Art finance

THE war in Iraq does not appear to have had any obvious effect on the latest series of lslamic sales, held in London last week. There was still an international turnout for the three main auctions of Islamic works of art and, in a field usually characterised by selective buying, the selling rates were not especially different, with a take-up in lot terms ranging from just over half the content at Bonhams and Christie’s King Street to just over two thirds at Sotheby’s.

LOOKING back on spring to see what green shoots of recovery might be discernible, a rather unexpected contender for the category turns out to be silver. Obviously, silver starts any recovery from a pretty low and long-standing trough but some of the results round the country certainly indicated that there was more than just auctioneers’ wishful thinking behind the optimistic comments.

THE SARS virus has caused a slump in the price of jewellers’ platinum as the Far Eastern jewellery trade effectively goes into quarantine. While silver seems stable and the price of gold has actually risen slightly, platinum has plummeted 39p per gram over the past week, from £10.04 to £9.65.

HAMPSHIRE dealers Millers Antiques offer a 20 per cent discount on all stock at their Open Weekend to be held at Netherbrook House, 86 Christchurch Road, Ringwood from May 9 to 12.

Forecasts revised upwards for the rest of the year: eBay’s net profits for the first quarter of 2003 more than doubled last year’s figure, breaking the $100m barrier for the first time. With a turnover of $476.5m for the period, the firm generated $104.2m profit, compared with a turnover of $245.1m and profits of just under $50m for the first quarter of 2002.

CHANCELLOR Gordon Brown’s Budget plans to help achieve one of the three main aims of the National Art Collections Fund (the Art Fund) campaign to improve art donation. Concern that art owners do not have enough incentive to bequeath works to the nation has led the Chancellor to announce that he will look at introducing a policy of tax relief on such donations – until now, such relief has only been available on donations of cash or shares.

WHAT business there was came on the final day of the Cheshire County Antiques Fair, staged by Cooper Antiques Fairs at Arley Hall over the weekend of March 14 to 16.

SOTHEBY’S have registered a 12 per cent rise in turnover on the fourth quarter of last year, but net losses for the year have climbed considerably thanks to extraordinary costs. Three quarters of these costs relate to anti-trust settlements.

Contemporary art continues to outperform many of the more traditional categories of art and antiques, according to a new report by insurers Zurich.

Mallett revealed a 47.6 per cent rise in turnover and a 20 per cent rise in pre-tax profits in 2002, described by chairman George Magan as “one of the most challenging years” in the history of the London dealership.

US: What was the impact of the sluggish economy and the downward DOW coupled with 150,000 troops in the Gulf on the New York Ceramics Fair? Well, barely a dent in enthusiasm or sales, much less a blemish on attendance in the event organised by the California-based Caskey-Lees enterprise.

AS Christie’s and Bonhams followed Sotheby’s in announcing new commission structures last week, Bonhams emerged with the most attractive terms for buyers and added a new incentive for sellers at their Bond Street rooms.

JUST as Phillips announce their cutbacks, Bonhams have unveiled annual sales for 2002 of $304m. This announcement completes Bonhams’ first full year of trading after the November 2001 merger in which they combined with the UK interests of Phillips Son and Neale.

TENSION in the Middle and Far East has sparked a rapid rise in gold prices – the biggest in six years. The gold fix soared £4 an ounce in the second week of January – amplified to a $9 rise by the weakening dollar – as the world continued to brace itself for war in Iraq and further trouble with North Korea. Meanwhile low interest rates have made gold a more promising investment.

THE future of the Trading Art Group Ltd, a company set up to hold sales of remaindered art, is in the balance after creditors complained about unpaid bills. The principals of the TAG venture, Michael Roosen and Greg Ward, were unavailable for comment last week. Mr Roosen held a TAG sale in 2000, a venture which failed and had angry dealers attempting in vain to get recompense for damaged stock.

Deal clears way for leaseback of building: Sotheby's will be able to clear up to $100m of debt – including their recent $20m European Commission fine – by selling their York Avenue headquarters in New York.

Christie’s and Sotheby’s failed to establish saleroom predominance in Paris in 2002, the first full year in which, thanks to France’s recent auction reform, they have been allowed to stage auctions on French soil.

SLOAN’S auctioneers of Washington DC have filed for Chapter 11 bankruptcy protection in a bid to keep the company afloat. The move follows recent reports that the company had debts of up to $5m and a string of unpaid consignors.

IN DAYS when a 70 per cent selling rate is considered reasonable, a country auction enjoying a 90 per cent success rate obviously had something special going for it.

Sotheby’s board of directors has told its managers to meet with representatives of Alfred Taubman to discuss the possible sale of his controlling stake in the company.