Christie’s hack-threatened auction spotlights cracks in the art market
Art breaker… Christie’s, the prestigious auction house, nearly had its big May sale disrupted by an apparent hack. Its website went down in the days leading up to the auction, causing folks to question how digital buying (which made up 18% of global art sales last year) would be affected. Even though the site remained down, online bidders were sent a special link to raise their digital paddles. But while the auction proceeded, any hype from the dramatic downtime failed to heat up the lukewarm market.
Bidding snores: The second part of Christie’s auction — featuring usually popular contemporary pieces — fell flat. It was expected to tally between $104M and $155M, but brought in just $80M. And three works were withdrawn — likely a sign of low interest.
The canvas has shifted… Mid-pandemic, when even “Animal Crossing” paintings were a hot commodity (not to mention NFTs), art sales surged. But with today’s high interest rates and inflation, buyers want a discount, while sellers are reluctant to list for less. Last year, auction sales dropped 27% from 2022, the market’s first squeeze since 2020, and average prices plummeted 32%, the most in seven years. The rut continued this year, with May sales from the Big Three (Christie’s, Sotheby’s, and Phillips) expected to fall 18% annually.
Different strokes: Auction houses say the sales slump isn’t a demand problem. Buyers are bidding, but owners are waiting for the economy to improve before listing their works.
A Monet stores money… Some collectors see art as an alternative investment that could carry its value through tough economic times. Collectors who saw how much their works could fetch during the pandemic could be waiting for frothier markets to list in. Auctions can be risky because sales are decided dynamically. One bright spot: private sales are strong. In January, Citadel boss Ken Griffin bought a Mark Rothko painting through Christie’s for $100M+.