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ASSIGNMENT 3

18 MAY 2014

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Assignment 3 Sotheby’s Institute of Art. Lecturer: Francesca Bellini-Joseph Student: Isobelle Pover May18, 2014

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What is the current state of the Impressionist and Modern art Sales?

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NEW YORK ! Christie’s Auction 2844, May 6, 2014 “The interest is coming from everywhere, we can count on the entire world to show up” Sara Friedlander, Head of Contemporary evening sale at Christie’s

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Sotheby’s Sale number N09139, 7 May 2014

“The auctions are getting bigger and prices are getting bigger. But it makes sense, what they’re growing to, it’s a market driven by quality.”

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Alex Rotter, Sotheby’s Co-head of Worldwide Contemporary Art.

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Forecasts of a decade in global wealth and investment. The current state of the art market for Impressionist and Modern Art sales is set to continue to rise as this sector leads the art market. The rise in levels of wealth and the numbers of bidders increase globally from 2013 and onwards in projections over the next ten years. This increase is funded from bidders of the Ultra High Net Worth Individuals (UHNWI) people with over 30M in assets, that comprise of the richest people in the world, controlling a disproportionate amount of global wealth1. As an alternative to more mainstream asset classes like equities, “investments of passion” has grown significantly, the Knight Frank Luxury Investment Index (KFLII) 2013. Of the collectable luxury asset classes, nine sectors in the ‘investment of passion’, Art is set to increase 193% 2013 -2023. The aggregate of the top 25% of the Art Market Research (AMR) Old Masters 100, European 19th Century, European Impressionists, Modern Art 100 and Contemporary Art 100 indices, performance ranked fifth of the nine sectors in the luxury asset classes, weighted, based on the popularity of the asset and its relative value. As evidence to this, Francis Bacon’s Three Studies of Lucien Freud set a new record for any artwork when it sold for US$143m at Christies in New York in October 2013, a benchmark and record breaker. Christie’s, New York, experienced a strong performance, the highest in this category since May 2010, with realised sales of $285,879,000 of 54 Lots sold, demonstrating a continued and growing strength of the global market demand for Impressionist and Modern works of art. Many works from Christie’s auction had not been offered at auction before and there is a diminishing supply of limited works. Picasso dominated the sale with twelve works, all sold. “Record prices continue to be set, and both auction houses and art fair producers maintain that a top tier of collectors are after the most expensive works2 “ Christie’s sold 53 Lots $285,879,000 and Sotheby’s sold 50 Lots $219,000,000, close sales totals, both with similar catalogues of the works from Picasso, Monet, Giacometti. The combined auction house duopoly’s sales reached $575,879,000 for 103 Lots sold, compared to the previous combined sales in London three months before in February 2014 of $641 600,000 for 644 Lots, an increase of 34% over the previous year, 2013. The May 2014 auction shows a result of an increasingly strong market.

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Sotheby’s and Christie’s Auction results. ! Both Sotheby’s and Christie’s evening results represent the highest totals achieved at sales held in London in any category. The total amount sold during the Impressionist and Modern Art auction week was $641,605,594 (includes Evening and Day sales) USD, 34% above previous years February results. The works in this category have excellent attributes with authenticated provenance. Collections of this era are entering the market from deceased estates and as prices are high it is an attractive market to sell in and invest in as global art market prices increase. The works sold at both auctions have limited supplies as the wealth of potential buyers increases globally the demand is increasing realising increasing prices. The key growth in the global market for the next ten years is; Africa, Latin America, North America and Europe. ‘The official also said that prices commanded by masterpieces of late had encouraged some collectors to sell. At the same time, the growing pool of collectors is keeping demand strong’.3 The data collected for the top ten sales from the Sotheby’s and Christie’s Evening Sales of May 6 and May 7, evaluates the top highest prices is referenced from auction catalogues and other sources. This information documents the factors and attributes that give common value to these art works as being the highest valued, one of Christie’s top five, Claude Monet’s Nymphéas, reached above it’s estimated price. This work has every attribute and factor to effect competitive bidding.Two works sold by Sotheby’s reached higher than the estimates; Picasso’s Le Sauvetage and Giacometti’s Femme de Venise V, these prices and include the buyers premium of up to 20%.

