Contemporary art market Asia now bigger than US for first time says Artprice

ASIAN ART MARKET

Visitors enter a Sotheby's auction room in Hong Kong for a sale of modern and contemporary art on October 6, 2008.

For the first time ever, the total auction revenue from contemporary art in Asia is greater than the total of the United States artprice reports. The statistics are collected from a 12-month period spanning from July 2008 to June 2009. Asia generated US $193 million versus the United States’ US $183 million. China is the highest gainer out of this trend, having generated US $141 million from contemporary art during the same period.  According to the report, this means China is continuing to “hold on to its third place global geographical art auction revenue ranking.”

The establishment of foreign auction houses such as Christie’s, Sotheby’s and Bonhams in Hong Kong, in combination with the financial strength of Hong Kong and Shanghai are to be accredited for China’s position. For those who are looking to begin collecting Asian art, this does not mean that the price of contemporary Chinese art is back up to its sky-high prices of a couple of years ago. Artprice’s report tell us that in the first half of 2008 the average price of contemporary works sold in China was $65,500, however, in the first half of 2009, this average dropped to $26,800.

Related posts:

• Liquidity propels prices, Chinese Political Pop is back- Sotheby’s Contemporary Asian Art Auction 2009 Hong Kong- October 2009
• Trends and opportunities in the contemporary photography market- October 2009
• Newslink round up Art Basel 2009- Indian, Japanese artists dominate coverage of Asians- June 2009

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Contemporary Indian photography becoming more popular – learn at Sothebys Institute

INDIA PHOTOGRAPHY ART COURSE

Recent photography from India (and by Indian-born practitioners based overseas) has been steadily gaining in popularity and visibility over the last few years according to the Sothebys Institute.

They will run a short Indian photography course on 15th June from 2-6pm.

This half-day session examines contemporary photographic imagery with reference to India’s colonial past and traces the differences between photographs of India made by Westerners intrigued by its exoticism and photographs made by Indian photographers of their homeland.

Fee: £150

www.sothebysinstitute.com

Timetable:

Monday, 15 June

13.45 – 14.00 Welcome, 30 Bedford Square, London W1CB 3EE; 14.00 – 15.15 The History of Indian Photography, 
Sophie Gordon, Curator of the Royal Photograph Collection, Windsor Castle;
15.15 – 16.30 Contemporary Indian Photography, 
Savita Apte, Specialist in Southeast Asian Art;
16.30 – 16.45 Break;
16.45 – 18.00 Artist Perspective: Shezad Dawood’s Art and Views, 
Shezad Dawood; 

18.00 Champagne Reception. 

The timetable is subject to change. 


 
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Hong Kong artists showcased for first time at Sotheby’s Asian art sale 2009

HONG KONG ART AUCTION

The Spring 2009 sale of contemporary Asian art saw Sotheby’s present a collection of 8 Hong Kong artists. This is the first time that any auction house has offered a series dedicated to Hong Kong art in a contemporary art sale. The artworks are concerned with significant historical Hong Kong events including the 1997 Handover of the British colony to China, the 2003 SARS epidemic and the annual July 1st protests as well as the experience of living in Hong Kong’s cramped urban cityscape.

All of the lots were sold at estimate or more. Kum Chi Keung, Kevin Fung and the Kowloon Emperor achieved sale prices which were double or several multiples of the estimate.

Kum Chi Keung

Kum Chi Keung (b 1965) was initially a practitioner of Chinese traditional ink painting but then extended his practice to installation art which featured his favoured motifs of a birdcage and flight. He uses these ideas as a metaphor for not only the scarcity of space in Hong Kong but also for the idea of the 1997 Handover of Hong Kong from British colonial rule back to China when many locals emigrated or obtained foreign passports. Estimate HK$55-65000 excl premium and HK$127, 500 incl premium.

