Category Archives: Investing in art

The Value of Picasso’s “Le Reve”

Le Reve, 1932 by Pablo Picasso has had quite the adventure since its creation. Created in 1932 by Picasso, this work was originally part of the collection of Victor and Sally Ganz who purchased the work in 1941 for $7,000. Put up for auction by the family in 1997, this work sold for $48 million to casino magnate Steve Wynn.

Le Reve, 1932 by Pablo Picasso

Almost a decade later in 2006, Wynn had the unfortunate accident of putting his elbow through the work. Now seven years later, fully restored, Wynn has sold the piece for a record $155 million to Steven Cohen the founder of SAC Capital. Cohen, along with Wynn, is one of the world’s biggest art collectors, with works by Van Gogh, Manet, de Kooning, Picasso, Cezanne, Warhol, Johns and Richter.

So what makes this piece so valuable? The first is the impeccable provenance and the second is the historical aspect of the work.  A portrait of Picasso’s famed muse Marie-Therese Walter, this work was created in 1932. Married and 45, Picasso spotted Walter in 1927 on a Paris street when she was 17. She would be the artist’s greatest love for the next decade, inspiring numerous paintings and sculptures.

The Marie-Therese period hasn’t always been considered Picasso’s finest hour in the art market as only his paintings from 1932 seem to hit it big. This can be seen with Le Reve’s auction in 1997, and in 2010 when Nude, Green Leaves and Bust sold for $106.5 million. La Lecture then went for $40.5 million in 2011 and Femme assise pres d’une fenetre sold for $45 million in February this year. So one can only assume that Cohen got a good investment, restoration and all.

Information Taken From:

Billionaire Steve Cohen pays $155m for Picasso’s Le Reve by Rebecca Clancy

Picasso Ceramics: Rising Stars of the Art Market

Picasso Ceramics. Two words that are causing buyers and sellers in this ever evolving art market to be incredibly pleased. Rising in demand the past few years, the Picasso ceramic market is one of the strongest out there. For evidence simply look at Christie’s two-day auction of Picasso Ceramics: The Madoura Collection that occurred in June 2012. The auction offered 543 lots, not all of them ceramics, but had a 100% realization. The total amount was $12,584,141, more than four times the pre-sale expectations $4,064,908.

Grand vase aux femmes voilées, 1950 by Pablo Picasso

The top lot of the Christie’s sale broke a world record price for a Picasso ceramic at auction, as Grand vase aux femmes voiles, 1950 sold for $1,145,407. A first for a Picasso ceramic produced in multiples to command more than a million dollars at auction. The previous world record price of $414,073 was set in December 2010 for Grand vase aux danseurs. What a difference a few years make huh?

Although the Christie’s sale and other notable auctions were critical to raising the profile of Picasso’s ceramics, other factors should not be overlooked. Prominent shows at museums and galleries, the media picking up interesting stories surrounding the works, and the dealers and collectors who have cherished the editions since they were issued have made a difference, too.

Set of Personnage avec mains sur les hanches (Vase with two high handles) 1952 and 1953 by Pablo Picasso- Sold by Masterworks Fine Art

The Picasso ceramic market as it stands now is dominated by two types of private buyers: wealthy professionals based in the UK who buy at the middle and lower range and the multi-million-dollar clients abroad who spend vast sums. As for the trade, only a handful of galleries worldwide specialize in Picasso ceramics, so participation at auction is minimal and finding quality pieces are difficult unless you have our amazing inventory to choose from.

Christie’s Information taken from:
Picasso Ceramics The Madoura Collection

Old Masters Continue to Master the Market

Old Master week this past January in New York saw record setting sells from multiple auction houses.  Fra Bartolommeo’s tondo of the Madonna and Child sold for $13 million, Thomas Gainsborough’s pastel Portrait of Caroline, 4th Duchess of Marlborough sold for $2.4 million, an artist record was set for Claude Lorrain when A wooded landscape was bought for $6.1 million, and Pompeo Batoni’s skillful Susanna and the Elders sold for $11.4 million just to name a few.

Pompeo Batoni’s 1751 painting “Susanna and the Elders” which sold for $11.4 million

All in all, over $126 million were spent on Old Masters, so what does that tell us about the Old Master market? Well first it tells us that there is a strong demand for the works. Whether they are paintings, reliefs, drawings, woodcuts, or etchings, there are buyers who are willing to pay, which means the value is consistent and will likely continue to increase. In particular when dealing with Old Masters there is a mindset among collectors that the exclusivity, rarity, and age of the work affect the value which is certainly true, making them such a wonderful investment.

