In the latest review of the contemporary art market, prepared by Artprice.com, examines the period from July 2010 to July 2011.

main event last year, of course, was the shift the main center of power from West to East. For the first time the main market area in the art world is China. New records were set on the market of contemporary art in the South Pacific, far from economic disturbances in the U.S. and Europe. In fact, if we compare in quantitative terms (but not on price) in 2011 for Contemporary Art has become a record. In addition, more than ever, active bargaining for his work in the top segment. But how long will this vigorous growth? The current government's debt crisis is unprecedented and risks undermining the health of the market of contemporary art.

Art and the Crisis

Market Contemporary Art could not effectively resist the great recession. Confirmation of this many people have seen at first in 1991 and then in 2008-2009, when only some night creatures Contemporary Art could lose more than 50%of the price. Work in the middle and top segments respond to crises with a certain delay (from quarter to one year), but the process can be accelerated after such landmark events as, say, the collapse of Lehman Brothers September 15, 2008. Up to this turning point, the art market tried to ignore occurred in the financial markets and dismal events in the period from 2006 to September 2008, recorded the results of over a million dollars more than in any previous period.

But after only 48 hours after the declaration of bankruptcy Lehman Brothers caused a serious price correction in the market and Contemporary Art. Since then, the art market, sadly, went hand in hand with the economic crisis: in six subsequent months (September 2008 - March 2009) the S & P 500 fell 45%, followed by the prices on the art market lost 34%. As for modern art, from January 2008 to December 2009, it lost 42.8%from the previous, pre-crisis prices.

but effective methods to combat the crisis have helped auction houses quickly enough to recover : for this they refused to issue guarantees to sellers, stopped and began to force up prices to adjust supply in the art market by customer demand. As a result, prices on the art market in late 2010 returned to the level of prices in 2007.

art market is now thrown a new challenge - the debt crisis of the summer of 2011, and so far it seems that financial turbulence of the current year on the art market have no effect (however, the same sensation occurred in 2008). While European stock indexes fell in unison (eg, major stock market index CAC 40 in France in July - August 2011 lost more than 20%), demand in the top segment of the European art market, fueled by countless investors and new customers from the East, in remain stable.

From past experience, found that one of the reliable indicators of the state of the art market is the level of unsold lots in the Contemporary segment. During the reporting period (July 2010 - June 2011) an average of no buyers were 37%of lots (for the period July 2008 - June 2009 it was 43%of lots). That is, until the proposal is consistent with demand.

Artprice also offers a look at its index of consumer confidence in the art market players (Artprice's Art Market Confidence Index). In September 2008 the index of AMCI expressed very optimistic view of economic prospects (50%of respondents expect recovery of the economic situation in the next three months, and 60%referred to the favorable economic situation), in addition, two thirds of respondents expected to increase prices for works of art. This year (the last survey was conducted September 12), the art market experts are pessimistic look on the current and future status of the art market. Thus, 42.8%of respondents expect that in the next three months the situation in the art market will be unfavorable. Despite this, the activity of buyers remains high: 66%of the respondents expressed their intention to make a purchase. After the "historically" successful semester may be that the art market professionals are better prepared for another crisis, and more clearly see how things work in their sector. An accelerated pace the allure of gold and other alternative investment options; return periods of instability attractiveness art as a more reliable form of financial investments.

Art as alternative investment direction

In the past year (July 2010 - June 2011), disturbances in the financial markets, adds weight to the two types of investments - in precious metals (gold), and the arts. The gold price in two years has doubled, and the art market has experienced the best half-year in its history (January - June 2011).

In 2011, the Art Market players are more cautious (after hard lesson in 2008), in general, investment in the arts can be a viable alternative to other kinds of assets that can depreciate in an unfavorable period. Application of new business strategies on the art market (on-line auctions, fairs, art on the Internet, increased dissemination of information, communication, the world's leading experts in the online, open markets, etc.) simplifies the process of investing in the art market, which is more not in any way not a market "for their».

