Move over, healthcare. The news of the day is the installation in the White House of 45 artworks that have been loaned to the Obama family by Washington museums. Ed Ruscha’s “I think I’ll…” painting will now refreshingly grace the private residence. One can imagine the staff meeting where they green-lighted the loan request for a work that openly addresses the theme of indecision—an unusual message for any politician, and quite a leap from the resolute cowboy sculptures that adorned the White House under its previous tenants. Other works to be installed offer a kind of visual Rorschach test of a culturally hyper-sensitive administration’s leanings and talk points. It’s a tasteful and astute mix, including abstract and figurative works, Caucasian and African American artists, living masters and dead ones. The aesthetic sweet spot of the Obama collection is somewhere in the neighborhood of Richard Diebenkorn. What does this all mean? And what should be hanging in the White House at this juncture?
So how does it feel where you are? Arriving back in Beijing after 3 months traveling I passed through the requisite temperature checks at the airport (swine flu mania abounds); and so I thought I would do the same for Art markets around the world. I touched base with gallerists, collectors and intermediaries in the US, UK, France and Switzerland. Without wishing to over generalise: the Americans were still mostly doom and gloom; while the response from Europeans was more varied, with some friends reporting good works finding new homes. This is rather at odds with the general Economic environment. I heard more about “green shoots” while traveling in the US than in Europe. But maybe the American collectors had had more money in the game to lose?
So it has been interesting to arrive back in China and talk with friends in Beijing and Shanghai. Unsurprisingly, things are at least a little more positive here. Whilst there has been a general pull back from foreign buyers, young wealthy mainland Chinese buyers seem to be taking up some of the slack. The locals might prefer “decorative” to “difficult” and positive themes rather than negative or political, but they are starting to buy some of the same “big brand” names that the foreigners have made so popular over the last 8 years. And brand names have always been important in China, for all products.
But the foreign buyers haven’t disappeared completely; they are just taking a little more time and doing a little more due diligence. Continue reading “Temperature check in Beijing”
Without exception, every person who heard about my recent trip to Dubai asked if I saw a parking lot at the airport filled with abandoned cars left behind by indebted foreign workers. I didn’t. But that powerful image seems to have been indelibly etched into the minds of newspaper-reading Westerners.
I did see many stalled skyscrapers and more than a few unhappy expatriates. Yet for the arts, the economic slowdown, here as elsewhere, presents a more mixed picture. In Dubai, it’s about switching from golden dreams to silver linings. I had an interesting conversation with an arts administrator who is matching up arts groups with empty real estate—just the kind of win-win deals we saw in New York City during our own years of blight. It may be that by suspending its mega-projects, Dubai will leave breathing room for scrappy local arts initiatives to take root and evolve haphazardly and organically. Culture sometimes works in such unpredictable ways.
Elsewhere, there was scant evidence of global financial Armageddon. The Art Dubai fair was, by all accounts, the best so far. It has matured into an indispensable regional fair, with dealers from neighboring countries reporting decent sales. The Global Art Forum conference (where I was a moderator) drew an international A-list crowd and played to a packed house in its lovely tent by the sea. The gigantic luxury hotel complex where these events took place was completely sold out. The Sharjah Biennial, timed to coincide this year with Art Dubai, was widely praised by those who made the short trek to the smaller Emirate east of Dubai. Going in the other direction, Abu Dhabi, sitting on vast oil reserves, is pressing on with huge cultural and educational projects. And in Doha, Qatar’s thriving capital, we were shown around I.M. Pei’s magnificent Museum of Islamic Arts, just the first of several treasure troves occasioned by the epic collecting spree of the local ruling family.
In the Gulf Region, the global crisis has stalled some plans but not others. So the question arises, two years into this downturn: Will all emerging markets and scenes suffer in equal measure? Which regions will experience the greatest setbacks, and which ones will get through this difficult period unscathed?
The abundance of unusually available VIP cards that started to circulate a few weeks before the Armory week foreshadowed what was to come: a slow fair with dealers putting the best face, few red dots in sight —now with the pretext that they are not anymore in vogue—and a rather enjoyable Armory vernissage on Wednesday night where art could be seen at a more leisurely pace. Only that the art on view turned was rather safe and unchallenging, in the best cases tending to small works by major artists — a good compromise between maintaining quality and affordability. Dealers appear to hang in there, many more accessible and nicer to customers than usual, trying not to compromise their prices, although the word out there was that all price tags were negotiable.
