The Spring New York Auctions of Impressionist, Modern and (even) Contemporary art all blasted through the highest expectations, in the midst of a stock market convulsing in an unprecedented manner; are we in a new age of uncertainty and chaos? Shares crash by day as art soars by night. But as suspected, art made new records after less than ten lots into the first sales—that would be the $106m Picasso if you have been buried in volcanic ash. To think art has reached parity with office buildings; but, better than shares, hedge funds, Goldman Sachs(!), currencies, Greece, Portugal, Spain (and UK?), where else can you achieve short term returns of 20, 30, 40%+ in today’s markets?
The forecast is for a long-term boom in classical art, as well as recognized, signature works by contemporary practitioners. The New York Times stated re the contemporary sales: “Americans dominated the buying, in contrast with last week’s sales of Impressionist and modern art, where Europeans, Asians and Middle Easterners were the big spenders.” Wait till the European, Asian and Middle Easterner laggards catch on to contemporary… Tomorrow’s next hedge fund star: the art manager.
Strangely, there are many day to day art professionals that bemoan the historic figures attained by art, says one: “…art that sell(s) at auction die two deaths: We do not see them again for decades, and cannot think of them without also thinking of money.” The first is the result of the free market system (consider the alternatives) and the latter the result of the free market system (alas, its all vanity). Why the constant pooh poohing about the big bucks Picasso? Why can’t everyone coexist, the trophy hunters and enthusiasts in trenches? There is certainly a trickle down as one segment begets the other. But hey, guess what: we can all relax! In effect the $106m pays all our art world salaries. Even the $8m paid for young Italian artist Maurizio Cattelan’s proboscis sticking out of an actual hole in the floor; pretty much anything will go nowadays.
Kenny Schachter