Freeman Lau (b1958) is a renowned designer as well as artist and uses the chair as a symbol in his practice to represent ‘place’ and ‘power’. In 1998 after the Handover Freeman Lau took a heap of standard chairs used by the colonial government and at the Fringe Club’s Out of Chaos, the Search for Position 11 arranged them in a haphazard wall. This represented not only the power of the colonial government but the disorder and confusion of Hong Kong’s inhabitants.

Tsang Tsou Choi

Tsang, Tsou Chin aka The Kowloon Emperor is a Hong Kong legend, famous for his calligraphy graffiti which he painted on public furniture. Undeterred by numerous warnings he roamed the streets for 50 years laying down his family genealogy and his personal history as an emperor in exile in blatant defiance of the Queen and English colonial rule. Deemed a lunatic by some, he was nevertheless recognised when in 2003 he became the very first Hong Kong artist to exhibit at the Venice Biennale. With a pre-premium estimate of HK$20,000 to HK$30,000 the lot attracted a number of bidders and was eventually sold for HK$212,500 including premium. (HK$7,7=US$1)

Man Fung Yi, Tranquillity

The SARS epidemic of 2003 was a monumental influence on Man Fung Yi’s practice. That year her younger sister’s life hung by a thread after contracting SARS and being forced to abort her 27 week old fetus. Earlier in 2001 when she herself was pregnant using lit joss sticks she singed holdes into silk cloths and created patterns as a form of prayer. She re-enacted the ritual as an expression of gratitude when her sister regained her health. The arrangement of embroidery-like holes has become an abiding motif in her work.

Kevin Fung, Lik Yan (b 1964) has been an apprentice of Hong Kong artist woodcarver Tong King Sum since 1993 and his work expresses the stress and suffering of living in Hong Kong’s cramped urban spaces. His Baggage Series was selected for the 15th Hong Kong Art Biennial and is in the permanent collection of Hong Kong art museum. Estimate HK$80-100,000 excl premium, sale HK$212,500 incl premium.

Chow Chun Fai (b 1980) excels at capturing unnoticed details of Hong Kong daily life in his work. In his Painting on Movie series he appropriates images from Hong Kong movies.

Anothermountainman Stanley Wong, Ping Pui was selected as one of the representatives of Hong Kong art at the 51st Venice Biennale of 2005. He is an accomplished creative director of advertisements as well as films. In 2000 he began incorporating red, white and blue nylon fabric in his works, a material which is ubiquitous in Hong Kong and used in a variety of ways from  covering buildings under construction to creating bags. This durable fabric represents the spirit of the Hong Kong people: versatile and resilient.

John Fung, Kin Chung

John Fung, Kin-Chung is a photographer who produces photographs of iconic urban vistas which include Hong Kong’s skyscrapers and the Mid-levels escalator which is the longest outdoor escalator in the world. He manipulates the images to create disjointed kaleidocopic patterns representing the discomfort and sensory overload of living in Hong Kong.

Source: Sotheby’s catalogue Contemporary Asian Art April 2009 Hong Kong.

Related posts

• Luck for Sotheby’s at Southeast Asian auction in Hong Kong – Apr 2009
• The distinctive style of young Hong Kong Fine Line artists – Feb 2009
• Internationally renowned Hong Kong photographer returns to art – Saatchi – Nov 2008
• Hong Kong artist Joey Leung is Saatchi online critic’s choice – Saatchi – Oct 2008

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Luck for Sothebys at Southeast Asian auction 2009 in Hong Kong

SOUTHEAST ASIAN ART AUCTION

Summary:

• 138 lots, 106 sold, sell through rate 77%
• Cheapest lots (under US$15,000) were overlooked in favour of more expensive works by better known artists
• 95 contemporary, remainder modern
• Thin attendance
• Prices slashed by Sothebys – estimates drop more than 50%
• Sale dominated by Indonesian works
• Ronald Ventura and I Nyoman Masriadi drew surprisingly frenzied bidding
• I Nyoman Masriadi achieved the highest prices, albeit much lower than in 2008, 3 of his works appeared in the top 10 for the sale. His not dissimilar sale-topping works (Negotiation 2009 and The Final Round 2008) showed more than 75% drop between Spring 2009 and Autumn 2008.

