Real estate market anticipates art market's trends

Traditionally, the art market trends are said to be unpredictable since they don't follow any mathematical rule like the stock market is. Yet their is one way that can help anticipating the art market trends. The key to this equation is the real estate market.

A sure fact is that in crisis periods the general prices for real estate use to drop, and obviously rise in more prosperous periods. The second point is that the art market is related to the real estate one: a boom in the real estate is obviously followed by a growing demand in furniture, pictures and works of art to make the newly bought houses' or flats' decoration.

Therefore the general prices for art can be anticipated by following the real estate trends. By simply comparing the prices trends for the 20th biggest capitals in the World from 2005 to 2010 and the general art prices trends between the same period, the results are very similar in evolution values. The only difference is that the art market seems to react later: the real estate started to collapse in fall 2008, while the art market stated its decline in the first months of 2009.

The art market and the real estate market art very similar. These two market are both:
-often approached as investments
-double advantage values: sure & useful, one can live in or with its investment
-sure values for top quality artworks or houses
-markets in which the average rang will be the first one to suffer from a recession

As Pierre-Edouard de Souzy, a French based antique dealer says, "the art market is like the real estate one: a wonderful flat in the most prestigious neighbourhood of Paris, the square meter's price might move a little but buyers will always be there. Same thing for a top quality painting, there will always be collectors". Therefore, many auction houses such as Sotheby's or Christie's - primarily specialized in art - have also opened a real estate department.

Since the real estate usually engages much higher prices than the artworks, a buyer usually apply for a bank loan, which are directly related to the financial market. This is why the real estate market is so much reactive than the art market.

For 2010 the general prices for the real estate in New-York, Hong-Kong, Paris, London and many other capitals are rising... perhaps a good time to collect some works of art!

Read more here: http://www.artfinding.com/News/Real-estate-market-anticipates-art-market%27s-trends/206.html

Jean Gismondi, a mixing of antiques & contemporary art

Jean Gismondi, who exhibited during the 2010 edition of the Biennale des Antiquaires in Paris shared with Artfinding his vision of the art market.

The Gismondi gallery is one of the most important 17th and 18th Centuries art and antiques gallery in Southern France. First focused on Boulle marquetry commodes and French 17th Century cabinets, the gallery has recently chosen to expend his taste and open the gallery's door to contemporary art. This choice is the result of two aspects.

First of all today's collectors don't buy a full range of furniture and art works from a single period. If twenty years ago collectors use to recreate "period rooms" - following the museums strategy - nowadays people aren't afraid to mix different periods and styles in a same room.

The second reason is related to the prices that reach top quality artworks in auction, that makes these pieces totally unreachable from new collectors. "Greatest pieces reach top prices, they are very expensive and this is a pity because young collectors can't afford such pieces", says Jean Gismondi.

Read more here : http://www.artfinding.com/News/Jean-Gismondi-a-mixing-of-antiques-&-contemporary/205.html

What makes antiques sure values investments?

According to the Art Market Poll Center, between 2008 and 2009, most of the art market specialties have collapse. But each specialty has suffered of a different level of decrease depending on two major ideas: are the artworks antiques or contemporary? Are the client collectors or investors?

Between 2008 and 2009, before and after the global financial crisis, all the art market can be divided in three groups.

The first one has largely suffered of a major decrease in both prices and buying intentions rates. The related specialties are mostly contemporary art. Between 2008 and 2009, the global market for contemporary art lost 23.63% in value and buying intentions. Traditionally, this market is much more subject to speculation than the other fields of the art market; the few real collectors can't support the market and all the investors polluting this market's health.

The second one has less suffered from the crisis. The related specialties are mostly Old Masters and 19th Century arts. Between 2008 and 2009, the global market for Old Masters lost less than 11% in value and buying intentions. The Old Masters market is more run by collectors than speculators; therefore a collector doesn't sell its collection at the first sight of a collapse in prices. So Old Masters are more stable since the clients are either less reactive than contemporary art ones, or they are simply following a different collecting logic.

The last one hasn't suffered from the crisis. The related specialties are niche markets such as stamps, coins, antique weapons and books. Between 2008 and 2009, the global market for "collection items" lost 1.6% in value and buying intentions. These fields are perfect examples of specialties totally disconnected from the financial market, and run buy pure collectors.

