Art Market

Workshop

Álvaro Fominayatallerdemercadodelarte@hotmail.com

Main Features

• Why?????• General Plan• LOOSELY REGULATED &

OPAQUE• “Market value says little about art” Robert

Storr

9.2 Billion USD

Auction Annual Turnover

Art Market Players

• Auction Houses • Art Dealers• Art Galleries• Collectors• Museums (AAM definition)• Artists

Primary Versus Secondary Markets

• Primary: First time the work of art comes to the market

• Secondary: Succesive transmissions

History Of The Art Market Reitlinger

• XVI century sees increasing interest on the value of painting. Painting on canvas and panel favours purchase and mobility.

• Landed gentry. Not much circulating cash.• Rivalry London-Paris 1760• 1771. Reynolds discourse against the School

of Venice (Tiziano, Veronese,…). XVII century painting increases in value.

• Napoleonic Wars

• English Art Dealers in Madrid (Wallis,…). Murillo, Velázquez, Tiziano, El Greco,…

History Of The Art Market Reitlinger

Murillo “Inmaculada Concepción”

Louvre Purchased in

1852 for24.600 Sterling

William Goetzmann

The art market's "beta"—its synchronised movement with the stock market—is higher than one. This means that in boom times art moves up more, and in crashes art drops lower. But the effect is lagged. "Returns in art are something between stocks and bonds over the long term, but art is a risky and volatile market, much riskier than the stock market in my opinion."

The Art Market from the 90s

• Art Market crashes June 1990

• Art Market recovery 1997

• Fresh Art Market crisis 2001

• 2002-08 Unprecedented growth

Selling Art Over The Internet

• Eyestorm

• Sotheby’s Amazon.com eBay

• 2.000 affiliated dealers & 74 million USD loss

Auction Houses: 90s Survival Strategies

• Price collusion

• Cornering the collector

• Guaranteed results 1997

Auctions: 45 %

AuctionsGalleries

World Distribution

Auction Houses

• Sotheby’s

• Christie’s

• Phillips, de Pury & Co.

Art Martket Hubs Sales Categories

New York London

Sales Categories:• Impressionist and Modern• Postwar• Contemporary Art• Surrealism, LatinAmerican, German, Italian,

Chinese

CalendarNovember & May

February & June

LONDON

NEW YORK

BIDDING

• Pre-Auction Viewing

• Register with client card or ID before bidding• Assignment of a “Paddle”• Types of Bids• Speed 50-120 lots per hour• Increasing bids of approx. 10% of previous

bid

Catalogue Symbols

• † Plus IVA 17,5% Uk

• ‡ Temporary Import

• Auction House Owns The Work Of Art

Glossary• Hammer Price

• Buyer’s Premium (19,5%+10%)

• Bought in

• Withdrawn

• Guaranteed lot OO• Estimate

• Reserve

• Absentee Bid, Telephone Bid

Purchasing at Auction

Successful Bidder

Paying+Collecting the goods

Unpaid purchases. Bidding is Binding (eg: Michael Jackson)

Warranty“As IS”

Buyers Christie’s Nueva York May 02

Impressionist Art

AmericaEuropeAsia

Americans: 58% Europeans: 33% Asians: 9%

Private Sales By Auction Houses

• Post action sales

• Private treaty sales

• Promoting Artists (Cattelan, Sherman, Damien Hirst...)

• Compete with dealers

• Purchase Art Galleries(Deitch, Spink) = Art Fairs Ban

Maurizio Cattelan

Jenny Saville

Jenny Saville

Art DealersAssociations

• CINOA (Confederation des Negociants en

Oeuvres d’Art) 1935

• ADAA (AMERICAN ASOCIATION OF ART DEALERS)

• SLAD (THE SOCIETY OF LONDON ART DEALERS)

CINOA

Good Practices Code

Mediation Among Members

CLIENTS (SLAD)

• 12% Museums / Collections

• 67% Private Buyers

• 3% Sales Via Auctions

• 18% Othe Dealers / Trade

Ownership of Inventory

48% Owner by the dealer outright

16% Owned in partnership by the

dealer and others

37% On consignment by vendor

Artists V. Gallerists

Consignment Contract

Discounts

Net Price For The Artist

Cost of Production

Purchase from Dealer

Horror Stories

Art Fairs

Collectors:

• CIFO

• Saatchi

• Elipse

• Sigg

• Rubbell

Saatchi – Damien Hirst – Jay Jopling – Science Ltd.