I Nyoman Masriadi Negosiasi

Empty seats

Half the seats were empty at the start of the thinly attended the 138 lot auction of modern and contemporary Southeast Asian art which kick-started the Sotheby’s series of 2009 Spring sales in Hong Kong. As the 18 or so grim-faced Sotheby’s staff at the telephone bank surveyed the 60 or more empty seats, there was a gluey air of tension.

The first 12 lots of the 95 contemporary works on sale, most at estimates of well under US$15,000, saw gentle bidding but thanks to much coaxing by veteran auctioneer Quek Chin Yeow, all but two ( works by Indonesian artists Eko Nugroho and Dikdik Sayahdikumullah) scraped the estimates and sales were achieved.

The room relaxed and bidding picked up for the next 20 or so lots (13-33) with particular interest shown in:

• Rodel Tapaya (b 1980) Donsadat and the Magic Dog which sold over estimate for HK$90,000 (excl premium) after a tussle between 2 phone bidders and the room
• M Irfan (b 1972) The Artifact of Magic which attracted 4 bidders and achieved a price of HK$235,000 (excl premium) against a top estimate of HK$180,000.
• Yunizar (b 1971) Texs III sold at HK$210,000 against its higher estimate of HK$180,000.

In a dramatic twist this was followed by a run of half a dozen passes and barely-made sales. The first lot called My God offered by  heavyweight Agus Suwage (b.1959 Indonesia) almost fell victim to the new twitchiness but just scraped by to achieve its lower estimate of HK$220,000.

Catalogue-featured lots

Lot 40, the first of the 5 catalogue-featured lots, Lost Notes by Rudi Mantofani, a stunning sculpture of two guitars curved to form a circle, more than met expectations by achieving a price one third higher than estimate. In a testament perhaps to the power of deeper catalogue marketing, the other featured works also did well:

• lot 58 I Nyoman Masriadi’s (b 1973 Indonesia) painting Negotiation – this acrylic featuring two cowboys facing off,  turned out to be the star lot  and achieved the highest price in the sale when 4 phone and 2 room bidders pushed the price up to  HK$1.4m against a top estimate of $800,000. However this was a mighty fall of over 75% compared with the price achieved for a similar work The Final Round autumn 2008. Negotiation  fetched just HK$1.7m (US$217,000) including premium, less than a quarter of the US$1 million price tag for the Boxers.
• lot 67 FX Harsono (b 1949) Tracing the Past achieved its estimate at HK$175,000

Handiwirman Saputra, Soap, Aluminium, 20x100cms

• lot 75 Handiwirman Supatra’s pink-painted aluminium sculpture Soap achieved a price (HK$300,000) double its top estimate. Originally conceived as a commissioned group of works for Novotel Hotel in Indonesia this was Supatra’s first large-scale sculpture project. Aside from the artist’s one-off, there are 4 versions of the work each in a unique colour.
• lot 88 Ronald Ventura’s (b 1973) Oh Boy painting – this lot saw the most exciting bidding . The fast-paced overlapping bids keeping the ever-ebullient auctioneer Chin Yeow on his toes and prompted a happy quip about there being ‘no recession’ now.

Ronald Ventura Oh Boy

Lucky 88 for Ronald Ventura

8 is a lucky number in China and it was certainly lucky for Sotheby’s because the lot marked a turning point. After a poor 12 lot run (lots 76-87) in which there were 6 passes and the remainder just meeting the lower estimates, Ronald Ventura’s lot 88 galvanised the room with its spray gun pre-recession-style bidding from more than a dozen bidders. The remainder of the contemporary artworks in the sale – lots 89-95 – all sold well despite having some of the highest prices in the sale (all over HK$100,000). Ahmad Zakii Anwar Silent City 8 (8 again!) sold at estimate despite a previous pass for a work located earlier in the sale. The other 6 lots by heavyweight artists - Geraldine Javier, Handiwirman Saputra, I Nyoman Masriadi and Yunizar with prices considerably higher than most of the works earlier in the sale (estimates in the HK$100,000 to HK$400,000 range) – all sold with comfortable margins over estimates.

