Seeking Residual Value

The top end of the art market is undergoing what it euphemistically refers to as an 'adjustment', economists term a 'correction', and the rest of us would call a reduction in prices. Contemporary Art has been particularly affected.

Further down the food chain, however, things are not as bleak as one might imagine, indeed rather the reverse. Our own sales are reasonably buoyant and, speaking with three auction houses in different parts of the country who held sales last week, all three reported very similar stories:

• Bidding had been "very lively", with pictures generally selling in excess of their 'high' estimates (I can attest to this as one painting I was particularly keen to buy sold for 12 times its 'high' estimate).

• Only a very small proportion of lots failed to find buyers.

• When asked to explain behaviour which would appear to be at odds with market sentiment, they all reported much the same thing: that their clients are telling them that they want to put their money into something with residual value rather than keeping it in cash.

So if you are considering doing the same thing what advice can we offer?

• Look at as much art as you can before you buy (a 'good eye' is invaluable).

• Only buy pictures that you like (always the first rule of buying).

• Take advice but trust your own instincts (it is your money).

• Buy the best work you can and remember that it's always better to buy an excellent work by a second tier artist than an inferior work by a 'name' artist (the Joseph Hauber painting below is a very good example of this).

• Negotiate. In common with the rest of the economy most dealers and galleries are open to a conversation.

• And if you plan to pay in US dollars or Euros you have the added advantage of a currency discount, sterling having fallen by 30% against the dollar and 20% against the Euro in the past year (as at 23 January 2009/Source: x-rates.com).
  
  

Good hunting and best wishes

CHRIS NOEL-JOHNSON
ALBANY FINE ART

T: +44 (0) 1367 870961
M: +44 (0) 7799 691 692
E: chrisnj@albanyfineart.co.uk

Joseph HAUBER (German, 1766–1834)
St Peter
Oil on board, dated 1815, unsigned.
Contained within a stunning, hand carved and gilded frame inscribed 'HAUBER' at top,
with an ivory caption plaque below inscribed, 'S. Peter 1766–1834 Joseph Hauber'.
Old paper giving details of Hauber’s life and achievements on verso.
Image Size: 39 x 33 cm (15 x 13 in)
Framed Size: 55 x 49.5 cm (21 x 19 in)
Provenance: Private collection, Cheshire. Christie's label verso,
22nd October 1965, Lot 116, when it was catalogued as dated 1815
Price: £8,500
See Biography

We will be pleased to bring work to your office or home for viewing (London & Home Counties), by appointment, and at no cost or obligation to purchase.

Please feel free to forward this email to anyone you think might be interested.