Dear Friends,
Welcome to the third edition of our monthly newsletter! Joyce and I recently returned from visits to New York to view the 19th century and Impressionist
paintings on offer this season at
Sotheby's and Chrisite's so, rather than an in depth focus on a specific
painting from our collection, I would like to share with you the results and my
thoughts on the broader art market
today.
We are pleased to report recent sales here at the Anderson
Galleries of important works by Pierre
August Renoir, Camille Corot, Jules Breton and Berthe Morisot, among others.
We are actively seeking quality paintings by Claude Monet,
Camille Pissarro, Henri Martin, William Bouguereau and John William
Godward. We are always glad to review
and comment by return e-mail on works offered to us.
I will be participating in the Art Economics Seminar hosted
by the Harvard Business Alumni Association on May 16th
here in Beverly Hills. Event information is listed in the adjacent column. Please contact the
gallery if you would like to attend.
Best Wishes,
Kevin and Joyce Anderson
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Today's Art Market: A Perspective
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The 19th Century sale at Sotheby's on April 24th
achieved an anemic total of $10.8 million with only 42% of the paintings sold
by lot. This was really no surprise as there were less than a dozen truly
standout paintings in the sale with Jules Breton's Washerwomen of the Breton
Coast,
two respectable John William Godward works, and a rather sublime J.W.
Waterhouse topping the list. These all
sold within their estimates but I can't help wondering how much better
they would have done if they had been surrounded by better company!
Middle market paintings lacking in quality or
condition were thrown to the lions without ceremony. There is no
revelation here, the 19th
Century market has always been highly selective and unforgiving of any
second
rate works. Lacking star lots by Bouguereau, Corot, Millet and Courbet,
these results were predictable. It remains to be seen how Christie's
will
fare with its newly conjoined Old Master and 19th Century department
sale in June.
The results of the Impressionist and Modern sales are just
being reported and the news here is surprisingly encouraging. Though the estimates were lowered to reflect
current economic realities and the guaranteed superstar lots of a year ago were
absent, Sotheby's Evening sale of May 5th totaled $61. 4 million
with 81 % of lots sold and Christie's Part 1 on May 6th totaled a
very respectable $102.8 million with 79% sold by lot. It is worth noting that the staggering
$484,426,000 achieved at the Yves St. Laurent February sale in Paris
demonstrated extraordinary demand at the very top of the market across a broad
range of disciplines.
The Impressionist and Modern Day sales on May 6th
and 7th were also much stronger than I expected, given the overall
quality of the material on offer. Sotheby's totaled $23 million with 87% of
lots sold and Christie's combined painting and works on paper sales reported a total
of $20,659,000 with a sell through rate of 90% by value. Though the number of the artists in which we
specialize - such as Henri Martin, Henri Le Sidaner, Gustave Loiseau and Henri
Lebasque - were generally in short supply and certainly did not represent the top
tier in terms of subject matter, this
did not discourage bidding in the least!
What percentage of these works are
purchased by folks who view the
works only from catalogue illustrations or digital images? The auction houses
won't say but if it's as high as I think, a lot of people are in for a surprise
when the crates are opened at home. I
can assure you that quality 19th century and
Impressionist paintings hanging in select galleries across America on a regular
basis surpass nearly everything that was offered here! Geographically, the
buyers were 42% US, 45 % Europe and 5% other.
I can now objectively surmise, without hyperbole, that we
are witnessing the transformation of fine art into a genuine "alternative
asset" class, even allowing for the most downbeat economy the world has
experienced in many years. My expectation is that for both the short term and long term, the
already contracted supply of important works of art due to ongoing acquisitions
by museums, foundations and the private sector will be reduced even further,
driving prices steadily higher as economic conditions improve.
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Art Economics Seminar
Hosted by the Harvard Business School
Alumni Association of Southern California
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Date/Time
Saturday, May 16, 2009
1:00pm - 4:00pm
Location
Beverly Hills Library North
Conference Rm
444 N. Rexford Drive
Beverly Hills, CA
Parking
Adjacent
to the library at 450 N Rexford Drive. The first two hours are free.
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Art outperformed most other
assets classes in the last decade and is maintaining investor interest as a
hedge against inflation. At the same time, art is playing a more important role
as an engine of economic growth and has been selected by Harvard University as
an important focus of future interdisciplinary programs.
Panel Discussion:
Business
opportunities in the art market. Current examples from Anderson Galleries,
Marsh Insurance, Art & Living Publishing and Ovation TV. Speakers: Kevin
Anderson, Daniel Greene, Jeff Marinelli & Chad Gutstein.
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