A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register to receive future editions, directly in your reception box. The art market has been about to deal with its biggest test since the November elections, with more than a billion dollars of work under the hammer in New York next week. Christie's, Sotheby's and Phillips offer 295 works together for a low -end estimate of 952 million dollars combined, according to Arttactic. This would mark an increase of 2% compared to the total spring auction of last year, and the dealers and artistic advisers claim that the final amount should exceed $ 1.1 billion. All gain would be a welcome change for a global art market which has been down for two years. Despite solid stock markets in 2023 and 2024, higher interest rates and inflation fears have put pressure on prices and sales. Auctions and dealerships blame the offer. They say that there were simply no sales of capitals, such as the Paul Allen or Macklowe collections for past years, to attract bidders. And they say that living sellers keep their best work until prices bounce. Others say that economic weakness in China, war in Ukraine and slowdown in Europe have reduced the number of large collectors opening their portfolios for trophy work. Current price uncertainty and recession fears can lead collectors to more suspend large purchases. The headliner of the week is a Giacometti bronze bust offered at Sotheby's for $ 70 million and $ 90 million. Sotheby's also sells a collection of 40 works from the private collection of the famous artist Roy Lichtenstein. Christie's sells works from the Louise and Leonard Riggio collection, which built the Barnes & Noble bookstore chain. The collection, which should bring in more than $ 250 million, includes the “composition of Mondrian with a large red plane, bluish gray, yellow, black and blue”, likely to sell more than $ 50 million. It also includes a rare Picasso and Magritte. Christie's also sells works from the Anne and Sid Bass collection estimated at more than $ 60 million. In an exclusive interview with Inside Wealth, the CEO of Christie, Bonnie Brennan, said that collectors consider art as a safe refuge in an uncertain world, and that sales are ready for a rebound. “I think art is always a place where people come back for a source of peace, calm, stability,” she said. “We have seen great interest this season because it's a bit of an escape.” Here are some of Brennan's comments on May sales and the state of the rich collector. On the disorders and prices “The last weeks have been real roller coaster. We are a market that prosper in stability, so these are times when we try to navigate and give our customers insurance. Total collection. On the impact of stock market volatility” we are sensitive to markets. It would be inaccurate to say something else. But we do not see a direct correlation. We study the markets and the history of the way our markets interact. Sometimes we are late. Given volatility on the financial markets, many people feel safely to buy a quality of volatility in high quality financial markets. [art] works. It is a safer place to put their money. And that is why we feel very confident at the moment, especially because we have such beautiful works by Blue Chip. The world sales that we have even had since the price announcement in early April, with great strength in Paris, gives me hope that if we can continue to fill the pipeline with a large offer, we will continue to see the demand. “On the supply problem”, the offer we have this year is so strong. We did not have the same supply last year. We have no problem with demand, it has always been a problem to ensure that the supply present to the world public that we have. “January was a great kind of unlocking of the supply. I was more busy in January than in the last 10 years. Then we went around the world for our sales, London in March, Hong Kong at the end of March, Paris in April – all these sales centers, we saw real excitement.” On the Len Riggio collection of 250 million dollars “our company does not only concern art, it is a narration. And we feel so lucky that this season, we have such beautiful stories to tell. The biggest story of the season will be the story of Len and Louise Riggio. I love it because it is an American story.” Len was still in the second row of the sale with its high ward. You never knew what he was going to submit to. We loved having it in the sales room. He would bid on a dinosaur. He would bid on a Mondrian. And this true passion as a collector – someone did not say to Len what to buy. He came and saw and bought what really talked to him in the moment. “In the next generations of collectors”, we must build the next generation of collectors in order to operate our business. We have been there for 250 years, but we have to support our future by ensuring that young people feel that we are relevant to them. How do we do that? We do it in what we sell. The art of the 21st century is an example. We started this category several years ago so that we can celebrate the voices of young artists, colored artists, under-represented artists, female artists. This is what the young people told us. They wanted technology. They are native numerically. They don't want to talk to us, they don't want to call, and they want to do everything in an easy and transparent way, on their phone. They want to bid online. So 80% of our offers last year came from online tools. “I think that when we look at young people, we must educate them. We must bring them by digital art and interrupt their path with perhaps some of the most traditional things. If we can encourage people to come here instead of Tiffany, let's say to buy a ring, and on this path to the purchase of an engagement ring or a present anniversary or a watch, show impressions, Kerders, Semences, Price. [the U.S.]. But we have to stay focused on Asia. Asia is generally between 20% and 30% of our sales. I think we will potentially see an increased activity in Europe due to the strength of the euro and the book against the dollar. There could be a perception that things are a bit of a discount for them in May sales. “By selling celebrities” one of the categories that were the most surprising to me is the musical instruments, the passion for guitars. Jeff Beck, David Gilmour, Mark Knopfler. All these sales presented us with a new audience of buyers. I really see the power of celebrity, which has been in place for a long time, as an opportunity to do so many things that we want to do. We want to present Christie's to a wider audience. We want to respond to what young buyers want. “”
A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register To receive future editions, directly in your reception box.
The art market has been about to deal with its biggest test since the November elections, with more than a billion dollars of work under the hammer in New York next week.