This is the second thing that the phenomenal sales tell us, investing in Old Masters is worth the payoff. Old Masters are more difficult to navigate because of the different states and attributed to labels which can be off putting for art collectors, but with the right information, informed buyers are getting a wonderful investment. When purchasing from the right sources, a buyer can not only get what is visually and emotionally appealing to them, but have the security of knowing when the time is right, they can then sell the work for a profit.

Albrecht Durer Original Engraving “Knight, Death, & Devil, 1513″

One Old Master in particular that I favor is Albrecht Dürer, and my favorite work by him is one we currently have in our gallery titled Knight, Death, & Devil, 1513.  His attention to detail in this piece, especially in regards to the contrast of light and dark, breathes life into a fantastical scene that makes the viewer feel transported to a time long ago. That is the beauty within every Old Master piece, whether it be Dürer or Rembrandt, portraits or landscape, paintings or etchings, the amount of detail, dedication, and sense of intimacy created by the artist make such a work a delight to own.So when thinking about what art to invest in, take another look at Old Masters and you might just be surprised at the wonders that await.

Old Master sales information taken from the article:Surprising records set at New York’s Old Master sales By Paul Jeromack. Published February 1, 2013 on The Art Newspaper website.

Valentine’s Day: the Pleasure of Viewing Love in Art

With Valentine’s Day this week, the concept of love in art work is more prevalent than any other time of year. Ken Johnson, art critic for New York Times, provided an editorial musing about the themes of love he found in art around New York City including Metropolitan Museum of Art , and the Whitney Museum. From “Sleeping Eros” sculpture of the Greek god of love, to the erotic abstract expressionist work of Georgia O’Keefe, to the Statue of Liberty, Johnson explores the symbolism of love in art in its various formations and versions. Throughout all these examples, Johnson returns to art’s unique ability to evoke sentiment and substantiate his argument that the appearance of love in art can more truthfully explain the meaning of love over any dictionary definition.

Picasso’s mistress and one of his many muses, Marie Therese Walter

Interestingly enough a Picasso painting “Femme assise pres d’une fenetre“ of the artist’s mistress sold for $45 million,  over six times the amount it was last sold for in 1997, on Tuesday February 5th at the most recent Sotheby’s auction in London. While the extraordinary price says more about the growing value of Picasso’s work despite a struggling economy, I can’t help but ponder if the buyer was moved by the scent of love in the air. In fact, the other item that “had nearly stolen the limelight” earlier at the auction just happened to be another amorous creation, a series of works on paper by Egon Schiele, “Lovers (Self Portrait With Wally)”.

These works not only dealt with themes of love, but were direct

Picasso’s “Tête de Femme (Marie-Thérèse) [Head of a Woman], 1958″

translations from the artists’ personal lives. Picasso’s “Femme assise pres d’une fenetre” depicts Marie-Therese Walter, Picasso’s muse for many years, and a recurring model. She appears in our gallery in a lithograph and collotype, “Tête de Femme.”  As a viewer, my fascination with the muse may stem from a voyeuristic look into the artist’s life. It allows the viewer to pry into peer into the private first-hand perspective of the artist. We empathize with our artist, we admire as he admires. While Picasso had many muses, each one evokes sincere adoration. In both works Picasso uses an abstracted drawing style that exaggerates her features. She is beautiful, but not because of her conventionality, rather her striking angular features, and confident expression. This image of love does not appear contrived or symbolic, yet it still has the ability to affect the viewer, as we try to connect with Picasso and grasp his emotions during the conception of his works.

Picasso’s “The Embrace”

The recent Sotheby’s success is proof that I am not alone in my voyeuristic pleasure, and I may dare to suggest that Picasso could have enjoyed such a behavior as well. In the stunning, “The Embrace” by Picasso, the painter and viewer are observing the love of a couple. As if painted from a window, a man and woman’s intimacy is captured. The earthy red of female figure paired with the calming cool blues of her partner emanates the serenity and warmth of love. It is Picasso, the artist, who captures the moment, paying careful attention to color and composition in order to emphasize the mood. The work is still able to incite emotions, but we feel the other side of love, our instinctive longing for closeness. The removed perspective only intensifies this desire, as we crave the affection depicted in “The Embrace.”

Cited Citations:

Art as Luxury Items: The Demise of ‘L’art pour l’art?’

