Record-Low Revenue
According to Prazzle, the global art market is facing an unprecedented downturn. The early 2024 auction season reported record low financial figures, sparking concerns among collectors, galleries, and auction houses.
The lack of major works by renowned artists such as Picasso, Van Gogh, and Warhol has dampened buyer enthusiasm. Auction houses are struggling to maintain growth momentum. Even the staggering price of over $6 million for a duct-taped banana auctioned at Sotheby’s failed to lift the gloom in the art market.
Auction houses struggle to maintain growth.
“High-end art sales are slumping. Sellers are pulling prominent pieces from major auctions at the last minute. More than 10 galleries have closed in Manhattan. Layoffs are starting to spread in the $65 billion industry as one of the sector’s biggest companies, Christie’s, sees revenue plunge. The auction house took in just $2.1 billion from auctions in the first half of 2024, half the amount it made in the same period in 2022,” The New York Times described.
The scarcity of supply during the US presidential election season is partly to blame. Not many collectors were willing to sell their pieces due to concerns about economic volatility depending on the election outcome.
A survey revealed that the wealthy are primarily interested in gold or other highly liquid assets over art pieces. They also expressed wariness about price inflation and the prevalence of forgeries in the market.
Works by renowned artists such as Banksy, Pablo Picasso, Andy Warhol, Van Gogh, and Gustav Klimt have also been counterfeited.
In mid-November, over 2,100 counterfeit works with an estimated market value of around €200 million ($208 million) were seized by the Carabinieri police in Italy. Works by renowned artists such as Banksy, Pablo Picasso, Andy Warhol, Van Gogh, and Gustav Klimt have also been counterfeited.
Awaiting Policies from Trump’s Administration
According to Bloomberg data, the combined value of the 10 most expensive artworks sold at auction in 2022 was $760 million. This figure dropped to $403 million in 2023 and further declined to $312 million in 2024.
Alex Glauber, President of the Association of Professional Art Advisors, told CNN that Donald Trump’s victory “could give the art market a boost.”
According to CNN, the Trump administration will prioritize tax cuts, signaling good news for auctions. Collector Adam Lindemann believes that most art buyers will favor Trump.
Donald Trump’s victory could boost the art market.
Amid the general difficulties, the Indochinese painting market has also cooled down. From 2023 to 2024, the Indochinese painting market experienced significant fluctuations. Since 2019, there has been at least one million-dollar transaction at auctions every year. However, in the first half of 2024, it wasn’t until the auction of The Folk Singer in early June that an Indochinese painting reached the million-dollar mark.
On November 26th, Le Pho’s Two Women sold for VND 6.9 billion. Mai Trung Thu’s Mother and Child sold for less than VND 2 billion. Both figures are modest.
New regulations regarding deposit requirements to participate in auctions have also posed challenges. Low-code auctions have seen little to no participation due to the auction house’s excessively high deposit demands. The bidding contest is limited to a handful of wealthy individuals.
