LATIN AMERICAN ART MARKETS

Transcription

1 LATIN AMERICAN ART MARKETS AUCTIONS 2012

2 The Latin American art market has several qualities that make it a very particular market. It is an art sector that has been on continuous growth and development since the last couple of decades. However, many high quality artworks are still undervalued and thus make great investments. Many Latin American artists were in direct contact with European Modern artists and are just being discovered by the market. Unlike other sectors, Latin American artworks have not yet reached the exorbitant prices paid for trophy artworks even if they are masterpieces. $ 70,000,000 $ 60,000,000 $ 50,000,000 $ 40,000,000 $ 30,000,000 $ 20,000,000 $ 10,000,000 $ 0 Sotheby's Christie's Phillips Latin America presents vast opportunities both to buyers and sellers because growing economies have favored the growth of an art industry. In some countries it is a sector that still lacks maturity and a solid structure, however this can be seen as an opportunity. Although Latin American art varies enormously from country to country there are certain similarities and common backgrounds that appear to concur throughout the continent. This analysis aims to examine the art sold in the six most important Latin American auctions in New York during TOTAL AUCTION SALE BY COUNTRY $ 25,000,000 $ 20,000,000 $ 21,011,463 $ 15,000,000 $ 12,106,750 $ 15,365,625 $ 14,126,050 $ 14,656,375 $ 13,885,251 $ 10,000,000 $ 5,000,000 $ 3,532,125 $ 3,536,813 $ 485,500 $ 910,375 $ 457,750 $ 472,500$ 549,750$ 487,250 $ 0 There are a couple of things that must be taken into consideration: - The total numbers do not represent the total worth of each country s art market, however they are indicative of their size relative to other countries from the same region. - The numbers estimated were calculated by classifying the nationality of the artist that produced each lot, and not the nationality of the buyers. - The numbers analyzed do not include sales in local auction houses, only results from Sotheby s, Christie s and Phillips auction houses in New York. - Some countries like Brazil that have a very strong contemporary market do - Countries that have a strong contemporary market, like Brazil, have an important share of their sales in Contemporary auctions. 2

3 MARKET DISTRIBUTION MARKET SHARE BY VALUE MARKET SHARE BY LOTS URUGUAY 4% PUERTO RICO PERU VENEZUELA ARGENTINA 3% BRASIL 12% PUERTO RICO 2% URUGUAY 4% PERU 2% NICARAGUA VENEZUELA 7% ARGENTINA 1 NICARAGUA BRASIL CHILE 15% MEXICO 2 MEXICO 24% CHILE 6% COLOMBIA COLOMBIA 1 GUATEMALA ECUADOR CUBA COSTA RICA GUATEMALA ECUADOR 2% CUBA 16% COSTA RICA - Argentina offers 1 of the lots sold however they are only worth 3% of the total sales meaning that in general prices for Argentinian artists are fairly low. - Although Venezuelan artists account for of the sales their artworks represent 7% of the lots sold, indicating that their artworks are more expensive than the average. - The same can be said about Chile, only 6% of the lots correspond to 15% of the sales implying that the Chilean artworks analyzed were sold above the average prices. - For markets like Mexico, Cuba, Brazil and Colombia the difference between their market share by lots or by value is a significantly lower meaning their average prices are very similar. 3

4 AVERAGE AND MEDIAN PRICES It is worth noticing that in almost every case the median is lower than the average price, implying that in general the averages are biased upwards because of the expensive artworks sold. The median price represents the middle value of a series of numbers, meaning that exactly half of the values are below the median and the other half are above it. The average price represents the arithmetic average. To set in perspective, the average and median prices of Modern and Impressionist (for the similar type of auctions) were $991,000 and $170,500 USD. The overall average price was $119,850 USD and the median price calculated was $35,000 USD. $ 400,000 MEDIAN PRICE AVERAGE PRICE $ 350,000 $ 334,035 $ 300,000 $ 250,000 $ 227,627 $ 200,000 $ 150,000 $ 176,576 $ 158,500 $ 102,600 $ 95,500 $ 100,000 $ 50,000 $ 40,599 $ 38,750 $ 16,250 $ 58,125 $ 110,198 $ 104,535 $ 101,052 $ 78,750 $ 69,000 $ 60,692 $ 44,136 $ 48,438 $ 45,813 $ 43,750 $ 30,000 $ 37,500 $ 45,775 $ 36,250 $ 25,645 $ 35,000 $ 31,250 $ 22,500 $ 0 4

