Much has been made in recent news regarding the downturn in auction sales of Blue-Chip Art. And it is true that high-profile auction houses, such as Christie’s, Sotheby’s, and Phillips, are having a difficult time compared to last year.
However, as with many diverse global markets, the art market does not stand or fall on one line of business; one person’s famine is another’s feast, which is undoubtedly the case with the world of private blue-chip sales.
Resilience of Private Fine Art Sales Amidst Auction Weakness
At the end of May, Robert Frank[1], Wealth correspondent for CNBC and author of the “Inside Wealth Report, “reported that “… While auction sales are weak, sales in the private markets and galleries remain strong…”. In the same article, Drew Watson, Head of Art Services for Bank of America, said, “… With private markets, you can be very targeted in terms of who you’re approaching, what type of buyer you’re approaching.”
Even Christie’s, known primarily for its high-profile auction business, recognizes the shift. Commenting on the successful private sale with a price “in excess of $100 million,” though the auction house declined to provide details, CEO Guillaume Cerutti commented that[2]”… private sales do especially well during periods of economic uncertainty.”
Factors Driving the Shift Toward Private Fine Art Sales
Several factors contribute to this. One that we at Emillions Art hear from our clients is that private, wealthy collectors no longer want the glitz and profile of the showcase art auction; instead, they prefer to do business quietly and make their investments “under the radar.” Another, perhaps more important factor, is the level of due diligence and provenance required by the private dealer.
With a high-profile auction sale, the auction house has little or no “comeback” if provenance and authenticity prove to be questionable after the sale: ” Caveat emptor” is the cry.
For the Private Dealer, the burden is much heavier. Failure to present “bulletproof” evidence of provenance, forensics, and authenticity (services) can destroy a reputation. The sales process may be slightly less involved, but both buyers and sellers have much greater assurance that the artwork is genuine
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The Emillions Art Commitment to Integrity and Confidentiality in the Fine Art World
Emillions Art is an independent private art dealer. We are proud of our reputation for exclusivity, dealing with our clients confidentially and with absolute integrity.
Yes, there may be a downturn in auction sales in 2024, but the outlook has never been brighter for private sales and collectors who choose to invest in relationships with independent dealers.
[1] https://www.cnbc.com/2024/05/10/art-sales-down-collectors-pull-back.html[2] https://www.cnbc.com/2024/02/29/christies-sells-rothko-painting-for-100-million-in-a-secret-sale.html