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Navigating the Current Art Market: What Makes Art Valuable?

Navigating the Current Art Market: What Makes Art Valuable?. STEP Bermuda 28 February 2013. Tash Perrin Senior Vice President, Department Head Estates, Appraisals & Valuations. CHRISTIE’S. Navigating the Current Art Market: What Makes Art Valuable?. The International Art Market

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Navigating the Current Art Market: What Makes Art Valuable?

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  1. Navigating the Current Art Market:What Makes Art Valuable?

    STEP Bermuda 28 February 2013 Tash Perrin Senior Vice President, Department Head Estates, Appraisals & Valuations CHRISTIE’S
  2. Navigating the Current Art Market:What Makes Art Valuable? The International Art Market Factors which Effect the Value of a Work of Art Appraisals
  3. Christie’s Annual Sales 1974-2012
  4. The New Yorker
  5. Various Markets at Christie’s 19th Century European Art American Paintings Australian Art British & Irish Art Italian Art Exploration & Travel German & Austrian Art Latin American Art Maritime Art Old Master Paintings Old Master Drawings Impressionist & Modern Art Postwar & Contemporary Art Sporting Art Antiquities American Indian & tribal art Chinese Works of Art Chinese Paintings Indian & Southeast Asian Art Islamic Art Japanese Art Jewelry Korean Art Posters Costumes & Textiles Maritime Sports Memorabilia Prints & Photographs Wine & Vintage Cigars 19th Century Furniture 20th Century Decorative Arts American Folk Art American Furniture & Decorative Arts Clocks & Barometers Scientific Instruments Musical Instruments European Ceramics & Glass European Furniture & Decorative Arts English Furniture Portrait Miniatures Rugs & Carpets Russian Works of Art Silver & Objects of Vertu Swiss Art
  6. All CategoriesGlobal Sales at Christie’s:2006-2012 CHRISTIE’S
  7. Impressionist & Modern ArtGlobal Sales at Christie’s2006-2012 CHRISTIE’S
  8. Post-War & Contemporary ArtGlobal Sales at Christie’s:2006-2012 CHRISTIE’S
  9. American Paintings & Sculpture‘Global’ Sales at Christie’s:2006-2012 CHRISTIE’S
  10. Musical InstrumentsGlobal Sales at Christie’s:2006-2012 CHRISTIE’S
  11. JewelryGlobal Sales at Christie’s:2006-2012 *2011 figures include Elizabeth Taylor sales of $137,235,575 CHRISTIE’S
  12. Asian ArtGlobal Sales at Christie’s:2006-2012 CHRISTIE’S
  13. All CategoriesGlobal Sales at Christie’s:2006-2012 CHRISTIE’S
  14. Determinants of Value Provenance Rarity Condition Quality Freshness Fashion
  15. Determinants of Value Provenance Christie’s New York Impressionist & Modern Art, 4 May 2010 The Collection of Mrs. Sidney F. Brody Pablo Picasso (1881-1973) Nude, Green Leaves and Bust Signed and dated ‘Picasso XXXII.’ (upper right) oil on canvas 63 ¾ x 51 ¼ in. (162 x 130cm.) World Record Price for a Work of Art Sold at Auction $106.5 million
  16. Determinants of Value Provenance
  17. Sold in The Legendary Jewels sale on 13 December 2011: A Ruby and Diamond Necklace, by Cartier Estimate: $200,000-$300,000 Sold for $3,778,500 A Pair of Ruby and Diamond Ear Pendants, by Cartier Estimate: $80,000 – 120,000 Sold for $782,500 A Ruby and Diamond Bracelet, by Cartier Estimate: $150,000 – 200,000 Sold for $842,500
  18. Determinants of Value - Rarity Christie’s London Old Master & British Pictures 3 July 2012 John Constable (1776-1837) The Lock Oil on canvas 56 x 47½ in. (142.2 x 120.7 cm.) Painted in 1824 Estimate: £20 – 25 million Sold:£22,441,250 ($35,210,321) World record price for the artist at auction
  19. William Bradford Arctic Whaler Homeward Bound Among the Icebergs $192,000 William Bradford View of half dome, Yosemite $11,750 William Bradford Arctic Sunset with Rainbow $352,000 Determinants of Value Rarity
  20. Determinants of Value Condition
  21. Determinants of Value Quality Christie’s New York Important Old Master Paintings 29 January 1999 Gaetano Gandolfi (1734-1802) Saint Cecilia Signed oil on canvas 16.1 x 12.2in. (41 x 31cm.) Estimate: $40,000-$60,000 Sold: $728,500
  22. Determinants of Value - Freshness Christie’s New York Post War & Contemporary, 8 May 2012 The Estate of David Pincus Mark Rothko (1903-1970) Orange, Red, Yellow signed and dated ‘MARK ROTHKO 1961’ (on the reverse); Signed again and with initials ‘M. Rothko M.B.’ (on the stretcher) oil on canvas 93 x 81 ¼ in. (236.2 x 206.4cm.) Painted in 1961 Estimate $35,000,000 – 45,000.000 Sold $86.9 Million World Auction Record for Any Contemporary Work of Art
