Guarantees take centre stage at Christie's New York

The gap between the numbers and the reality of the high-end market is well represented by the dynamics of the two-part auction proposed by Christie's on the evening of May 12 in New York. The cold numbers: 489 million dollars of total revenues for the 72 lots sold out of 73 in the two successive catalogues: first the Riggio Collection and then the general catalogue of 20th century art.

But these results are largely due to third-party guarantees that have supported the prices achieved, often in the absence of further increases, showing once again how real demand, at least at these high values, is reduced to the bone. Third-party guarantees have structurally distorted the market, which increasingly needs their support to remain at the speculative prices reached over the past decade. An increasingly difficult result with the significant reduction in the participation of Asian speculators, especially Chinese, and the uncertainties linked to the global economy and interest rates that are no longer zero or negative.

Mark Rothko. “No. 4 (Two Dominants) [Orange, Plum, Black]”, sold for $37,785,000 at Christie's

The 38 lots from the collection of the founding spouses of Barnes & Noble, put up for sale by the widow, had largely all already been sold before the auction to their respective third-party guarantors, especially the multimillion-dollar works, and it can be assumed that, in the visible absence of other contenders, a significant part of the $ 272 million realized (in the estimate thanks to the commissions) came out of the pockets of these financiers/speculators. Starting with the classic geometric composition by Mondrian from 1922, sold for 47.6 million with commissions, below the asking estimate of 50 million, by Alex Rotter, the new global president of Christie's, probably representing the guarantor. Together, the two Magritte works almost reached $51 million: 'Le droits de l'homme' made $15.9 million from an estimate of $15-20 million, while a smaller 1949 version (48 x 59 cm) of the famous 'L'empire des lumieres' reached $34.9 million. Interest beyond the guarantee, however, was the colorful portrait of Lee Miller painted by Picasso in 1937, which reached $28 million with commissions from an estimate of $20-30 million. The collection also includes an interesting group of sculptures and works by Alberto Giacometti, starting with the slender 'Femme de Venise I' which changed hands for $17.6 million, within the guaranteed estimate of $15-20 million; Similar results, close to their guaranteed low estimates, were achieved by a nude painting by Annette (Now in the Studio (Annette)) which nearly fetched $8.5 million (estimate $7-10 million), and a composition with three figures and a head ('La Place') which sold for $10.8 million from an estimate of $9-12 million.

Gino Severini. “Dancer”, realized price 3,196,000 dollars at Christie's

A sculpture by Julio Gonzalez estimated at 8-12 million, which the auction house had guaranteed directly without subsequently transferring the risk to third parties, remains unsold, one of the few millionaire lots to remain without this 'parachute'. The works not guaranteed by third parties with non-millionaire values ​​have, instead, found buyers, sometimes even above the estimate. The auction house has, in fact, guaranteed the entire collection and subsequently transferred the risk to willing third parties.

Piet Mondrian. “Composition with a large red, bluish grey, yellow, black and blue plane” sold for $47,560,000 at Christie's

The general catalogue reaches 100% sales thanks to the withdrawal of one of the most important lots, a large 'Electric chair' by Andy Warhol estimated at around $30 million, which evidently had not found guarantors to save it from remaining unsold. The proceeds stop at $217 million for the 35 lots sold, and the role of guarantees appears more nuanced than in the previous catalogue. Thanks also to a good start with the opening lot, a cheerful and dynamic futurist work by Gino Severini 'Danseuse' which realizes $3.2 million exceeding the guaranteed estimate of $1.5-2.5 million. The most important lot in the catalogue, a dark-toned composition by Rothko 'No.4' from 1950-51, stops instead around the guaranteed estimate of $37.8 million, more than half of the total realization of $73 million for the nine lots of the Bass collection in the catalogue. The podium then goes to a classic impressionist work by Monet 'Peupliers au bord de l'Epte, crepuscule' which achieved a record price for this series at $43 million from an estimate of $30-50 million, thus exceeding the guarantee thanks to multiple re-bids.