Mixed picture for contemporary art market
24 October 2008
The price of contemporary art is increasing faster than any other sector of the fine art or jewellery market, according to the Royal Institute of Chartered Surveyors’ (RICS) Arts & Antiques Survey for the third quarter of the year.
This stands in contradiction to press reports this week: Freud’s portrait of Bacon sold for a disappointing £5.4m at Christie’s instead of the £7m or more estimated; and Sotheby’s recent auction of contemporary art came in substantially below pre-sale estimates.
The RICS third-quarter survey, released earlier this month, examines the prices achieved for various sub sectors of art and antiques at auction. It found that contemporary art was the strongest performing sector with a 41% increase in lot prices for the period.
This is against a backdrop of an overall 2% fall in the values achieved by art and antiques at UK auctions.
The RICS says the second and third quarters of the year are traditionally the busiest and there has been a renewed confidence in the demand for art.
As if to support the RICS’ findings, the sixth annual Frieze Art Fair, a London art show that this year showcased 1,000 new artists’ work, reported excellent sales.
The organisation’s press release stated: “Against a backdrop of some of the most turbulent financial markets in decades, Frieze Art Fair was pleased with reports from the 150 participating galleries of sold out stands and significant individual sales.”
While it’s too early to judge the full impact of the global downturn on art markets – and there’s no denying that apprehension is high – working artists’ creativity isn’t halted by economic woes. And, as it turns out, neither are insurers’ responses to artists’ coverage needs.
Specialist art insurance broker Heath Lambert launched an offering during the Frieze Art Fair to insure artists' works while in the studio and at exhibitions.
The product is underwritten entirely within Lloyd’s by Hiscox.
The product is aimed at working artists and provides cover for all aspects of an artist’s work, from buildings and equipment to extending cover to items in transit or exhibition.
Adam Prideaux, Executive Divisional Director at Heath Lambert, says the contemporary art market is attracting buyers despite economic troubles.
“In spite of the general downturn suffered by the global economy, interest in contemporary art has never been so high. Indeed, the market is still recording record prices at auctions,” he says. “This increase in interest and demand has contributed to an increase in dealers and artists taking their works of art around the world to leading shows and fairs. One of the many challenges facing artists is the need to protect their pieces and finding the right insurance can be a minefield.”
Last updated on 24 Oct 2008