As an investor you are looking for a sure value? First focus on the buying motivations of the collectors and you will find your way.

Read more here: http://www.artfinding.com/News/What-makes-antiques-sure-investments-values/204.html

François Delestre, expert in impressionist art

François Delestre, expert in impressionist art, answers to the Artfinding's exclusive interview about his specialty and vision of the art market.

Robert Stoppenbach and François Delestre founded the gallery Stoppenbach & Delestre in London in 1982. It specialises in French art of the 19th and 20th century. The challenge of dealing specifically in French paintings, drawings and sculpture was met with worldwide interest from collectors, museums and dealers. The international position of London in the art market had always meant that some galleries dealt with French art at the same time as British art and Old Masters. Located at 25 Cork Street in the West End, adjacent to Bond Street, the gallery is in the midst of other major galleries and auction houses. Stoppenbach & Delestre has close contacts all over the world, including France (François Delestre resides in Paris) the Netherlands and the USA. They are members of the Society of London Art Dealers and the Syndicat National des Antiquaires.

Stoppenbach & Delestre
25 Cork St
London W1S 3NB
United Kingdom

Tel: 020 7734 35 34 - Fax: 020 7494 3578
Email: contact@artfrancais.com

Read more on: http://www.artfinding.com/News/Francois-Delestre-expert-in-impressionist-art/203.html

The Financial Market Vs. The Art Market

The Financial Market Vs. The Art Market, by Artfinding

At first sight, the financial and the art markets don't seem to have much in common. The first is a very pragmatic and down-to-earth field animated by mathematical models and short term speculation, whereas the second relies on passion or feelings animated by art lovers who more often follow their gut rather than decide by empirical evidence.

However, the art market counts a growing number of art dealers who come from the financial industry and manage to deal with these two antagonistic fields in concert. Fréderic Sioufi, the Parisian 18th and 19th Centuries furniture and works of art dealer, worked for 15 years as a financial trader in Paris and Tokyo. Christophe Hioco, an expert and dealer in Indian Hinduist and Buddhist statuary, spent 27 years working with the prestigious business bank JP Morgan with which he still maintains close relations.

We, at Artfinding, believe that the financial and the art markets have much more in common than one could think.

First of all, many of the major art collectors are financiers: Vladimir Lopukhin (Russian Business Banker), Bonko Chan (Vice-President of China Assets), Ignacio Liprandi (Vice-President of Merill Lynch Argentina), Richard Kramlich (CEO of an investment company), Jean Bonna (Banker), Petr Aven (President of Alfa Bank)... to cite a few. So people can work in the financial industry and still have a strong interest in the arts.

The recent burst of the contemporary art market bubble have revealed the hidden tip of the iceberg: speculation. This dynamic consists in purchasing risky investments that present the possibility of large profits. The financial market is driven by speculation. Similarly, ever since the 80's, many art "collectors" have literally invested in several fields of contemporary art - which is much more volatile than ancient art - in order to make profits. But in 2009, the global crisis has broken the chain and without new buyers, prices of contemporary art have dropped anywhere from 20% to 50%. As Mr Sioufi admits, “lots of wealth managers advise their clients to diversify their risks by investing 1% to 5% of their assets in the art market, mostly in the contemporary art market". So all together 5% of these assets present a huge amount of money, which creates without fail a speculative bubble. On the other hand "antique arts are less speculative and a safer investment", agree Christophe Hioco and Fréderic Sioufi. In a nutshell speculation certainly is a key feature that the financial and the art markets share in common.

Last but not least, a growing number of people are starting to apply financial & mathematical models to the art market. “As a trader, I am familiar with the financial dynamics and I often apply them to my art business. For example, as I ask myself whether a particular piece might be a good investment in the future, I often look at the recent performance of similar pieces as a strong indicator”, says Christophe Hioco. As most antique dealers don't usually consider art as an investment, the strategy used by Mr. Hioco seems to be the one to follow: in 2009, in the middle of the global financial crisis, Mr Hioco's company's (which has two activities of financial advising and art trading) profit increase was 40% in one year!

The art market deals with billions of dollars each year, fluctuations in trends can offer great business opportunities, ... and many other reasons will encourage a number of financial players to get more and more involved in the art market. One single rule needs to be followed if one wishes to invest in art, in addition to clever advice by an art market specialist, the first buying motivation of a work of art should be passion. Investing in what you love is a safe value guarantee.