In this day and age, art is more of a luxury item than ever.  In a recent article in The Art Newspaper entitled ‘Can their love last forever?’ writer Charlotte Burns comments on the inextricable link between the art world and luxury brands.  Throughout the ages, art has accompanied the wealthy and the powerful.  From the Church to banks, art tends to follow the money trail.  Burns points out that, since 2008, the distribution of wealth has shifted upwards with an increased number of mega-wealthy individuals.  These individuals want it all yet, with art, they cannot always have it all.  This desire for the rare and luxurious items of art creates a high demand that drives the art market.

Andy Warhol

Stephen Bayler, author of The Art Newspaper’s ‘The first modern master of the art of branding’ points out that “art is the ultimate luxury product.” He cites two reasons for this: the rarity and the expensiveness of art.  Art may appeal to the masses, but it caters to the small percentage of individuals who have the money to back up their desires.  Bayler continues to point out that the value of a work of art is no longer determined by scholars or curators but rather by the media. Much like the infamous Kim Kardashian, artists today are transforming themselves into brand names and are often renowned for who they are rather than their accomplishments or artwork. Collectors are increasingly less interested in the aesthetic appeal of a work of art and more interested the artist’s name, which has likely been cleverly marketed and branded to create this intense desire for ownership.

Pablo Picasso

According to Bayler, Picasso was the first artist to create a brand name for himself.  He realized that, aside from his immense artistic talent, his wealth and success as an artist also fascinated the public, thereby contributing to the sale of his artwork. Bayler cites a few strategic marketing tactics that Picasso utilized to create his “brand” name.  First, he shortened his incredibly long name to simply ‘Picasso.’ Secondly, he controlled the distribution of his art so that the market was never flooded; this way, his art was always in demand.  Lastly, he knew how to appeal to the media and infiltrate key social networks.  He gifted art to renowned dealer Ambroise Vollard and befriended Gertrude Stein, securing his place (and his brand) in the art world.

Damien Hirst

Picasso paved the way for artists such as Andy Warhol and Damien Hirst. Through his strategic branding, his pieces became more than mere works of art; they were (and still are) high-demand luxury items.While works by famed masters such as Picasso, Warhol, and Hirst will likely never go out of style, a huge incentive to purchasing pieces by these artists is that they are generally considered solid investments. While the future of the art market is never clear, at the moment, art exists as much more than ‘l’art pour l’art.’ Works of art are luxury items presented for consumption by those few who can play the game.

Information derived from:

Bayley, Stephen. “The first modern master of the art of branding.” The Art Newspaper, 11 Dec. 2012.

Burns, Charlotte. “Can their love last forever?” The Art Newspaper, 11 Dec. 2012.

All hail the comeback kid: surrealism

MoMA is doing things first, as usual.

This month, the Museum of Modern Art, New York opens the first major museum exhibition to explore the early years of René Magritte’s unique brand of Surrealism. Salvador Dalí has also been granted his own one-man show at the Pompidou Center, Paris, opening in November. The institutional bustle makes it seem as though Surrealism’s stars are aligning.

"Les Amants", an early work by Magritte showing his interest in the hidden truth

“René Magritte 1926-1938” certainly reflects a wider trend in the art market. With a dwindling amount of high-quality Impressionist and modern artworks up for sale, auction totals in these areas – at one point astronomical – are leveling off. Surrealism – the erotically charged, awkward step brother of Impressionism – is finally having its day as top collectors search for the next big thing.

And works by Joan Miró, Magritte and Dalí are selling like hotcakes. Buyers have even started showing an interest in early Magrittes, traditionally overlooked in favor of his mature works.

Impressive records have been set in the past 18 months.  Dalí’s 1929 portrait of Paul Eluard, which was bought for a one-time record $2.3 million in 1989 at Christie’s New York, sold last February at Sotheby’s London for £13.5 million ($21.7 million). That landmark price for a Surrealist work sold at auction was toppled at the same auction house in June 2012, when Miró’s Peinture (Etoile bleue), 1927, went for a cool £23.5 million ($36.9 million).

The $37 million painting: “Peinture (Etoile bleue)”

Impactful yet demure, the works of Magritte seem but distant cousins of Dalí’s super-erotic dreamscapes. The connection is the intersection between waking life and dreams that both artists explore, and the unsettling effect created thereby. Specifically rendered detail in these impossible images betrays a mutual desire to depict an imagined world with enough precision as to make it real.

Writing for Artinfo, Judd Tully queries, “Given the recent spike in prices for all these sometimes nightmarish explorations of the 20th-century psyche, one naturally wonders: What is it about Surrealism that speaks to today’s collectors?”

