This version of the article first appeared on CNBC’s Inside Wealth Newsletter. This is Robert Frank, our weekly guide to Net-Worth Investor and Consumer. Sign up to receive future editions directly in your inbox. The Art Market is about to face its biggest test since the November election, with about $1 billion coming under the New York hammer next week. According to Arttactic, Christie’s, Sotheby’s and Phillips offer 295 works together. This would increase by 2% in auction totals last spring, with dealers and art advisors saying the final amount likely to exceed $1.1 billion. Any profit will be a welcome change for the global art market, which has been declining for two years. Despite the strong stock markets in 2023 and 2024, higher interest rates and inflation fears are putting pressure on prices and sales. Auction houses and dealers condemn supply. They say there hasn’t been a sale of marquees, like Paul Allen and McLaw’s collections in the past few years to attract bidders. And they say that the live sellers hold on their top pieces until the price rebounds. Others say that China’s economic weakness, the Ukrainian war and slowdown in Europe have reduced the number of large collectors who open their wallets for trophy works. Current tariff uncertainty and fear of recession could cause collectors to pause more massive purchases. This week’s headliner is Giacometie Bronze Bust, offering between $70 million and $90 million at Sotheby’s. Sotheby’s sells a collection of 40 works from the private collection of renowned artist Roy Lichtenstein. Christie’s sells works from the collections of Louise and Leonard Riggio, who built the Barnes & Noble Bookstore chain. The collection, which is expected to exceed $250 million, includes Mondrian’s “big red plane, bluish-gray, yellow, black and blue composition,” which could potentially sell for more than $50 million. It also includes rare Picasso and Magritte. Christie’s also sells works from the Anne and Sid Bass collection, which are estimated to be over $60 million. In an exclusive interview with Inside Wealth, Christie CEO Bonnie Brennan said collectors view art as a safe haven in an uncertain world, and that sales are ready for rebound. “I think art is a place where people come back for a source of peace, calm and stability,” she said. “We’re very interested because this season it’s a bit of a getaway.” Below are some of Brennan’s comments on the May sales and the state of wealthy collectors. “The past few weeks have been a real roller coaster. We are a market that thrives in stability. So these are times when we are trying to navigate and give client guarantees. This is one of the things we are very confident in is the best collection ever. Regarding the impact of stock market volatility, we are market sensitive. It is inaccurate to say other things. But we don’t see any direct correlation. We study the history of market interactions with markets. Sometimes, we can say finance. Given the volatility in the market, many people feel that it’s safer to buy high quality blue chips. In particular, the global sales we’ve had since the announcement of tariffs in Paris hopes for a big supply in Paris. Regarding the supply issue, “Supply this year is very strong. We didn’t have the same supply last year. There was no problem with demand. It was always a problem with the issue of presenting the supply to a global audience.” I was busy this January this year than in the past decade. Then in March I travelled around the world for sale in London. Hong Kong at the end of March and Paris in April – all sales centres, we were really excited. “$250 million Len Riggio Collection” “Our business is more about storytelling than just art. And we feel so lucky, so this season we have a great story to tell. The biggest story of the season is the story of Len and Louise Rigagio. I love it because it’s an American story. It’s a story of a homemade man. He bought a college bookstore and transformed it into something many of us, certainly our generation, remembered as the greatest bookstore, Burns & Noble. “Len was always in the second row of the sale room with the paddle raised. We didn’t know what he was going to bid on. We loved him being in the sale room. He bids on the dinosaurs. He bids on Mondrian. And we saw his true passion as a collector and what someone would buy and saw what he actually talked about. In the next generation of collectors, we said, “We have to build the next generation of collectors to continue our business. We’ve been around for 250 years, but we have to maintain our future by making sure that young people feel they are relevant to them. Hmm. They want to talk to us. We have to bring them through digital art and interrupt their paths with some of the more traditional ones. If we can encourage people to come here instead of Tiffany, then just buy a ring, and on the road to buy engagement rings, anniversary presents, watches, show us great prints of Liechtenstein or Warhol at prices they can afford. These are the kernels, the seeds that will build the gardens of future collectors. “The world map of demand will see strength from America. America is a very backbone. Almost half of our business comes from (US). But we need to keep our focus on Asia. Asia typically costs 20% to 30% of sales. I think there is a possibility that activity from Europe will increase due to the strength of the euro and the strength of the pound against the dollar. There may be a perception that things are a bit discount for them in the sale in May. “On Selling Celebrities” One of the most surprising categories for me is my passion for instruments, guitars. Jeff Beck, David Gilmore, Mark Knopfler. All of these sales introduced us to a new audience of buyers. I really see the power of celebrities that have been in place for a long time as an opportunity to do so much of what we want to do. I would like to introduce Christie’s to a larger audience. We want to accommodate what young buyers want. ”
This version of the article first appeared on CNBC’s Inside Wealth Newsletter. This is Robert Frank, our weekly guide to Net-Worth Investor and Consumer. Sign up to receive future editions directly in your inbox.
The Art Market is about to face its biggest test since the November election, with about $1 billion coming under the New York hammer next week.
