Greedy Auction Sellers Endanger Fragile Recovery, Dealers Warn

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Source: Christie's Images via Bloomberg

"Portrait of Angel Fernandez de Soto" (1903) by Pablo Picasso was offered for sale by the Andrew Lloyd Webber Foundation at Christie's International's June 23 auction of Impressionist and Modern Art, in London, and was expected to fetch between 30 million pounds and 40 million pounds. It sold for 34.8 million pounds.

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Source: Christie's Images via Bloomberg

"Portrait of Angel Fernandez de Soto" (1903) by Pablo Picasso was offered for sale by the Andrew Lloyd Webber Foundation at Christie's International's June 23 auction of Impressionist and Modern Art, in London, and was expected to fetch between 30 million pounds and 40 million pounds. It sold for 34.8 million pounds. Close

"Portrait of Angel Fernandez de Soto" (1903) by Pablo Picasso was offered for sale by the Andrew Lloyd Webber... Read More

Source: Christie's Images via Bloomberg

"Nympheas" by Claude Monet. The painting failed to sell after being estimated to fetch between 30 million pounds and 40 million pounds at Christie's International in London. The work is one of a series of ``Nympheas'' paintings exhibited by Monet at Paris dealers Durand-Ruel in 1906. Close

"Nympheas" by Claude Monet. The painting failed to sell after being estimated to fetch between 30 million pounds and... Read More

Source: Christie's Images Ltd. 2010 via Bloomberg

The unfinished Gustav Klimt painting "Frauenbildnis (Portrait of Ria Munk III)." The painting sold for 18.8 million pounds. It was expected to fetch between 14 million pounds and 18 million pounds at Christie's International Ltd.'s June 23 sale of Impressionist and Modern art in London. Executed between 1917 and 1918, the painting is a posthumous study of Ria Munk, the daughter of a Viennese industrialist, who committed suicide in 1911. Close

The unfinished Gustav Klimt painting "Frauenbildnis (Portrait of Ria Munk III)." The painting sold for 18.8 million... Read More

Source: Sotheby's via Bloomberg

"Arbres a Collioure" by Andre Derain. The painting was expected to sell for between 9 million pounds and 14 million pounds at Sotheby's June 22 auction of Impressionist and modern art. Formerly owned by the Paris art dealer Ambroise Vollard, the work was discovered in a bank vault in 1979. It sold for 16.3 million pounds. Close

"Arbres a Collioure" by Andre Derain. The painting was expected to sell for between 9 million pounds and 14 million... Read More

Source: Sotheby's via Bloomberg.

``Self-Portrait with a Palette’’ by Edouard Manet was sold in Sotheby’s June 22 sale of Impressionist and modern art in London. The 1878 painting, one of only two self-portraits by the artist, was part of the collection of Steven A. Cohen, founder of SAC Capital Advisors LP. It fetched 22.4 million pounds with fees. The hammer price was exactly on the low estimate of 20 million pounds. Close

``Self-Portrait with a Palette’’ by Edouard Manet was sold in Sotheby’s June 22 sale of Impressionist and modern art... Read More

Source: Christie's Images via Bloomberg

A mobile "Two Fish Tails" by Alexander Calder. the work was included in Christie's International's June 30 auction of contemporary art in London. Executed in 1975, it sold for 1.4 million pounds with fees. It was expected to fetch between 1.2 million pounds and 1.8 million pounds. Close

A mobile "Two Fish Tails" by Alexander Calder. the work was included in Christie's International's June 30 auction of... Read More

Source: Christie's Images via Bloomberg

"Untitled" by Jean-Michel Basquiat. The work was offered at Christie's International's June 30 auction of contemporary art in London with an estimate of 2.5 million pounds to 3.5 million pounds. In June 2004 it sold at auction for 453,250 pounds. This time, it failed to sell. Close

"Untitled" by Jean-Michel Basquiat. The work was offered at Christie's International's June 30 auction of... Read More

Source: Phillips de Pury & Co. via Bloomberg

"Prop for a Film" (1969) by Roy Lichtenstein. The work was offered by Phillips de Pury & Co in its June 29 auction of contemporary art. Measuring 8-foot-wide, it was expected to fetch at least 500,000 pounds and went unsold. Close

"Prop for a Film" (1969) by Roy Lichtenstein. The work was offered by Phillips de Pury & Co in its June 29 auction of... Read More

