terrace – Spencer Road, Bangalore
• The Verandas – Spacious Luxury Apartments – Gurgaon, Haryana
• A Large Contemporary Urban Apartment – Navjivan Vihar, New Delhi
• Homage – Contemporary Riverside Villas on the Banks of the Ganges – Neergarh, Uttarakhand

Sea Face Park at Breach Candy:

Charming Seaside Apartment in a Heritage Art-Deco Residence

Breach Candy, Mumbai

This charming art deco property which was constructed in the 1930s forms an integral part of South Mumbai’s history. Sea Face Park, as the name suggests looks out over the Arabian Sea, and offers residents the feel of a quiet and breezy secluded bungalow while being located right in the heart of the city. It is within minutes of the prestigious Breach Candy Hospital, several public parks and gardens including the newly opened Amarson’s garden for children, the Race Course, the Willingdon Sports Club and golf course, the Breach Candy Club, and many elegant boutiques and department stores.

Asking Price:

Rs. 22 crores | US $5 million

Homage at Neergarh, Uttarakhand:

Homage – Contemporary Riverside Villas on the Banks of the Ganges

Neergarh, Uttarakhand

Nestled on the slopes of the Garhwal Himalayas, these contemporary villas are surrounded by the lush greenery of protected forests and overlook the sacred waters of the Ganges. Homage has been exquisitely designed to make the most of the vast open space, abundance of fresh air, flowing water and natural sunlight. While the external finishing of each villa has been created to complement the natural surroundings, the landscaping includes two streams that pass through the property and greenery that has been hand picked from all around the country so that residents are surrounded by their own private Garden of Eden. Each property is luxuriously furnished to cater to every need of its owner thereby making it a perfect home away from home.

Asking Price:

2 bedroom: Rs. 2.5 cr | US $569,000

3 bedroom: Rs. 4 cr | US $910,000

4 bedroom: Rs. 5 cr | US $1.14M

About Saffronart

A global company with deep Indian roots, Saffronart was founded in 2000 on the strength of a private passion. Remaining committed to this passion and personal values, today Saffronart is a strong and successful international business that both embraces and drives change.

With ten years of experience in auctioning Indian art online, Saffronart is committed to serving the growing community of Indian collectors, while also creating a cultural bridge to India for both the global Indian diaspora and the international community at large. Providing a platform that enables access to view, purchase and become involved in the development of Indian art and jewelry globally, Saffronart has set global benchmarks for online auctions and was recently the subject of a case study at Harvard Business School. In October 2008, Saffronart extended its unique online auction platform to host its inaugural sale of Fine Jewels and Watches, adding a new dimension to its online and market presence.

This spring, Saffronart has leveraged its online presence and global reach to introduce a new product – Prime Properties. Through print and online catalogues of luxury city apartments and holiday homes for sale, Prime Properties offers clients a selection of the most exclusive properties available in India.

With online auctions, a host of technology enabled services for clients, and a global presence in Mumbai, New York and London, Saffronart has broadened and simplified access to Indian art and jewelry, and is working to achieve the same for real estate. Also involved with various institutions, organizations and publications, the company is driven by an endeavour to provide accurate and timely information on Indian artists, designers, events and trends.

About Cushman & Wakefield

Cushman & Wakefield is the largest privately held fully-integrated real estate services firm in the world. Founded in 1917, it has 230 offices in 58 countries and more than 15,000 employees. Cushman & Wakefield is involved in every stage of the real estate process, from strategy to execution. The firm represents clients in buying, selling, financing, leasing, managing and valuing assets, and provides strategic planning and research, portfolio analysis, site selection and space location services.

Cushman & Wakefield commenced its India operations in 1997 and today has grown to over 800 employees across our offices based in New Delhi, Gurgaon, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata. The first international real estate service provider to have been granted permission by the Government of India to operate a wholly-owned subsidiary, Cushman & Wakefield India is strategically poised to service the varied needs of clients throughout the Indian sub-continent.

It offers a full range of real estate services combining local expertise and experience with technology and standards of service that are well-established and consistent across all Cushman & Wakefield’s offices worldwide. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Centre at www.cushmanwakefield.com

For further details on the sale, please contact:

Saffronart India: Charu Garg or Nish Bhutani

Tel: (91 22) 2432 2898 / 2436 4113 or Email: info@saffronart.com

Cushman & Wakefield India Media Contact: Sitara Achreja or Piyali Dasgupta

Mobile: +91 9810367013 / +91 98335 71204 or Email: Piyali.Dasgupta@ap.cushwake.com

Saffronart India Media Contact: Malika Bhavnani, CMCG India Pvt. Ltd.

Tel: (91-22) 24450991/2/3, (91) 9820496099 or malika.bhavnani@cmcgindia.com

Saffronart USA: Robin Davis, The Townsend Group

Tel: (203) 622 1334 or Email: robindavis@townsendgroupmedia.com

Saffronart UK: Abha Housego

Tel: 44 (0) 20 7409 7974 or Email: london@saffronart.com

The Music Lesson Frederic, Lord Leighton Oil on canvas 1877

This will be my last post on the rise of Victorian paintings as I believe that I have covered the period in more than enough detail. To finish off I would like to list the major problems with the market for Victorian paintings that has meant that progress has been slower than many people would like.

The major problems with the market for Victorian paintings are:

1. There are only a few active major collectors of Victorian paintings whose actions can have a major effect on market sentiment as well as people’s perception of the market for Victorian paintings.

2. A large number of second and third rate Victorian paintings exist on the market which has given the whole genre a bad name, and created a situation where people define the period by what are essentially paintings that do not reflect the true talent and creativity that the top artists of the period were capable of.

3. The subject matter and Britishness of the work of the Victorian painters has limited appeal, particularly for non-British collectors, which makes finding buyers all the more difficult.

4. Many top Victorian painters have yet to be recognised and linger in relative obscurity.

5. A large number of the top paintings from the period have remained behind closed doors in private collections for long periods of time, sometimes for many decades. Many top paintings from the period are also owned by museums, which means that what are currently considered to be the most desirable works rarely appear on the market.

Thankfully the market for Victorian paintings is progressing and expanding thanks to greater attention being given to the period by academics and curators. This has led to the work of the British Victorian painters being displayed more frequently in America and Europe where more and more collectors are warming to the work of the period. What is also encouraging is the fact that the work of many virtually unknown Victorian painters is being given the recognition that it deserves which has given much greater depth and character to the market. As more and more artists are discovered, the number of works that are considered to be desirable will begin to rise, and will lead to a greater number of collectors entering the market and higher prices being paid.

My advice would be to research the work of the lesser known British Victorian artists who have at least received some recognition and attention from critics and scholars, and invest in their work right now while there are still bargains to be found !!!!!.

Part 1:

http://artmarketblog.com/2010/02/25/the-rise-of-victorian-paintings-part-1-artmarketblog-com/

Part 2:

http://artmarketblog.com/2010/03/04/the-rise-of-victorian-paintings-pt-2-artmarketblog-com/

Part 3:

http://artmarketblog.com/2010/03/11/the-rise-of-victorian-paintings-pt-3-artmarketblog-com/

Part 4:

http://artmarketblog.com/2010/03/18/the-rise-of-victorian-paintings-pt-4-artmarketblog-com/

Part 5:

http://artmarketblog.com/2010/03/23/the-rise-of-victorian-paintings-pt-5-%e2%80%93-artmarketblog-com/

Part 6:

http://artmarketblog.com/2010/04/04/the-rise-of-victorian-paintings-pt-6-%E2%80%93-artmarketblog-com/

**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

Latique.com Launches First Product Based Social Media Site for Antique Dealers

March 25, 2010 (DALLAS) Latique.com, a Dallas start-up, announces the launch of the first product based social media site for buyers of traditional antiques and fine period art.

According to Julie Garrett VanDolen, Latique.com co-founder, Latique.com listed more than 400 traditional antiques and classic home decor items at launch in early March 2010. It currently showcases nearly 700 antiques from 30 top level dealers in the United States. The number of dealers selling through Latique.com is growing daily.

Latique.com uses social media techniques similar to those found on Facebook and Linkedin are being utilized to reach out to the Internet generation, young marrieds and new homeowners.

The format of combining an online marketplace with a social media component offers an experience that both educates and engages.  The ultimate goal of Latique.com is to build a community of antique buyers who appreciate traditional antiques and classic home décor.

By networking users with dealers, designers and like-minded friends, Latique.com fills in where overburdened antique dealers have left off. It teaches new buyers about styles of the past that work with their contemporary lifestyle.

The social media aspect also helps recreate the excitement of retail shopping, where browsing and conversation are integral parts of a successful experience. Both new buyers and seasoned collectors can engage in online dialogs with sellers and knowledgeable experts before making the decision to purchase.

“We believe that relationship between the retailer and client can extend beyond the store,” says the Julie Garrett VanDolen, the 30-something co-founder of Latique.com. “We want information about antiques and decorative arts to be accessible to everyone at any time.”

In keeping with the efforts to broaden the market for antiques through social engagement, Latique.com features an online magazine. The Latique Magazine includes a monthly Founders Letter that updates users on trends, home fashion and the evolution of classic style. Another section offers insights from top designers. Joseph Minton, a Texas designer with an international reputation was featured in the launch issue.  Future interviews will showcase young designers who blend contemporary with traditional for a fashion forward look.

Insider blogs, written by members of the antiques trade, offer yet another level of transparency that is not usually associated with the selling of fine period furniture.  The blogs, although mostly intended to bring dealers into the new era of online selling, also allow users to get a feel for the practical aspects of selling antiques, an area that has often been cloaked in mystery.

Latique.com has other features that set it off from the spate of online antique malls. For instance, the home page changes every time an antique or decorative item is added.  Dealers’ business cards and specialty announcements march across the home page, rotating each time the page is reloaded.

Carol Sims, a visitor to the site left this comment.  ”I like the fresh, timely approach to making Latique a social shopping site. It will be nice to see this fun, sociable interaction grow into something really meaningful and fun.”

Dealers are equally excited about being a part of the new community. As retailers have seen a decline of walk-ins during the suffering economy, they are in dire need of new grounds to market their goods.

“This is the future of the arts and antiques community,” said James Eddy, proprietor of Colonial Arts, a San Francisco based antique dealer and a Latique.com dealer. “Buyers let their fingers do the walking in the era of Internet. We (dealers) need to expand our view of our customer base to increase revenue.”

Latique.com, is the first product based antiques site to reach out to new buyers with a social media component that allows users to engage in conversation with dealers and designers.  Latique.com’s tagline is “Traditional Antiques and Classic Home Décor for Contemporary Living.”

Media Contacts:
Julie VanDolen, (800) 891-9409 julie.vandolen@latique.com
Regina Kolbe, (212) 665-6773 regina@prthetrade.com

**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

The Birth of Eve, by Solomon J Solomon (1860 – 1927)

There is no doubt that provenance played a major part in the successful sale of the major private collections of Victorian paintings that I have mentioned in this series of posts, which means that the sale of these collections should not be used as an indication of the overall health of the market for Victorian paintings. The reason that I spent so much time analysing these sales is because they have played an important part in what is a slow but steady increase in the recognition and respect that Victorian painters are receiving. Although the extent to which the market for Victorian era art has improved is not as stellar as the figures achieved for the major private collections may suggest, the fact that many previously overlooked artists were given some long overdue attention, and works by more well known Victorian painters were the focus of competitive bidding, is proof that the market for Victorian paintings is heading in the right direction.

In the past one of the biggest problems that has plagued the market for Victorian paintings is the lack of academic and curatorial attention that the artists of the period have received. Over the last ten years academics and scholars have, however, begun to take the work of Victorian artists much more seriously, which has resulted in a number of major exhibitions such as:

‘Exposed: The Victorian Nude’ held at the Tate Britain in 2002

‘Love & Death: Art in the Age of Queen Victoria’ held at various locations in Australia during 2002/3

‘Pre-Raphaelite Vision: Truth to Nature’ held at the Tate Britain in 2004

‘Masterworks of Victorian Art from the Collection of John H. Schaeffer’ held at the BYU Museum of Art in 2008

‘Victorian Paintings from the Museo de Arte de Ponc’ held in Spain in 2009

‘Playing with Pictures: The Art of Victorian Photocollage’, a touring exhibition that is currently showing at the Metropolitan Museum of Art in New York

It is worth noting that there has been a significant increase in the interest that Americans are showing in Victorian art, which has been fuelled partly by several major exhibitions of Victorian art that have gone on show in America over the last ten years. According to the curator of the Californian Palace of the Legion of Honour, an American museum that purchased a major Victorian painting by John Roddam Spencer Stanhome in 2003, “Following a number of popular museum exhibitions recently, there has been a sea-change in the appreciation of Victorian art in America.” (The Daily Telegraph London, January 27th 2003).

