Antiques appeal still growing

Jan 21 2010 by Chris Knox, The Journal

With global stock still in their earliest stages of recovery and interest rates helping to make only the most minimal of returns on investment, people are now looking elsewhere. Christopher Knox finds that the art and antiques market has remained robust since the onset of the recession.

The art world has also benefited from the move away from liquid assets, with sales in the auction rooms continuing to defy the prevailing gloom.

The survey shows the contemporary art market had a resurgence during the final three months of 2009, reversing four quarters of falling prices. The number of surveyors reporting increased prices over the final quarter of 2006 rose by 6%.

The oil and watercolour subsector proved particularly popular for investors, with lots over £50,000 recording significant price rises as a result.

Confidence is also seeping back into the top layer of the art market after its worst scare in two decades. Sotheby’s has just unveiled three works with estimates of more than £10m for its Impressionist & Modern sale in London next month, the same number of works it sold for that price across all categories all last year.

Gustav Klimt’s Kirche in Cassone, Alberto Giacometti’s life-sized sculpture L’Homme qui marche and Paul Cézanne’s still-life Pichet et Fruits sur une Table arrived at the auction house’s New Bond Street headquarters on the heels of promising sales at the end of last year.

Manager of Castle Galleries in Newcastle city centre, Anthony Dorman, has also noticed that more buyers are looking at art as an investment first and foremost.

The gallery features works by up-and-coming regional artists, including the hotly-tipped Newcastle painter Alexander Millar, one of whose paintings has sold for more than £10,000.

He said: “Last year was a very good year for us, with some of our paintings going for around £30,000 – many of which were sold to repeat customers.

“This was better than expected as we had not budgeted for any growth, but managed to increase our overall sales all the same. Although most of the sales we make are more emotional investments, the fact that more high- end sales have been made points to a growing number of financial investments.”

With the Bank of England unlikely to hike up interest rates while the economy remains in a fragile position and property prices taking only tentative steps towards a recovery, many believe the popularity of art and antiques will continue through 2010.

Andrew McCoull, senior partner at Newcastle auction house Anderson & Garland, said: “Last year saw total sales of around £2.5m, which we believe we can exceed this year.

“People are looking at the interest rates being offered by savings accounts, as well as the possible returns they can make on the stock market and are realising they are better off investing in a physical asset, which can also be used to brighten up their home.”