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Art Bubble Also Cracking As 21 Of 71 Works Fail To Sell At Latest Sotheby's Auction

Tyler Durden's picture




 

With the Biotech bubble busted and social media stocks slaughtered, it seems disappointment is spreading for the world's wealthy living off the fat of the Fed. As NY Times reports, on Wednesday, many in the art world converged upon Sotheby’s for the sales of Impressionist and modern art... but nearly a third of the art went unsold. The mediocre results followed an unexciting night at Christie’s on Tuesday and suggest that yet another central-bank-fueled excess-money-has-to-spill-out-of-our-silk-lined-pockets-somewhere trickle-down bubble is bursting. With Chinese property prices tumbling and PBOC cracking down on Macau money-laundering, it is perhaps no surprise that what demand Sotheby's saw was Asia buyers.

 

As The NY Times reports,

Asian buyers were by far the most active shoppers, bidding consistently by telephone through the auction house’s representatives throughout the evening. According to officials there, Asian bidders managed to snap up $63.9 million worth of art, or roughly one-third of the evening’s $219 million total. Sotheby’s had estimated the sale would bring in $218.1 million to $317.9 million. The auction house offered 71 works, and of those, 21 failed to sell.

 

The mediocre results followed an unexciting night at Christie’s on Tuesday. That auction house managed to sell $285.9 million, above its low estimate of $244.5 million but not close to its high of $360.4 million.

 

...

 

Picasso’s “Femme dans un rocking chair,” from 1956 — was back on the block, but this time at Sotheby’s. In November, Christie’s had hoped it would sell for $8 million to $12 million... It sold for $6.3 million. Lulu Creel, who runs Sotheby’s in Mexico, took the winning bid on behalf of a client bidding by telephone.

We assume that all the excess cash is being used up for margin calls on TSLA, NFLX, TWTR, and FB "wealth" creations...

 

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Thu, 05/08/2014 - 20:45 | 4741822 Yes_Questions
Yes_Questions's picture

 

 

W. had 21 of his pieces at the auction?

Thu, 05/08/2014 - 20:47 | 4741836 knukles
knukles's picture

I don' git no Monet!

Thu, 05/08/2014 - 21:08 | 4741928 CH1
CH1's picture

Modern art is UGLY.

Tom Wolfe wrote a nice little book on the great art scam, called The Painted Word.

Thu, 05/08/2014 - 21:32 | 4742007 DoChenRollingBearing
DoChenRollingBearing's picture

As a general rule I would have to agree with you, CH1.  + 1

Thu, 05/08/2014 - 22:23 | 4742124 Thomas
Thomas's picture

Impressionist paintings are over rated and in abundant supply. They are selling paintings noboy recognizes painted by artists nobody has heard of for sums of money nobody can imagine. This bubble will burst. BTW-In "The Death of Money" Rickards supports investment grade art. I am a fan of Jim and maybe he's right, but this one doesn't smell right to me. I put that and the SDRs in my doubtful folder.

Fri, 05/09/2014 - 12:19 | 4743710 XitSam
XitSam's picture

There are fads in art, styles come and go.  As the NYT said, these unsold paintings could just be overpriced. Without further evidence, it doesn't have to be related to the Fed's inflation.

Thu, 05/08/2014 - 22:23 | 4742126 Thomas
Thomas's picture

delete (double clicked)

Thu, 05/08/2014 - 22:43 | 4742175 Bindar Dundat
Bindar Dundat's picture

Next to go are high end condos in Miami and West Palm......

Thu, 05/08/2014 - 22:56 | 4742199 Winston Churchill
Winston Churchill's picture

Ritz Carlton just sold their last ultra high end units on Singer Island.$5m PoS's.

Thu, 05/08/2014 - 21:46 | 4742042 teslaberry
teslaberry's picture

you had to read tom wolfe to learn that art is only worth what people pay for it? and that if you're filthy rich, money is confetti ?

 

hm. seems like you got scammed out of a few hours of time reading a dumb fuck book with an expert convincing you you need to read his 'opinion' to observe the fucking obvious. 

fuck tom wolfe.

Thu, 05/08/2014 - 21:52 | 4742061 Ignatius
Ignatius's picture

"Private Pyle, you're so ugly you could be a modern art masterpiece."  --  Gny Sgt. Hartman

Thu, 05/08/2014 - 20:45 | 4741823 DirkDiggler11
DirkDiggler11's picture

How many more warning signs do you need that this shit is starting to unravel. Almost every bubble on the globe is starting to pop, from housing / real estate to Chinese coal plants, it starting to get real, and fast !