Another major exhibition of Victorian paintings is about to go on show (May 20) at the Art Gallery of New South Wales in Sydney, Australia. The exhibition, titled ‘Victorian visions: Nineteenth-century art from the John Schaeffer Collection’, “presents an impressive collection of some 45 paintings, watercolours, drawings and sculptures by some of the luminaries of Victorian art, including works by Rossetti, Holman Hunt, Burne-Jones, Leighton, Poynter, Watts and Waterhouse” from the collection of John Schaeffer. Schaeffer is an Australian entrepreneur and art collector whose collection of 19th century European art, rumoured to number more than 500 works, is considered to be one of the best in the world. Until recently there were rumours that Schaeffer, one of the biggest buyers of Victorian paintings in past years, had withdrawn from the market. Schaeffer’s absence from the salerooms, combined with a minor sell-off of works from his collection, caused a panic that saw confidence in the market for Victorian paintings drop. The rumours were proven to be untrue when Schaeffer purchased a large painting by the late-Victorian symbolist Solomon Joseph Solomon titled ‘Birth of Eve’ at a Sotheby’s auction in December 2009. Schaeffer purchased the 10ft canvas for a record £713,250 – well above the artist’s previous auction record of £35,000.

The effect that the Schaeffer rumours had on the market for Victorian paintings is an example of another problem that the market for Victorian paintings needs to overcome. There are so few major collectors of Victorian paintings that the actions of just one of those collectors can have major repercussions for the whole market. In fact, you can count the collectors of Victorian paintings worth mentioning on one hand, with digits to spare – namely: Isabel Goldsmith, Lord Andrew Lloyd Webber and John Schaeffer.

To be continued………….

Part 1:

http://artmarketblog.com/2010/02/25/the-rise-of-victorian-paintings-part-1-artmarketblog-com/

Part 2:

http://artmarketblog.com/2010/03/04/the-rise-of-victorian-paintings-pt-2-artmarketblog-com/

Part 3:

http://artmarketblog.com/2010/03/11/the-rise-of-victorian-paintings-pt-3-artmarketblog-com/

Part 4:

http://artmarketblog.com/2010/03/18/the-rise-of-victorian-paintings-pt-4-artmarketblog-com/

Part 5:

http://artmarketblog.com/2010/03/23/the-rise-of-victorian-paintings-pt-5-%e2%80%93-artmarketblog-com/

**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

JAMES COLLINSON 1825-1881 THE WRITING LESSON 50,000—70,000 GBP Lot Sold. Hammer Price with Buyer's Premium: 79,250 GBP

Prior to the Scott Sale, Grant Ford, Senior Director and Head of Victorian Art at Sotheby’s,made the comment that: “Sotheby’s is delighted to be bringing this extraordinary collection to the market. Victorian narrative works are the cornerstone of the collection and not in all my time at Sotheby’s – a period of 22 years – has a collection of this quality come on to the auction market. The Scotts were collectors in the truest sense; they had an individual and discerning taste and they only ever bought paintings that they truly loved and understood and which said something special to them. We look forward to exhibiting this wonderful collection around the world and are sure that the single-owner sale in November will be a real highlight of the Autumn sales calendar.”

Even though the odds were heavily stacked against Sotheby’s, the sale of the Scott collection was a major success for the auction house, and a huge victory for the market for Victorian art. A total of 87.6% of the lots sold for a grand total of £4,620,071 against an estimate of £4.1-6.2 million brining the sold by value percentage to 77.6%. Most impressively, a total of at least fourteen new artist auction records were established the most impressive of which was achieved for Sophie Anderson whose ‘No Walk Today’ fetched just over £1 million against an estimate of £600,000-800,000. New auction records were also set for William Dyce, John Calcott Horsley, William Somerville Shanks and Thomas Sword Good among others. A total of 280 bidders took part in the sale many of whom were European collectors and investors which is unusual for a genre that would usually only attract British collectors. Considering the importance of the collection and the provenance of the paintings, however, it is not that surprising that many of the works were purchased by Europeans.

After the sale Ford is quoted as having said Commenting on the sale, Grant Ford, Senior Director and Head of Victorian Art at Sotheby’s, said: “This historic collection has attracted an enormous amount of attention from collectors all over the world but especially from our established clients in the UK. As many of the paintings had not been seen in public for several decades and were in a wonderfully fresh condition, a great deal of excitement was generated. We haven’t seen the galleries and saleroom – here in London particularly – as full and busy for a Victorian picture sale in many years. We are absolutely delighted with the new world record price for Sophie Anderson, which fully establishes No Walk Today as one of the most important childhood subjects of its time, and we’re also thrilled and heartened by the many other world record prices achieved. Today’s results are a testament to the discerning eye of two individuals who were collectors in the very truest sense.”

To be continued……..

Part 1:

http://artmarketblog.com/2010/02/25/the-rise-of-victorian-paintings-part-1-artmarketblog-com/

Part 2:

http://artmarketblog.com/2010/03/04/the-rise-of-victorian-paintings-pt-2-artmarketblog-com/

Part 3:

http://artmarketblog.com/2010/03/11/the-rise-of-victorian-paintings-pt-3-artmarketblog-com/

Part 4:

http://artmarketblog.com/2010/03/18/the-rise-of-victorian-paintings-pt-4-artmarketblog-com/

**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

WILLIAM SOMERVILLE SHANKS, R.S.A., R.S.W. 1864-1951 TIDDLEY WINKS 150,000—200,000 GBP Lot Sold. Hammer Price with Buyer's Premium: 181,250 GBP

Sir David Scott began collecting art in 1910 and over a period of 75 years amassed a large art collection that included 150 Victorian paintings, all of which were auctioned by Sotheby’s in 2008, more than 20 years after Scott’s death (1986). Scott was an eccentric aristocrat whose efforts to maintain a low profile meant that he was able to put together an extremely important collection of Victorian art at his Dower House, Northamptonshire residence in relative secrecy. Scott’s passion for art, the Victorian period in particular, is evident in a comment he made regarding one of the paintings in his collection. According to Scott:”I don’t think I have ever seen another picture by Somerville Shanks but if this is typical of his work I wonder why he is not better known, for it is really beautifully painted, the dress of the girl in the foreground is reminiscent of Sargent at his best and of course the whole picture is delightfully nostalgic, absolutely redolent as it were, of a day nursery of the 80s or 90s.” This comment is also evidence of how under-valued and under-appreciated the Victorian era is, particularly the work of Victorian painters.

The length of time that the paintings in the Scott collection had remained off the market made the sale even more enticing to collectors and connoisseurs who turned out in force to take advantage of the opportunity. “A Great British Collection” was the title given to the sale – a move that Sotheby’s hoped would distance the sale from the stigmas associated with the word “Victorian” and bring more people to the sale. At the time of the sale, in November 2008, the art market was still reeling from a major crisis of confidence brought about by the hyperinflated market for contemporary art, which led to many art market commentators making rather sceptical predictions about the sale. Because the market for Victorian paintings was dominated by a small number of passionate collectors and connoisseurs, there was particular concern when the auction took place due to the fact that the removal of even one of the main patrons of the Victorian era could spell disaster for the whole Victorian paintings market.

To be continued……

Part 1:

http://artmarketblog.com/2010/02/25/the-rise-of-victorian-paintings-part-1-artmarketblog-com/

Part 2:

http://artmarketblog.com/2010/03/04/the-rise-of-victorian-paintings-pt-2-artmarketblog-com/

Part 3:

http://artmarketblog.com/2010/03/11/the-rise-of-victorian-paintings-pt-3-artmarketblog-com/

**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

Henry Herbert La Thangue's Leaving Home

Following the sale of the Koch collection in 1993, the next major sale of a collection of Victorian paintings came in 2003 when the Forbes collection was auctioned by Christie’s over a two day period. The Forbes collection, considered one of the 20th century’s most important collections of Victorian art, was put together by Malcolm and Christopher Forbes of the Forbes Magazine family. Malcolm and his son Christopher began the collection after Christopher made the comment to his father that, for the price of a minor Monet hanging on the wall of his office, he could assemble one of the world’s great collections of Victorian art. Malcolm, a lover of bargains and challenges, liked the sound of this idea and so, with his son Christopher, began collecting. Malcolm Forbes died in 1990 leaving his son with the collection that they had both had put together with passion over a thirty year period.

Unfortunately for Christopher, a family squabble is rumoured to have meant that the collection needed to be sold, even though Christopher was quoted as saying at the time that he would not attend the sale because “it would be too sad.” Among the numerous outstanding works that were included in the sale were John Martin’s Pandemonium; Sir Edwin Henry Landseer’s ‘Scene in Chillingham Park: Portrait of Lord Ossulston’ or ‘Death of the Wild Bull’; John Phillip’s Early Career of Murillo; Dicksee’s Chivalry; and W.H. Deverell’s masterpiece, Twelfth Night. The sale was a huge success, especially considering the poor market sentiment at the time, with 75% of the works finding new homes for a sale total of 16.9 million pounds. Most exciting of all was the 63 artist auction records set during the sale for artists such as Henry Herbert La Thangue, Sir Edward Landseer and John Martin.

There is no doubt that the success of the sale was bolstered significantly by the association with a famous family – an association that Christie’s took full advantage of. A large contingent of buyers from the Continent, who would usually not be interested in the work of Victorian British paintings, indicated that the Forbes name was a big draw-card. Regardless of the fact that many of the buyers were motivated to a large degree by the provenance of the paintings, the success of the sale and the associated publicity gave the market for Victorian art a major boost. The Forbes sale was a huge milestone for Victorian paintings and paved the way for what was to be a slow but steady revival for Victorian art.

To be continued…………

Part 1:

http://artmarketblog.com/2010/02/25/the-rise-of-victorian-paintings-part-1-artmarketblog-com/

Part 2:

http://artmarketblog.com/2010/03/04/the-rise-of-victorian-paintings-pt-2-artmarketblog-com/

**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

The availability and affordability of top Victorian paintings during the first half of the 20th Century allowed a select few collectors to corner the market and put together amazing collections of major historical and cultural significance. A short resurgence of interest in the Victorian era during the 60′s, particularly in the work of the Pre-Raphaelites, saw even more of the few remaining top Victorian paintings go to private American and British collectors. With so many of the best that the Victorian era had to offer hidden away in the private collections of a few wealthy individuals, the market was left with an abundance of second and third rate works. Considering that a majority of the Victorian era’s top works of art were hidden for so long behind closed doors, it is no wonder that Victorian era paintings suffered such a poor reputation for so long.

With no financial or other incentive to sell works from their collection, most of the paintings snapped up during the first half of the 20th century, and the 60′s revival, remained in the hands of collectors and behind closed doors. Death, debt and disaster proved to be the saving graces for the market as a variety of unfortunate circumstances led to a number of the best private collections of Victorian paintings being released back onto the market after spending decades out of sight and out of mind. The auction houses love nothing more than a single owner collection that has not been exposed to the market for decades and, as these collections began to become available, spared no effort in making them seem as desirable as possible.

The first of the major collections of Victorian paintings to make an impact on the market was that of American millionaire Fred Koch who, in 1993, sold his major collection of Victorian paintings which consisted mainly of narrative work by artists such as Alma-Tadema, Tissot and Lord Leighton. Koch is thought to have made the decision to sell his collection after plans to open a museum in London were somewhat affected by a huge fire at a storage facility that housed most of the furnishings for the museum, as well as Koch’s collection of Bronzes, all of which were destroyed. The devastation of the fire is rumored to have been so disheartening for Koch that he lost his passion for Victorian paintings. Koch began by selling some of his collection in Britain through Sotheby’s and achieved some success, particularly with a 7ft painting of the Emperor Heliogabalus drowning his courtiers in rose petals by Sir Lawrence Alma-Tadema which sold for 1,651,500 pounds. Also achieving a high price was a painting by Sir Frank Dicksee of a a seventh-century Persian heroine reclining on cushions with a vase of lilies by her side which sold for 793,500 pounds. It was, however, in New York that works from Koch’s collection received the best reception with Christie’s selling Tissot’s “L’Orphine” for a record US$2,970,000. A few months later further works from Koch’s collection were entrusted to Sotheby’s New York who sold Alma-Tadema’s “Baths of Carcalla” for a record US$2,532,500.

To be continued……………..

**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

George Spencer Watson, R.A., R.W.S., R.O.I. (1869-1934) 'Four Loves I found, a Woman, a Child, a Horse and a Hound' signed and dated 'G. Spencer Watson/1922' (lower left) and inscribed 'G. Spencer Watson/20 Holland Park Rd/W14' (on the reverse) oil on canvas 56 x 77 in. (142.2 x 195.6 cm.)

For may people the mere mention of the Victorian era conjures up images of terribly uninspiring chocolate box worthy narrative scenes, and utterly awful reproduction “brown” furniture. Regardless of the fact that there is far more to the Victorian era than the clichés that have come to characterise the period, Victorian art continues to struggle to shake it’s bad image. The good news is that the market for what has been an unfashionable collecting category has improved significantly over the last few years, as has the image of the entire period. There is, however, still a long way to go before the work of the many fantastic Victorian artists who have languished in obscurity for so many years are given the recognition they deserve. An upside of this situation is that there is an opportunity for investors to take advantage of an undervalued sector of the market, and for collectors/connoisseurs to potentially immortalise themselves in the art world by becoming patrons of the period.

