The Brigham Galleries - Art Tips: Art Market Summary

Fall 2007 - Market Summary

By now, many of you have heard mixed reports on the Fall Art Market. "Mixed" is probably the best way to describe the market.

I was in London during "Frieze Week" this October. Sales of Contemporary Art were brisk during the entire week. Christie's President claimed "every major collector from around the world" converged in London for the Frieze Art Fair and for sales of $300M at the three auction houses (timed to correspond to the Art Fair). Many of Frieze's top booths [175 total] sold out Opening Night. Auction records [entire sale value and individual pieces] were set.

Is the market inflated? Common Sense indicates "Yes". Will all of the art that sold during Frieze Week continue to appreciate and continue to be collected? Of course not. One former museum curator told me that something is seriously wrong when in the frenzy of an auction, a $100,000 painting sells for $5,000,000.

November offers more information. Some of the notable sales during October's London auctions were bought by dealers. Hirst's Diamond Skull was purchased by a group of investors, the artist and his dealer are reportedly being two of the group. This month also shows a large percentage of the November New York auction items were "Bought In" (the reserve price was not met and hence items were pulled from the auction), share prices at Sotheby's dropping, and a slowing of sales. While all of this downturn is happening, there are new art fairs being launched (Art Paris Abu Dhabi for one), while high prices are still being paid for select items. What defines "select" is a question everyone interested in the art market is trying to determine! There is still a high interest in art in the world, as well as a great deal of liquidity coming from many different sectors in the world. Perhaps the art prices that were widely perceived as 'runaway' are finally being curbed.

Amidst all of the art on the market, there are some great works. If someone falls in love with a piece and has to have it, price may not be an issue. Should price be an issue, consider sales and exhibit history, experts' opinions and the quality of the specific piece.


Spring 2007 - Market Summary $1.4 billion of art was sold at Sotheby’s and Christie’s this May. Previous records were shattered: some exponentially. There has not been such a frenzied art market since the 1980’s, when the Japanese bought Impressionist art at an unclipped rate. While tempting to jump into the art market immediately, it is also important to be informed. Buying art at auction has pros and cons. Pros: purchasing the new record-setter confers bragging rights (and the art itself). Auctions are effective for viewing a quantity of work, and deals can still be found. Cons: entering the market at the top indicates (in order to sell at a profit) the need to wait for a ‘richer fool’. Purchase art with a savvy advisor. (Auction houses are staffed with experts and interns alike.) Buying at auction does not guarantee the quality of art. Try to disassociate art from investment. Prepare to hold acquisitions long-term. There are no guarantees. Records are being set, but roughly 1/3 of art at auctions doesn’t sell.
Fall 2007 - Market Summary By now, many of you have heard mixed reports on the Fall Art Market. "Mixed" is probably the best way to describe the market. I was in London during "Frieze Week" this October. Sales of Contemporary Art were brisk during the entire week. Christie's President claimed "every major collector from around the world" converged in London for the Frieze Art Fair and for sales of $300M at the three auction houses (timed to correspond to the Art Fair). Many of Frieze's top booths [175 total] sold out Opening Night. Auction records [entire sale value and individual pieces] were set. Is the market inflated? Common Sense indicates "Yes". Will all of the art that sold during Frieze Week continue to appreciate and continue to be collected? Of course not. One former museum curator told me that something is seriously wrong when in the frenzy of an auction, a $100,000 painting sells for $5,000,000. November offers more information. Some of the notable sales during October's London auctions were bought by dealers. Hirst's Diamond Skull was purchased by a group of investors, the artist and his dealer are reportedly being two of the group. This month also shows a large percentage of the November New York auction items were "Bought In" (the reserve price was not met and hence items were pulled from the auction), share prices at Sotheby's dropping, and a slowing of sales. While all of this downturn is happening, there are new art fairs being launched (Art Paris Abu Dhabi for one), while high prices are still being paid for select items. What defines "select" is a question everyone interested in the art market is trying to determine! There is still a high interest in art in the world, as well as a great deal of liquidity coming from many different sectors in the world. Perhaps the art prices that were widely perceived as 'runaway' are finally being curbed. Amidst all of the art on the market, there are some great works. If someone falls in love with a piece and has to have it, price may not be an issue. Should price be an issue, consider sales and exhibit history, experts' opinions and the quality of the specific piece.