I thought about the early years of decline of the Thomas Blackman Art Chicago fair in the late 90s, where major galleries started pulling out, the over-commercial quality bar started to descend, and modernist works and even furniture started to appear. Only that, as we well know, what we are seeing this week in New York is the symptom of something much larger. It has hit the art world so hard that we are still trying to come to grasps with it while remaining in autopilot. This past December in Miami there was still a sense of denial and a series of jovial comments of the kind of “well, the market was so unreal and out of control, now we have come back to reality”. But now that the Dow went under 7,000 and reality is much worse than previously thought, it is much harder to remain upbeat. Perhaps sales may turn out to be better than expected, but right now the current system of multiple fairs feels incongruous. The crowds may be still there, but without sales, an art fair booth becomes little more than an expensive, overblown ad. Continue reading “Wishful remedies”
The saga of the Chinese bronzes hammered down at auction during the Yves St Laurent sale and then not paid for, as a political gesture, raises many thorny questions.
Briefly, (and for those of you who were on Mars this week), the two Qianlong bronze heads, of a rat and a rabbit, were looted from the Yuanming Yuan Summer Palace in Beijing by Franco-British forces in 1860 during the Opium Wars. They were two of 12 heads which adorned a Zodiac fountain, five of which have never resurfaced.
The heads were offered for sale by Pierre Bergé, the late Yves St Laurent’s former lover and business partner, in Christie’s block-busting sale of their collection last week in Paris. The Chinese have been calling for the return of the heads, and a French association (AFACT) with links to China attempted to block the sale by bringing an emergency injunction in a French court shortly before the sale started. The demand was thrown out in no uncertain terms by the French “procureur” (prosecutor) for a number of reasons, some technical and others more fundamental. I was in court and subsequently at the sale when the bronzes were sold.
China was not able, legally, to claim the bronzes under international law, and does not want simply to buy them back – its position being that they were looted and should be returned. At no point did AFACT claim that Bergé was not the legal owner of the heads, and prior to the sale Bergé stated that he would be prepared to return the heads “when China respects human rights and frees Tibet”. This did nothing to improve Sino-French relations, which hit a new low after French President Nicolas Sarkozy met with the Dalai Lama last December in Poland.
At the sale, the two heads were “sold” to a bidder on the telephone, underbid by two other telephones for the first, and one for the second. The price was £20.4m each, including premium, and contrary to usual practice no paddle number was announced – “the buyer wanted absolute discretion,” auctioneer François de RicqlÃ¨s said afterwards.
On Monday this week a Chinese collector and auction house general manager, Cai Mingchao, announced that he was the buyer and that he was refusing to pay, as a patriotic gesture.
So here are some of the questions this saga raises. Continue reading “The rat, the rabbit and Yves St Laurent”
Amongst all the excitement about new movements (see Ossian’s piece below) I find it hard to get my head out of the markets. To wit, there is a nice Konigsberg feature in the NYT Online this weekend about the Mugrabis and their buying styles. The title is slightly misleading (Is Anybody Buying Art These Days?) as it is entirely about the Mugrabis and mostly about their buying history, but it is an interesting read about one of the more focused market-makers of the last 20 years. Features of their approach include the somewhat indiscriminate purchasing of their favorite artists (supporting the notion that name matters more than quality, at least in a rising market), and their “addiction” to collecting. “We are addicts. That is what addicts do,” Alberto Mugrabi is quoted as saying. Many collectors would recognise that sentiment.
The addiction of art collectors got me thinking about the broader context of contemporary art-market values. At various points in the article, there are references to buying when cash was in short supply and to extending a collection even when the collectors were nervous about the market. Even quite recently, works were sold to free up cash for a possible market-downturn buying. That could be sensible triage, or an indication of how stretched the Mugrabis might be. Which raises a question about how stretched or indebted collectors are overall.
The current global economic woes are debt based. They have to do with the difficulty of companies or individuals who rely upon borrowing to conduct their business or run their lives. Operating on debt is not necessarily a bad thing. It can simply reflect the cyclicality of cash flows (people or companies needing to spend before they can sell or earn, and therefore needing to borrow to fund that spend). However, when lending dries up because of losses in another part of the debt market (high-risk mortgages in the current case), then companies or individuals who rely upon debt to conduct their operations run out of fuel. The only way to then raise cash is to sell existing stock, if they have any to sell. But when there is less cash to go around, sellers start to outnumber buyers, and prices plunge.
