PARIS, Nov. 4, 2021 /PRNewswire/ -- On 14 October 2021, just before its prestige
Contemporary Art Evening Sale in London, Sotheby's calculated the estimated
value of the canvas I'll Have What She's Having (2020) by
Flora Yukhnovich at $80,000 -
$110,000. But the work finally sold
for over $3 million. Nothing
justifies this result 30 times higher than the estimates, if not
pure competition between bidders of course, fuelled by a wave of
current art market enthusiasm for young creativity. In reality, the
31-year-old artist has far too few results for Artprice and
Sotheby's to be able to explain the logic of such a result.
thierry Ehrmann, CEO and Founder of Artmarket.com and of its
Artprice department: "Art is usually considered a low volatility
investment the value of which evolves over the long term with a
gradual change in tastes and preferences. But in recent years, this
theory has been shaken by the 'red-chip' phenomenon: collectors
have become very enthusiastic about the very latest stars of the
Art Market, to the point of rapidly raising the price of their
works from a few thousand to several million dollars."
Buying before they are known...
If you don't yet know
Flora Yukhnovich (1990) or Jadé Fadojutimi (1993), that's normal!
In fact, it appears to be precisely one of the reasons their works
are so expensive today...and it could well be that as soon as you
know them, they will be a little less fashionable. It might
sound counter-intuitive, but it would appear that what makes these
artists so instantly valuable is that they are not on the
books of the most prestigious Contemporary art galleries. Works by
these young artists are therefore offered in sales at Phillips,
Sotheby's and Christie's without any points of reference.
In fact, since it was painted in 2020 (less than two years ago),
the canvas I'll Have What She's Having has already been sold
by the Parafin Gallery and resold at Sotheby's in London. The Artsy online platform presents the
young English painter (31 years old) as a blue-chip artist, because
Flora Yukhnovich is "represented by internationally recognized
galleries." However Artprice considers her more like a
'red-chip' artist, a notion coined by journalist Scott Reyburn (The Art Newspaper) in
January 2021, in reference to a
number of very young artists who have suddenly emerged on the
international art scene.
https://www.theartnewspaper.com/2021/01/08/blue-chip-artists-move-over-here-come-the-red-chips
Very recent works on the secondary market
With the
health crisis, the auction houses have pushed back the limits of
the secondary market to which they have been historically
dedicated. Today, six- or seven-digit amounts sometimes seem easier
to achieve for super-fresh works (created less than two years
before resale) than for Modern classics and the major auctioneers
are increasingly getting involved in the flipping game, i.e.
the very rapid resale of works fresh out of the studios of young
fashionable artists.
This practice is regularly criticized by galleries and artists
themselves, in whose eyes overly rapid price evolutions destabilize
the fragile balance between supply and demand. Last year, the
painter Amoako Boafo (of Ghanaian
origin) confided to Bloomberg his fears and disapproval regarding
the highly speculative resale of his paintings at auction.
https://www.bloomberg.com/news/articles/2020-02-12/hot-new-artist-laments-that-his-work-is-being-flipped-for-profit
A new strategy...
In H1 2021, auction houses took a
further step by selling NFTs by Beeple, Larva Labs, PAK, Mad Dog
Jones, etc. none of whom are as yet represented by major galleries.
The auction houses collaborated directly with these artists, but
also with specialized platforms (like Nifty Gateways or Opensea) to
benefit from all of the available technological support. However,
as the NFT market had no history, the estimates provided by the
auction houses were somewhat arbitrary: the starting price for
Beeple's 5,000 days was set at $100, but the work fetched nearly $70
million!
Of course this is not the first time auction houses have entered
the primary market. They regularly offer fresh pieces during
charity sales where artists donate one or two 'unseen' works to
a good cause. There have also been a number of special
cases, such as Damien Hirst's and
Sotheby's Beautiful Inside My Head Forever sale in 2008.
With NFTs, auction houses have been able to inject into the
market works that by-pass galleries, but for which an immense
demand already exists and has even been bottled up for too long.
This paradigm shift fits in perfectly with a broader strategy by
the auction majors of presenting works capable of attracting new
buyers towards works whose prices can rocket. In fact, the 'NFT'
and the 'red-chip' phenomena can be seen as a materialisation of
this new strategy.
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