The allure is surely based in the opportunity to own a small part of the fantasies and dreams of a most eventful century. Seeing an artist from your collection awarded a major retrospective can’t hurt, either.

Old Master Madness

Master Paintings Week is entering its twelfth season in London from June 29 to July 6 and the demand for Old Masters couldn’t be higher. Sure the Old Master market isn’t as flashy as the Modern Art market, but it produces a high percentage in the global art market, one whose value has doubled in just two years. An Art Price article discussing the booming Old Master market cites the increasing scarcity of masterpieces in circulation, along with the Chinese market demands for such works as the reason behind this increase.

Peter Paul Rubens "Massacre of the Innocents" , 1611-1612

With such a demand, it is interesting to note that Peter Paul Rubens’ Massacre des innocents, is still the most expensive work by an Old Master in the world, going for $69.7m at Sotheby’s London in 2002. To put that in perspective, the artist record for Joan Miró was just broken this past month. His 1927 masterpiece Peinture (Etoile Bleue) sold at a London auction for $36m, almost half of what the Rubens went for. Rembrandt’s Portrait Of A Man, Half-Length, With His Arms Akimbo sold for $36.4m in 2009 at auction, and  in 2011 an impression of Adam and Eveby Albrecht Durer sold for an artist breaking record of $514,787.

Rembrandt "Portrait of a man, half-length, with his arms akimbo" 1658

In the first round of sales devoted to Old Masters this year, the combined revenue for Christie’s and Sotheby’s amounted to $85.27m. This is due to the selectivity of the Old Master buyers who not only want an artist they can invest in, but art they can admire.

The Old Masters art market offers tremendous opportunities to buyers (particularly amongst the anonymous signatures and the “circle of” or “attributed to” works). Each of these sales is an opportunity to acquire a work steeped in history for just a few hundred or thousand dollars. There is an intrinsic quality of masterpieces without the fad of the fashionable signature to go along with a rich ownership history that adds to the increasing value of these works and make them a gem to own among the art world. So when considering art as an investment, feel confident thinking outside the modern and contemporary, as it might just be a better return for the money spent.

“Which Warhol’s Warhols’?” Australian Art Series Hotel Group to Offer Works by Tony Tetro

The originality of artwork is a delicate and hot topic these days. From the appropriation of other artist’s works to the revelations and prosecutions of devious operations, there is no end to the discussion which is why it was interesting to read the Art Series Hotel Group’s (a real estate group in Australia that purchases and displays fine art) plan for an art forum on the topic. They are approaching the topic in an unconventional way in regards to the competition they are offering that presents master imitator Tony Tetro’s Warhol’s, next to an authentic one by Warhol that will have guests guess which one is the true Warhol.

As tonytetro.com explains, Tony created works for over 30 years that replicated artists such as Chagall, Rembrandt, Dali, and Rothko. Tetro’s works were regularly passed off as legitimate works in museums, galleries, and auction houses around the world. Tony did six years in jail for using his “talents” and currently executes master copies for an exclusive list of elite clients from his studio in Southern California, which is topic for another discussion…  

Van Gogh original and imitator as presented by NOVA. Can you tell which is which?

Known for their elaborate promotional and forum ideas, such as their past event “Steal Bansky”; for this particular event, Tony was commissioned by Art Series Hotels to reproduce nine Warhol prints that would be hung alongside an authentic work by Warhol as a guessing competition for hotel guests. Whoever is able to spot the authentic Warhol will get to own the work, and for at least trying, the guests will be entered into a drawing for one of Tony’s. Tony’s art are to be clearly labeled by law with a definitive stamp, and in the company’s terms and conditions, they state that “none of these works must be entered into commerce or passed off as genuine by the winners.  The promoter shall not be held liable for any actions of the winner after they have claimed the prize”.

In an effort to promote the art forum, Art Series Hotels issued the following statement:

“It’s estimated that more than 15% of all paintings sold in the world are [unaccepted], and the namesake artists at Art Series Hotels are not immune.  With this in mind, we’ll be hosting a forum on art [originality] on Tuesday May 15th with Tony and other industry speakers.

We consider [the legitimacy of] art a serious crime, and an issue often swept under the carpet.  We are hoping this project stimulates discussion around [the legitimacy of] art and its impact. What does it mean for the industry, what’s the impact on the artists, how can you pick an [unaccepted artwork] from a real [one], what value do we actually place on art?”