So here is the question: How stretched are the top collectors of the last five years? In any part of their lives? Continue reading “of Buyers and Sellers…”
Unusually cold weather for Miami lent the opening night festivities a somewhat spooky and sinister air. “I though it was a celebrity, but then I realized it was just some people around the space heater,” said one reveler at the Art Basel opening party, at the Delano Hotel, as a group of half naked Brazilian dancers braved the chilly December winds. Then again, it could have been Antonio Banderas.
Yet despite the cold, the crowd pressed on, like a group of tourists who had booked a late season cruise and were determined to make the most of the amenities on board.
And fancy amenities were everywhere in evidence–gifts from a recent, happier past, when ambitious plans for this week were being hatched. Netjets invited people to celebrate Alex Katz at the Raleigh hotel, posting a giant Hollywood-style sign in the sand in the hotel’s garden. Not to be outdone by the Art Basel event down the street, the dancers at this party added juggled burning torches. Mini cupcakes were emblazoned with tiny marzipan Netjets logos–a sweet touch.
Earlier in the day, in the Design District, preparations were going on for the rollout of Design Miami. Under a tent that resembled a giant lace curtain, it was all business as usual. Takashi Murakami’s operation opened up a store to sell a new line of Murakami household objets, including three giant balls, the largest almost eight feet in diamater, festooned with technicolor flowers constructed out of soft and fluffy teddy bear fur. “Is it furniture or is it art?” I inquired. “It can be anything,” the friendly Japanese PR lady obliged.
The rationale behind the question works something like this: Given the way the art world’s schedule runs, one assumes that most galleries paid for their art fair real estate many months ago. And given that many galleries have begun to rely upon their fair sales to remain profitable, if not solvent, in a down turn, the art fairs begin to look like a bigger and bigger gamble, akin to doubling down on an otherwise iffy hand. With the US economy in tatters, and knowing that the full scope of the financial crisis has yet to come into focus (not to mention the dismal performance of the fall’s contemporary art auctions), can there be any doubt that real buyers will be few and far between, and that only those galleries with (enough) cash already in the bank will still be around this time next year?
I do not relish what I believe to be the answers to these questions. The sought after purification of the art world’s soul will be seen–if LA MOCA’s potential collapse has not shown it already–to affect the avant-garde and the opportunists alike. So I ask, where is the silver lining? What should an optimist for the future of the art world be looking for? What might we find in Miami that we did not expect or could not have foreseen?
Sarah Thornton’s book Seven Days in the Art World, which documents the frenzied peak of the recent art boom, arrives next week in American bookstores, just as that boom appears to be sputtering out. Some would call this bad timing. In fact, it’s a stroke of good luck. It puts Ms. Thornton, a Canadian-born, London-based sociologist-turned-journalist, in the enviable position of having captured an epic chapter in art-world history in its entirety. It’s all here, a message in a bottle to be consumed now, to reflect on what just happened, or later, when the action heats up all over again, as something of a cautionary tale. Each chapter examines a facet of the art world – auctions, dealers, art fairs, and so on – in a fluid, breezy style that masks some serious heavy lifting. The intrepid author has spoken to “everybody” in the art world. No detail escapes her attention, from the desk arrangements of her interviewees to their designer footwear. Underneath the glossy surface, however, lurks a sociologist’s concern for institutional narratives as well as the ethnographer’s conviction that entire social structures can be apprehended in seemingly frivolous patterns of speech or dress. And clearly, Sarah (a friend of artworldsalon) was having fun. We caught up with her on the eve of her US book tour to ask her some questions about the book:
ARTWORLDSALON: You are a sociologist turned writer. What was your biggest discovery about the art world?
SARAH THORNTON: I never had a Eureka moment. Instead, I experienced unfolding revelations. I think that’s how the book reads, too. One reason the art world fascinates me is because it is so full of conflict. It’s at once idealistic and materialistic, exclusive and open, petty and lofty. Moreover, the art world is so full of warring factions that writing this book has been like walking through a minefield.
Your book appears in the US just as global markets, and it seems the art market along with them, are entering a period of turmoil. How does it change the book’s message?
I see the book as having a handful of themes. It is a social history of the recent past – a remarkable period in which an unprecedented economic boom infiltrated every corner of the art world, even the consciousness of art students sitting in a left-wing conceptual art think-tank in the middle of the desert. It helps to have documented the structures and dynamics of a bull art market, because we forget them so quickly. Continue reading “Message in a bottle”
Bloomberg today reported the dramatic drop in prices achieved at all the major auction houses this weekend.