No upsets

Other lots which drew notable interest included lot 13 Jumaldi Alfi’s painting The Falls which saw goood bidding and achieved a price of HK$270,000 against estimate HK$230,000 and  lot 75 M Irfan’s (b 1972) Maneuver. 3 room bidders pushed up the price to HK$130,000 against its top estimate of HK$90,000.

There were no major upsets but some passes were surprising including lot 19, an untitled work by Handiwirman Saputra, lot 46 Putu Sutawijaya’s untitled painting and lot 50 Dadang Christanto’s work Pilgrim Project 2. Agus Suwage had 2 works in the sale, both did sell but only just.

Happy faces

The auctioneers were clearly happy and entertained the room with  jaunty banter. When Kevin Ching, CEO of Asia – known for tongue in cheek bawdiness – placed a bid on Vasan Sitthiket’s ‘American Wet Dream’, the irrepressible auctioneer Chin Yeow who jokingly refused to refer to the painting by name because it ‘is too rude’, cheekily teased his colleague saying “Not a surprise from Kevin Ching”. “What do you mean?” deadpanned Ching right back.

And happy they deserve to be. Although this sale had one of the lower sell-through rates of the Sothebys 2009 Spring sales due to an excess of cheaper works by lesser known artists, the strategy of presenting predominantly Indonesian works by preferred artists was clearly aimed to please and did please an established clientele: a small number of deep-pocketed Indonesian collectors of Chinese origin and other hard core collectors. And what might the future hold?  Maybe deeper catalogue marketing, fewer works by lesser known artists and perhaps we will see a few more 8s sprinkled amongst the lot numbers next autumn.

Notes:

• prices exclude buyers’ premium.
• Exchange rate HK$7.7 = US$1.
• All artists named are Indonesian except Ronald Ventura and Geraldine Javier from the Philippines

Related links: Bloomberg’s report

Related posts:

• Overview Indonesian art – only 5 of 50 auctionable artists today will have lasting value - March 2009 – This informative reportage piece written in 2008 is about the history of Indonesian contemporary art up to and including the 2008 art boom. Michael Vatikiotis employs anecdotes, artist interviews and on the ground research to describe  key influences and players.

• Collector’s new Indonesian gallery opening causes ripples Feb 2009
• Seismic changes in Indonesian art scene since Borobodur auction 2007 Dec 2008 – this is based on a lecture given by Mella Jaarsma of Cemeti in Hong Kong – covers in more depth the positive and negative impacts of the art boom
• Indonesian Filipino prices rise at Sotheby despite recession Oct 2008 – report on Sothebys autumn sale of Southeast Asian
• Indonesian collector organises major exhibition Aug 2008

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Turkish art another fad? The lowdown on this new market

TURKISH ART MARKET INTERVIEW

In the week of Sotheby’s inaugural sale of Turkish art, Art Radar gets the lowdown on the Turkish art market from Anders Petterson, Managing Director of research company ArtTactic.

Sotheby’s holds its inaugural sale of Turkish contemporary art  this month – why is Turkish contemporary art receiving attention now?

The local art scene in Turkey has experienced a boom in new art institutions since 2004, from galleries, artist-run spaces, privately funded museums and art centres, to art fairs and auctions. At the same time the value of the domestic Turkish art auction market has quadrupled in the eight years after 2000. The international auction houses have been keeping a close eye on these developments and are beginning to test the market now.

But what about the recession? Does it make sense for Sotheby’s to launch a new category now?