Source: Phillips de Pury & Co. via Bloomberg

"Trapped Canvas" by Italian-American artist Salvatore Scarpitta. The work sold for 409,250 pounds. It had been expected to sell for between 250,000 pounds and 350,000 pounds at Phillips de Pury & Co.'s June 29 auction of contemporary art in London. Close

"Trapped Canvas" by Italian-American artist Salvatore Scarpitta. The work sold for 409,250 pounds. It had been... Read More

Source: Sotheby's via Bloomberg

"Concetto Spaziale, La Fine di Dio" by artist Lucio Fontana. The work was estimated at 4.5 million pounds to 5.5 million pounds at Sotheby's June 28 auction of contemporary art in London. The oval canvas last appeared on the auction market in February 2001, when it sold for 465,750 pounds. This time it made 4.7 million pounds. Close

"Concetto Spaziale, La Fine di Dio" by artist Lucio Fontana. The work was estimated at 4.5 million pounds to 5.5... Read More

Source: Sotheby's via Bloomberg

"Neger (Nuba)" by artist Gerhard Richter. The work was estimated at 3.5 million pounds to 4.5 million pounds in Sotheby's June 28 auction of contemporary art in London. The composition, based on a found photograph of members of the Nuba tribe from Sudan, sold for 3.7 million pounds. Close

"Neger (Nuba)" by artist Gerhard Richter. The work was estimated at 3.5 million pounds to 4.5 million pounds in... Read More

Source: Sotheby's via Bloomberg

The 1961 Yves Klein sponge relief, "RE 49, Relief Eponge Bleu," was estimated at 4.5 million pounds to 6.5 million pounds at Sotheby's June 28 auction of contemporary art in London. The work, entered from the collection of HVB Group, the German banking unit of UniCredit SpA, was bought by one of three telephone bidders for 6.2 million pounds. Close

The 1961 Yves Klein sponge relief, "RE 49, Relief Eponge Bleu," was estimated at 4.5 million pounds to 6.5 million... Read More

Source: Sotheby's via Bloomberg

The trio of Andy Warhol silkscreen paintings, "Three Jackies." offered in Sotheby's June 28 sale of contemporary art. Dating from 1964 and never offered at auction before, they were estimated to fetch between 1.5 million pounds and 2 million pounds. The selling price was on the low estimate of 1.5 million pounds. Close

The trio of Andy Warhol silkscreen paintings, "Three Jackies." offered in Sotheby's June 28 sale of contemporary art.... Read More

Source: Christie's via Bloomberg

"Phoenix (Peace Eagle),'' by Matthew Day Jackson. Day Jackson, The work was expected to fetch between 200,000 pounds and 300,000 pounds at Christie's International's June 30 auction of contemporary art in London. It sold for 301,250 pounds with fees. Close

"Phoenix (Peace Eagle),'' by Matthew Day Jackson. Day Jackson, The work was expected to fetch between 200,000 pounds... Read More

Source: Phillips via Bloomberg

A silver foil relief, ``Untitled,'' by Anselm Reyle. The work carried a low estimate of 70,000 pounds. It sold for 82,000 pounds. Close

A silver foil relief, ``Untitled,'' by Anselm Reyle. The work carried a low estimate of 70,000 pounds. It sold for 82,000 pounds.

Source: Christie's Images via Bloomberg

"Silver Liz" by Andy Warhol. The work was expected to sell for between 6 million pounds and 8 million pounds at Christie's International's June 30 auction of contemporary art in London. The painting, not been seen on the market since 1989, sold for 6.8 million pounds. Close

"Silver Liz" by Andy Warhol. The work was expected to sell for between 6 million pounds and 8 million pounds at... Read More

Source: Sotheby's via Bloomberg

"Odalisques jouant aux dames" by Henri Matisse. The work is included in Sotheby's June 22 sale of Impressionist and modern art in London. Never previously offered at auction before, it was expected to fetch between 10 million pounds and 15 million pounds. It sold for 11.8 million pounds. Close

"Odalisques jouant aux dames" by Henri Matisse. The work is included in Sotheby's June 22 sale of Impressionist and... Read More

The recovery in the global art market slowed at the latest bellwether auctions of Impressionist and contemporary works where overpriced lots struggled to attract bidding, dealers said.

Expectations for two weeks of London sales had been raised by recent auction records for works by Alberto Giacometti, Pablo Picasso and Amedeo Modigliani and reports of brisk business at the Art Basel fair in Switzerland. Sellers pushed up estimates at a time when choosy buyers are now only willing to pay the largest sums for the best trophy works, dealers said.