Sales by Sotheby’s, Christie’s International and Phillips de Pury & Co made a combined 59 million pounds ($102 million), against minimum estimates of 106.2 million pounds, according to Bloomberg calculations. They follow a five-day auction by Sotheby’s in Hong Kong this month that raised HK$1.1 billion ($141.7 million), also about half the presale estimate, as buyers shunned some top lots for being too expensive.
This is of course to be expected as much of the collector market focuses on wealth preservation rather than spending. And galleries in New York have noticed a softening for some time. Interestingly, though, one normally expects an art market correction 6 to 9 months after stock market crashes. The question now is whether this is the start of a rout in the contemporary art market or merely a short term, financial market correlated, “correction.”
It also, by the way, raises a question about the other major art story of last week about recent moves by two former senior US museum directors to the private sector. Robert Fitzpatrick moved from the Museum of Contemporary Art Chicago to Christie’s Haunch of Venison, and David Ross moved on from his days at the Whitney and the Museum of Modern Art in San Francisco to be a partner at Albion. Whilst I fully understand the attractions of better salaries and less stifling boards, I wonder if their timing was all it could be?
Not everyone is worried though. I have spoken to two collectors this weekend who said, in effect, “finally a correction: maybe prices will come down to a more reasonable level and we can start buying again.”
So what do you think: Short term correction or start of a rout? A good thing or a bad thing?
The art world’s love affair with Russian money continues. After Roman Abramovich snapped up works by Lucian Freud and Francis Bacon, he then shipped half of London’s arterati to the opening of his girlfriend Dasha Zhukova’s CCC Garage in Moscow. Now auction house Phillips de Pury & Co have been bought by Russian retail giant, the Mercury Group, who also hosted Gagosian’s first foray into the lucrative emerging market with a 2007 showcase at their Luxury Village mall. Although Simon de Pury will remain chairman and no doubt auctioneer, the obvious next step will be to try and set up shop in Russia and shore up some of the lucrative business opportunities there.
This seems to be part of a concerted masterplan to muscle in on traditional Sothebys and Christie’s territories, not least back in London where Phillips de Pury have done a sponsorship deal with the new Saatchi Gallery to allow free entrance for the public when it opens this week. Not only does the auction house get a dedicated gallery in the Saatchi Gallery, but there’s also a tacit agreement that the collector will sell through Phillips in the future (although how the relationship will weather this news remains to be seen). What next for the great Russian takeover? White Cubeski, Tate Petersburg or MoscoMA?
The topography of Wall Street and the financial system was redrawn over the past weekend. So what’s next? And specifically, what’s next for the art market? In recent months, heightened anxiety about the credit crisis and the meltdown in global finance did not translate into a flight from art purchases. Quite the opposite. Will the current jitters cause collectors and investors to look to art as a safe haven, or will they put the breaks on a long boom that has persisted, with a brief interruption in the early 1990s, for almost a quarter century? What does it mean for nonprofit institutions which rely on donations, and for art sales that depend on loans, guarantees, and credit? Who stands to lose or gain from the next round of transformations? And on the eve of a historic single-artist sale, are we going to witness a turning point in the psychology of the art world and the art business? I invite our panel to submit educated guesses.
Damien Hirst’s decision to sell 223 new pieces direct to auction at Sotheby’s on 15 and 16 September represents the breaking of an unwritten rule: thou shalt not defile your dealer. While threatening the very gallery system that helped to make him a household name by selling his work in the first place (and supposedly nurturing and protecting his interests too), Hirst’s solo venture simultaneously slopes the playing field firmly in favour of the artist. He’s not only temporarily freed himself from his artist-dealer honour code, but now attempting to exercise some influence, if not exactly control, over his own market.
It’s recently become clear that Hirst’s 100-strong production line of artisans are producing more than his London gallery can handle, which in turn suggests that he needs this new outlet (if not going so far as to prove that supply has outstripped demand just yet). But could this firesale of familiar-looking works not perhaps herald a brave new world for artists and turn out to be a good thing for the market, allowing some transparency and public visibility into how artist’s reputations are made, for example? Or will such sales be more like grisly art market entertainment, providing on-the-spot popularity contests and some gallows-style bating if the sales should flop disastrously?