Fréderic Sioufi (Galerie Atena)
2 place du Palais Royal
75001 Paris - France
Tel: +33 (0)1 42 61 79 72
http://www.galerie-atena.com

Christophe Hioco (Galerie Hioco)
12, rue de Penthièvre
75008 PARIS - France
Tel : +33 1 53 30 09 65
http://www.galeriehioco.com


Read more on:  http://www.artfinding.com/News/The-Financial-Market-Vs-The-Art-Market/202.html

Pierre Dumonteil, expert in contemporary sculpture

Pierre M. Dumonteil

Pierre M. Dumonteil is an expert in modern and contemporary sculptures. He answers to the Artfinding's exclusive interview about his specialty and vision of the art market.


ARTFINDING: can you present yourself?

PIERRE M. DUMONTEIL: the gallery was created nearly 30 years ago in 1982. We are specialized in 20th Century figurative sculpture: from the end of WWI up to tomorrow's artists since half of our artworks have been made by contemporary artists.


AF: what do you like so much about sculpture?

PMD: I am into sculpture for three major reasons: first of all I think this art is above the others by its volume, as Bourdelle used to say. This three dimensions sensitive aspect is very important to me, because this is obviously what a flat two dimensions picture lacks.
Second point is related to my personal family background, which has to do with tapestry. This art mixes both pure artistic creation and craftsman skills. So same as tapestries, a sculpture is an art of transformation. And this idea of multiple actors in the creation process is very important to me.
And finally the last reason is that as an art dealer, I must be useful to art History. As I created my business, no one was interested by figurative sculpture and have and still make sure this art will be appreciated as a major one.


AF: you launched your gallery in China in the middle of the Chinese art market's crisis, why?

PMD: there isn't any relation between the opening of my new gallery in China and the collapse of the Chinese's contemporary art market. We are into China because Asia is in our culture, since my wife is from Asia, and China isn't a business opportunity, but a cultural and intellectual one. So we wanted to move in Asia and have chosen China, it's center and Shanghai, it's major door.
We are totally disconnected from the Asian market's evolutions : we only go there to promote our own modern and contemporary occidental artists, and if we happen one day to deal in Asian artists, the criteria will exclusively be based on our personal taste. We do exhibit all around the World in major art fairs, because clients are not present in a single Country. So we present our artworks to all the Countries where we feel like we will find strong and interested collectors. Same for our Chinese gallery we didn't created for opportunistic reasons, we don't sell to Abu Dhabi or Moscow because we will find money there, but because we will meet art lovers. This is part of what we owe to our artists as art dealers.


AF: how do you see the next years in this art market crisis?

PMD: what crisis? First of all there isn't a general crisis of the market, only a few aspects of the art market are affected. Fortunately our specialty is very protected because we are just a few dealers specialized in such a field and we deal with a very large demand. So we haven't been affected by the crisis. The even better news is that we have witnessed lower prices, and the come back of many clients who left for speculative artists, and decided to focus on more artistic and financial sure values. So this clientele is clearly coming back in our galleries.

Read more on: http://www.artfinding.com/News/Pierre-Dumonteil-expert-in-contemporary-sculpture/201.html

M&N Uzal Gallery, 19th Century furniture expert

Marc Uzal

The 19th Century furniture is not limited to the Louis XV and the Louis XVI styles. There has been many creations at this period and not only copies of the past Centuries. The M&N Uzal Gallery based in France and Belgium is specialized in such creations.

The Parisian gallery's manager reminds us that the major private and public collections are mostly focused on these creations rather than Louis XV and Louis XVI copies, because these are totally new shapes, designs, techniques... "the 19th Century has rediscovered techniques such as the enamel which was totally forgiven before this Century makes its come back in 1830". Same for aluminium that is used for the first time in 1860, and is considered as the high-tech of this period as it was more expensive than gold.

The 19th Century is clearly the base that modern designers used for their creations with the notion of art and industry. "This specialty is very rich, still unknown and should soon come on top of the market because there are still many masterpieces to discover or to rediscover", says M&N Uzal Gallery.

Find more about the gallery and the 19th Century furniture and works of art market by watching the exclusive video interview of the M&N Uzal Gallery.

Read more on: http://www.artfinding.com/News/M&N-Uzal-Gallery-19th-Century-furniture-expert/200.html