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1http://www.investopedia.com/terms/u/ultra-high-net-worth-individuals-uhnwi.asp 2Constructing

an art market: Interview with Olav Velthuis (Art Media Agency)

http://www.bworldonline.com/content.php?section=Arts&Leisure&title=$1.5B-of-art-under-the-hammer-inNY&id=87008 3

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Sotheby’s N08987 May 2013 $230,040,000 - N09139 May 2014 $219,000,000 70 Lots < of $11,040,000 (down .48%) 71 Lots therefore with a similar number of works offered the performance this year, 2014, was not as successful as the previous year. Cézanne’s Les Pommes Sotheby’s May 2013 Lot 7 $41,605,000

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Christies SALE 2782 May 2013 $158,505,000 49 Lots - May 2014 $285,879,000 53 Lots > of $127,374,000 (up 8%) 49 Lots therefore with four more works offered the performance this year, 2014, was more successful as than previous year. Chaïm Soutine’s Le petit pâtissier, Christies May 2013

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As an interesting comparison* of percentage increases and decreases in realised prices, I have used two works by Monet, one from the Sotheby's 2014 sale Buyer B and a similar work in the Christies 2012 sale, Buyer A. By comparison of these two works by Monet4 of the Water Lily series painted between 1906-1920, (Identification of the work entitled by the same name is by date of execution, size of artwork and provenance.) was sold at a Christies auction two years before, in 2012. This is an earlier work 1905, Buyer A with similar provenance and slightly larger. The smaller work, Lot 8, 1907, Buyer B acquired it had changed hands five times. The 2012 sale was a greater price for the seller and more expensive for Buyer A. The provenance on the 1905 piece seemly more exclusive, having being held since 1930 in a large and notable collection. For the Buyer A this was a substantial amount over the sale of the 2014 piece, of $16,717,500. Buyer B 2014 paid 61.8% less than Buyer A 2012 - This is notable that the depreciation percent is the same the Golden Ratio here 5 this is important as this can describe ‘buyer behaviour’ a in global market.

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http://www.christies.com/lotfinder/paintings/claude-monet-nympheas-5615591-details.aspx#top https://www.wolframalpha.com/input/?i=27%2C045%2C000%2F43%2C762%2C500

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Christie’s top five sales Auction 2844, May 6, 2014 !

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Thumbnails Christie’s New York, Auction Catalogue, May 2014, The leading lots are 1) Monet’s Nymphéas, 2) Picasso’s Portrait de femme, 3) Modigliani Jeune homme roux, 4 ) Kandinsky’s Strandszene 5) Picasso’s Deux femmes et enfant

Christie’s has realised $285,879,000 (£168,668,610/€205,832,880), selling 89% by lot and 96% by value. This marks the highest total for Christie’s New York in this category since May 2010. Of the 53 works offered, 9 lots sold for over $10 million, 18 for over $5 million, and 43 for over $1 million. 53 Lots offered Sold at Auction - 1 withdrawn Tax on works unsold of 11.3%. 9 lots over $10 million, 18 for over $5 million 43 for over $1 million.

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1) LOT 8 ✓ See the comparison* page 2 Artist: Claude Monet (1840-1926) 
 Title Nymphéas
 Authenticity: Signed and dated 'Claude Monet 1905' (lower right) 
 Medium: Oil on canvas 
 Dimensions: 39 in x 32 in. (100.1 x 81.2 cm.) 1256 sq inches
 Painted in 1907 Genre: Impressionist & Modern Art Estimate:$25,000,000 - $35,000,000 Realised: $27,045,000 with the buyer’s premium (Asian buyer) BUYER B Provenance: Galerie Durand-Ruel et Cie. and Galerie Bernheim-Jeune et Cie., Paris (acquired from the artist, 14 December 1920). Galerie Durand-Ruel et Cie., Paris (acquired from the above). Durand-Ruel Galleries, New York (acquired from the above, 17 January 1923). Acquired from the above by the late owner, 2 May 1930. The Clark Family Treasures6 held since 1930