5 ART MARKET CONCENTRATION INDEX (AMCI) The AMCI1 measures how concentrated in a few artists is a country s art market. The index ranges from 0 to 10,000 where 10,000 means the market is dominated by a single artist and the closer to 0 implies perfect competition. In general the results indicate that most art markets are dominated by one or two artists. Only Brazil and Mexico show well distributed makets. - Although Colombia represents of the market, it is only because of Fernando Botero who represents 9 of Colombia s market. - Matta and Claudio Bravo represent 68% and 3 of the Chilean art market. - Uruguay s art market is dominated by Joaquín Torres García who accounts for 7 of its market. - In Venezuela Jesús Rafael Soto represents 45%, Carlos Cruz Diez 29% and Armando Reverón 1. - Wifredo Lam accounts for 47% of the Cuban art market and Tomás Sanchez 19%. BRASIL 863 CHILE 5,554 COLOMBIA 8,179 CUBA 2,707 MEXICO 1,069 URUGUAY 5,080 VENEZUELA 3, ,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000!! 1. =!!!! Where! is the market share of each artist i. 5

6 PRICE DISTRIBUTION OF LOTS SOLD LOTS SOLD BY PRICE RANGE 5 47% 45% 4 35% 3 25% 2 15% 15% 2 1 5% 3% 2% < $10,000 $10,000 - $50,000 $50,000 - $100,000 $100,000 - $500,000 $500,000 - $1,000,000 > $1,000,000 The graph indicates the share of lots sold in each price range. The distribution of lots indicates a strong lower-mid market where most of the sales are between $10,000 and $50,000. This analysis is useful to determine the optimal price range to invest according to ones expectative. It is also worth noticing that the $100,000-$500,000 price rank is very popular between the buyers. Compared to other markets very few lots are sold above a million dollars, indicating that prices have not yet reached the trophy category. Given the growing demand for Latin American Art, it is foreseeable that prices keep increasing, making artworks very attractive investments. 6

7 UNSOLD RATE The Bought-In (BI) rate represents the share of lots available that failed to sell. In general the BI rates are a good indicator of the vitality of the demand. Most average BI s were lower than the market s average of 3 implying a growing demand for Latin American Art. The number for Costa Rica, Ecuador and Peru are not very representative because there were fewer than 15 lots sold from each country in the auctions analyzed. The average unsold rate was 25%. 35% BI RATE BY COUNTRY 3 25% 29% 25% 3 26% 27% 29% 25% 27% 29% 2 15% 1 5% 6% 8% 7

8 TOP LOTS SOLD 1 MATTA La révolte des contraires Christie's May $ 5,010,500 2 WIFREDO LAMM Ídolo Sotheby's May $ 4,562,500 3 MATTA Nada Sotheby's Nov. $ 1,818,500 4 DR. ATL Mañana Luminosa Sotheby's Nov. $ 1,650,500 5 ANONYMOUS MEXICAN SCHOOL Portrait of Moctezuma II Sotheby's Nov. $ 1,650,500 6 SERGIO CAMARGO Hommage à Fontana Sotheby's May $ 1,538,500 7 CLAUDIO BRAVO Angelis Sotheby's Nov. $ 1,510,500 8 JOAQUÍN TORRES-GARCÍA Grafismo univesal sobre fondo gris Christie's May $ 1,426,500 9 FERNANDO BOTERO The street Christie's May $ 1,426, CLAUDIO BRAVO Ad Laudes Sotheby's May $ 1,172, CLAUDIO BRAVO Psalterium Christie's May $ 1,142, JESÚS RAFAEL SOTO La scie a metaux (The hacksaw) Sotheby's Nov. $ 1,082, JESÚS RAFAEL SOTO Sin titulo Sotheby's May $ 1,022, FERNANDO BOTERO Horse Christie's Nov. $ 938, ARMANDO REVERÓN Desnudo detrás de la mantilla Sotheby's May $ 872,500 8