Featured Guarantees at Christie's New York

The gap between the numbers and the reality of the high-end market is well illustrated by the dynamics of the two-part auction offered by Christie's on the evening of 12 May in New York. The cold numbers: $489 million in total revenue 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 to a large extent due to the third-party guarantees that have sustained the realised prices, often in the absence of further raises, showing again how real demand, at least at these high values, is cut to the bone. Third-party guarantees have structurally distorted the market, which increasingly needs their support to remain at the speculative prices achieved over the past decade. This is becoming increasingly difficult with the significant reduction in the participation of Asian speculators, Chinese in particular, and the uncertainties related to the global economy and interest rates that are no longer zero or negative.

Mark Rothko. “N. 4 (Due Dominanti) [Arancione, Prugna, Nero]”, aggiudicato a 37.785.000 dollari da Christie’s

The 38 lots of the Barnes&Noble founders' collection offered for sale by his widow were largely all already sold prior to the auction to their respective third party guarantors, especially the multi-million dollar works, and it can be assumed that, in the visible absence of other contenders, a significant portion of the $272m realised (in the estimate thanks to commissions) came out of the pockets of these financiers/speculators. Beginning with Mondrian's classic geometric composition of 1922 fetched $47.6m with commissions, below the asking estimate of $50m, by Alex Rotter, Christie's new global chairman, probably representing the guarantor. In total, the two Magritte works fetched close to $51m: 'Le droits de l'homme' fetched $15.9m from an estimate of $15-20m, while a smaller (48 x 59 cm) 1949 version of the famous 'L'empire des lumieres' fetched $34.9m. Arousing interest beyond the guarantee, on the other hand, is the colourful portrait of Lee Miller painted by Picasso in 1937, which reaches $28 million with commissions from an estimated $20-30 million. The collection also includes an interesting group of sculptures and works byAlberto Giacometti, starting with the long-line 'Femme de Venise I' which changed hands at $17.6m, within the guaranteed estimate of $15-20m; similar results, close to the low guaranteed estimate, for a nude painting by Annette (Now in the Studio (Annette)) which fetched close to $8.5m (estimate $7-10m), and a composition with three figures and a head ('La Place') which fetched $10.8m from an estimate of $9-12m.

Gino Severini. “Danzatrice”, prezzo realizzato 3.196.000 dollari da Christie’s

Remaining unsold, however, was a sculpture byJulio Gonzalez valued at 8-12 million, which the auction house had guaranteed directly without later transferring the risk to a third party, one of the few millionaire lots to remain without this 'parachute'. The works not guaranteed by third parties with non-million-dollar values have, on the other hand, 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. “Composizione con grande piano rosso, grigio bluastro, giallo, nero e blu” aggiudicato a 47.560.000 dollari da Christie’s

The general catalogue reached 100% sold thanks to the withdrawal of one of the most important lots, a large 'Electric chair' by Andy Warhol valued at around $30m, which evidently had not found guarantors to save it from remaining unsold. The proceeds stood at $217m 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 realised $3.2m, exceeding the guaranteed estimate of $1.5-2.5m. By contrast, the most important lot in the catalogue, a dark-toned 1950-51 Rothko composition 'No.4', stopped around the guaranteed estimate at $37.8m, more than half of the total realisation of $73m for the nine lots in the Bass collection in the catalogue. The podium position then goes to a classic Impressionist work by Monet 'Peupliers au bord de l'Epte, crepuscule' which realised a record price for this series at $43 million from an estimate of $30-50 million, thus surpassing the guarantee thanks to multiple raises.