A number of factors, which I shall discuss later on, have contributed to a revival of interest in the art of the Victorian era – a period of art that had essentially become a casualty of the popularity of modernism. In fact, Victorian paintings have been assigned so little value in the past that, as collector of Victorian paintings “Kip” Forbes famously quipped in the 1960’s, one could assemble one of the world’s greatest collections of Victorian art for the price of a minor Monet. Which he did. Forbes was a major figure in the revival of Victorian paintings who I will profile in greater detail in a future post.

The increasing popularity of Victorian art was particularly evident at the Victorian and British Impressionist Art including Drawings and Watercolours auction held by Christie’s on the 16th of December 2009. A total of five new world auction records were set for classical Victorian works by some of the periods best known names such as William Powell Frith, Edward Reginald Frampton and Harold Knight. What is particularly exciting about many of the Victorian painting sales of the last few years is that many brilliant but relatively unknown artists are beginning to be recognised. One such artist is George Spencer Watson R.A whose painting “Four Loves I found, a Woman, a Child, a Horse and a Hound” achieved 151,250 pounds at the above mentioned auction against an estimate of 100,000-150,000 – a new world auction record for the artist. Two other paintings by Watson were also auctioned both of which sold for more than twice the high estimate. The entire 16th December sale wasn’t a massive success with only 63% of the lots sold but this is a reflection of the fact that there are a large number of second and third rate Victorian paintings on the market and a small number of connoisseur collectors who only want the very best works.

To be continued………..

**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

Contact: Brigid Brown, Publicist

Cell) 551.358.1058

brigidbrown13@yahoo.com

The network of websites that comprise Chicago Art Map and Chicago Art Magazine are not simply local websites but a case study for a new model of online publishing.

See: http://chicagoartmagazine.com/transparency-pages/

“Print media is in a mindset that online publishing is simply posting on a screen rather than printing on paper,” says Kathryn Born, founder of the CAM. “It’s rarely utilizing the internet’s capabilities to connecting the story ancillary data and deeper pools of information. It doesn’t harness the power of online distributions, which can categorize and deliver content to the audience — in the exact moment and form they wish to receive it.”

What does that have to do with Chicago Art Map? The network stands as a proof-of-concept of new publishing through several scenarios.  The key example is that Chicago has 300 art venues and countless events every week. Comprehensive lists are ideal, but unwieldy.

The answer? Put all the information into a database instead of a list. Put a Google Map layer on top, add images, and code additional software tools so the events can be sorted and filtered.

The result? Search an art map by geographical range or  exhibit type (a museum vs. a gallery or alternative art space) or type of art or type of event. Sort alphabetically or by neighborhood,   location, specialty and filtered by date and geography.

For Chicago Art Magazine, footnotes are back in style using “hovering” tools, paragraphs of extra information expand with a click to instantly reveals more information (without refreshing the page).   And images! Since ink is no longer a cost factor, they’re abundant, and expand to full size when clicked upon.

Chicago Art Magazine doesn’t publish monthly, it publishes twice a day. Each piece is pushed out to over 5,000 Facebook and Twitter followers.

It’s operational budget, for what would-be a 200 page magazine, is only $1,700 a month. Every dime goes to writers, editors and staff. No rent, no paper, no trucks. Suddenly, an advertising-based model that only requires $2000 per month to support freelancers and stay in the black, is attainable, often with sole-sponsorship deals that provide a blast of coverage for only a few sponsors each month.

“‘Advertorial; content is permissible, but only if it’s fully disclosed in every instance,” is the policy of the magazine, as they are supported with “sponsored posts” along with graphic advertisements.

Most unusual, yet still in accordance with the Open source (software) background that prepared Kathryn Born for the task, is the idea of freely sharing ideas so that others can build upon what was learned. A tab called “transparency” reveals everything from tech tricks, to philosophy and budgets. A weekly blog gets into even smaller details about editorial and survival

-MORE-

The site speaks to all tiers of art fans whether a seasoned collector or a newbie looking to go out on a Friday evening. This breadth of reviews is credited to the aptly named “Friday Night Army” which is a team of critics, released onto the city, with the mission to report back on what is seen and heard in their own voice. “The editorial goal is to write about art in a simple, lively way, using pictures, video and audio,” says Born. “Our belief is that writing about art can be a literary style that’s as colorful as the art we describe.”

Chicago Art Magazine ~ Reviews & Features

Chicago Art Map ~ One-Stop-Shop Gallery Finder

The Chicago Art Machine speaks to all tiers of art fans whether it is a collector on the prowl for the latest discovery or a newbie looking to branch out. This breadth can be credited to the aptly named “Friday Night Army” which is a team of critics, released onto the city, with the mission to report back on what is seen and heard in their own voice.

Some features are more mainstream like, “The Bath Haus of Gaga” and others more niche-y but still accessible such as, “A Crash of Critters at Fill in the Blank”. No matter what genre, each article is informative and as a whole the network feels like a mini-course in art history. After a short time of perusing the sites, visitors will walk away knowing way more than when they started.

“The editorial goal is to write about art in a simple, lively way with a whole bunch of pictures, video and audio,” says Born. “The belief is that writing about art can be a literary style that’s as colorful as the art we describe.”

Kathryn Born is the Editor-in-Chief of the online Chicago Art Magazine and oversees ChicagoArtMap.com. Born breaking off to start her own network of sites, Born had created the blog Art Talk Chicago for the Chicago Tribune-sponsored network of blogs called ChicagoNow.com.

If you plan to run a review and/or would like to set up an interview with Kathryn Born, please contact: Brigid Brown @ 551.358.1058 or brigidbrown13@yahoo.com

Visit us online at: www.chicagoartmagazine.com

-END-

One of my favourite young artists, Boo Saville, is currently having her work exhibited by Trolley Gallery in London. Saville’s interest in the visual representation of death has been a recurring theme in her work which she has continued to explore in this new body of work. What I love about Saville’s work is that she doesn’t just express herself through the image it’s self but also uses the medium she is working at the time to add another dimension of emotion and effect to her work. The gestures, textures and the different physical properties of her chosen medium are all used to great effect to convey the message and emotion that Saville is aiming for. It is her amazing understanding of the tools of her trade that make Saville such an effective and encapsulating artist whose work is sure to impress. Definitely an exhibition worth checking out.

Exhibition Summary:
Trolley Gallery is proud to present a second solo show by artist Boo Saville. Entitled ‘Totem’, this new body of work encapsulates the unifying anthropological and archeological aspects evident in her work, and her representation of the deceased captured through an exploration of various forms of mark-making, itself a reflection of human expression and representation. Saville constantly researches source material from a wide variety of documentary and scientific origins; books, journals and resources such as the Wellcome Institute. The internet also offers an almost limitless exploration of imagery and keywords, the small, often low resolution images becoming the direct subject matter in the final work, where the colours and often gnarled compositions of a deceased human translate into a delicate and detailed painting and drawing. “There is beauty and creativity in the process of destruction. I am interested in decay not as a negative reduction but as a unifying symbol of matter, of our bodies. There is a clarity for me when something is stripped down to the bare bones and studied or just observed.”

http://www.trolleybooks.com/exhibitionSingle.php?exhibId=283
Trolley Books
73a Redchurch Street
London
E2 7DJ

tel +44(0)20 7729 6591
fax +44(0)20 7739 5948

**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

Since posting part 1 of my Predicting Art Market Profit Potential posts I have had some people question whether it is possible to predict whether an artist will achieve market success before they actually do.  Unfortunately many people either don’t know about ArtFacts.net or don’t understand how it works which is why I am writing this post.   One person said that: “A successful artist with lots of exhibitions and fame, will certainly have an extensive auction sale record, whereas an unknown artist will not.”  I can understand where this person is coming from, but their statement is incorrect.  An artist who has been widely and extensively exhibited can have a strong primary market (galleries etc.) for their work and a virtually non existent secondary market (auctions etc. ) for their work.  In fact, I know of many contemporary artists whose works fetch considerable amounts of money on the primary market but have not had any of their works sold at auction or via any secondary market   Before an artist develops a strong secondary market they usually have to have developed a strong primary market which would mean having their work exhibited by galleries, at fairs and as part of group shows.  What ArtFacts.net does is utilise primary market data to establish how much attention an artist is receiving.  That primary market attention, if properly leveraged, should then be able to be turned into secondary market attention and increased secondary market value. According to ArtFacts.net “According to ArtFacts.net, “The career of an artist depends on the success of their exhibitions”. This is certainly true for the long term career of an artist. Because price data is rarely available for primary market transactions, ArtFacts.net have developed a ranking system that ranks artists according to how widely and extensively they are being exhibited and how prestigious the galleries/museums they are being exhibited at are.  Although some of the older/deceased artists will be having their work exhibited/sold on the secondary market, much of the data is for emerging contemporary artists whose work is being sold/exhibited on the primary market, and who don’t yet have a secondary market, which gives people the opportunity to use the data the ArtFacts.net have collected to make predictions regarding the future secondary market potential of an artist and their work. In order to provide some sort of context in which to place the more emerging artists, the ArtFacts.net Artist Ranking tool includes a large number of modern artists such as Warhol, Picasso, Richter, Nauman etc. who, as one would expect, occupy the top spots of the ranking.  By having the more senior artists to make comparisons with, it is much easier to put the success of the emerging artists into context and see how their career compares to the careers of artists who already have a strong and established secondary market.

For those of you who are unfamiliar with ArtFacts.net, the first of their Artist Ranking Tool was created in 1999 and has since undergone various adjustments and changes to make it is today.  The concept of ranking artists according to the amount of attention they and their work receives is not a new concept. According to the Getty Museum “Fascinated by the high prices achieved by contemporary (postwar) art, the German art critic Willi Bongard developed a system, known as the Kunstkompass, for ranking artists based on indicators of fame. Using data gathered from museums, commercial art galleries, and art journal reviews, Bongard calculated the success of an artist from year to year and compared it to gallery prices, thus determining the artist’s investment potential.”  The Kunstkompass top 100 contemporary artists continues to be published each year by Germany’s Capital magazine thanks to the efforts of Bongard’s widow, Linde Rohr-Bongard.  ArtFacts.net have taken Bongard’s concept one step further and introduced a recently developed  Career Analyser too which allows subscribers to see how an artist’s career has developed over the years and how their ranking has changed.  According to ArtFacts.net “The Career Analyser Tool examines an artist’s career in the ranking system from two further perspectives: the position in the ranking and the score for each exhibition – both results are calculated over the years. The last object of the analysis is the “Peer Group”: on the basis of the different ranking careers, we detect the artist’s artistic entourage that is the artists with whom he/she usually exhibits in group exhibitions.”  ArtFacts.net have also developed a separate Auction Analyser Tool in conjunction with ArtTactic.com which provides a detailed and in depth analysis of an artist’s career in the auction market.

With a total of just under 80,000 ranked artists, there is no shortage of information on ArtFacts.net so I urge everyone to take the time to check it out and purchase a subscription.  It will be well worth your while

Top 100 Ranking
http://www.artfacts.net/index.php/pageType/ranking/paragraph/4/lang/1

Artfacts.net stats:

19,513
exhibitors worldwide
166
countries
216,913
exhibitions worldwide
229,700
artists biographies
79,338
ranked artist
16,608
works of art
1,421
catalogs

**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

Using auction prices to identify trends and determine whether the price being paid for a particular artist’s work is on the rise is all well and good, but by the time the price of an artist’s work begins to rise in a rapid manner, the best opportunity to profit from the price increase is likely to have already passed. Auction price databases such as artprice.com and artnet.com are extremely useful but they are really only useful for artists who already have an extensive auction sale record. What if there were a system that was able to identify those artists who are most likely to achieve market success before they actually do?. Well, you may be pleased to hear that there is. By looking at what is essentially one of the most influential factors that determines the success of an artist’s career, namely how many exhibitions an artist’s work is included in and how important those exhibitions are, ArtFacts.net is able to rank artists according to their fame and popularity in the cultural sphere as well as in the commercial gallery sphere. That ranking, according to ArtFacts.net, is generated according to the theory that the greater number of shows the artist has, the greater will be the fame of a particular artist. And, as we all know, familiarity generates demand, and increased demand equals increased value (usually). I don’t think that anyone can dispute the fact that museum and gallery shows make artists more saleable and raise the price of their work.