Based on past experience, are considered the most reliable investments in the works of Old Masters, Impressionist and Modern (best of all listed works by artists who were born between 1850 and 1950.). In the first half of 2011 brought a modernist auctions 2.365 billion euros, the post-war art - 792 million euros, and contemporary art - 496.8 million euros. For the work of the XIX century auctions rescued 361 million euros, and for the Old Masters paintings - 317 million. Of the one hundred best auction results of the first half of 2011, only eight have been achieved with modern art, whereas in 2008 the most successful in one hundred fifteen lots owned by such artists as Jeff Koons, Damien Hirst, Takashi Murakami and others

Contemporary art market, though having a volatile nature (added 30%between 2004 and 2005, lost 38%between 2008 and 2009, scored 27%from July 2010 to June 2011), but continues to attract first-time collectors on their fairs and auctions. If you consider the whole decade 2001-2011, contemporary art has increased in price by 50%.

best half-year in the history of the art market

In the first six months of 2011 the dynamics of the art market was even better than in the peak period of 2007-2008: a worldwide auction proceeds first half of 2011 totaled $ 6.3 billion, up 34%more than in the first half of 2010 and turnover of more than 2009. Good feeling top segment: lots of 1 million euros more expensive successfully went under the hammer 84%(three years ago it was 69%). And if you count in pieces, rather than a percentage, the more expensive lots were sold a million euros 663 (in the first half of 2008 - to less than 200 lots).

better things and went to a segment of contemporary of art. Only 35%of lots in the Contemporary-market customers were left without (two years ago it was 44.7%). In the first half of 2011 contemporary art brought the already mentioned 497 million euros (in the first half of 2008 - 520 million) and for the entire period (July 2010 - June 2011) revenue of Contemporary Art totaled 895 million euros (in the same period 2009-2010 only 501 million euros). During this year (July 2010 - June 2011), a record number of papers have changed owners in the market of contemporary art - the number had reached 37 400.

a record this year was the number of results and over a million euros in segment of contemporary art. In 2000-2004 an average of only six works by contemporary artists to step one million copies each year, in 2005-2010 the average number of lots was 47 million more (except in 2007-2008, when these results, it was 120). But this year (July 2010 - June 2011) as much as 125 works of contemporary art went under the hammer million euros more expensive. If at the beginning of the millennium such advances of modern art have been the exception rather than the rule, now it is in the order of things.

Top-10 auction transactions (July 1, 2010 - June 30 2011) with works by artists born after 1945

1. Jeff Koons (Jeff Koons) . Flower from a balloon (Blue). 1995-2000. 10,8 million euros. November 10, 2010. Christie's, New York.

2. Jeff Koons (Jeff Koons) . The Pink Panther. 1988. 10,44 million euros. May 10, 2011. Sotheby's, New York.

3. Chen Yifei (Chen Yifei). Wind mountain village. 1994. 7,78 million euros. May 24, 2011. China Guardian, Beijing.

4. Zhang Xiaogang (Zhang Xiaogang). Eternal Love. 6,3 million euros. April 3, 2011. Sotheby's, Hong Kong.

5. Peter Doig (Peter Doig). Red Boat (Imaginary Boys). 2003-2004. 6,2 million euros. June 28, 2011. Christie's, London.

6. Jean-Michel Basquiat (Jean-Michel Basquiat). Untitled. 1981. 5,3 million euros. June 28, 2011. Sotheby's, London.

7. Do Bin (Wu Bing). Landscape. 1999. 4,8 million euros. June 4, 2011. Poly International, Beijing.

8. Chin Shunko (Jin Shunkui). war. 4,7 million Euro . December 21, 2010. Beijing Jiuge, Beijing.

9. Zhang Xiaogang (Zhang Xiaogang). Pedigree: a large the family. 1995. 4,53 million euros. April 4, 2011. Sotheby's, Hong Kong.

10. Jean-Michel Basquiat (Jean-Michel Basquiat). «Dos Cabezas». 1982. 4,5 million euros. November 10, 2010. Christie's, New York.

China: the movement from East to West and from West to East

In the end of 2010 Artprice site first reported on a change of leader of the global auction market: three years spent in China to circumvent the permanent leader for half a century - the U.S. and the UK - and take first place on the auction proceeds in the world (for more details - here ). The share of the Chinese art market in 2010 was 33%, U.S. - 30%, English - 19%, and French - 5%. China consolidated its success in the first half of 2011: sales of works of art in the Middle Kingdom brought 1.6 billion euros, and again the UK and U.S. have been left behind with the results of 1.2 and 0.96 billion euros, respectively.