Yes this is a valid issue. Arguably this is not an ideal time to launch a new category, perhaps the decision was made in better times. On the other hand there is a base of collectors and strong institutional support. Unlike other emerging art markets this is an art scene with an established infrastructure which has been overlooked by international collectors. Furthermore Christie’s tested the market in October 2008 when it included Turkish modern and contemporary artists in the Dubai contemporary art sale. Eleven of the fifteen lots sold which was a robust result.

Istanbul holds its Biennal in 2009 and will become the European Capital of Culture in 2010 which could give the arts scene further impetus over the next year or so.

Are there any other auction houses selling or planning to sell contemporary Turkish art?

There are several local auction houses and it is rumoured that Phillips de Pury and Bonhams plan to follow in the footsteps of Sothebys.

Is there a secondary market? Which are the leading galleries focusing on contemporary Turkish art?

The gallery scene has expanded considerably over the last two years. New galleries have opened showing  cutting edge art alongside the more conservative galleries which date back to the 80s and 90s. If you are interested in delving further, our report on the Turkish art market profiles approximately a dozen galleries with information about when they opened, who runs them and what kind of art they focus on.

Are the contemporary artists in the Sotheby’s auction new to the auction scene or do they have an auction history?

Out of the artists born after 1950, 44% have never sold at auction and most of the rest have sold a few works in domestic auctions in Turkey. The exceptions are Mustafa Horasan, Kezban Arca Batibeki, Bedri Baykam and Kemal Onsoy who sell frequently at auction.

It sounds like this auction will be an intereting test for the future of theTurkish art market. If it is successful will it be yet another international art market fad?

While this is possible of course, I hope not. In its favour is its strong infrastructure of galleries, curators, museums and not for profits. Read our report for information on the most important of these in each category. Prices of Turkish art are cheap relative to Indian, Iranian and Chinese art and that could help too.

Find out more about ArtTactic’s 20 page report on the Turkish Modern and Contemporary Art Market Feb 2009

Related posts:

•  Sotheby’s inaugural sale of Turkish art – video – 5 artists talk March 2009
• Top 4 Radar picks at the Cairo Biennale Dec 2008 – One of Radar’s picks is Turkish artist Gulsun Karamustafa

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Sothebys inaugural sale of contemporary Turkish art – video – 5 artists talk

TURKISH ART AUCTION

Sotheby’s is holding its inaugural sale of Turkish art on 4 March 2009 in London. Check out the art and see 5 Turkish contemporary artists talking about their paintings, photographs and sculptures in the sale.

Themes of war, imprisonment, fighting and human sacrifice run through the works. Power and powerlessness are expressed in both social commentary works referencing feminism and the more political works such as Nasif Topcuoglu’s  Abu Ghraib-inspired photograph Lamentations .

Click here for Turkish contemporary art video

Featured artists:

• Taner Ceylan discusses his work Spiritual 2008, a photo-realistic painting of blood-dribbling fighter in motion.

Taner Ceylan, Spiritual, paint

• Female artist Hale Tenger talks about Invainers of the Lost Arc II 1992, a brass installation of male figures spiralling down into a void expressing her fiery feminism at that time. In Balloon Loan II 2008 the topic of depression is depicted in a photograph in which the only coloured objects are a row of balloons floating on the sea soon to be shot with a gun.

Nasif Topcuoglu, Lamentations, photograph

• Nasif Topcuoglu is a photographer who reconstructs Baroque paintings with contemporary youths replacing the original figures. His works are sexually-charged and his interest in the sacrifice of youth as a continuing phenomenon  is evident in both Sacrifice: The Story of Isaac 2008 and in the more political work Lamentations 2007 which references Abu Ghraib.

