For one recent example, look at Damien Hirst, says Jeff Rabin, principal and co-founder of Artvest Partners…In September 2008, Sotheby’s held a much-ballyhooed sale of the artist’s work, with prices ranging as high as $18.6 million. But the market for Mr. Hirst’s work has cooled, and those who bought at the sale “would have, on [...]
“Ideally any tightening of the rules would be self-imposed,” said Michael Plummer, a former Christie’s executive who is now a principal in Artvest Partners, an art advisory company. “Unfortunately I don’t think the markets are going to have the discipline to do that.”
Artvest Partners, a New York firm that advises wealthy collectors, reckons the [art fund] market is… $1.5 billion to $2 billion as of mid-2012.
Hirst’s naysayers doubt that. They trace his fall to a $200 million auction staged in 2008, on the day Lehman Brothers collapsed. Hirst sold hundreds of works directly to bidders, defying the custom of restricting supply. “Hirst screwed with his market, and it came back to bite him,” says Michael Plummer, principal of the investment advisory firm Artvest Partners. “He broke the economic rules of the industry.”