There are even suggestions that Murakami will be the next to follow suit, signaling an even deeper shift of power from galleries to auction houses, which may then open the floodgates to similarly commercial-minded artists the world over (Chinese artists are already used to this practice I believe). Hirst has never played by the rules, famously flouting the usual 50/50 split with his galleries, but does this spell the end of the art market as we know it? He divides opinion like no one else, so let’s have a vote. He’s either Damien 666 – the devil in disguise – or Damien 999 (dial 911 in the US) – the art world’s very own emergency services, coming to save the day. Which way do you see it?
Welcome back, dear reader. Over the past few weeks the site has been going through some under-the-hood changes. We return with some light summer fare–the first in our new series of cartoons by artist, author, occasional AWS contributor, and astute art-world observer Pablo Helguera, who also happens to be cartoonist. His latest cartoons about the quirky life of the art world–Pablo calls them Artoons–will be a regular exclusive feature of ArtworldSalon. Enjoy.
A side benefit of the boom has been a stream of new books on the business of art. Given the lack of independently verifiable data, especially about the gallery trade, these books usually promise more than they can deliver. Don Thompson’s The $12 Million Stuffed Shark: The Curious Economics of Art and Auction Houses (until recently available only in the U.K.) is no exception. But it qualifies as recommended reading for anyone looking for a quick overview of how the art world works.
Thompson, an economist and branding expert, undertook a yearlong “journey of discovery” for this entertaining study of the “economics and psychology of art, dealers, and auctions.” By his description, the book “explores money, lust and self aggrandizement of possession, all important elements on the world of contemporary art.” He admits “much of the anecdotal material and some of the numbers in the book are single-source stories and facts,” which are often “embellished in the retelling” and “accepted as fact because they are repeated as fact.” The candor is refreshing. And to be sure, Thompson has a keen eye for the telling statistic.
With these provisos out of the way, and no endorsement of the accuracy of what follows, here is a glossary of facts and figures from the book (all offered by the author without the benefit of direct references or footnotes):
â€¢ “Eight of ten works purchased directly from an artist and half the works purchased at auction will never again resell at their purchase price.” Continue reading “Summer reading: The $12 Million Stuffed Shark”
When I was commissioned to do the art for The Armory Show 2004 catalog, I wrote an introduction that was a rhapsody about my love of art fairs. Not so many years before that, I began showing at Art Basel with Art & Public gallery, with such clear, positive results that I decided to make my largest and most risky piece, a Stations of the Cross, for a five day exhibition at Art Unlimited, with the support of Pierre Huber. This seems like ages ago, but it really isn’t, and my changing feelings about fairs are probably mostly a reflection of my own growth rather than a reflection of trends of the marketplace.
Since then, I have continued to participate in fairs in different ways, including with my own eponymously named gallery, presenting work by other artists. I see the limitations more and more clearly. I am very aware that it gave me an opportunity to develop a broad and solid international system of support for myself as an artist, and with that, secure a large degree of freedom to live wherever I want in the world. I can put my focus on getting involved deeply in local scenes that I really love, and to take much larger risks with my artwork when I want to. It has allowed me to indulge my independence without self-destructing.
As long as these fairs continue in their current popularity and with galleries as their primary clientele, they will continue to be a measure of what makes an important gallery (and also an unimportant gallery). For example, an artist can significantly raise his or her profile by signing up with a gallery that regularly gets into Frieze or Basel, and often there is only room for one or two other fairs in the world to share that top status. To me Basel holds the top spot because it always put the artworks first. But that is another discussion. Continue reading “Art fairs: one artist’s viewpoint”
Now that we know who has been paying top dollar at the auctions (Russian oligarch Roman Abramovich, the owner of Chelsea Football Club as well as a whole lotta gas and oil) this more or less proves that we are relying on the super-rich to hold the buoyant market aloft. There has been a lot of talk about how the art world is staving off signs of a recession thanks to these new ’emerging market’ buyers, but might this trend have further ramifications for the business?
For example, will the dealers cease to hold back their best work for the supposed ‘best’ collectors and museums, preferring instead to keep cashflow high by offloading to those simply holding the biggest, loosest purses? Maybe galleries have been disingenuous all along, merely paying lip service to the sacred idea of artist representation and not really carefully vetting what sells to whom at all. While you can’t stop anyone from buying at auction (indeed, Abramovich might start to be taken seriously as a collector after his recent purchases), will money run roughshod over the hearts and minds of those in the primary market in the same way? Or should I just take my rose-tinted blinkers off?