The $1 billion test for the art market

The high end art market is set to face a major test in the coming days as it deals with both falling sales and falling prices for one-of-a-kind pieces. Our Robert Frank joins us now with a closer look at the massive auction taking place and what’s plaguing the overall market. Robert, good morning. Good morning, Frank. Great to see. Well, this is the biggest sale of the year in the world’s biggest art market, more than $1 billion worth of art headed to auction at Christie Sotheby’s and Phillips next week. That’s down 17% from last year. And that’s if things go well. Auction sales fell 18% in the first quarter. Then you have contemporary art, that’s the big money maker. Over the past decade, that has plunged 48% in the first quarter. Dealers and collectors telling me the market is stalled over price. Buyers want a 20% discount. Sellers want prices back to the peak in 2022. The market is often defined by the supply that’s available. So we’re seeing, I think, what people perceive as perhaps a smaller offering this season. George Dyer, Lots of people in Britain there would love that, one that could go for 30 to $50 million. Christie’s has a big Bryce Martin piece called Event that’s estimated at 30 to 50 million as well. But the top artist of the week is Basquiat. He’s got this collaboration with Warhol at Sotheby’s estimated at 18,000,000. It sold in 2010 for 2.7 million, so that’s going to be a big return for that seller. And this Basquiat at Christie’s called the Italian version of Popeye has no pork in his diet. Love that title that has not been seen in public for 20 years. It’s estimated at $30 million. Now for more on the art market and where the wealthy are investing and spending their money, you can check out the new inside [email protected]/inside Wealth or use that QR code. Frank, you know Robert, that last one was a pretty interesting piece. Just out of curiosity, I have two questions for you. Does the American Popeye have pork in his diet? I feel like he only eats spinach. Also some of these haggling over prices that you mentioned. Is this at all, in your mind, a sign of weakness with the wealthy consumer? Yeah, not really. What’s interesting about the art market right now is that the auction market is very weak. But the private market where people are just buying and selling outside the auction is very strong. So the wealthy have a lot of money. They have a lot of cash. They want to buy what they want to buy, but they don’t want to put a piece. The sellers don’t want to put a piece up for auction and have a disappoint or not sell and then you’ve got a piece that’s worth a lot less. So the problem right now now is not the buyers, there is demand, It’s the sellers just don’t want to sell into this market because they’re still stuck on the prices of 2021 and 2022, which were sort of an unrealistic peak. So it’s going to be a question of when those sellers get realistic about price again. Yeah, you know, luxury spending lease here in Europe seems to be strong. By the way, one of your companies that you cover, Ferragamo, reported earnings today, shares up over 1%. Robert, always great to see you, man. Thank you very much.