• Other artists include ‘bright young thing’ Leyla Gediz and another female artist Canaan Senol whose work The Transparent Police Station 2008 shows nude and uniformed figures trapped in a plexiglass brick wall. Ansen Atilla’s ‘inspired’ photograph The Devil May Load 2008 captures a violent scene of a gun-toting figure constructed with household and everyday objects.

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What are the new price levels for contemporary art?

CONTEMPORARY ART PRICES

Sotheby’s will hold its Contemporary Art sales in London on 5-6 February 2009 , the first set since the November round when the financial crisis triggered weaker demand, slower bidding and lower prices across the art market.  As markets for other more liquid investable assets continue to plummet, art collectors have had to wait for this next round of leading auction house sales for a steer.

So what are the new price levels which were established  in the November suite of sales? And what is the outlook for the upcoming Spring sales?

In December 2008 Colin Gleadall said in the Telegraph “this month we have seen Impressionist, modern and contemporary art sales falling back to levels set two or three years ago”. And Sotheby’s agrees.

As Tobias Berger explains in the video Private View – Contemporary Art Market – A Candid Look from the Inside, the November suite of sales was held against a ‘dramatically different’ financial environment.

While this slickly-produced video is clearly a tool for promotion which gives more emphasis to confidence-boosting than candour, Sotheby’s say the new price levels for the contemporary art market are equivalent to those of 2004-2006. Of course the claim is heavily-caveated and only applies to ’rare’, ‘great’, ‘fresh’ works of ‘impeccable provenance and quality’ .

But what next for prices? In their video the Sotheby’s team makes a brave – and of course rather more implicit than directly expressed - case for this new level being the potential bottom. But words about pent-up demand from well-informed long-established collectors who are now apparently willing to return to the market after the implied excesses of 2007 and 2008 are not entirely convincing. Still…..it is a courageous call when other investable assets have fallen to prices last seen more than 10 years ago.

To see the Sotheby’s video Private View – Contemporary Art market

Sothebys to stay in Australia in 2009 confounding rumours

ART MARKET AUSTRALIA

It has been a tough year for auction houses in Australia in 2008 says The Australian

AFTER a bumper 2007, the Australian art auction market is down nearly 35 per cent this year, with $114.5 million of art works going under the hammer.Sotheby’s managing director Lesley Alway said this year had been tough.

“No one predicted the fallout that occurred from mid to later this year from the global economy situation,” Ms Alway said.

Nevertheless Sothebys remains committed to Australia

Despite continuing industry rumours that Sotheby’s might follow Christie’s and shut its Australian operation, the company was here to stay.

“We’ve just had approval to go ahead for our business plan for next year,” she said. Sotheby’s had already consigned some important paintings for its auction next year.

Art galleries report that the serious collectors are coming back to the market

Unlike the early 1990s crash, when several commercial galleries and dealers were forced to close their doors, industry players say the current scenario is less bleak. Significantly, serious collectors who stopped buying during last year’s overheated art market are slowly returning.

Art adviser David Hulme said: “Good art will survive any crisis, and the committed collectors will always be there, whether it’s the primary market or the secondary auction market. Perhaps 2007 was an aberration; time will tell.”

Gallery owner Stuart Purves said his Sydney and Melbourne galleries, Australian Galleries, had experienced a Christmas rush from collectors.

The Australian

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Sotheby’s irrevocable bid explained – FT, Saatchi

Kasimir Malevich Suprematist Composition 1916

 

AUCTION NEWS

What is an “irrevocable bid”? asks Georgina Adam in the Financial Times

‘A new symbol is perplexing dealers and collectors alike. It popped up for the first time in Sotheby’s catalogue for its Impressionist and Modern sale in New York this week, against Malevich’s “Suprematist Composition” (1916), estimated at $60m and which sold to just one bidder for that amount.