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By comparison of two works by the same artist7 of the Water-lily series in a period of 1906-1920 Identification of the work entitled by the same name is by date of execution, size of artwork and provenance. This sold at a Christies auction two years before in 2012. This is an earlier work with similar provenance and slightly larger. The smaller work, Lot 8), acquired and changed hands five times. The 2012 sale was a greatly increased price for the seller. The provenance on this piece seemly more exclusive, having being held since 1930 in a large and notable collection. For the buyer this was a substantial amount over the sale of the 2014 piece, of $16,717,500

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http://www.christies.com/about/press-center/releases/pressrelease.aspx?pressreleaseid=7193 http://www.christies.com/lotfinder/paintings/claude-monet-nympheas-5615591-details.aspx#top

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Buyer B 2014 paid 61.8% less than Buyer A 2012 - This is notable that the depreciation percent is the same the Golden Ratio here 8 this is important as this can describe crowd decisions a in global market.

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Title: Nymphéas
 Authenticity: signed and dated 'Claude Monet 1905' (lower right) 
 Medium: oil on canvas 
 34¾ x 38¾ in. (88.3 x 99.5 cm.) 1346 sq inches
 Painted in 1905 Christie's Sale 2954 Impressionist and Modern Art Evening Sale9 7 November 2012 - New York, Rockefeller Plaza Estimate: $30,000,000 - $50,000,00 Price Realised $43,762,500 USD ✓ BUYER A Provenance: Galerie Durand-Ruel et Cie., Paris and Galerie Bernheim-Jeune et Cie., Paris (acquired from the artist, June 1909).
 Charles Beatty Alexander, New York (acquired from the above, 1910).
 Harriet Crocker Alexander, Boston (by descent from the above).
 Hirschl & Adler Galleries, Inc., New York (acquired from the family of the above).
 Acquired from the above by the late owner, 1979.

2) LOT 29 ✓ Artist: Pablo Picasso (1881-1973)
 Title: Portrait de femme (Dora Maar) Authenticity: Medium: Oil on canvas 
 Dimensions: 74 3/8 x 50 7/8 in. (189 x 129.2 cm.)
 Painted in 1942 Genre: Impressionist & Modern Art Provenance: The painting had never been sold at auction previously. Viktor and Marianne Langen Collection. Estimate: $25,000,000 – $35,000,000 Realised: $22,565,000 £13,313,350 €16,246,800 with the buyer’s premium Sold 2014 $22,565,000

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3) Lot 5 ✓ ★ Artist: Amedeo Modigliani (1840-1926) 
 Title Jeune homme roux
 Authenticity: Signed upper left
 Medium: Oil on canvas 
 Dimensions: 39½ x 25 5/8 in. (100.5 x 65 cm.)
 Painted in 1919 Genre: Impressionist & Modern Art Provenance: Estimate: $8,000,000 – $12,000,000 Realised: $17,637,000 £10,405,830 €12,698,640 with buyer’s premium (American) Sold 2002 for $8,479,500. Sold 2014 Inflation 2002 -2014 $11,137,555.9410

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4) LOT 17 ✓ Artist: Wassily Kandinsky (1866-1944), Title:Strandszene Medium: oil on board, Dimensions:

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https://www.wolframalpha.com/input/?i=27%2C045%2C000%2F43%2C762%2C500

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http://www.christies.com/lotfinder/paintings/claude-monet-nympheas-5615591-details.aspx

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http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=8%2C479%2C500.&year1=2002&year2=2014

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Painted: in 1909 Genre: Impressionist & Modern Art Provenance Estimate: $16,000,000 - $22,000,000 Realised: $17,189,000 £10,141,510 €12,376,080 (Anonymous)

