Speculators Enter the Scene Again Young Financiers Want to Build a Diversified Portfolio
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This special SUBSCRIPTION Miami edition OFFER made possible SEE PAGE 9 by BMW ART BASEL/MIAMI BEACH DAILY NEWSPAPER TM UMBERTO ALLEMANDI & CO. PUBLISHING EVENTS, POLITICS AND ECONOMICS - SPECIAL EDITION SUNDAY 5 DECEMBER 2004 The art market Speculators enter the scene again Young financiers want to build a diversified portfolio MIAMI BEACH. From the Christian Holstad, Dana home to Assume Vivid Astro early to mid-30s, with buck- in the middle between real money and it’s not a healthy standpoint of a gallery, the Schutz, Robyn O’Neil and Focus and Matthew Greene, ets of money from venture- collectors and these hedge- thing for the art world, but fundamental purpose of a fair Hernan Bas, collectors were two of the market’s newest capitalism deals or Wall fund guys.” they’re not really competition is to generate new collectors. jostling each other to get shining stars. And newness is Street bonuses,” says one Often, such old-school col- for me. They have no idea Yet not all new collectors are work and scurrying from a critical attribute. prominent advisor. “They lectors regard the new arrivals who Ugo Schmolz or Adolf equal: disposable income Lozzi are.” (Nor does this Art matters very much, obvious- Newspaper writer, but assum- ly, but the attitude toward art ing they actually exist, their buying can also vary enor- market value jumped the mously, and at the moment Queenie psychedelia moment the preceding sen- there is a sharp financial tence was printed.) focus to the buying at high “When you go around to end fairs. booths, you hear people ask- “I’ve never seen so many ing how soon a work will people who are clearly spec- appreciate by 30%, says vet- ulating,” says one LA dealer eran US collector Mickey showing at Art Basel/Miami Cartin. “Often an invest- Beach. “Whenever the name ment advisor is telling them of one of my artists starts to put 10% of their portfolio arousing some buzz, collec- into art.” tors begin calling me up and Yet Mr Petterson thinks it demanding anything avail- facile to blame it all on the able. It doesn’t really matter finance types: “It’s wrong to what the work itself is.” think that financial specula- The phenomenon is tors are some kind of ‘exter- fuelled by the market track nal’ force that has suddenly records of artists relatively arrived. This speculative unknown a few years ago. behaviour is also fuelled by New York collector Michael the art dealers themselves”. Hort, for example, was And to the extent that dealers reportedly offered half a mil- are encouraging such specu- lion dollars for a painting by lation, by implying that some Kai Althoff that he bought at artists will offer profits down $10,000 several years ago. the road, they may be slowly Similarly market stoking, slicing their own throats. Marcel Dzama, Wilhelm “Art may be treated as a kind Sasnal and Tal R drew strong of currency,” points out Mr bidding at New York’s Cartin. “But it’s not like November auctions. Sasnal gold, and the first people to in particular soared—esti- exit the market will be those mated at $20,000-30,000, in it for the wrong reasons.” one painting reached $62,000 Fearing the financial at Phillips de Pury, reflecting exposure such an exit would the near impossibility of trigger, many galleries fight securing his work on the pri- Photo: Paul Massey back against speculation by mary market. For his recent Drag queens on stilts in the Dearraindrop performance, “Riddle of the Sphinx”, sponsored by Deitch Projects engaging in a sort of cooper- show at Zurich’s Hauser & in the Collins Building at the Miami Design District party last night ative intelligence service. Wirth, comprised of seven “We keep a list of people paintings and three sculp- who buy with other motives, tures, the gallery had more which we pull together by than 100 offers from eager booth to booth, making the Anders Petterson, founder want to build a diversified with a certain disdain. “These talking with other galleries to clients. scene reminiscent of some of of London’s ArtTactic art- portfolio but they don’t have people are not of the same ilk figure out which collectors Mr Wirth uses a simple the notoriously competitive market specialists, whose any sort of art knowledge.” as collectors like me,” says resell work and how they test to do the initial selecting: action at the Barney’s sample offerings includes analyst- Another advisor, equally Miami’s Martin Margulies. handle it,” says Zach Feuer “When collectors ask about sales in New York. “One col- report-style evaluations of prominent, says the specula- “They’re