The way that the ArtFacts.net Artist Ranking Tool works is by assigning different points values to particular types of exhibitions and the different institutions and galleries that hold these exhibitions. The number of points assigned to an artist depends on the importance of that institution/gallery exhibiting their work and the amount of exposure that the exhibition gives the artist in question. According to the ArtFacts.net website “Solo shows are worth more than group shows or art fairs. Documenta, in Kassel, Germany, is worth more than the Venice Biennale. Public museums count more than galleries. And different museums have different weights. Those in cities like Paris or New York count for more. Small museums and university museums count for almost nothing”. There does of course have to be some sort of criteria to determine whether an artist is worthy of being included in the system which is where the eligibliity criteria come into play. For an artist to be ranked they must have a sufficiently international presence which in the case of ArtFacts.net means those artists that have long term ties with at least three countries. According to ArtFacts.net “A.R places great importance on the international representation of artists. Only artists operating in international structures will be chosen as a primary value source. The reason why A.R does this is because it recognises the worth of mutual knowledge. Only artists who are common to diverse societies, countries and/or cultures will be really important and therefore create a kind of brand or universal value (like a standard). So the A.R uses internationality as a standard for the basic calculations.”

To be continued…………..

**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

THE PROPERTY OF THE EARL OF JERSEY'S TRUST - SIR ANTHONY VAN DYCK ANTWERP 1599 - 1641 LONDON SELF PORTRAIT 2,000,000—3,000,000 GBP Lot Sold. Hammer Price with Buyer's Premium: 8,329,250 GBP

I always find it interesting and very useful to find out who is purchasing what at auction and for how much.  The information below comes from the auction houses who are only allowed to reveal the identity of those buyers who choose to have their identity revealed which, unfortunately,  is usually not many.   It is interesting to note that Philip Mould is a well known purchaser of undervalued or mis-attributed works of art which he then tends to re-sell for considerably more than he paid.

Christies
Important American Paintings, Drawings and Sculpture
New York – Wednesday, December 2, 2009
Sale no: 2225 – Top Ten
Raphaelle Peale, Still Life, oil on panel
Estimate: $300,000-500,000
Price Paid: $842,500/ £507,530/ €557,947
Purchased by: Richard Rossello/Avery Galleries

Purchaser Details:
www.artnet.com/ag/galleryhomepage.asp?gid=102

Christies
Victorian and British Impressionist Art Including Drawings and Watercolours
London – Thursday, 16 December 2009
Sale no: 7788 – Top Ten
Alfred Munnings reading by Harold Knight, R.A. (1874-1961)
WORLD AUCTION RECORD FOR THE ARTIST
Estimate: £30,000 – 50,000
Price paid: £115,250/ $187,281/ €128,850
Purchased by: Richard Green Gallery, London

Purchaser Details:
www.richard-green.com

Christies
Old Masters & 19th Century Art
London – Tuesday, 7 July 2009
Sale no: 7743 – Top Ten
Michele Giovanni Marieschi (Venice 1710-1743), The Courtyard of the Doge’s Palace, Venice, with the Scala dei Giganti, Saint Mark’s Basilica beyond
Estimate: £2,000,000- 3,000,000
Price paid: £2,169,250/ $3,512,016/ €2,518,499
Purchased by: Otto Naumann Ltd

Purchaser Details:
www.ottonaumannltd.com

Sotheby’s
Sale Results London, Bond St
Sale L09637 Old Master & British Paintings – Day Sale 10 DEC 09
James Seymour, Portrait of the racehorse Sedbury, with a groom, oil on canvas
Estimate: £80,000 – 120,000
Price paid: £505,250/ €558,553/ $820,526
Purchased by: Richard Green Gallery
***NEW AUCTION RECORD FOR THE ARTIST***

Purchaser Details:
www.richard-green.com

Sotheby’s
Sale Results London, Bond St
Sale L09636 Old Master and British Paintings – Evening 09 DEC 09
Sir Anthony van Dyck, Self portrait, oil on canvas
Estimate: £2,000,000 -3,000,000
Price paid: £8,329,250/ €9,207,960/ $13,521,704)
Purchased by: Alfred Bader in partnership with Philip Mould
***NEW AUCTION RECORD FOR THE ARTIST***

Purchaser Details:
http://www.alfredbader.com/
http://www.philipmould.com/

Sotheby’s
Sale Results London, Bond St
Sale L09663 19th Century European Paintings Including Spanish Painting, The Orientalist Sale, And German,
Austrian, Scandinavian and Symbolist Works 24 NOV 09
Adolph Menzel, Umgestürzter Teekessel (Upturned teapot), oil on canvas
Estimate: £40,000 – 60,000
Price paid: £373,250/ €413,301/ $617,393
Purchased by: French and Company

Sotheby’s
Sale Results London, Bond St
Sale L09699 20th Century British Art 11 NOV 09
Sir Stanley Spencer, John Donne arriving in heaven, pencil, pen and ink
Estimate: £12,000 – 18,000
Price paid: £87,650/ $146,831
Purchased by: Daniel Katz Ltd

Purchaser Details:
www.katz.co.uk/

Sotheby’s
Sale Results London, Bond St
Sale L09699 20th Century British Art 11 NOV 09
Frank Auerbach, Head of Leon Kossoff, oil on canvas
Estimate: £200,000 – 300,000
Price paid: £1,777,250 ($2,977,249)
Purchased by: Offer Waterman Fine Art Ltd on behalf of Private Collector

Purchaser Details:
www.waterman.co.uk/

Sotheby’s
Sale Results London, Bond St
Sale L09693 A Life in Pictures: The Collection of Lord and Lady Attenborough 11 NOV 09
Graham Sutherland, Thorn Head, 1947, oil on canvas
Estimate: £150,000 – 250,000
Price paid: £481,250 ($806,190)
Purchases by: Daniel Katz Ltd
***RECORD FOR THE ARTIST AT AUCTION***

Purchaser Details:
www.katz.co.uk/

**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

Adriaen Coorte "Still life of strawberries in an earthenware bowl, on a stone ledge"

I have been watching the art market very closely over the last year and have to say that I was actually quite pleased with what I saw. The more scholarly and connoisseurial approach to fine art that emerged in 2009 has temporarily re-focused people’s attention on the historical, cultural and artistic value of art as opposed to the social and financial values that dominated the contemporary driven market of the boom period. I say temporarily, because although the glitz and glamour of the contemporary art market has taken a huge hit, and there is no doubt in my mind that the phenomenon that is contemporary art will shortly return to the position of power that has made it a force to be reckoned with in the past. Perhaps sooner than we may think!!

The scholarly and connoisseurial trend of 2009 still has a bit of juice in the tank and should continue to play a major role in the 2010 market. Take for the instance, the work of the rather mysterious Dutch Baroque still life painter Adriaen Coorte, whose work is little known outside the scholarly world and went largely unrecognized until he was rediscovered by a Dutch art historian in the 1950s. Works by Coorte rarely comes to market so when two small paintings came up for auction at Sotheby’s on the 2nd of December of 2009, it was predicted that there would be considerable interest, but not anywhere as much interest as there ended up being. The first painting, a still life of strawberries in an earthenware bowl was fought over by six bidders who pushed the sale price to 1,520,750 Euro which was not only more than ten times the 150,000 euro high estimate but was also a new auction record for the artist. Next on the block was the second work by Coorte which broke the auction record set by the previous painting when it sold for 1,576,750 Euro against the same estimate of 100,000-150,000 Euro. Both paintings were acquired by the same European collector.

Marcus Aurelius Root, Anthony Pritchard, 1850, quarter-plate daguerreotype

Another artist whose work is little known outside the scholarly world is that of Marcus Aurelius Root. An early work by the renowned Philadelphia daguerreotypist of Anthony Pritchard was a feature of the October 8 Miller-Plummer Collection of Photographs sale and reached the astonishing world auction record price for the artist of US$350,500 against an estimate of $20,000 – $30,000. The sale of this work by Root is another example of the current trend that has seen connoisseurs and scholars drive up the demand for works of cultural and historical significance. Root’s photo of Anthony Pritchard is not the only example of antique/vintage photography that has exceeded price expectations; the whole market for antique/vintage photography has experienced a continuing surge of interest as the importance of photography in an art historical context is further realised. 2010 should see a continuation of the interest in antique/vintage photography as collectors and museums vie for the top works in a niche that is still in it’s infancy, and that still presents opportunities for collectors and connoisseurs to acquire works of major cultural and art historical significance at potentially bargain prices.

As a result of the reduction in the demand for contemporary art, emerging markets such as South Africa, Indonesia, Turkey, Poland, Singapore, Iran, Greece, etc. have become a focus of dealers and auction houses in an attempt to generate new revenue streams. A deciding factor in the decision of which emerging market to penetrate has been whether or not there is a strong enough force of wealthy European/Western expats to fuel demand for souvenirs of their temporarily adopted homeland. Former expats of emerging markets are also being targeted by market forces in an attempt to encourage a sense of nostalgia that will result in the purchase of a memento of their time abroad. 2009 saw a concerted new ground being broken with region specific auctions, particularly with those of emerging markets such as Greece and Turkey – a trend that I predict will continue gaining momentum in 2009.

With owners of what are considered to be the most desirable and valuable works of art tending to sit on their assets while the art market bottoms out I predict that 2010 will see the slow return of those modern and contemporary works that tend to send the market into a flurry of excitement. Another prediction I will make is that art investment will continue to gain credibility and new avenues to invest in art will open up. A sign of the continuing acceptance of art as a viable alternative asset is the fact that Israeli billionaire Arnon Milchan recently told Forbes magazine that art is the best investment to own. In his words “If you have triple-A art, I’ve never seen it really go down. Great art is the best thing to own. We’ve seen recently the art market picking up fast. The last Sotheby sale broke records.”

Wishing everyone a great 2010 !!

Nic Forrest

**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

Several art related companies and institutions have taken advantage of the revolution that is the Apple iPhone, and released apps that make buying, browsing and finding out about works of art possible anywhere, anytime. Below are my top iPhone Apps for art collectors and investors.

Artfact.com iPhone App

Why waste your valuable time searching hundreds of old auction house catalogs and websites for auction price results, when you can find everything you need all in one easy-to-use service?
Artfact is the world’s largest and most comprehensive online auction price guide, delivering over 55 million price results for fine art, decorative art, antiques and collectibles all sold at auction.

-Browse over 100,000 upcoming live auction items
-Research over half a million auction price results
-Place confidential absentee bids on upcoming lots
-Receive email alerts if you are outbid
-Share your favorite items via Facebook or email

Available free of charge from the iTunes App Store
http://itunes.apple.com/us/app/artfact-live-auctions/id340245009?mt=8

Invaluable.com iPhone App

Invaluable Live! is the world’s premiere live auction bidding platform, enabling collectors and dealers around the globe to bid online in real-time on over 100,000 upcoming items for sale at auction. More than 150 traditional, international auction houses host their auctions exclusively on the Invaluable Live! platform.

-Browse over 100,000 upcoming live auction items
-Research over half a million auction price results
-Place confidential absentee bids on upcoming lots
-Receive email alerts if you are outbid
-Share your favorite items via Facebook or email

Available free of charge from the iTunes App Store
http://itunes.apple.com/us/app/invaluable-live-auctions/id343664441?mt=8

Christie’s iPhone App

When you are on the run, Christie’s iPhone application allows you to browse over 450 auctions in over 80 categories including all areas of fine and decorative arts, jewelry, photographs, collectibles, wine, and more from the palm of your hand. With a touch of a finger, you can also review auction results and learn how to buy and sell with Christie’s.

* Email a lot to a friend
* Discover how to buy and sell with Christie’s or more about our Private Sale services
* Explore over 80 Specialist Departments
* Get directions to and locate our salerooms across the globe using Google maps
* Show your passion for fine art, jewelry, decorative arts and more with one of our downloadable wallpapers
* Learn about the history of the the world’s first fine art auctioneers, and about our company today

Available from iTunes App Store
http://www.christies.com/on-the-go/iphone/

Saffron Art iPhone App

Key features of the application include a color-coded bid status indicator, proxy bidding capabilities, as well as information on current bid amounts, bid histories and post-auction results. Users can also preview the entire auction catalogue, with such lot details as size, surface, medium, estimates and images, searching by lot number, artist or designer name, material or type

Available from iTunes App Store
http://www.saffronart.com/sitepages/Mobile-Auction/iPhone.aspx

LiveAuctioneers.com iPhone App

Anyone with this application loaded onto their iPhone will have instant access to any auction catalog listed on LiveAuctioneers and can even log in and leave absentee bids through our Secure Bidder Network (SBN). With SBN functionality, which is unique to LiveAuctioneers, your absentee bid is kept private and unknown to anyone until auction day, when the bid is executed. Additionally, the new iPhone app enables the user to share auction lots with others via e-mail and to access more than 4 million fully illustrated auction results from past sales conducted through LiveAuctioneers

Another bonus feature of LiveAuctioneers’ iPhone app is its exclusive direct connection to Auction Central News (www.auctioncentralnews.com), the leading online source for news about auctions, antiques and fine art.