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5) LOT 42 ✓ Artist: Pablo Picasso (1881-1973)
 Title: Deux femmes et enfant Authenticity: Medium: Oil on canvas 
 Dimensions: 74 3/8 x 50 7/8 in. (189 x 129.2 cm.)
 Painted in 1922 Genre: Impressionist & Modern Art Provenance: Estimate: 12,000,000 – $16,000,000 Realised: $13,045,000 £7,696,550 €9,392,400 with the buyer’s premium (Anonymous)

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6) LOT 33 ✓ Artist: Alberto Giacometti (1901 -1966)
 Title: Femme de Venise IV Authenticity: signed and numbered ‘Alberto Giacometti 2/6’ on the left side of the base Medium: Bronze
 Dimensions: Height: 45½ in. (115.5 cm.)
 Executed: Conceived in 1956 and cast in 1957 Genre: Impressionist & Modern Art Provenance: Jan Krugier, Geneva dealer and collector Estimate: $10,000,000-18,000,000 Realised: $12,709,000 £7,498,310 €9,150,480 with the buyer’s premium (US Trade) 2000 for $2,820,686

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Sotheby’s top 5 sales New York 7 May 2014 Sale number N09139 ! Key Sold within estimate ✓ realised above the estimate ★ 1 Lots presented, 21 went unsold. Tax on works unsold 29.5% Total estimation of $218.1 - $317.9 million. NY Evening Sale of Impressionist and Modern Art on Tuesday, May 6, 11 Impressionist and Modern Art Evening Sale, achieved a total of $219 million. (50 Lots sold) This auction followed the Christie’s of the previous night, two thirds of the works were sold. Interest shown from Asian clients; purchases by Chinese, Taiwanese and Hong Kong clients, buying $63.9 million worth of art, accounted for 29.1% of the total result12 The previous year’s sale total was $230,040,000 USD

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Thumbnails Sotheby’s New York, Auction Catalogue, May 2014, 1)Pablo Picasso Le Sauvetage, 2) Henri Matisse La séance du matin, 3) Claude Monet Le Pont japonais, 4) Aberto Giacometti La Place, 5) Alberto Giacometti Femme de Venise V

1) LOT 24 ✓ ★ Artist: Pablo Picasso (1881-1973)
 Title Le Sauvetage Authenticity: Signed Picasso (upper right) Medium: Oil on canvas 
 Dimensions: 38 1/4 x 51 1/4 in. (97.2 x 130 cm)
 Painted in November 1932 Genre: Impressionist & Modern Art Provenance: Jerome Fisher, a collector and a founder of the footwear company Nine West, Bid Sotheby’s in 2004 for $14.8 million Estimate: $12,000,000 - 14,000,000 Realised: $19,205,000 with buyer’s premium (Asian Collector)

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2) LOT 8 ✓ Artist: Henri Matisse 
 Title: La séance du matin Authenticity: Signed Henri Matisse (lower right) Medium: Oil on canvas 
 Dimensions: 74 3/8 x 50 7/8 in. (189 x 129.2 cm.)
 Painted in1924 Genre: Impressionist & Modern Art Provenance: Property from Private American Collection

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http://www.artlyst.com/articles/christies-and-sothebys-impressionist-and-modern-sales-soar-in-ny

http://www.nytimes.com/2014/05/08/nyregion/mediocre-night-at-sothebys-as-one-third-of-the-art-doesnot-sell.html?_r=0 12

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Valentine Dudensing, New York (acquired from the artist) Stephen C. Clark, New York Mr. & Mrs. Maurice Newton, New York Frederick M. Peyser, New York Estate of Frederick M. Peyser, New York (sold: Sotheby's, New York, May 13, 1986, lot 42) Private Collection (acquired from the above) Acquavella Galleries, New York, Acquired from the above in 1996 Estimate $12,000,000 - $18,000,000 Realised: $15,845,000 (£9,332,116)(Anonymous)

