Art

Art Market Has Climbed Above Prepandemic Level, Major Study Says

Published

1 year ago

April 5, 2023

High-end dealers and auction houses drove growth, but smaller players have had a harder time recovering, the Art Basel and UBS Global Art Market Report found.

Worldwide art and antiques sales reached an estimated $67.8 billion in 2022, up 3 percent compared with a year earlier, lifting the market higher than its prepandemic level in 2019, according to the annual Art Basel and UBS Global Art Market Report published on Tuesday.

The report said that though the high end of the market was the “driver of growth,” auction houses and dealers trading in lower value items experienced less demand.

The reported growth was also far lower than the year-on-year increase of 31 percent that the same survey calculated in 2021, when the art trade bounced back from the cancellations and restrictions caused by the coronavirus outbreak.

“Results were more mixed in 2022,” the report says, adding, “Variations in performance by sector, region, and price segments” produced “more muted growth.”

According to Claire McAndrew, a Dublin-based economist who wrote the report, “People thought it would be back to normal in 2022, but the market is markedly different.”

“The high end has rocketed away. It has squeezed the bottom end,” she said in an interview.

In her report, McAndrew cited the economic effects of the war in Ukraine, which blighted sales at lower price levels, and China’s strict “zero Covid” policies as the key drags on art market growth in 2022.

The annual report, first produced by the Swiss-based art fair Art Basel and the UBS bank in 2017, is the only comprehensive overview of the art trade’s sales that combines publicly available data on auctions with estimates of private dealer transactions. The dealer estimates were based on survey responses from more than 1,300 out of a global total of about 300,000 businesses in the industry. In previous years, experts have questioned whether authoritative figures can be reliably extrapolated from such a relatively small sample.

The report for 2022 says that dealer sales climbed to an estimated $37.2 billion, a 7 percent increase from the previous year, but public and private sales at auction houses were down 2 percent, at $30.6 billion. Despite record-breaking sales at the biggest houses, such as the Paul G. Allen Collection blockbuster at Christie’s, which grossed $1.6 billion, and a 12 percent increase in sales of works priced over $10 million, the report says that “virtually all other price segments experienced a drop.”

In the dealer sector, surveys indicated that galleries with a turnover of more than $10 million saw the biggest sales increases, rising 19 percent. By contrast, the report says that the smallest businesses “struggled with price-conscious and cautious buyers, rocketing costs, and more stagnant sales.”

On average, dealers generated 35 percent of their sales at art fairs in 2022, down from 42 percent in 2019, when there were 408 such in-person events worldwide. In 2022, the number shrank to 346.

“People are doing more online sales and they’re being more selective about fairs,” McAndrew said. “Some of the smaller, less contemporary fairs have closed.”

The United States saw the “most robust” recovery of all the major art markets in 2022, rising 8 percent, to $30.2 billion, a record. Business was buoyed by $10 billion of auction sales, including several prestigious single-owner collections, with 41 of the world’s 50 most expensive fine art lots being sold in New York, according to the report.

As a result, the United States remains the dominant force in the market, with 45 percent of the world’s art sales by value, up from 43 percent the previous year. China’s global share slipped back to 17 percent, returning Britain to second place, at 18 percent. France maintained a stable share of 7 percent, in fourth place.

The speculative trade in art-related NFTs, regarded by many as a democratizing force in an elitist art world, was another sector that contracted in 2022, the report says. After soaring to a high of almost $2.9 billion in 2021, sales on specialist NFT platforms declined to just under $1.5 billion, according to the report.

The report noted, however, that although art-related NFT sales had declined 49 percent year-on-year, they were still more than 70 times higher than they were in 2020.

Robert Norton, chief executive of Verisart, a London-based company providing services in the blockchain sector, said the contraction in NFT sales should be taken in context. “While the market has significantly contracted from the 2021 highs,” he noted, “the genie of digital collectibles is very much out of the bottle.”

Although the Art Basel and UBS report shows that global art trade sales has essentially flatlined since 2011, when the market recovered from the financial crisis, it notes that the number of billionaires and the scale of their wealth has grown significantly, reaching a peak of 2,657 billionaires with a combined $13.6 trillion in 2021. But art market sales have not grown in step with billionaire wealth.

“We’re still dealing with a limited marketplace,” McAndrew said. “There are a lot more billionaires, but they’re not all spending their money on art.”

“The high end keeps the market going,” she added. “But if everything was growing, the market would expand much more.”

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Art

Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork

Published

3 days ago

September 13, 2024

Harry Miller

In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.

Alleged Fraud Scheme

Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.

Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.

Massive Seizure of Artworks

In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.

Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.

Artwork Returned, but Some Remain Unclaimed

In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.

Court Proceedings Ongoing

The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.

Impact on the Local Art Community

The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.

For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.

As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.

While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.

Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.

As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.

Art

Ukrainian sells art in Essex while stuck in a warzone – BBC.com

Published

2 weeks ago

September 2, 2024

Harry Miller

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Ukrainian sells art in Essex while stuck in a warzone BBC.com

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Art

Somerset House Fire: Courtauld Gallery Reopens, Rest of Landmark Closed

Published

4 weeks ago

August 18, 2024

Harry Miller

The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”

On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.

Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”

The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.

Blaze in the West Wing

The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.

About Somerset House

Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.

Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.

Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.

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