Available from iTunes App Store
http://www.liveauctioneers.com/iPhoneApp

Heritage Auctions iPhone App

Heritage Auctions has announced the launch of a mobile version of its award-winning Website, www.HA.com. Collectors now have the opportunity to search for, view and bid on any lot in any current Heritage auction from most any mobile device with a web browser from anywhere in the world where there’s Web service.

Available from iTunes App Store
http://itunes.apple.com/au/app/heritage-auctions/id346185455?mt=8

Artnear iPhone App

Artnear is the first global guide to art for the iphone platform. Find top galleries and museums around the world. Browse and see images of current shows, openings and more.

Available from iTunes App Store
http://itunes.apple.com/au/app/artnear/id320653064?mt=8

Seoul Auction iPhone App

Check what’s happening with Korea’s leading art auction house

Available from iTunes App Store
http://itunes.apple.com/au/app/seoulauction/id345138823?mt=8

Saatchi Magazine iPhone App

Art News, views, reviews, interviews, essays by the world’s leading writers, critics and curators on art and artists, weekly openings and more…

Available from iTunes App Store
http://itunes.apple.com/au/app/saatchi-magazine/id341552232?mt=8

Louvre iPhone App

The Musee du Louvre in Paris has recently launched its own iPhone application, offering a virtual experience of the world’s largest museum. Users can view some of the Louvre’s most famous items, such as the Mona Lisa and St. Mary Magdalene, and take a virtual tour of the museum’s historic buildings. As well as virtual guides, the app also offers tourist information about the museum, such as opening times and visitor maps.

Available from iTunes App Store
http://itunes.apple.com/au/app/id337339103?mt=8

National Gallery London iPhone App

The National Gallery is offering art lovers the opportunity to put works by Leonardo and Van Gogh in their pocket. A new application, called Love Art, allows iPhone and iTouch users to explore 250 of the Gallery’s best-loved paintings in the palm of their hand.

Take an unforgettable journey around the National Gallery. Zoom in to explore fine details and enjoy over three hours of video and audio content.

You can listen to the stories behind the masterpieces in insightful interviews with artists, writers and experts including:

* National Gallery Director Nicholas Penny
* Dramatist Robin Brooks
* Artist Maggie Hambling
* Author Tracy Chevalier

Available from the iTunes App Store
http://itunes.apple.com/au/app/love-art-national-gallery-london/id314566159?mt=8

**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

Andy Warhol, 200 One Dollar Bills, March-April 1962, est. $8/12 million

This is the final post in the four part series on the “Spectacle of the Art Market” – a topic that I believe to be extremely relevant and very important. As I expected there were some people who did not believe the buying trend I wrote about in part 2 which suggests that there is a connection between the sentiment/mood of buyers and the type of works that they buy. I looked for further information that supports my theory that happier and more cheerful works (brighter and shinier) are more popular during boom times when the mood and sentiment is positive, and that people take more notice of the more subdued and less visually spectacular works during market downturns when the mood and sentiment is less positive. Not only did I find some evidence that supports my theories but I also found evidence that I am not the only one who has noticed the buying trends that led me to develop the concepts that I have written about.

During my search I came across a statement by a Sotheby’s specialist who was commenting on the sale of Warhol’s “200 One Dollar Bills”. The Sotheby’s specialist suggested that a less striking and visually spectacular work such as the grey and black “200 one dollar bills” would not have received the attention that it did, and would most likely have been overshadowed by other more visually striking works had the contemporary art market boom still been in full swing and levels of conspicuous consumption were elevated. The $43,762,500 paid for Warhol’s “200 One Dollar Bills” was the highest price paid for a work of art at Sotheby’s November 11 contemporary art auction but what is interesting is that the second most expensive work of art was very similar in appearance to the Warhol. Jasper John’s “Gray Numbers” is another work that perhaps would not have attracted so much attention had the market been under a greater influence of trophy hunters and indiscriminate buyers.

Jasper Johns’ Gray Numbers

If you haven’t seen the Tate Modern’s exhibition “Pop Life: Art in a Material World” then you should go and see it because this exhibition is essentially a display of what is wrong with the contemporary art world and the contemporary art market. According to the exhibition press release “Pop Life: Art in a Material World argues that Warhol’s most radical lesson (Warhol’s notorious provocation that ‘good business is the best art’) is reflected in the work of artists of subsequent generations who, rather than simply representing or commenting upon our mass media culture, have infiltrated the publicity machine and the marketplace as a deliberate strategy.” This could well be a correct statement if the strategy they are referring to is a strategy to make money and become famous by taking advantage of the consumerism and mass culture that are so influential in modern society. The press release goes on to say that: “The conflation of culture and commerce is typically seen as a betrayal of the values associated with modern art; this exhibition contends that, for many artists working after Warhol, to cross this line is to engage with modern life on its own terms.” Referring to the conflation of culture and commerce as a result of artists attempting to engage with modern life is, in my opinion, a flimsy excuse that an artist would use to surrender to the powers of popular and commercial culture. The fact that contemporary art is often so ambiguous means that it is quite possible for an artist to give a work the identity of their choice regardless of whether or not the basis of that identity has anything to do with the reality of the work and the artists intentions. I think that it is quite obvious that in the contemporary art market there is a significant level of value put on the visual impact of a work of art and artists are well aware of this.

The concepts that I have written about in the “Spectacle of the Art Market” series of posts are by no means flawless or bulletproof. I am not aware of any intensive studies that have been carried out on these concepts but the research that I have conducted has left me with no doubt that there the concepts that I have written about are valid and have at least some impact on the art market.

**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

Natalya Goncharova's Linen

I am sure that many of you would agree that it has become the norm for people to approach fine art as consumers instead of as scholars or connoisseurs. If you were to ask me whether there is anything wrong with this I would say that there definitely is. Don’t get me wrong, I am obviously a strong supporter of the art market, but also recognise the need for a balance between the commercial and the cultural. Without that balance the art market becomes unstable and the art world becomes too closely connected to the art market. Whether you realise it or not, the art market requires a certain level of “infiltration” by scholars and connoisseurs. It is the scholars and connoisseurs who add value to works of art by generating information and knowledge that make works of art historically and culturally more significant. It is this information that is generated by scholars and connoisseurs that we should be using to justify the dollar value of a work of art because this information is usually based on intrinsic characteristics of the work of art that cannot be disassociated from the work of art or become obsolete, and therefore encourage more stable long term values. The contemporary art market, on the other hand, often relies on factors that have very little to do with the work of art its self such as social status, economic status, popular trends and financial gain. These factors can become obsolete very quickly which usually means that the dollar value that these factors generated also disappears causing the sort of correction that we have just experienced.

In February of 2008 Nicholas Penny, the curator of the British National Gallery, made a statement that he was going to put an end to the gallery’s blockbuster exhibition days. According to an article in the Guardian Newspaper, Penny said “The responsibility of a major gallery is to show people something they haven’t seen before. A major national institution should be one that proves a constant attraction to the public. What is important is encouraging historical and visual curiosity in the general public.” Ralph T. Coe, the former director of the Nelson Gallery-Atkins Museum in Kansas City, Mo., a former president of the American Association of Art Museum Directors and a former chairman of the Museum Committee of the National Endowment for the Arts, put the problem in even simpler terms when he said: “One of the saddest things museum connoisseurs like me have had to observe is the substitution of entertainment values for the intrinsic values incarnate in great works of art that alone can confer aesthetic authenticity.” This problem of the substitution of entertainment values (the spectacle) for intrinsic values that the cultural sector is experiencing is also a big problem for the art market as I have shown above. We need to stop the spectacularisation of the contemporary art market if we want to have a more culturally and historically significant period of art production. I believe that we need to be asking the following question on a far more regular basis: in one hundred years time will this work be able to be exhibited in a museum, and will people consider the work to be culturally significant and be historically important?

**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

Modern and Contemporary Indian Art

December 9-10, 2009

· 100 works of art by 51 Modern and Contemporary Indian artists with a total low to high estimate of approximately Rs. 15 crores (US$ 3.2 million) to Rs. 19.4 crores (US$ 4.2 million)

· Attractively estimated works by renowned modernists and popular contemporary artists, of exceptional provenance and quality

· Auction highlights include important modern works by Manjit Bawa, F.N. Souza, S.H. Raza, Akbar Padamsee, Tyeb Mehta and Jagdish Swaminathan

· Prominent contemporary artists featured in the sale include Subodh Gupta, Anju Dodiya, Raqib Shaw and Jagannath Panda

Mumbai, November 27, 2009: Saffronart, India’s leading auction house for Modern and Contemporary Indian Art, will host its annual Winter Online Art Auction on December 9-10, 2009. Presenting 100 lots of exceptional quality and provenance by 51 leading modern and contemporary Indian artists, the sale will take place online at www.saffronart.com.

The auction catalogue includes paintings, drawings and sculptures by celebrated modern artists Manjit Bawa, F.N. Souza, S.H. Raza, Akbar Padamsee, Tyeb Mehta and Jagdish Swaminathan among others. Notable contemporary artists in the sale are Subodh Gupta, Anju Dodiya, Raqib Shaw and Jagannath Panda among others. With a strong focus on aesthetically significant works, this sale promises to generate great interest and demand from collectors across the globe.

Featured on the front cover of the catalogue, is an untitled canvas of epic proportions by Manjit Bawa. The artist’s men, women, gods and animals, suspended wondrously in colourful space, are rendered with a simple fluidity that borders on the abstract. Rather than brushstroke and texture, Bawa relies on chiaroscuro and subtle shading to deliver depth to his canvases; and rather than developing a narrative, the artist focuses on perfecting form by paring it down to its most basic essence. Together, these characteristics give the artist’s paintings an arresting luminosity, and his characters a dreamlike presence.

Another important lot is Jagdish Swaminathan’s untitled canvas from 1975, which was formerly in the collection of World Bank director William Diamond. Swaminathan, in his quest for this new modernist ‘Indian’ vocabulary, turned to the local, exploring not only the folk art of varied regions, but also the historically significant miniature traditions of North-Western India. The Bird, Tree, Mountain series of canvases, to which this lot belongs, stands testimony to his attempts at instituting a new idiom for modern Indian art, and is inspired by both the simplicity of Indian folk art, and the intensity of Indian miniatures.

Among the contemporary lots on offer, Subodh Gupta’s 2005 untitled work, a shimmering theatre of polished stainless steel pots and pans, is featured on the back cover of the catalogue. Gupta’s main concerns have been subjective value and material production and consumption. In charting and presenting India’s unique developmental path, the artist creatively draws attention to the present interdigitation of tradition and modernity in the country, and the distinct social realities that emerge from this interface. In doing so, Gupta effectively communicates the impossibility of capturing the intricacies of the developing world through a developed world lens.

Featuring for the first time at a Saffronart auction is Raqib Shaw, whose work has been celebrated in prestigious solo exhibitions at the Metropolitan Museum of Art in New York and the Tate Britain in London. Drawing from various disciplines including literature, zoology and art history, Raqib Shaw’s body of work is a dizzying amalgamation of influences, including the work of old Masters like Bosch, Holbein and Piranesi, Mughal miniatures, the Romantic works of Wordsworth, Byron and Coleridge, Japanese decorative arts, Kashmiri shawls, and various specimens and images drawn from natural history museums, medical journals and popular culture, to name only a few.

Speaking about the auction, Dinesh Vazirani, CEO and Co-founder of Saffronart said, “The success of our recent auctions has proved that collectors around the globe continue to show great demand for rare and exceptional works with impressive quality and impeccable provenance, which this auction offers. Strong results, record prices, and increased international interest illustrate that there is renewed strength in the market as a whole. It is on this positive note that we look forward to strong interest in this auction.”

The total lower and higher estimates for this auction are Rs. 15 crores (US$ 3.2 million) and Rs. 19.4 crores (US$ 4.2 million) respectively. The sale will be accompanied by an illustrated print catalogue, also available online at www.saffronart.com, and preview events at Saffronart’s gallery spaces in Mumbai and New York.

Highlights from Saffronart’s Winter Online Auction 2009:

Manjit Bawa
Untitled
Rs. 70,00,000 – 90,00,000
$ 152,175 – 195,655

F.N. Souza
Mr. Sebastian (1956)
Rs. 55,20,000 – 82,80,000
$ 120,000 – 180,000

Subodh Gupta
Untitled (2005)
Rs. 70,00,000 – 90,00,000
$ 152,175 – 195,655

Akbar Padamsee
Untitled (2007)
Rs. 45,00,000 – 55,00,000
$ 97,830 – 119,570

About Saffronart

A global company with deep Indian roots, Saffronart was founded in 2000 on the strength of a private passion. Remaining committed to this passion and personal values, today Saffronart is a strong and successful international business that both embraces and drives change.

A pioneer of online art auctions, Saffronart has set global pricing benchmarks and transformed the landscape of Modern and Contemporary Indian Art, making it accessible to connoisseurs and collectors around the world. Its robust online auction platform and secure technology offers a personal, intuitive and effortless bidding and buying experience for clients.