The auction house explains that under the “irrevocable bid” arrangement, it finds a person prepared to submit a bid for an undisclosed amount. If no one bids any higher, then the buyer gets the work and pays the buyer’s premium. If the work sells for more, then the “irrevocable bidder” gets a cut of what is called the “upside”, the difference between the final price and the secret price he or she agreed to bid. In the case of the Malevich, the irrevocable bidder secured the work at the price agreed in advance. In effect, the painting had been pre-sold – the only unknown was if anyone else would bid, and no one else did. The auction houses have been cutting back on financing guarantees themselves (Sotheby’s recently admitted it lost $15m in guarantees this autumn) and instead are farming them out to others in the form of “third party guarantees”. This is when an outside person carries the risk and benefits financially if the work of art sells for more than the expected price.’

Any difference between the irrevocable bid and the third party guarantee?

‘So what’s the difference between (the third party guarantee) and the “irrevocable bid”? I asked Sotheby’s. The third-party guarantor doesn’t bid, and the irrevocable bidder does, the firm said. This version was questioned by a number of dealers, who say that third-party guarantors can and do bid on works they have underwritten. “I don’t see the difference [between the third party and the irrevocable bid,” said New York dealer Richard Feigen; “This totally lacks transparency, and it’s time this market was more regulated.” ‘

The symbol might be new but not the concept

Anthony Haden-Guest in the Saatchi magazine explains ‘The notion of “irrevocable bids” was arrived at a couple of years ago when the market was still on a bender and it’s really a punt, a gambler’s option. Such a bid is made in advance of the auction and it cuts an auction house’s exposure. For instance, it removes the need for the auction house to put up a guarantee. Then if the irrevocable bidder secures the work, he or she pays the same premium as any other bidder, but if it goes above that level and somebody else buys the lot, the irrevocable bidder is rewarded by a slice of the deal. Fifty percent of the buyer’s premium, insiders say, but on this point Sotheby’s are mum.’

And is it really irrevocable?

Haden-Guest points out that there was also an irrevocable bid alongside Munch’s Vampire, another of the evening’s choice pieces, but Sotheby’s were saying this had been a typo, a printing error. ‘Pesky cynics, of course, were saying that the irrevocable had been revoked’ he writes.

And he reminds us how opaque the art markets can be.

‘In November 87 the Australian financier, Alan Bond, bought van Gogh’s Irises for $53.9 million, also at Sotheby’s, New York. This was then the most expensive painting ever sold. But two years later Sotheby’s revealed that they had loaned Bond $27 million of the purchase price, that he had failed to come up with his share of the moolah, and that they were keeping it at a secret location. It was bought by the Getty in 1990, the year of the Art Crash.

Shortly before the Malevich sale I asked Sotheby’s how they could satisfy themselves that the Irrevocable Bidder would not pull an Alan Bond? They responded: THE IB IS CONTRACTUALLY BINDING AND CANNOT BE REVOKED. So no worries clearly.’

• Image and explanation of ‘irrevocable bid’ bullet on Sotheby’s site and on Culture Grrl
• More press coverage: Munch buyer pulls out in The Art Newspaper,  
• More auction news, market watch, reports from New York on this site

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Sotheby’s still willing to lend against art – New York Magazine

ART AS COLLATERAL 

One art-world business is booming: collectors looking to borrow against works they own, especially before the fall sales threaten to lower values. “We’ve been contacted by lots of people who are feeling some sort of margin call,” says Sotheby’s CEO, Bill Ruprecht. Other lenders have virtually stopped lending against art recently, but Ruprecht says Sotheby’s is still “very comfortable” doing so. (At 2007’s end, the auction house had $176.4 million loaned out; by the middle of this year, it was $212 million.) Tobias Meyer, who runs the contemporary-art department, says he’s also seeing more “consignment advances”-sellers agreeing to put their art on the block and getting some money up front. But he’s also finding owners disappointed by their holdings’ worth. “Just because we sold a great, rare $80 million Francis Bacon, everyone with a Bacon thinks theirs is worth $40 million,” he says. “It doesn’t work that way.”

See more on art recession, market watch, auction house news, original story in New York magazine

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