“The auction houses had talked themselves into getting higher and higher prices,” Richard Nagy, a London-based dealer, said in an interview. “They need to be less excitable about their estimates.” Prior to the sales, surveys showed there was no room for greed or over-optimism for less-than-perfect works, with confidence still fragile. Respondents suggested that values were likely to be little changed over the next six months.

The London auctions amounted to a 421.2 million-pound ($640.3 million) test of the market, according to Bloomberg calculations. The sales began with an Edouard Manet self portrait falling to a single bid of 22.4 million pounds; a ‘Blue Period’ Picasso selling within estimate for 34.8 million pounds and a Claude Monet lily painting, valued as much as 40 million pounds, failing to sell. By the end, “buyer fatigue” set in as nervous collectors watched stock prices.

“All those top pieces were sophisticated and needed knowledge,” Nagy said of the big-ticket Impressionist works. “If the Monet had been priced at 15 million pounds to 25 million pounds, it might have made 30 million.”

Sale Estimates

The June sales at Sotheby’s, Christie’s International and Phillips de Pury & Co. had been estimated to fetch between 353.7 million pounds and 477.1 million pounds, based on hammer prices. All realized prices include auction-house fees.

Sellers of museum-quality Impressionist works had hoped bidding from Asia, Russia and the Middle East would help push prices to record levels. On this occasion, there was less buying from clients in the emerging economies, Sotheby’s and Christie’s said.

“These people know how to look after their money,” Alan Hobart, director of the London-based Pyms Gallery, said. “If they sense the market isn’t what they’ve been led to believe, they’ll sit back and wait.”

Still, selling rates never fell below 69 percent at Sotheby’s and Christie’s evening and day sales of Impressionist art.

Inconsistent Buying

Buying was more inconsistent during the following week’s contemporary art auctions.

All three of the most expensive works at Sotheby’s 41.1 million-pound evening sale on June 28 sold within estimate. Phillips’s June 29 evening sale -- held on a day when the FTSE 100 Index dropped by 3.1 percent -- raised 4 million pounds against a low estimate of 6 million pounds with 53 percent of the lots successful. On July 1, Christie’s day sale of contemporary works totaled a low-estimate 13.1 million pounds with 65 percent of the 318 works sold.

Prices of some contemporary artists are recovering after declining as much as 50 percent from their peak. The London sales showed buyers hesitant if sellers were perceived too be unrealistic. At Sotheby’s on June 28, Peter Doig’s 1995 to 1996 mountain landscape “White Creep” was offered with a low estimate of 1.4 million pounds, having been bought for that price by the seller at Sotheby’s in February 2008. It failed to attract a bid.

Unstable Markets

“The mood has changed,” Hobart said. “At the beginning of May, people thought the banking crisis was behind us. Then the sovereign-debt problems hit. That’s where the problem is. The markets are very unstable at the moment.”

In May, average prices at Sotheby’s and Christie’s evening sales of contemporary works in New York stood at 2.9 million pounds, more than double the 1.4 million pounds achieved last year, the London-based research company ArtTactic said. A month later in London, prices at the two houses’ evening sales averaged 903,125 pounds, a smaller increase on the 619,444 pounds set last June during the financial crisis.

In 2008, during the final phase of the contemporary-art market boom, the average price stood at 1.5 million pounds, according to Bloomberg calculations.

“In May there seemed to be strength of demand across all artists and all quality categories,” Francis Outred, Christie’s European head of contemporary art, said in an interview. “The estimates got ahead of themselves. The market is still moving in the right direction. From now on we have to exercise discretion.”

No Bacon

Christie’s June 30 evening sale raised a within-estimate 45.6 million pounds, the highest total for the week, with a top price of 6.8 million pounds paid for Andy Warhol’s 1963 “Silver Liz.” The London-based auction house’s equivalent auction in 2008 netted 86.2 million pounds, led by a triptych of Francis Bacon self portraits at 17.3 million pounds. No works by Bacon were offered at London auctions in June 2010.

“A lot of people thought the market was back. It isn’t yet,” said Anthony McNerney, managing director at the London- based gallery, Ben Brown Fine Arts, and a former contemporary- art specialist at Phillips de Pury. “Buyers are very sensitive to price. The auction houses need to be careful and keep their sales tight.”

(Scott Reyburn writes about the art market for Muse, the arts and culture section of Bloomberg News. Opinions expressed are his own.)

To contact the writer on the story: Scott Reyburn in London at sreyburn@hotmail.com.

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