Painting: Giorgio De Chirico
Being an economics student and enthusiast, I am always interested in the art market, and trying to analyze what's going on. And you should be too, because market's always fun to watch, especially at times like these where everyone's fired, no one is hired, and the companies are declaring bankrupcies.
Here are some things that are going on:
Art dealer Gagosian is having a shopping spree, especially prior to Gagosian Gallery's new shows. Him buying Koons's “Baroque Egg With Bow (Turquoise/Magenta)”, at the sotheby's auction in may is probably an attempt to keep the prices and demands up before Koons' new show, "Popeye Series". running from coming July 2 to September 13. The Gagosian gallery is also running superstar shows such as CY Twombly and Yayoi Kusama, which will likely bring in good sales even in times like these. The dealers are trying to keep the market afloat by exhibitions and purchases. Oh also Gagosian is involved in the restaurant with Ron Perelman, the art-buying investor billionaire is trying to open up at the Hamptons. That's randomly funny but I don't know why it is...but I do know that I want to go to that restaurant.
This is a biggest slump in the art market since 1991, but the auction market is improving. Average sales rate went to 74% of the lots offered from 64% of last november. And if the confidence keeps on increasing, who knows what will happen later... The buyers are investing in classics, because that's the risk-less material with the brand value that will increase in value later for sure. Calder, Hockney, Lichtenstein, Koons, etc.
At Art Basel this year, prices are being slashed even for the big name artists. If I was rich and buy art instead of making them myself, I would totally buy right now as future investments. Although I don't get attached to materials, I realized having nice things have its benefit, like being able to sell them when I need money. I mean an Andy Warhol which would've have sold for 1 million last year, is $675,000 now. It's the bargain time. But since it's a global crisis, who will take advantage of the deals? 100 richest people in Russia lost 73% of their wealth, and house prices in Dubai fell 32% from last year!
But the confidence is improving, and time will tell if it will get better or not....you never know what will happen with markets.
What exciting time we live in! and what an interesting time to do art! If the prices go so low and fall to under $10, I will buy all the classics such as Warhols, Da Vincis, Picassos and make a collage out of them and that will be my new art project.
Watch the good ol' times at the auction: when Monet broke record last may.