Booth Clibborn - Gagosian

Opium

Damien Hirst

Murderme

Science Ltd

Other Criteria

Pharmacy Hotell Record Label

Takashi Murakami:• Kaikai Kiki

• Geisai Art Fair

• Louis Vuitton

• Film

• New York/Tokyo

Photography Sales MOMA

April 2001Sotheby’s 4 million USD

October 2002 Sotheby’s 2’7 million USD

Eugene Atget 20 million USD

Eugene Atget

Museum As Producer

• New Museum New York:

• Production of Limited Editions

• Participation in Art Fairs

Tom Friedman

INFORMATION

• WWW.THEARTNEWSPAPER.COM

• WWW.ARTNET.COM

• WWW.ARTPRICE.COM

• WWW.SOTHEBYS.COM

• WWW.CHRISTIES.COM

• ARTNEWS, ART&AUCTION

• Art Sales Index

VALUATION OF WORKS OF ART

First Contact:– Description Sheet + Transparency– Catalogue Entry + Reproduction

Contents:– Basic Relevant Info: Author, title, year,

mesueraments, media (and edition number)– Provenance– Bibliography– Exhibition History

Valuation Process

• Analysis of bibliography (including catalogues with illustration)

• Analysis of condition (further documents)• Check legal status (provenance)• Check previous sales either private

treaty or auction (databases + first hand knowledge)

• Final Estimate/Price taking into account similar works sold on the secondary market or primary market

Valuation Process

Thomas Struth “Chicago Art Institute I”

Thomas Struth “Art Institute of Chicago I” 1990 ed.7/10

Estimate: 150-220.000 USD

Premium:145.289 USD

Buyer: USA Art DealerChristie’s Contemporary Art 6 Feb 2002

London Evening Sale

Thomas Struth Art Index

Thomas Struth Lots & Turnover

Art Market

Workshop

Álvaro Fominayatallerdemercadodelarte@hotmail.com

Bibliography, exhibitions

• Catalogue Raisonné Entry (Zervos, de la Faille, Wildestein, etc)

• Illustrations (colour, b/w, full page)

• Museum Exhibitions

• RELEVANCE WITHIN THE ARTIST’S BODY OF WORK

Condition

• Visual Inspection. Paint loss, stains, , (Dealer, Curator, Registrar,...)

• Inspection by a Conservator. Condition Report

Auction Houses

• Condition Report on request

• Preview-Public viewing

Provenance

• Good provenance adds value • Check suspicious transmitions• Safeguard against legal claims:• The Art Loss Register (1991)-IFAR

(International Foundation for Art Research) Certificate. Due diligence

Compare With Other Results

• Insider information

• Secondary Art Market Databases:

• Artnet, ArtPrice, ArtSalesIndex

• Primary Market (Contemporary Art)

Claude Monet “Praire de Limetz”

Claude Monet “ Prairie de Limetz” 1888

oil on canvas 73x92 cm.

Estimate:

3-4,4 millones de dólares

Buyers Premium:

4,2 millones de dólares

Buyer: Richard Green

Christie’s Arte Impressionist & Modern, 4 Februrary 2002, London

Gerhard Richter

Gerhard Richter “A B, Brick Tower” oil on canvas 200 x

140 cm. 1987

Estimate: 500-700.000 USD

Buyer’s Premium: 534.000 USDUnknown buyer Christie’s Postwar, 13

November 2001, New YorkNOW: MY ESTIMATE 3-4 MILLION USD

100 EUR invested in 1997 have an average value of 334 EUR in  July 2008

Price Index Gerhard Richter• in 1997 in a work

Indicadores econométricos Gerhard Richter

Price Index Painting Gerhard Richter

100 EUR invested in 1997 in a work of  Gerhard RICHTER (1932) have an average value of 631 EUR in  November 2007

ANDY WARHOL

WARHOL “Little Electric Chair” acrylic and silkscreen on canvas 56 x 71,2 cm 1964

• Estimate: 800,000-1,200,000 Sterling Pounds

• Buyer’s Premium: 1,106,650 Sterling

• Sotheby’s, 26 June 2002, London

ANDY WARHOL

• ANDY WARHOL• Turnover & Artprice Index