Planning on buying some art?
I wanted to focus on the political and social issues in todays art, but I realized that art always has a social message. Art is made to critique the everyday world and that cycle will continue to renew itself with every new generation. For every Pop artist and Surrealists, there will be a modern day artist to take their place. So to move on and focus on something that has truly become an issue in art (and an issue I believe will become more prevalent in the near future), I would like to discuss the rising costs of art. More and more private collectors are dominating the art market, resulting in art that is selling for well over their appraisal prices. This seems normal for a commodity that is regularly viewed as a luxury item, especially when the lines between celebrity and artists are so often blurred, but with so many anonymous buyers controlling the auctions, how are the people supposed to get to the art? I will focus on that question another time, but for now I would like to review an article from a year ago in the New York Times. Writer Carol Vogel followed the auction house Sotheby’s, in the article “Rothko Breaks a Record for Contemporary Art”, and uncovered how in one night they sold nearly $260 million worth of art. May 15, 2007, Sotheby’s sold the record breaking “White Center (Yellow, Pink and Lavender on Rose)”, by Rothko, for an astounding $72.8 million dollars. The buyer was annonymous and according to Vogel,
“The $72.8 million he paid, far above the painting’s $40 million estimate, set records for both the artist and for any contemporary work at auction.” (Vogel, New York Times, May 16, 2007)
Rothko’s “White Center (Yellow, Pink, and Lavender on Rose)”
This brings up the question of “where are the buyers coming from?” Vogel mentions in her article that the auction held that night had currency from around the world, hinting that buyers from previously underrepresented countries are beginning to make a presence in the market.
“Seasoned auctiongoers noticed that last night rubles appeared for the first time on the salesroom’s currency board, along with dollars, euros, pounds and Swiss francs — an indication of the strong presence of big-spending Russians in the art market.” (Vogel, New York Times, May 16, 2007)
To emphasize the increase in art collecting, Vogel points out that there were 74 pieces to sell and only nine of them were not sold. In addition to Rothko, four other artists broke records for high selling prices, including Morris Louis (whose work can be seen at the newly renovated LACMA).
The main point of thins article, which Vogel helpfully explains in the end, is the fact that Sotheby’s made so much money that night because they did a wonderful job of advertising as well as trusted that the rising prices in art would continue to rise. For example, Sotheby’s promised the seller of the Rothko piece, who happened to be David Rockefeller, that it would make $46 million dollars. The estimate of $40 million was already near double the price another Rothko made at auction previously. Shockingly, in 1960, Rockefeller bought the piece in question for only $10,000 and was now earning substantially more for it.
Another big jump in price that Vogel writes about was the selling of Basquiat’s untitled painting from 1981. The piece was estimated to sell for close to $8 million, but because of Sotheby’s good timing and trust in the rising market, the piece took in $14.6 million from another unidentified buyer. Vogel explained:
“Again, Sotheby’s gambled well. Six bidders went after the painting, which sold to yet another unidentified telephone bidder for $14.6 million, nearly triple the previous $5.5 million record set at Christie’s in 2002 . The New York collectors Barbara and Eugene Schwartz bought it for $3,150 the year it was painted” (Vogel, New York Times, May 16, 2007)
Vogel’s article gives great insight into the changing world of art auctions and collecting. The market is becoming more expensive and staggering prices are even baffling the regulars at the auction houses. One important thing I took from this article was that there are new buyers beginning to collect and less museums buying for their exhibits. This switch in consuming may be the key to the skyrocketing prices, if people are willing to buy, museums may not stand a chance next to private wealth.
Vogel, Carol. “Rothko Breaks a Record for Contemporary Art.” The New York Times, May 16, 2007, sec. Arts / Art & Design. http://www.nytimes.com/2007/05/16/arts/design/16auction.html?em&ex=1179460800&en=4aeb9f83725ccd5b&ei=5087%0A.
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