It is certainly an engaging way to promote the issue, but is it the right way? One speaker pulled out of the forum after learning about the competition, and the Warhol Foundation is appalled at the decision to promote Tony’s art as items of value. There are fun and interesting ways to educate individuals on the seriousness surrounding the legitimacy of art and the impact it has on the market, but this I feel is crossing a line. The promotion and introduction of unaccepted works onto the market and the statement the competition is making about the value of them is deplorable, and whatever you, the reader may think, the Art Series Hotel Group is at least succeeding in their goal of creating a discussion about the topic which is one that needs to be addressed although maybe not in such a creative way.

Information obtained from:

The Fake Warhols Used as Prizes to Promote an Art Forgery Forum in Australia by Nicholas Forrest

Art Series Hotel Website

 

 

Spring Auctions Powered by “Trophy Hunters”

The auction season thus far has been truly exceptional. Record breaking sales and artist records are being made all over the place at Christie’s and Sotheby’s due to the rarity of the works being offered and those buyers who covet them. “Super-trophies” are what these rare works with strong provenance are known as, and the “Trophy hunters” are all too happy to buy them up which is great news for the art market and those invested in it through their own purchases of fine art.

Alexander Calder "Lily of Force"

One of four versions of Edvard Munch’s angst-filled pastel on board masterpiece “The Scream” (1895) sold for a record $119,922,500 at Sotheby’s, becoming the most expensive artwork ever sold at auction and the first to break the $100 million mark. A record breaking Mark Rothko oil on canvas, “Orange, Red, Yellow” (1961) sold for $86,882,500 from Christie’s Postwar and Contemporary Art evening sale in which 11 artist records were set while 40 of the 56 lots sold made over a million dollars. An Alexander Calder sculpture “Lily of Force” (1945) went for $18,562,500.

In total, the Postwar and Contemporary Art evening sale at Christie’s delivered $388,488,000, while Sotheby’s posted a $266.6 million evening Contemporary Sale this week, and a $330,568,500 result for their Impressionist and Modern sale last week.

Five artist records were set in the Sotheby’s Contemporary Sale. Francis Bacon’s ferociously distorted “Figure writing Reflected in a Mirror” (1976) and Roy Lichtenstein’s pretty, “Sleeping Girl” (1964) both sold for $44,882,500. While in the Impressionist and Modern Sale, Edgar Degas’s sublime “Danseuse au Repos” (1879), sold for $37 million.

Edgar Degas "Danseuse au Repos" (1879)

With so many great works available and the stock rising on artists such as Calder and Degas, now has never been a better time to jump into the art world and start collecting. Even if you can’t afford those million dollar originals, there is art available for everybody’s price range and taste.

The Rise of Hong Kong in the International Art Scene

Hong Kong is a bustling city of skyscrapers and commercial excess. It has long been known as a center of trade and finance, not as a Chinese cultural destination like Beijing or Singapore. However, as many articles explain these days, that image is quickly changing as an influx of international art ventures is helping Chinese galleries and artists to realize the potential of the city.

There are two main reasons why Hong Kong appeals to art ventures that want to establish themselves in Asia. The first reason being that the city is a gateway to multiple Asian destinations, which helps in selling and buying. The second reason is that the tax system in the city favors art. The import and export of art is duty free and there is no sales tax, therefore costs are cut to a minimum, which means a bigger return can be yielded.

ART HK Ad

These unglamorous truths do not in any way mean to diminish the art scene but provide the basis for understanding why galleries, auction houses, museums, and artists are being drawn into the city and making it such a vibrant cultural destination. The start of which all came from the ART HK fair held every year in which attendance numbers kept rising, and gallery participation kept increasing.

The art fair began this spiral of success for the city where international galleries run by Gagosian and Ben Brown established themselves to capitalize on the fair, with several more prominent ones set to open this year. Auction houses, seizing on the private market and location, have set record breaking numbers in Hong Kong over the course of the past two years to make China the number one art market in the world.

With such a dominant collecting atmosphere, the international community is donating art and building museums and co-ops in the city to encourage international visitation and support local artists. One of the largest contemporary art museums, called M+, is set to open in 2018 and will house collections that rival both the Tate and MOMA.

Plans for M+ Museum Image: West Kowloon Cultural District site

The art community in Hong Kong is still relatively small due to the high cost of living, but with the influx of such great endeavors people are beginning to realize that you can make a career out of art. With this being just the beginning of the Hong Kong scene, who knows what brilliant artists, shows, or sales is to come but it is certainly something exciting to look forward to.

Article: Hunt, Katie. Hong Kong Art Scene Takes Off. Sotheby’s at Auction (March 2012).