Investments in Art Roaring Back

November 13th, 2009

Huge sales continue to beat expectations as collectors and investors start to buy art again.

Pieces by Andy Warhol, David Hockney and Alice Neal were among large lots sold for prices that have not been seen since before the recession.
Large auction houses like Sotheby’s or Christie’s host auctions and then take a percentage of the sale price of every lot.
Auction houses lowered expectations by 50-75% so that when they make large sales, it looks as if the numbers are better than they actually are. Still, selling a large amount of high-priced art is impressive, regardless of the recession.

Warhol’s 1962 “200 One Dollar Bills” sold at a Sotheby’s auction for $43.8 million. The seller originally paid $385,000 for the piece in 1986.
The Sotheby’s auction totaled $134.4 million against the company’s earlier/ estimate of $97.7 million.
Sotheby’s highest auction total was $362 million in May of 2008.

“The art vacation is over. Art has come back more than stocks or housing.” – Jack Tilton, New York Art Dealer