If we consider separately the segment of contemporary art, here China leaves no chance of winning the West: Contemporary art sale in the Middle Kingdom for the period July 2010 to June 2011 yielded 390 million euros, while in the U.S. - only 227 million, and in the UK - 177 million. Followed by France (20 million euros), Taiwan (9 million) and Singapore (7 million). It turns out that in the period under review the Asian region (China, Taiwan, Singapore) brought almost half of the global auction sales in the segment of Contemporary Art (406 out of 895 million global turnover).

Chinese collectors and investors, As a rule, young (under 50), well equipped and prefer to work countrymen. Chinese art of buying a lot and for expensive: as a consequence, as many as five Chinese names in this year entered the top 10 contemporary artists in the general auction turnover of money. For comparison, in the period from July 2009 to June 2010 by Chinese authors in the same rating were only two (see here < /a >).

Top 10 contemporary artists in the general auction turnover of money (July 2010 - June 2011)

1. Jean-Michel Basquiat, 54,709,532 euros, 62 Lot

2. Zeng Fanchzhi, 39,246,785 euros, 63 Lot

3. Jeff Koons, 30,189,587 euros, 68 lots

4. Zhang Xiaogang, 30,062,860 euros, 61 Lot

5. Chen Yifei, 28,353,024 euros, 49 lots

6. Richard Prince, 18,324,243 euros, 61 Lot

7. Idun Wang, 16,231,154 euros, 33 Lot

8. Takashi Murakami, 15,784,849 euros, 560 lots

9. Damien Hirst, 14,807,602 euros, 249 lots

10. Zhou Chunya, 14,552,336 euros, 109 lots

Except for a few discerning collectors, while most of Chinese contemporary art buyers - is primarily a way to make a subsequent resale. In addition, purchases made for prestige: the contemporary art has become as a symbol of luxurious living such as clothing brands. Asian buyers, perhaps not yet enough sophistication of Western counterparts, but a growing number of art fairs and exhibitions in the Middle Kingdom, this may soon change. Western auctions, galleries, artists and dealers are eager for the Asian market, but this time the Chinese auction market giants Poly and China Guardian begin their expansion in the West (read more - here ).

Christie's and Sotheby's

Titans Art Market from Christie's and Sotheby's, which in 2008 got it for a further 72%of the global auction sales, this time managed to "bite" only 53%of the global market pie. Chinese auction houses literally "come on the heels of them": seven out of ten of the leading auction houses are now in the Celestial Kingdom.

However, in the first half of 2011 and Christie's, Sotheby's and have had considerable success. Last auction house was even able to get around your opponent, raising the total revenue for six months at 54%(largely due to the increasing number of private transactions by 114%; Christie's for the same period had 57%more private transactions).

< p class = "mat1"> Top-10 auction houses on turnover of Modern Art (July 2010 - June 2011)

1. Christie's, 234 454 390 euro

2. Sotheby's, 218 873 694 euro

3. Poly International Auction Co., Ltd, 88,222,305 Euro

4. Phillips de Pury & Co, 87,898,704 Euro

5. China Guardian Auctions Co., Ltd, 44,161,874 euros

6. Beijing Hanhai Art Auction Co., Ltd, 17,935,702 Euro

7. Beijing Council International Auctions, 15,958,272 Euro

8. Shanghai Tianheng Auction Co., Ltd, 13,975,727 Euro

9. Ravenel Art Group, 12,537,230 Euro

10. Beijing CNTC International Aution Co., Ltd, 10,245,522 Euro

first part of the report on the situation in the market of contemporary art Artprice completes review of the French art market. And there's good reason: in the first half of 2011 the French parliament passed a new law, mitigating the auction trade rules. First, rates were allowed to auction online, and secondly, the auction houses allowed to conduct pre-specified private transaction between the buyer and the seller (before it was allowed only to the galleries and art dealers). Discussion of the law was carried out in 2009, and its adoption by the art market is considered as a serious step towards the liberalization of the French art market and its integration into the global art market. More information about the new French law can be read here .

Prepared by Mary Onuchina, AI

Source: artinvestment.ru