NEWS

The first week in October saw the first round of fall auctions in London for contemporary and pop prints. A crashing market had been predicted by virtually all, the auctions being held in the interim period between votes om the economic rescue package in the USA. Considering the backdrop, results were extremely strong. In an economy where everything from real estate to stocks are in freefall, art is proving to be a more recession proof commodity than most. The argument is that with there being no safe havens in traditional financial products, art has become the strongest card to hold in this uncertain economic climate. Although softening was evident among certain lots, the general consensus was that prices are holding relatively firm. Some of the bigger ticket Warhol pieces came down from the lofty numbers they had posted in 2007, but in a market where pieces at the top end had risen several hundred percent in a short period, some correction was inevitable.

Taken across the medium or long term, prices on some pieces reverted to pre 2007 levels, but still show tremendous gains overall. The market was also unexpectedly strong in the sub $20,000 range, with many lots commanding figures matching their previous bests. It seems that where weakness did occur overall it was due to a combination of overly aggressive estimates from sellers, coupled with the increasingly large cost of buying at auction. In London, most lots incurred 25% commission plus VAT on the commission, plus 4% artist resale rights for European artists. The resulted in a combined "tack on" cost in excess of 30% of the hammer price. Something that should be taken into consideration when quoting auction prices as barometers of a pieces value.