Long: Lead, food, silver and gold, In that order !

Thu, 05/08/2014 - 20:50 | 4741844 knukles
knukles's picture

The high end art market has historically been a pretty good precursor of things to come.
As have been bling like collectable autos, etc.... particularly witin the aytos, stuff like 60s muscle cars
Rich guys "toys"

Thu, 05/08/2014 - 21:29 | 4741997 DoChenRollingBearing
DoChenRollingBearing's picture

DirkDiggler11

I might add having some CA$H in the house as well, good in a deflation.

Thu, 05/08/2014 - 22:54 | 4742196 FreedomGuy
FreedomGuy's picture

I think we should do an Art Bailout. The Fed should issue some new bonds, buy the artwork and put it on it's balance sheets. Once the art market recovers it can sell these artworks...and $4 trillion in real estate back into the market. Problem solved. Economic world saved.

Thu, 05/08/2014 - 20:45 | 4741825 yogibear
yogibear's picture

Calling Yellen and the Federal Reserve Banksters to get to work (senator Chuick Shumer) and print! Keep printing until you make like Zimbabwe.

Thu, 05/08/2014 - 20:46 | 4741830 A Lunatic
A Lunatic's picture

This is quite common actually.......

Thu, 05/08/2014 - 20:47 | 4741838 new game
new game's picture

my mona lisa is not for sale at any price!

Thu, 05/08/2014 - 20:51 | 4741858 Grande Tetons
Grande Tetons's picture

How many retarded customs agents know the value of art? Nill. 

Long term...it is not a bad way to move around a bit of wealth. 

Could be other stuff too...an authenticated Lincoln letter...Kennedy signed docs.....Marilyn Monroe's pubes. 

Thu, 05/08/2014 - 21:05 | 4741917 RafterManFMJ
RafterManFMJ's picture

I think I'll start a KickStarter with the goal of buying Ms. Monroe's pubes and getting her cloned. Then I'll ask her if she really did kill herself or maybe have Geraldo ask her a series of questions on Fox, live.

Thu, 05/08/2014 - 21:45 | 4742039 BlindMonkey
BlindMonkey's picture

Why wait that long? Just go to Vegas and ask them to make into a holograph like they did with Mr Jackson.

http://www.forbes.com/sites/zackomalleygreenburg/2013/05/24/michael-jack...

Fri, 05/09/2014 - 00:32 | 4742400 Ariadne
Ariadne's picture

Go to Vegas and get a pro who impersonates Marilyn Monroe

Thu, 05/08/2014 - 20:52 | 4741860 km4
km4's picture

There Are Now Officially More Bears Than Bulls http://www.businessinsider.com/financial-advisor-insights-may-8-2014-5 via @themoneygame

Thu, 05/08/2014 - 20:53 | 4741864 km4
km4's picture

Anyone Who Says 'This Time Is Different' Is Usually Wrong (David Leonhardt)

Stocks have only seen these kinds of valuations two other times: in the run-up to the 1929 crash, and before the 2007 crash. Some say this time is different. And it's unlikely we'll see a comparable reckoning to those two moments. But the odds that we'll emerge totally unscathed seem unlikely. “You can always think of reasons of why now is different,” Yale Nobel laureate Robert Shiller tells the New York Times' David Leonhardt, who also quotes this from Harvard's John Campbell: "One should be skeptical of ‘This time is different’ arguments.” 


Read more: http://www.businessinsider.com/financial-advisor-insights-may-8-2014-5#ixzz31AvMNpOy

Thu, 05/08/2014 - 21:48 | 4742051 teslaberry
teslaberry's picture

but if no one is saying this time is different. then it is. because every time , there is always someone saying this time is different. 

so if this time cannot be different, why waste your breath trying make it different by convincing everyone that it's not?

 

have i confused you yet? because everything i said is logically consistent in order to ask you a question . which is this; who cares?

 

if you know this time isn't different. who are you saving by shouting this out on the internet? 

Thu, 05/08/2014 - 21:12 | 4741938 Babaloo
Babaloo's picture

That has to be the stupidest fucking piece of "journalism" I've ever seen. The headline is exactly diametrically opposite of what the article says.

