The Art Newspaper

Don’t like the price – ask again…

Credit crunch, recession, even the weather is stormy—but Art Basel Miami Beach offers the committed collector competitive opportunities

By Georgina Adam, and Jane Morris. From Art Basel Miami Beach daily edition
Published online: 03 December 2008

Exactly one year after the US officially went into recession and after disappointing auctions in New York last month, dealers at Art Basel Miami Beach were busy clearing away the packing cases, sweeping aisles and touching up the paintwork on their stands. At the end of a distinctly chilly, rain-sodden day, an eerie calm descended as the seventh edition of the international fair was revealed in all its glory.

Among dealers the mood ranged from nervous to stoical. Andrew Fabricant, a director of Richard Gray (J10), described himself as “guardedly pessimistic”, noting that the sales last month saw prices fall by 30% or more. “It’s not necessarily a bad thing,” he said. “In fact there is a fair amount of activity in the market, and while everyone said the auctions in November were awful, they actually sold almost $800m-worth of art, which considering the financial climate is amazing.”

John Good, a Gagosian Gallery director, summed up the feelings of many when he said: “This is when the real art dealing takes place. Anyone can do well on an up market, it’s the down market that’s the challenge. The coming year will take creativity and fortitude,” he added.

But for collectors with money to spend, these straitened circumstances may yet yield dividends with galleries openly admitting that they are willing to negotiate on price and payment terms. Meanwhile, it is likely (though few galleries are willing to say it explicitly) that loyalty now vastly increases access to works by the most sought-after artists. David Maupin of Leh­mann Maupin (F14) said: “Obviously we are flexible with discounts. It’s not easy with an established artist, but for a younger artist with a new body of work, such as Mickalene Thomas’s, we are pricing more conservatively than last year.”

Karin Handlbauer, director of Gallery Mezzanin (N52), which is exhibiting a solo show by feminist/political artist Sturtevant said: “It is a good time to buy art, because prices are going down.” She added: “Collectors used to have to join a waiting list for a work of art by their favourite artists; now the whole situation is changing.” Dealer/collector Adam Lindemann, agreed, saying: “We need to support younger artists and galleries at realistic levels—but if I get lucky and buy masterpieces at affordable levels, I’ll end up with amazing things.”

David Leiber, a director of Sperone Westwater (F15), said that, where possible, dealers are responding to the prevailing market situations, though reductions cannot be routinely expected. “Dealers have recalibrated prices. You have to do your best to lower prices, and artists understand what is going on. It is not the same situation for dead artists, or works we have bought for our inventory, where we have less flexibility. The gallery is showing four works by Malcolm Morley, including Blue Boyz, 2008, priced at Fiac in Paris in October at $350,000 and now on offer at $300,000.

Changes in price do not equate to lesser-quality art, with many remarking on the ambition of the art on display. “The standard is high at this fair,” said Mr Leiber. It may be easier for new buyers to ­acquire than in the recent boom. “We’re very open to whoever comes in first [to the fair]. We haven’t made so many sales before the fair, so there is availability.”

“Buyers are in the driver’s seat and they are taking a strong position in cases of negotiations in terms of price and terms,” said Frank Del Deo, a director at Knoedler (J14). But as Alexander Gray, a new exhibitor (N36), observed, this year’s fair is less likely to focus on money. “This is a moment for people who care about art, not about the parties, or the prices. It’s the opportunity to have mean­ingful conversations about art,” he declares.