only interested in of CONTINUED ON PAGE 5 the artist by name without lector explained to me that he the market for various artists, tive frenzy has queered discussing the piece itself, sees the works of art in says, “There is a sense of things for his more serious Anti-speculation basket case that’s a reason to stop talk- NADA as high-risk invest- market euphoria, where collectors. “It means they ing,” he explains. “Those are ments,” says Marisa everything labelled “young have to do a lot more work in On sale at the NADA fair with the not-for-profit Momento not real collectors; they’re Newman of Suite 106 gallery art” seems to be selling, building their collections,” Gallery of Brooklyn is a basket in the form of a traditional private dealers building up in New York, sounding mild- regardless of the risks he explains. “There’s much Navajo weaving by Jed Ela. The piece is made with rolled up inventory.” ly shocked at the bluntness. attached.” more hysteria about access $100 notes and is tagged at $10,152, which represents the value Many of those seeking the “But he said if you buy 10 Not surprisingly, many of and suddenly people are of currency used (it helps that Ela is a member of the Oscar next Althoff or Sasnal in of these artists, one will the people approaching the being forced to make instant Meyer family, bacon and hot-dog kings in the US, although he Miami headed off to the Ice take off.” artworld from a return-on- decisions about whether par- likes to underplay this). If sold, the buyer will have to sign a Palace Studios, home of the Similarly, the action at Art investment perspective hail ticular works fit their collec- fussy six-page contract drawn up by lawyers to ensure he or she New Art Dealers Alliance Positions, aka the beach- from the halls of high tion, because they’re com- can never sell it or exchange it in any way for more than that (NADA) fair. Especially at front containers anchored at finance. peting with speculators who sum. “The artist doesn’t make any money, we don’t make any booths offering work by Collins Park, has been hot “These new market play- just want anything with the money and the buyer won’t make any money. It was important anointed stars such as and heavy, especially at the ers you see running around right name. The galleries and to us to bring this piece to a commercial fair as a commentary Assume Vivid Astro Focus, booth of Peres Projects, the fairs are usually in their consultants are getting stuck on art speculation,” said Michael Wall, gallery director. THIS DAILY NEWSPAPER IS ALSO ONLINE AT WWW.THEARTNEWSPAPER.COM THE ARMORY IN NEW YORK. AUCTIONS IN LONDON. BE THERE. HASSLE-FFREE. ® ART BASEL/MIAMI BEACH DAILY NEWSPAPER • SUNDAY 5 DECEMBER 2004 THE ART NEWSPAPER • 5 Fair review: NADA “Please form an orderly queue” The fair was mobbed and the spirit of cooperation Norman Braman made his between dealers worked well fortune in motor cars he prognosis was always good, but immediately on the first day–including to this year the response to the NADA gallerist-collector Yvonne Force who TFair has surpassed all expectations bought one of each. However, in face of and has put together with the scrum accompanying the opening keen interest from Jay Jopling, who turned brunch described by one weary collector as up just too late to make an initial purchase, being more like a sample sale than an art the artist has apparently agreed to make the one of the greatest collections fair. And the momentum has continued, famously persuasive gallerist his own per- with smiles from every stand on NADA’s sonal version. penultimate day as collectors still flooded Certainly, some complimentary simulta- of classic American art in to snap up the newest of the new. neous exposure in one of Miami’s top col- “Last year’s fair was awesome, but this lections is always a good thing for a young time we have sold more on the first day artist, as can be confirmed by the meteoric in private hands. than we did in the entire week last year,” success of Miami artist Cristina Lei declares Jessica Murray of Jessica Murray Rodriguez. One of her glittery floral sculp- Projects, who has had a particularly keen tures in plastic and resin can currently be Where does it go now? response to a striking duo of videos by viewed in the newly opened sculpture gar- Chris Doyle, entitled Hotel Bernini 1 and 2 den at the Rubell Family Collection, with (each in an edition of six, $6,000). the result that there is now a huge waiting NADA newcomer Paul Hedge of list for the three other examples of her work London’s Hales Gallery agrees: “We on the stand of Rocket Projects Miami, all thought of installing a checkout–it’s the swiftly snapped up for $4,000.