Through Art Market & You, Art From Us provides you Analysis, Opinion and Factual Reports regarding the current on-goings of the Global Art Market. In this article, we delve take a look at Brexit and its Impact on the Art Market.
BREXIT and the Current Auction Season
Britain has always been global leader in auction sales. In 2015, it was responsible for 19% of auction sales, globally, says this year’s TEFAF report. But things don’t look so good following the news of BREXIT.
A Downward Spiral
– London saw Impressionist & Modern sales leading up to the week of the vote. Christie’s fell £7 million short of its reserve totals, whilst Sotheby’s total was around the £100 million mark.
– As the pound collapses, with its lowest drop in 30 years in late June, the market is losing faith. It is becoming increasingly difficult to determine what works will fetch their desired price at auction. There is already a considerable dip in the Market for Old Masters.
– Speculation is rife, with some predicting that the increased buying power of the European and American buyers will keep the market alive. We prefer to wait and watch, and would advise all top-tier buyers to hold on and be on the lookout for distress sales/auctions. Middle-tier buyers should hold on. Do not sell, but at the same time, do not continue to invest.
– 282 well-known figures from the British art world signed up to the Britain Stronger In Europe Campaign. Artists such as Conrad Shawcross, Anish Kapoor and Tracey Emin were a few of them.
– London’s Contemporary Art Sales realized its lowest for a June series, since 2009. The total from the three main auction rooms, across seven sales was £168 million. This was half the amount that was realized last year and should be a cause for concern.
– An example of this downward turn was highlighted at the Phillips Sale for 20th Century and Contemporary Art. To begin with the room was half filled. This depressing start was to be materialised with an equally depressing final hammer of – £9.8 million (£11.9 million with fees). They came in under their pre-sale estimate of £10.2 million.
We shall keep you posted on the impact of BREXIT on the Art Market & You, as events unfold.
Visit the Archive for Art Market & You.