With its online presence, and offices in Mumbai, New York and London, Saffronart has broadened and simplified access to Indian art and jewelry. Responding to the needs of today’s collectors, Saffronart also offers services such as art advisory, private sales, appraisals and valuations, and specialized art storage.

For further details on the auction, please contact:

India: Punya Nagpal, Nishad Avari or Dhanashree Waikar

Tel: (91 22) 2432 2898 / 2436 4113 or Email: auction@saffronart.com

USA: Anu Nanavati Chaddha

Tel: (212) 627 5006 or Email: newyork@saffronart.com

UK: Abha Housego

Tel: 44 (0) 20 7409 7974 or Email: london@saffronart.com

Media Contact: Malika Bhavnani, CMCG India Pvt. Ltd.

Tel: (91-22) 24450991/2/3, (91) 9820496099 or malika.bhavnani@cmcgindia.com

If you read my last post (which is the introduction to this post) then you may be asking yourself whether art market trends can really be dictated to a certain extent by such a simple and primitive human instinct.  The evidence that I have come across suggests that it can.  In fact, a recent study linked the human attraction to shiny objects with a primitively instinctual attraction to, and desire for, sources of water.  I would would like to believe that my decision to purchase a work of art is primarily based on some highly complicated thought process or a  highly developed taste for art and sense of style, and not on some primite instinct that we really don’t understand or have any control over.  But we are all only human after all.  And humans are highly complex and emotional creatures who are susceptible to those emotions that make us human.  When you think about it, it is really not that bizarre to suggest that art market trends can be dictated by an instinctually emotion judgement as opposed to a complex process of reasoning.

Charles Saatchi is the undoubtedly the quintessential purveyor of shiny objects and is known to be particularly fond of highly visual, high impact works of art such as those produced by Jeff Koons and Damien Hirst who are both products of the Saatchi empire. Therefore, if I was going to use anyone as an example of the human attraction to bright,  shiny works of art then it would have to be Saatchi.  Interesting, it is a well known fact that Charles Saatchi is NOT so keen on photography or video art.  Why is this interesting I hear you ask? Well,  of all the different mediums that come under the banner of art it would have to be photography and film that are the least likely to incorporate the bright and shiny elements that are present in the type of works that I have been referring to.  Bright colours and shiny elements are usually absent from video and photographic works of art thus making these two mediums less likely to evoke that instinctual attraction that humans have to bright and shiny objects.  Video art in particular is a medium that cannot rely on high impact, instantly attractive elements to engage viewers.  To appreciate and interact with a work of video art usually requires that the viewer to spend a considerable amount of time watching the video and thinking about what is happening.

When it comes to the impact that instinct and emotion can have on the art market it is interesting to compare the current art market buying trends with the state of the global financial sector.  As I said in my last post,  one of the interesting trends that has been particularly noticable during the recent current art market correction is that works that have less visual impact and are not as flamboyant are experiencing competitive bidding and high prices.  This trend is the opposite to the popularity of high impact, bright and shiny works of art that was evident during the playful and heady days of the art market boom when the global economic outlook was far more positive.  Just a coincidence?  I don’t think it is.  To me it would make sense that people would purchase works of art that coincide with their state of mind and the emotions produced by the circumstance that they are in at the time.

There have been studies that show that different types of perfume are purchased according to the state of the economy.  A recent article featured in the Financial Times ‘How to Spend it’ magazine mentioned  that “floral fragrances – the safest, least challenging perfume category – have historically flourished in a recession”.  In his book ‘Why Yesterday Tells of Tomorrow: How the long waves of the economy help us determine tomorrows trends’ of 2001, Helmut Gaus used womens fashion trends as an example of anxiety and functional anxiety-driven behaviour.  According to the statistics compiled by Gaus, during periods of high anxiety women wear fewer patterns, darker colours, clothes with lower necklines and skirts that are longer.  During periods of less anxiety women wear more patterns, brighter colours, clothes with higher necklines and skirts that are shorter.  From these two sets of data it seems that during periods of high anxiety the less complicated, less flamboyant and less colourful become more popular and the reverse during periods of less anxiety when times are good.  I see no reason why the art market shouldn’t experience a similar trend.

to be continued……….

**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

One of the interesting trends that has been particularly noticable during the recent current art market correction is that works that have less visual impact and are not as flamboyant are experiencing competitive bidding and high prices. Works of art that would perhaps have been overshadowed by their more visually stunning siblings are now coming to the forefront as collectors and connoisseurs approach what is on offer from a more scholarly, connoisseurial and art historical perspective. I also believe that the more sombre mood caused by the financial crisis has made people less likely to purchase overtly cheerful works of art and more likely to obtain objects that reflect the more philosophical and reflective mood that many people are currently experiencing.

When the global economy has gone to the dogs, and a large number of people are in a financially difficult position, the purchase of those shiny works of art that are typically seen as status symbols and flamboyantly excessive trophies of one’s wealth just doesn’t seem right. One may expect the opposite situation to arise where people purchase bright and cheerful works of art to make themselves happier, but this just doesn’t seem to be what happens. It seems that it is extremely difficult to justify the purchase of one of many of these “bright and shiny” trophies when one’s financial situation comes into question, which suggests that the purchase of such a work would be a bad investment (as we know so many of them are).

The contemporary art market tends to rely on immediate visual impact and instant gratification to entice people to get out their wallets. With so many artists vying for the attention and patronage of a relatively small number of collectors and investors it is not surprising that the visual impact and attractiveness of an artist’s work becomes such an important factor. The Frieze art fair is a good example of the way an artist’s work looks can have a major effect on its ability to get noticed. Not unlike a supermarket, the Frieze art fair is filled with aisle after aisle of products vying for the attention of the waves of shoppers that pass by. The dizzying array of goods on offer means that it is very easy for a particular atist’s work to get lost in the crowd. And many do. In such an environment it is undoubtedly beneficial for an artist to present their most high impact and visually stunning work as anyone who has visited a fair such as Frieze would know.

To suggest that the path that the art market can be affected to such a degree by the instinctual human attraction to bright shiny objects may sound bizarre at first but if you take some time to ponder the concept I think you will find it is not as silly as it may seem.

To be continued……….

**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

Limited Edition Photo by Youngsuk Suh from Humble Arts

Limited edition print from Humble Arts
Youngsuk Suh
Boating, Idaho, 2009, from Instant Traveler
Archival Pigment Print on Rag Paper, 16 x 20 in.
Signed and numbered, Special Edition of 3
$375
Buy Here: http://hafny.org/editions/youngsuk-suh-limited-edition-print/

The Great Contemporary Art Bubble DVD by Ben Lewis
Art critic and film-maker Ben Lewis spent 2008 following the contemporary art market; travelling to art fairs, auctions, museums and the offices and homes of billionaire art collectors. He spoke to dealers, auctioneers, gallery-owners, art market analysts and art collectors trying to find out the reasons behind the greatest rise in the value of art in history.
Buy Here: http://www.benlewis.tv/?cat=22

Adopt a painting with the Fine Art Adoption Network
FAAN is an online network, which uses a gift economy to connect artists and potential collectors. All of the artworks on view are available for adoption. This means acquiring an artwork without purchasing it, through an arrangement between the artist and collector.
More info here: http://www.fineartadoption.net/

John Baldessari edition from Parkett Art
Edition for Parkett 86
Raised Eyebrows / Furrowed Foreheads: Crooked Made Straight, 2009
9-color silkscreen print (front and back) on Plexiglas, 5 x 12 x 1/8″ (12,5 x 31 x 0,4 cm), printed by Atelier für Siebdruck, Lorenz Boegli, Zurich, Ed. 45/XX, signed and numbered certificate
$ 2400.00
Euro 1700.00
Buy Here: http://www.parkettart.com/qwr/edition_info2.php3?edition_nr=198

Baldessari Print

Teacup by Robert Lazzarini
Designed to be viewed from all angles, Teacup becomes a visual anomaly placed among everyday items, evoking a melancholic, otherworldly quality. Although challenging to drink from, it can be used.
$250.00
$200.00 Members
Buy here: http://www.momastore.org/museum/moma/ProductDisplay_Teacup_10451_10001_62512_-1_11595_11595__feature

Gift membership for The Fine Art Fund (UK)
Art Fund membership is the perfect present for an art-lover. With benefits including 50% off tickets to exhibitions as well as free entry to over 200 fascinating art collections, historic houses and beautiful gardens, you’ll be giving the gift of hundreds of enjoyable days out.
Single membership: 33 pounds
buy here: https://www.artfund.org/join/join_gift_membership.html?recipient=gift&intro=submit

Limited Edition t-shirt from Common Threads
THE BEST $38+ YOU EVER SPENT ON T-SHIRTS FOR A PRESENT!
Looking for a great present idea? Look no further! We have a very unique, cool and unusual gifts for you to give to loved ones. A tremendous amount of care goes into each t-shirt, rendering unique hemlines, detailed stitching, and precise cuts and a unique birthday gift for him or her. All our products are garment washed, yielding super-soft fabrics with a vintage feel. Our lightweight, fine gauge and innovative fabrications are combined with sleek, modern silhouettes, and the result is a collection of apparel as unique as the individuals wearing them. In addition, all of our designs are donated from leading artists and we print only 250 of each design. Given the fact that we give a school uniform to a child in need as well, it’s $38 well spent.
Buy Here:
http://www.commonthreadz.org/shop/index.php

Art and Auction magazine subscription
Subscribe to Art and Auction magazine and give a gift subsctiption free or treat yourself to two years for the price of one,
simply fill-in your name and address twice.
$79.97
Buy here: http://www.artinfo.com/artandauction/

Childrens Felt Wall Clock from etsy
Beautiful, stylish and trendy felt clock for Child’s Bedroom or Nursery Wall designed to give kids another fun point of interest in their rooms.
The color of your choice.
Handcrafted, made of felt and measures 9.5-inch diam.
Requires 1 AA battery
$42.00
Buy here: http://www.etsy.com/view_listing.php?listing_id=31865886

Gold and Tourmaline Ring by B. Weckstrom for Lapponia,1974

Limited Edition Photo from Troika Editions
The artworks on this site are our recommendations and they are not available anywhere else. Every artwork will be offered in the same three sizes, small, medium and large; in the same three edition runs of 300, 30 and 3; at the same price points £35, £350 and £3500. All you have to do is decide which one you like.
Buy Here: http://www.troikaeditions.co.uk/photographs

Artist iPhone Skin from Infectious
Paulo explains about his Firefox artwork: “the organic forms express interaction and connection. The hairy, fox-like elements are symbolic of nature’s speed. The hands and feet convey the need to reach everywhere and the eyes are like mirrors that reflect the global interaction, being in one place but connected to anywhere”.
iPhone Skins
$14.99
Buy Here: http://www.infectious.com/iphone-skins/YUPpauloarraiano/intotheforest/910

Wearable Art from 1stdibs.com and

Finland c1970
Price: $1,850
Buy Here: http://jewelry.1stdibs.com/jewelry_item_detail.php?id=3721

Art:21 – Art in the Twenty First Century 5 (Hardcover)
Mirroring the unique strengths of the Peabody Award winning television series broadcast on PBS, Art:21 Art in the Twenty-First Century 5 presents 14 contemporary artists speaking directly and in their own words. The artists’ reflections on their processes and inspirations are juxtaposed dynamically with lush, full-color images of their work. The book also includes an introductory essay by Susan Sollins as well as artist biographies and production stills from the series. The artists featured, include Cao Fei, Mary Heilmann, Jeff Koons, Florian Maier-Aichen, William Kentridge, Doris Salcedo, Carrie Mae Weems, John Baldessari, Kimsooja, Allan McCollum, Julie Mehretu, Paul McCarthy, Cindy Sherman, and Yinka Shonibare MBE.
$36.52
Buy Here: http://www.amazon.com/Art-21-Twenty-First-Century/dp/0615308368

**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

Lot No: 23 Spyros Papaloukas (Greek, 1892-1957) Mt. Athos, skete of the Three Hierarchs and the Holy Trinity signed in Greek (lower right) oil on cardboard 54 x 50 cm. Sold for £168,000 inclusive of Buyer's Premium

Bonhams UK have been promoting themselves as the gods of Greek art for quite a while now and have claimed market dominance in the UK when it comes to selling Greek art on more than one occasion.  I am not entirely sure what brought about Bonhams’ fascination with Greek art, but whoever is responsible for the assault on this region should be congratulated for what has proven to be, and continues to be, a shrewd move for Bonhams.  Bonham’s most recent sale of Greek art held on the 10^th of November was a good indication that the market for Greek art is extremely buoyant and also that Bonhams continue to maintain a dominant position in what is a competitive niche.  A total of £3.5 million worth of art was sold and a number of significant prices were achieved including:

- Spyros Papaloukas (Greek, 1892-1957) ‘Mt. Athos, skete of the Three Hierarchs and the Holy Trinity’ which sold for £168,000 (auction record for artist) inclusive of Buyer’s Premium

- Constantinos Maleas (Greek, 1879-1928) ‘Acropolis / Acropole vue entre des pins et aloès’ which sold for £311,200 (2^nd highest price achieved at auction for artist) inclusive of Buyer’s Premium

-Nikos Hadjikyriakos-Ghika (Greek, 1906-1994) ‘Calligraphy of a town’ which sold for £264,000 (3^rd highest price achieved at auction for artist) inclusive of Buyer’s Premium

As a side note I am hesitant to refer to 2^nd and 3^rd highest auction prices for an artist as ‘world records’ as Bonhams have done and consider the practice of doing so to be dishonest.  Is the 20^th highest auction price for an artist a world record too?  Bonhams went as far as to list the fifth highest auction price for an artist as a ‘world record’ which I think is rather cheeky. Anyway, back to the action.