And km4 didn't even realize it. Fucking genius.

Thu, 05/08/2014 - 21:00 | 4741893 RafterManFMJ
RafterManFMJ's picture

Not good. The "Smart Money" is now buying guns, ammo, tinned food and reinforced concrete.

Must be close.

Thu, 05/08/2014 - 21:04 | 4741903 Spungo
Spungo's picture

"particularly witin the aytos, stuff like 60s muscle cars Rich guys "toys"

 

Rich guy toys? More like pathetic old man toys. They buy some car they had when they were 20 and say "This is the car I had when I was 20. I had my whole life ahead of me. So much hope. Back when I was still happy."

Every car comes with a free revolver in the glove box so you can off yourself after crying about your failed marriage.

Thu, 05/08/2014 - 21:13 | 4741945 Bunga Bunga
Bunga Bunga's picture

They all went on hunt for Canadian real estate. They wanna get some before they are priced out forever.

Fri, 05/09/2014 - 01:47 | 4742531 kedi
kedi's picture

Jokes on them. Canada is fully owned by US till it runs out of gas.

Thu, 05/08/2014 - 21:29 | 4741995 ZeroPoint
ZeroPoint's picture

Peak Artsy-fartsy. Is Steve going get his loan?

Thu, 05/08/2014 - 21:46 | 4742044 buzzsaw99
buzzsaw99's picture

moar proof that an excess of clownbux does not mitigate poor taste

Thu, 05/08/2014 - 22:53 | 4742195 Hongcha
Hongcha's picture

If a sale of Chinese high-end contempo/20th Century only sells 21 of 71 lots,then I would be more inclined to think burst bubble.  Auctions of western artists took a backseat to the Chinese a long time ago.

The Chinese buyers are notoriously ethnocentric and have been very very slow too warm up to owning Western stuff.  Much slower than the Japanese 25 years ago.

Fri, 05/09/2014 - 10:52 | 4743329 Crassus
Crassus's picture

Chinese contemporary art has been hot for half a decade and continues to be.

Sotheby's and Christie's apparently think they can fool Indian and Chinese buyers with overly optimistic estimates on mediocre work by Picasso, Matisse, Monet etc.

Thu, 05/08/2014 - 23:05 | 4742228 Stuck on Zero
Stuck on Zero's picture

I obtained a partial list of the art works that didn't sell.  They include:

"Turd in a Punch Bowl"

"Cat Litter on Hardwood"

"Tampon and the Holy Temple"

"An Artist's Self Portrait in Urine"

"Guacamole Noir"

 

Thu, 05/08/2014 - 23:15 | 4742248 Crassus
Crassus's picture

Sotheby's and Christie's evening Impressionist and Modern sales had few stellar pieces. These few sold at the high end or above estimates. Those that did not meet their reserve prices should not have. Ten years ago many of these pieces would have been in the day sale. The sale is only as good as the offerings.

Fri, 05/09/2014 - 08:55 | 4742928 IridiumRebel
IridiumRebel's picture

Poppycock!

Fri, 05/09/2014 - 01:47 | 4742532 Bemused Observer
Bemused Observer's picture

Ah, screw that! The Van Gogh is going right back over the mini-bar...

Fri, 05/09/2014 - 04:04 | 4742641 dojufitz
dojufitz's picture

Art is now only about money.....it has nothing to do with art.......

 

so when it doesn't sell for what some expert thought it should go for....

 

we all feel terrible for the seller......it is so unfair.....

Fri, 05/09/2014 - 05:16 | 4742670 kurt
kurt's picture

Shit on a Shingle

Now that's Art!

Fri, 05/09/2014 - 06:34 | 4742736 junction
junction's picture

I am surprised that they were not any Corots on sale at these auctions.

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Back in 1953, ARTnews reported on the French saying that “Corot painted 2,000 canvases, 5,000 of which are in America.” While this is an obvious exaggeration, it is well known that—as the world’s leading Corot scholar, Martin Dieterle, puts it—Corot “has the distinction of being the most frequently forged painter in history.”

Fri, 05/09/2014 - 09:54 | 4743104 Stuck on Zero
Stuck on Zero's picture

Well known in the art world is that forgeries are often more valuable than the originals.

 

Fri, 05/09/2014 - 08:22 | 4742845 fishwharf
fishwharf's picture

Finally, some good economic news.

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