The art market is millions of dollars game played by elitist clubs. Only high-power players are allowed, and the power in the industry is highly concentrated. His small world of high finance is held mainly in three countries:
China (Hong Kong)
How big is the Chinese art market? According to the Art Basel and UBS Global Art Market Report, the value of art sales in mainland China and Hong Kong fell 14% in 2022 from the year before to $11.2 billion. That was the lowest level since 2009, apart from the first year of the pandemic in 2020 when sales were $10 billion.
The United Kingdom (London)
The United Kingdom is a central hub for the global art trade and the leading European art market. In 2023, the UK’s art market sales rose 5% to $11.9 billion, still below the 2019 pre-pandemic level of $12.2 billion.
United States (New York).
Bustling art fairs, successful auctions at the high end, and busy in-person exhibition schedules contributed to a rising market. The US remained the top market, commanding 45% of global sales by value in 2022 and growing by 8% year-on-year to reach $30.2 billion, its highest level to date.
Prominent artists considering investing globally are represented mainly by a few leading galleries. Pace, Hansser, Wirth, and Gagosian are some of them. Artists carried by these galleries are a guarantee of recognition and succession.
Collectors and Auction houses.
The collectors usually purchase a piece they appreciate; picking a niche, like a specific period, a style, or an artist, will help build the collection together. The next step is to boost the value of their investment; the method is simple: when the auction house publishes a work that fits in his niche, it will be vital that he is part of the bidding; if he wins, he added to his collection if he loses he actively help raised the price of his niche, it is a win-win game. Auction houses are also the winners, as they get up to twenty-five percent of the sale price paid by the buyer.
Christie’s Auction House.
Christie’s auction house was founded in 1766 by James Christie in London, England. It started as an auctioneer of books and gradually expanded to include art, furniture, and other valuable items. Throughout its history, Christie’s has been known for its prestigious clientele and the wide range of things it auctions, including fine art, jewelry, collectibles, and more.
Over the years, Christie’s has built a reputation for its expertise, exclusivity, and record-breaking auctions. Notable sales include iconic works of art such as Leonardo da Vinci’s “Salvator Mundi,” which sold for a record-breaking $450 million in 2017, and rare collectibles like the Pink Star diamond, which sold for over $71 million in 2017, making it the most expensive gemstone ever sold at auction.
Today, Christie’s operates globally with auction houses in major cities worldwide, including New York, Paris, Hong Kong, and Dubai. In addition to its auctions, Christie’s offers various services to individuals, institutions, and artists, including private sales, valuations, advisory services, and educational programs. The auction house is at the forefront of the art market by embracing technology and innovative approaches to connect buyers and sellers worldwide.
Sotherby Auction House
Samuel Baker founded the company in 1744 in London and later partnered with Georg Leigh to form Baker and Leigh. In the early years, Sotheby’s primarily focused on selling books, manuscripts, and other literary works. However, it quickly expanded its offerings to include various collectibles, including fine art, jewelry, antiques, and decorative objects.
Over the centuries, Sotheby’s has earned a reputation for conducting high-profile and record-breaking auctions. Notable sales include the auction of Vincent van Gogh’s “Irises” in 1987, which fetched a staggering $53.9 million at the time, making it one of the most expensive paintings ever sold. Sotheby’s has also sold rare and historic items, such as the Magna Carta, the Declaration of Independence, and even dinosaur skeletons.
These auctions have attracted global attention and solidified Sotheby’s position as a leader in the auction industry. Like Christie’s, Sotheby’s operates globally, with auction houses in major cities worldwide, including New York, London, Paris, and Hong Kong. It serves a diverse clientele of collectors, dealers, and art enthusiasts worldwide. In addition to its auctions, Sotheby’s offers various services to clients, including private sales, valuations, and advisory services.
The company also organizes specialized sales and thematic auctions to cater to specific interests and niches within the art market. Overall, Sotheby’s has become a significant player in the art world, known for its expertise, high-quality offerings, and historic sales.
Worth of Art Work
Lichtenstein Roy was an assistant professor at Rutger University years ago; Leo Castelli Gallery presented Lichtenstein’s first one-person show. All his paintings were sold before the opening, and with such great success, Leo Castelli and Lichtenstein began an almost exclusive relationship. After he died in 2020, Lichtenstein’s “Nude with Joyous” was sold at Christy by a private collector for over forty million! The buyer paid over forty-six million dollars, of which close to six million was Christy’s commission.
Here is another more poetic but true story: in 1952, a couple, Minnie and Laurent Kutz, bought a painting in a small auction during a trip to England. The picture looked like a copy of Leonardo Da Vinci. In 1987, Basil Clovis Hendry, the nephew, inherited the artwork. In 2004, Basil Hendry’s daughter Susan Hendry Tureaud put his father’s estate to auction; the painting was appraised to be worth twelve to eighteen hundred dollars. Alexander Parish and Robert Simon from the Robert Simon Gallery bought the piece on a gamble.
In 2011, they got a definitive validation from the London National Gallery, where they exhibited the “Salvator Mundi,” and the label read “Leonardo Da Vinci. They sold the piece for eighty million dollars to another gallery, who sold it to a Russian collector for one hundred twenty-one million dollars, who put it for auction at Christy Auction House, who sold it for more than four hundred fifty million dollars to Prince Mohammad bin Salman. These examples show the vast discrepancy in the appraised value of artworks before and after an “established” expert on subjective criteria recognizes the works.
Final Words
Let me finish by asking you, do you think that the original buyers of the “Salvator Mundi” would have been able to convince the small world of the art market that the painting they bought at a small auction in England was a reel, Leonardo da Vinci? I wonder if they could have even got an appointment with a curator, gallery owner, or auctioneer. There is now a program called “Antique Road Show.” hundreds of people line up for hours to present their artwork purchased at a local auction or inherited to the experts; you never know where the next long-lost painting of a famous master will be discovered, Christie’s or Sotheby’s are standing by.