Bohnams have a good record with the Greek art auctions that are held in the UK. In November of 2008, Bonhams’ sale of Greek art held at their Bond St. Saleroom brought in a total of 3.8 million pounds and resulted in fourteen artists’ auction records being broken.  According to Bonhams, a large majority of the buyers were Greek.  Moving on to May 2008 and once again Bonhams made headlines with their Greek art sale when they managed to shift 3.6 million pounds worth of art with and sell a record 90% lots offered.  Bonhams also reported 17 new world record prices which, as per above, should be taken with a grain of salt.

The Greek art market is quite unique because of the history of Greek art which basically revolved around the creation of religious icons until the start of the 19^th century due to the fact that Greece was essentially shielded from the Renaissance by the ruling Ottoman empire .  “Modern” art is therefore a relatively new concept to the Greeks and represented a relatively untapped market that the three major auction houses were quick to take advantage of.  There are several reasons that the opportunity to dominate the market for Greek art became available to an organisation outside of Greece.   The main reason is that  much like the Indian art market, the Greek art market is relatively un-regulated and there is also a severe lack of infrastructure relating to authenticity, valuation and art market expertise that would be required to support the development of a free market in Greece.  An opportunity was therfore available to an international organisation that could supply what the Greek art market lacked and to satisfy the needs of those rich Greeks who have a passion for art.

Although the market for Greek art has proven to be very strong even during the recent financial crisis, investors and collectors should be extremely wary of the hype surrounding Greek art and should be extremely cautious with their purchases.  My reason for suggesting caution is that the Greek art world lacks the cultural sector infrastructure that is so important to the long term stability of an art market and the buoyancy of the prices being paid for the work of that market’s artists.  The contemporary Indian art market has suffered during the financial crisis due to the same lack of infrastructure that the Greek art market suffers from.  Greek art, especially the work of contemporary artists, has plenty of potential for investors but is also fraught with potential traps and problems that could have a major effect on the price of the work of many artists.

Although Bonham’s quip that “Interest in Greek art is more than just a myth at Bonhams 15th Greek Sale” does ring true, the market for Greek art is in it’s infancy and is at a relatively high risk of becoming a very fragile bubble that could easily be burst.  Investors and collectors should be particularly concerned about authenticity and future value until a more advanced cultural and market infrastructure is in place.

**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

For Immediate Release

Web-Based Fine and Decorative Arts Personal Shopper Service Goes Live at NicForrest.com

Sourcing Items of Fine and Decorative Art Made Easy with Launch of Innovative Global Online Personal Shopper Service for Discerning Interior Decorators

London, November 6, 2009 — NicForrest.com is the home of a new global web-based fine and decorative arts personal shopper service that provides discerning interior decorators and designers with a simple and effective solution to the difficulties associated with sourcing specific items of fine and decorative art.  The often frustrating task of locating hard-to-find interior pieces can now become an enjoyable experience, with access to the expertise and extensive global network of Nicholas Forrest — a Sydney and London based broker of fine objects, interior style consultant and world renowned art adviser/art critic — now one click away.

Nic adds: “By launching NicForrest.com I am able to offer personal one-on-one assistance to anyone, anywhere in the world who wishes to be united with those special objects that transform interior spaces into special places.  From interior designers who require a collection of fine objects to decorate a large commercial space, to discerning private clients who are searching for one or more special items to enhance a living space, NicForrest.com can cater to the needs of clients at all levels.”

As well as sourcing fine objects, Nic also offers several other services via NicForrest.com.  The range of services Nic provides includes:

-  Sourcing and purchasing specific fine objects (fine art, antiques, objects of design, objets d’art etc.) for residential and commercial clients

-  Arranging worldwide transportation and installation of objects purchased

-  Interior styling advice for clients who have a vision and a budget but do not have specific objects in mind

-  Advice on the acquisition of works of art/antiques/objets d’art for private and corporate collections as well as for investment purposes

Whether it is an antique or a piece of contemporary design that someone is searching for , NicForrest.com combines the services of a personal shopper with the knowledge and contacts of a professional broker of fine objects to provide an unrivalled service.  Nic explains:  “Because of the experience, knowledge and contacts I have acquired, and my standing in the art and antiques industry, I have the privilege of being in a position that enables me to utilise a global network of dealers, collectors, retailers and wholesalers to quickly locate the particular object/s that clients have been searching for at the best price.”

For further information, please contact:
Nic Forrest

Owner, NicForrest.com
Tel:  0787 869 7651 (UK)

Tel: +44 (0)787 869 7651 (INTL.)
Email:  nic@nicforrest.com
Site:  http://www.nicforrest.com

LinkedIn: http://www.linkedin.com/in/nicholasforrest

###

About Nic:

Nic Forrest is a Sydney/London based professional broker of fine objects, interior style consultant and art adviser.  As well as being the founder and author of artmarketblog.com, Nic has been published in many magazines and newspapers and has appeared on several radio programs (national and international) as an art market expert.  He has also been invited to be a guest lecturer at the Sotheby’s institute in Singapore for their MA Art Business program.

This year’s Zoo art fair was a rather interesting event primarily because of the new venue which consisted of several disused Victorian warehouse buildings in London’s east end that were divided into three sections (Zones A, B and C). Unfortunately (in my opinion) Zoo were kicked out of their usual venue at the Royal Academy of Arts after London gallery Haunch of Venison leased the space. Zoo weren’t entirely to blame for the circumstances that they found themselves in and as much as I would like to say that they triumphed over adversity, they didn’t. It was obvious that Zoo were attempting to make the most of the venue and give an edgy feeling to the fair by taking on what Zoo called an “adapted structure”, but it ended up feeling and looking much more like a last resort structure. Another major hurdle that Zoo had to come up against was the reduction in the number applications to exhibit from commercial galleries which they remedied with the introduction of non-commercial curated exhibits. Having a mix of commercial and non-commercial exhibits was really the only solution that Zoo could have adopted so I don’t think that they deserve kudos for coming up with this idea. The inclusion of non-commercial curated exhibits was, never the less, a solution that worked.

When I arrived at the fair I was immediately reminded of the 2008 Sydney Biennale which used a bunch of disused prison and shipyard buildings (see here: http://www.bos2008.com/app/biennale/venue/3) on a small island on Sydney harbour as one of the venues. The difference is that the Sydney Biennale used the derelict spaces to great effect and matched the art to the spaces incredibly well, which made for an amazing experience that gave the impression that the art was part of the site. Perhaps my perception of Zoo was somewhat skewed by the awesome experience I had with the Sydney Biennale but I still think I would have been disappointed with Zoo regardless of whether I had attended the Sydney Biennale or not.

One of my biggest gripes is that were virtually name tags on the walls or any other sort of signage to identify who the works were by. Whether this was an attempt to make the art and the buildings feel more like one entity I do not know, but it ended up being just plain annoying and in no way encouraged people to buy anything. Another major issue I had with the fair was the poor layout of the film section which was located in Zone B. The films on show were relatively long which the cold and lack of seating made virtually impossible to view in their entirety without getting sore legs or risking frost bite. To be honest it wasn’t the venue that made Zoo a failure, it was the way the show was put together and executed. Zoo could have presented a great fair had they utilised the space to greater effect and put a bit more thought into the presentation of the art as well as a bit more effort into making the experience more comfortable for visitors.

The one saving grace for Zoo was the small number of artists whose work was absolutely phenomenal and worth braving the cold to see. My next post will profile the artists that I believe made Zoo worth visiting.

**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

Since I wrote a post on the fantastic film ‘The Great Contemporary Art Bubble’ by art critic Ben Lewis in which Ben investigates the surprising boom in the worldwide contemporary art market, many people  have emailed me asking where they can see the film. I am pleased to be able to inform all those people and anyone else interested in seeing the film that you can now purchase a 90 minute extended version of the documentary from Ben Lewis’s website for 14.99 pounds (€17.00 or US$24.00 each) plus £2.00 postage and packing in the UK and €4 for Europe and $5 for the USA, Australia and other territories. Payment is via Paypal, though you can pay with all major credit cards too. Please note these DVDs are PAL Region 2.

To purchase a copy of the film head to Ben’s website which you will fine here:

http://www.benlewis.tv/?cat=22

I have my copy so go and get yours now !!

**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

'The Couple' by Louise Bourgeois

Over the last month or so I have attented twelve art and antique fairs in London which have left me with plenty to write about and the need for a few days rest. Although the fairs themselves were frought with issues the general mood was positive and the outlook optimistic. Dealers have reported good sales in most cases and seem to be in a very optimistic frame of mind as the market continues to pick up. The biggest fair I attended was the Frieze Art Fair which is one of the most important contemporary art events in the UK if not the world. Although one cannot help but be impressed by the glitz and glamour of the Frieze art fair it was just not an enjoyable experience for me. To start with, the marquee was really hot which made just being at the fair physically unpleasant, but the real problem with Frieze is that it is too much like a supermarket. When visiting a supermarket one tends to only take notice of the brands they are familiar with or the products that are the most visually striking due to the sheer number of different brands and products available. The same goes for Frieze where all but the works of the most recognizable artists and the most flamboyant works of art get lost in the crowd. I came away from the fair with memories of works by artists whose work is instantly recognisable and distinguishable such as Damien Hirst, Yayoi Kusama, Richard Prince, Jeff Koons, Cy Twombly, Andy Warhol, Richard Serra, Takashi Murakami etc. I also have memories of other works by emerging artists that stood out of the crowd, but am unable to remember who they were because of the number of names and images swirling round in my head. Funnily enough, it was the big, bold works by the emerging artists that are reported to have experienced the highest level of success.

On a more positive note, quality was consistently high and sales are reported to have been considerably higher than last year. However, it is important to remember that a positive spin can be put on anything and that the likelihood of this years fair being any worse than last year was very slim. As far as figures go, sales of works priced at under 100,000 pounds were the most prevalent as one would expect with a show geared towards the work of emerging artists. Sales of works in the five figure range are reported to have been particularly strong which is pretty much the same trend reported by dealers at the 2008 fair. Six figure sales were few and far between, which is to be expected with a fair geared towards emerging artists and seven figure sales were even more scarce. There were, however, at least a few big ticket sales that are worth mentioning such as:

-A Louise Bourgeois sculpture titled ‘The Couple’ which was sold by Hauser and Wirth Gallery for US$3.5 million (about 2,150,000 pounds)
-Ruscha’s ‘A Riot of Atom’ which was sold by Gagosian Gallery for US$1.5 (about 900,000 pounds)
-A David Hammons installation which was sold by Salon 94 for US$1.5m (about 900,000 pounds)
-A Neo Rauch painting from 2002 titled ‘Harmlos’ which was sold by David Zwirner US$1.0m (about 610,000 pounds)

I honestly think that the biggest difference between this year’s fair an last year’s fair is that the dealers were in a better position to cater to the current market climate and have had the time to adapt their strategies to the buying trends. Dealers reported that buyers are still being cautious and are taking their time to make decisions which is, once again, similar to reports from last years fair. The market for contemporary art is not really in that much of a better position than it was last year but dealers have had more time to adapt to the conditions and make the best of a bad situation. One can take comfort in the fact that things haven’t got worse and that there is still money out there to be spent on contemporary art. There are undoubtedly signs that the market for contemporary art is poised to make a more speedy recovery than people thought which is somwhat of a scary thought.

The Zoo Art Fair was a completely different story but you will have to wait until my next post for more info.

**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

Victoire Feux d'Artifices, Moscow by Francis Barry

One of the things that excites me more than anything else is discovering an artist who has not yet received the recognition that they deserve and having the opportunity to help that artist achieve the success that their work is worthy of receiving. Usually these artists are emerging contemporary artists who are just beginning their career as professional artists but I was recently introduced to the work of an artist who has been dead for almost 40 years – an artist who is essentially a forgotten master. The artist in question is the prodigious Sir Claude Francis Barry R.B.A, a British painter and etcher born in 1883 who produced a varied body of work that appears to be have been influenced most strongly by Fauvism and Neo-Impressionism (also known as pointillism), but also exhibited characteristics reminiscent of the work of the Vorticists (British branch of Futurism) and Art Nouveauists.