  23. Determinants of Value - Taste Peter Doig (b. 1959) The Architect's Home in the Ravine signed, titled and dated ‘THE ARCHITECTS HOME IN THE RAVINE’ PETER DOIG 1991' (on the reverse)oil on canvas 78 7/8 x 98¾in. (200 x 250cm.) Painted in 1991 26 June 2002 Estimate: £120,000 – 150,000 Sold: £314,640 ($475,733) 15 May 2007 Estimate: $1,200,000 – 1,800,000 Sold: $3,624,000 13 February 2013 Estimate: £4,000,000 – 6,000,000 Sold: £11,899,378 ($11,899,379)
  24. Navigating the Current Art Market:What Makes Art Valuable? The International Art Market Factors which Effect the Value of a Work of Art Appraisals
  25. Art Appraisals for the IRS All works must be appraised at Fair Market Value Fair Market Value: The price at which property would exchange hands between a willing buyer and a willing seller, neither under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. Fair Market Value assumes the property would change hands in the relevant and appropriate marketplace. Appraisal Methodology: Market Data Approach (comparables) Qualified Appraiser
  26. Qualified Appraiser Who is a Qualified Appraiser? The appraiser must have successfully completed college or professional-level coursework relevant to the property being valued Must have at least 2 years of experience in the trade or business of buying, selling or valuing the type of property being valued The individual regularly prepares appraisals for which he or she is paid The individual demonstrates verifiable education and experience in valuing the type of property being appraised.
  27. Art Appraisals for the IRS When are Appraisals Reviewed by the IRS? The IRS National Office of Art Appraisal Services (AAS) is required to review works of art over $50,000 when the owner of the work is undergoing an audit. If the taxpayer/owner is not the subject of an audit, the works may not be reviewed by either the AAS or the Art Panel; however, It is to the revenue agent’s discretion to refer things to AAS at lower values
  28. Art Appraisals for the IRS What is the IRS Art Panel? The Art Advisory Panel is empowered to provide assistance and guidance to the AAS by reviewing and advising on the acceptability of art appraisals The Panel is composed of museum directors and curators, art historians and scholars and dealer experts, all of whom serve without compensation. They meet twice a year in Washington, and the meeting is chaired by the Director of the AAS. The Panel’s conclusions are reviewed by the AAS and become the position of the IRS. Reality Check: The outcome of their meetings in 2010: the panel recommended a 58% decrease on the aggregate value of the items appraised for charitable donation and a 43% increase on the aggregate value of the items appraised in estate and gift tax appraisals.
  29. Art Advisory Panel of the Commissioner of Internal Revenue 2012 Ms. Nancy McClelland McClelland + Rachen, New York, NY Ms. Susan Menconi Menconi & Schoelkopf Fine Art, New York, NY Ms. Lucy Mitchell-Innes President, Mitchell-Innes & Nash, Inc., New York, NY Mr. Howard Rehs Director, Rehs Galleries, Inc., New York, NY Mr. James L. Reinish Martha Parrish & James Reinish, Inc., New York, NY Mr. Joseph Rishel Curator European Painting before 1900 & John G. Johnson Collection Philadelphia Museum of Art, Philadelphia, PA Dr. Andrew Robison Mellon Senior Curator, National Gallery of Art, Washington, DC Dr. Scott Schaefer Senior Curator of Paintings, J. Paul Getty Museum, Los Angeles, CA Mr Louis Stern Louis Stern Fine Arts Inc., Los Angeles CA Mr. David Tunick David Tunick, Inc., New York, NY Ms. Stephanie Barron Senior Curator, Twentieth Century Art Los Angeles County Museum of Art, Los Angeles, CA Mr. Douglas Baxter President, PaceWildenstein, New York, NY Mr. Leon Dalva Dalva Brothers, Inc., New York, NY Mr. Michael Findlay Director, Acquavella Galleries, Inc., New York, NY Mr. Brock Jobe Deputy Director, Winterthur Museum, Winterthur, DE Mr. Christian Jussel Unaffiliated Scholar/Art Adviser, New York Mr. Ian Kennedy Curator of European Paintings & Sculpture to 1900 The Nelson-Atkins Museum of Art, Kansas City, MO Ms. Rebecca Lawton Curator of Paintings and Sculpture Amon Carter Museum, Fort Worth, TX Ms. Barbara Mathes Barbara Mathes Gallery, New York, NY
  30. Best Practice Get the most professional and credentialed appraiser possible. Ensure the appraisal reflects USPAP guidelines. Relevant Information: IRS Art Appraisal Services: www.irs.gov Publication 561
  31. Questions?

  32. Navigating the Current Art Market:What Makes Art Valuable?

    STEP Bermuda 28 February 2013 Tash Perrin Senior Vice President, Department Head Estates, Appraisals & Valuations CHRISTIE’S
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