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3) LOT 28 ✓ Artist: Claude Monet (1840 - 1926)
 Title Le Pont japonais Authenticity: Stamped with the signature (lower right) Medium: oil on canvas Painted 1918-24.
 Dimensions: 35 1/2 by 45 3/4 in. 90 by 116.3 cm Genre: Impressionist & Modern Art Provenance:Property of a Private European collector,Estate of the artist André Engran, Paris (circa 1940-1945) L. Brolatti, Geneva (1945-1947) Private Collection, Switzerland (by 1947 and until at least 1997) Wildenstein Gallery, New York (1999) Acquired from the above in 2004 Estimate: $12,000,000 - 18,000,000 Realised: $15,845,000 (£7,683,020) with buyer’s premium (Asian Private)

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4) LOT 18 ✓ Artist: Aberto Giacometti (1901 - 1966)
 Title La Place Authenticity: Inscribed with the signature A. Giacometti, with the foundry mark Alexis Rudier Fondeur Paris and numbered 4/6 Medium: Bronze with brown and black patina
 Dimensions: 25½ in. (64.7 cm.) 
 Conceived: in and cast in 1948 Genre: Impressionist & Modern Art Provenance: Pierre Matisse Gallery, New York.
 Acquired from the above by the family of the present owner, 18 July 1962. Estimate: $12,000,000 - 18,000,000 Realised: $13,045,000 with buyer’s premium (Private Asian)

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By comparison with an artwork from a series, of 6,the work entitled by the same name is by date of execution, size of artwork and provenance. sold at auction 2002. LOT 12 sold by auction 2002 Artist: Alberto Giacometti (1901 -1966)
 Title: Femme de Venise IV Authenticity: Inscribed with the signature Alberto Giacometti, stamped with the foundry mark Susse Fondeur Paris and numbered 3/6 Medium: Bronze
 Height: 45½ in. (115.5 cm.)
 Executed: Conceived in 1956 and cast in 1957 Genre: Impressionist & Modern Art Provenance: Pierre Matisse Gallery, New York, Private Collection (acquired from the above on November 22, 1960 and sold: Sotheby's, New York, November 7, 2001, lot 27) Acquired from the above sale ✓ ★ Estimate: $6,000,000- $8,000,000 Realised: $8,789,000 USD £ € with the buyer’s premium (US Trade) 2000 for $2,820,686

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5) LOT 12 ✓ ★ Artist: Alberto Giacometti (1901 -1966)

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Title: Femme de Venise V, bronze Authenticity: Inscribed with the signature Alberto Giacometti, stamped with the foundry mark Susse Fondeur Paris and numbered 3/6 Medium: Bronze
 Height:43 1/2 in. 110.6 cm
 Conceived: 1956 and cast in 1958 Genre: Impressionist & Modern Art Provenance: Property form the estate of Jan Kruger, Pierre Matisse Gallery, New York, Private Collection (acquired from the above on November 22, 1960 and sold: Sotheby's, New York, November 7, 2001, lot 27) Acquired from the above sale Estimate: $6,000,000 - 8,000,000 Realised: $8,789,000 USD with buyer’s premium (US Private)

!! ! ! ! Acknowledgements and Footnotes used throughout essay ! ___________________

The Wealth Report 2014, Knight Frank research The Wealth Report 2013, Knight Frank research Sotheby’s Online Christies Online Business World Online New York Rockefeller Centre, Impressionist and Modern Art Evening Sale, New York, 6 May 2014, Sale #2844 Art Media Agency http://en.artmediaagency.com/85919/219-million-for-sothebys-impressionist-andmodern-art-evening-sale/ http://www.christies.com/lotfinder/sculptures-statues-figures/alberto-giacometti-la-place-ii-5075595details.aspx Artlyst Art Market News, London Art Network May 13, 2014 http://www.artmarketmonitor.com/ Marion Maneker, May 12,2014 http://artemundiglobalfund.com Impressionist and Modern Art 2014 February Christie’s NY Impressionist and Modern Art 2012 May, Sale 2554Total $117,086,000 http://en.artmediaagency.com/85919/219-million-for-sothebys-impressionist-and-modern-art-eveningsale/ http://www.christies.com/Results/PrintAuctionResults.aspx?action=refine&saleid=23532 Francesca Bellini, Director of Portafolia Ltd Jeremy Eckstein, MD, ArtBanc International

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