At this point I presume you may be wondering why, if Barry was such a fantastic artist, he did not experience the fame that he deserved. The answer is rather simple: he didn’t need it. You see, Barry was born into a wealthy family and did not need to become famous and command large sums for his work in order to put food on the table. Very little is known about Barry’s life but what is known is rather intriguing from the family squabbles to the tutelage he received from Sir Alfred East RA and Frank Brangwyn. Considering that what is known about Barry’s life is so compelling it is unusual that he was not more well known than he was for his high-society high jinx. I won’t provide details about his life just yet but will reveal more in future posts.

Carcassonne by Francis Barry

The auction record for a work by Barry is £81,600 IBP (US$143,616) against an estimate of £10,000 – £15,000 ($17,600 – $26,400) achieved for his epic painting ‘Victoire Feux d’Artifices, Moscow’ which was sold by Sotheby’s in October 2005. Works by Barry rarely come on to the market but when they do the success of the sale depends on whether any of the small number of people who know of Barry’s work are aware of the sale and are able to bid on the work in question. A stoush between two rival Barry officianados can raise the auction sale price of one of his works as is evident with the sale of ‘Victoire Feux d’Artifices, Moscow’ but sometimes his works appear at auction and are sold for a very small amount.

There is no doubt in my mind that Barry was a prodigious artist who, due to a number of factors, simply fell through the cracks of the art world and I am extremely excited to be able to be involved in the long overdue recognition and promotion of his work. You will be hearing lots more about Barry from me in the very near future so stay tuned. If you want further details please email me.

**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

I am really looking forward to seeing the new “Maharaja: the Splendour of India’s Royal Courts” exhibition which will be opening at the Victoria and Albert museum in London on the 10th of October. According to the V&A website “The heyday of the maharajas began in earnest after the collapse of the Mughal empire in the early 18th century. The exhibition will open with this period of chaos and adventure and will close at the end of British rule in 1947, when Indian princes acceded their territories into the modern states of India and Pakistan.”

Although it may not seem that exciting, this exhibition is a very important exhibition in my opinion because of the extent to which historic Indian works of art are undervalued. One of the reasons for this is the lack of cultural sector infrastructure in India which means that there is relatively little scholarly or curatorial attention paid to the works of the 18th and 19th centuries. In particular, the work of 18th century Indian artists is particularly impressive and is very highly valued because of the significant events that happened at this time that were important to the history of India. With so many wealthy people in India who are becoming more interested in fine art and cultural objects, I believe that it is inevitable that the value of classical works of art and other objects that have cultural and historical significant will increase in value very shortly.

Although a number of Indian billionaires have had their wealth decreased by the financial crisis (until last year India had the highest number of billionaires in Asia), there are still 24 Billionaires in India according to Forbes magazine (March 2009), which gives India the 6th highest number of Billionaires – only 4 billionaires behind China and two spots on the list. India was ahead of China in the 2008 rankings when they had 54 billionaires but is now behind them due to the financial crisis but the outlook for Indian’s economy is very good and is even tipped to overtake the Chinese economy.

In relation to the art market, I think that a comparison between China and India is very relevant. Both countries have a rich cultural history, and both countries are experiencing an increase in new wealth which has given more people the means to indulge their passion for fine art and cultural objects. The art market boom showed that a major increase in the number of wealthy people in a certain country usually results in what is essentially a buy back of that countries historic and cultural artefacts from abroad. This happened with Russia, Japan, China and is sure to happen with India.

Althought the market for contemporary Indian art has been hit particularly hard by the financial crisis combined with the lack of patronanage as well as the lack of curatorial and scholarly attention given to India’s contemporary artists, the work of the well known modern Indian masters has faired remarkably well. There is obviously still a considerable amount of wealth in India that is available to be spent but as with other art markets around the world, buyers are being much more discerning and careful with their money in light of recent events. Works of art that are seen to have cultural and historic value have the characteristics (stability and justifiable value) that buyers are looking for at the moment.

My big tip for 2010 is that Indian classical art will increase in value considerably so my advice is to take advantage of the very low prices that such works are being offered for at the moment.

**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

In what I understand is an unprecedented event, Australian auction house Bonhams and Goodman Auctioneers will ditch the Bonhams brand and relaunch as the Australian arm of Sotheby’s. According to the ACCC website, “First East Auction Holdings trading as Bonhams & Goodman proposes to acquire auction business and associated assets of Sotheby’s Australia and also obtain a licence to use the Sotheby’s trademark in Australia and New Zealand for a period of 10 years.”

Sotheby’s International has operated a branch in Australia since 1982 but will now hand over the reins to Tim Goodman, head of Bonhams and Goodman, along with a license agreement which gives Goodman the right to operate under the Sotheby’s name. Bonhams, on the other hand, will now manage their own operations in Australia instead licensing their name to another company. According to Bonhams: “Bonhams 1793 – a shareholder in the Australian company First East Auction Holdings Limited (FEAHL), which has traded for six years as Bonhams & Goodman – announced today that Bonhams 1793 will launch its own independent operation in Australia, looking to expand its presence in this important market as part of Bonhams operations in 25 countries around the world.”

At the beginning of the year there were rumours spreading that Sotheby’s would follow Christie’s and abandon Australia all together so it is a relief for the Australian art market that Sotheby’s are not jumping ship. Sotheby’s licenses their name to real estate agents through the Sotheby’s Realty brand which was purchased by Cedant Corporation in 2004 but, from what I can gather, has not licensed their name to an auction house in this way before. According to my sources, Sotheby’s is very reluctant to lend their name to anyone so is obviously very trusting of Tim Goodman and seems keen to maintain a presence in Australia.

On a less positive note Artemis Auctions, the Australia art auction house aimed at the middle market which was started at the beginning of this year, has been re-absorbed by the parent companies after poor results. Mossgreen Auctions and Deutscher and Hackett Auctions were responsible for the ambitious venture that supposed to be filling what was thought to be a gap in the lower to middle market. When artemis auctions was started at the beginning of the year I  with the statement made by the owner of the auction house, Paul Sumner, who said that the lower and middle market was under serviced. In fact, my impression was that this sector of the market was in fact over serviced; an opinion that I made clear on my Australian Art Market Blog. And I was right.  It is a shame that the business was not a success but such is life.

**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.

The 20/21 British Art Fair held at the Royal College of Art building was a great event that attracted plenty of admirers (and buyers) with a wide variety of fantastic art. Sales at the fair were reported to be quite good and the atmosphere was very positive. Most of what was on offer was the work of well known British modern artists such as Ben Nicholson, Graham Sutherland, L.S.Lowry , Mary Feddon and Ivon Hitchens etc. , which would make sense considering that the market for contemporary art (21st century) has suffered so much. Perhaps the show should have been called the 20/20 British Art Fair instead of the 20/21 British Art Fair.

The Modern British market did not experience the same level of price inflation that other movements/markets experienced during the boom, and consequently did not suffer as much when the art market downturn took place. As a result, demand for top quality works by Modern British artists that are fresh to the market has remained high even though the number of works being sold at auction has dropped considerably. A major increase in demand for works by Modern British artists between 2006 and 2008 did produce a large spike in the number of works sold, but the market has since levelled out and is on a much less rapid and vertical trajectory.

Mary Fedden RA (b. 1915) ‘Bowl of Fruit’, 2008, oil on canvas, 60 x 50 cmMary Fedden RA (b. 1915) ‘Bowl of Fruit’, 2008, oil on canvas, 60 x 50 cm

The lack of an international profile combined with a primarily British clientele has somewhat limited the extent to which the Modern British market can grow. By no means are the British Modern artists any less talented or worthy of being purchased than their American or European counterparts. In fact, I would suggest that the British artists are not given anywhere near the recognition and praise that they deserve. Part of the problem is that the Modern British market is driven by discerning British collectors who are quite discreet and are generally not willing to pay any more for a work of art than they believe it is worth. A lot more visibility from collectors and buyers along with a considerably less reserved attitude to the contributions of their great Modern artists would go a long way to promoting the work of Modern British artists to a wider audience. The same enthusiasm for Modern British artists that was shown for the work of the YBA’s, for instance, is what is needed.

What has kept the market afloat is the fact that there is a high demand for top quality works which collectors are more willing to fight for and pay comparatively more for. More and more people are beginning to recognise the British Modern market as an undervalued and underappreciated market that hides relatively undiscovered talent. Once the art market recovers from the correction it will be interesting to see what happens.

**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.

Chinese famille rose bowl - Sold for $115,000 against a $300 estimate at Brunk Auctions

I don’t think that many people, except maybe the Chinese, realise how much wealth exists in China as well as other areas of Asia.  The last few weeks have produced many examples of the unjustifiably massive amounts of money that are being paid for objects of Chinese decorative art by wealthy Chinese collectors.  Take, for instance, the AU$32,000 paid for a Chinese carved wooden panel by a Chinese collector at an Australian auction which had an original estimate of AU$600.  How about the US$58,400 achieved at an iGavel.com online auction for a large modern Chinese carved celadon jade phoenix form vase against an estimate of only US$1200 -$1800 – a huge amount for what was identified by iGavel as a modern piece with no real historical or provenencial value.

Christie’s Asian Art Week produced even more astonishing results that really do make one question the motivation of the buyers, as well as their sanity.  How much disposable wealth would one have to have to pay US$1,426,500 for a Chinese Zitan stand and cover that was originally estimated to sell for between US$20,000 and $30,000.  Yes, it is a very rare object, but paying almost one and a half million dollars for it when it was valued at around one sixtieth of that amount seems ridiculous.  Almost as crazy was the US$362,000 paid for a Chinese bronze ritual food vessel that also had a US$20,000-$30,000 estimate.

Over at North Carolina USA based Brunk Auctions (http://www.brunkauctions.com/), two Chinese items fetched well over (actually massively over!!) their estimate.  The first, a small Chinese porcelain bowl (see image), went for an amazing US$115,000 against an estimate of US$300, and a Chinese vase soared to US$105,800 against a US$4000 estimate.

A VERY RARE IMPERIALLY INSCRIBED ZITAN STAND AND COVER sold by Christies for $1,426,500 against an estimate of $20,000 - 30,000

A sale price for an item at auction that massively exceeds the estimate is usually put down to an incorrect appraisal by the auction house - as long as it is an isolated incident.  The sheer number of Chinese items of decorative art that are selling for prices well above their appraised value could not be all the result of incorrect valuation or assessment.  So what is driving the market for these objects to such dizzying heights?.  I suspect that pride and status have a significant role to play.  No disrespect to Asian men, but they do tend to be very proud and do not like to be beaten.  There is also the bragging rights that paying ridiculous amounts of money for an object can bring. Yes, some of the objects being purchased are rare but not rare enough to justify the prices being paid.   I can’t help but think back to the art market boom of the late 80′s, early 90′s, when wealthy Japanese business men drove the market for Impressionist works of art into the stratosphere.   Quality was not of great concern to these Japanese buyers who were more interested in art as a status symbol than anything else.  I suspect that we are seeing a similar situation at the moment with wealthy Chinese buyers and Chinese artefacts.

China is undoubtedly a source of great wealth and appears to not have been as severely affected by the global financial crisis as the USA or England. There appears to be a large number of wealthy Chinese buyers who have enough disposable income to make completely unjustifiable and quite frankly absurd purchases. One cannot help but predict that China will continue to become an even strong force on the global market for art and fine objects in the near future. Be wary though, such wealth and careless spending is a recipe for super inflated prices.

**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.

Is Art World Magazine the latest casualty of the financial crisis after just over two years on the racks?. According to the rumour mill it is. An email circulated by the magazine’s editorial team did not, however, provide a specific reason for the disappearance of the fine art world equivalent of Vogue magazine. According to the email, “Due to personal family reasons Steve Bush – the publisher and owner of B5 Media – is stepping back from the business and the next issue of Art World is on indefinite hold while we explore future options.” Part of the reason for the magazine’s closure may be the demise of his marriage but it would quite plausible that the financial crisis is at least partly to blame. With two separate editions, one published in the UK and the other in Australia, the closure of the magazine will have an impact on many people who will likely be out a job.

Magazines such as Art World Magazine are luxuries that are not justifiable at a time when so many people are having to tighten their belts. I would be surprised if other art world magazines aren’t forced to close as those that are still in business continue to experience a fall in ad revenue and a fall in readership. Many of the most popular art magazines have already begun slimming down. To be honest, I am not particularly a big fan of Art World Magazine, but I am a fan of Australian Aboriginal Art Magazine (http://www.aboriginalartmagazine.com/) ,which is published by the same company. I will be sad to see the only widely available magazine dedicated to Aboriginal art go because of the positive impact it had on the market for Aboriginal art.

It will be interesting to see what happens over the next six months to the other art world publications. There are more than enough different publications to go around so there are definitely a few that are dispensable. Your thoughts??

**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.