Just in case there were still any doubts about that art market crash, here’s Bloomberg on the results of the latest London art sale:
Nov. 26 (Bloomberg) — About 60 percent of the lots in a London auction of Russian art failed to sell last night as collectors said prices and estimates were too high. MacDougall Arts Ltd.’s sale of Russian 19th-century and 20th-century paintings raised 5 million pounds ($7.68 million), below the presale low estimate of 12 million pounds.
The London- based auction house said its first-ever evening sale ended with “just under 40 percent” of the 62 lots sold. The top two lots accounted for about 40 percent of the total value sold. “The poor results today were due to very high estimates and the fact that the market is waiting,” said Alexander Tabalov, a collector from Kiev. “Some potential buyers are waiting for prices to go down.”
Sotheby’s, Christie’s International and Bonhams are also holding Russian-art auctions in London this week, with dealers saying the billionaire-led boom is over. The country’s art- auction prices have risen for nine years, fuelled by an economy that benefited from charging buyers records for oil and metals.
Speculation, meanwhile, is also rife that Damien Hirst’s record auction in September, which fetched £111m at Sotheby’s, has run into trouble. Some in the art community say up to three quarters of sales agreed may actually have failed.
Dealers are now pinning their hopes on next week’s Art Basel Miami fair, which they say could be critical in determining just how severe the fall will be. Over 200 galleries will be showing their best work, hoping to draw collectors from around the world. It’s expected, however, that one key clientele base, the hedge fund manager, could be particularly missed.
Felix Salmon even notes things are so hard-up at galleries, some are even considering cutting back on the variety of drinks served at showings to save on bar people in Miami. Being the art market though, beverage streamlining means offering blanket champagne instead. Yes, yes, Salmon takes issue.