Four Pandemic Recovery Opportunities for Budding and Seasoned Art Collectors

by Carrie Laverick, President Veritas Fine Art Appraisals & Consulting

I think we can all agree we are moving through 2021 with mixed emotions. While we are optimistic about a recovery, we are also skeptically asking ourselves “is this really happening?” We could liken it to hermit crabs coming out of our shells!

As the art world “re-opens,” we all are looking for a return to “normal.” However, the question is – what is the new normal? The answer is still evolving, but there is no denying that the pandemic created some permanent changes for both seasoned and budding art collectors. But not all change is bad. Wasn’t it Picasso who said “all great change is preceded by chaos”? With that, here are 4 pandemic recovery opportunities that all art collectors should be aware of and potentially capitalize on, if they can.

NFTs – NON-FUNGIBLE TOKENS – EMPOWERING THE DIGITAL ART WORLD
We could write dozens of blogs on this exciting trend. Investors and artists alike are capitalizing on this and it is safe to say that the pandemic certainly accelerated its growth. Digital tokens are tied to assets that can be bought, sold, or traded. Digital artists have often been unpaid for their creations as there has never really been an official platform to sell their work. With NFTs, digital artists can sign their work up on the market and validate their information by uploading it on a blockchain. According to the tracker: http://www.nonfungible.com, $200 million was spent on NFT-based artwork in March 2021 compared to $250 million in all of 2020. Michael Winklemann, the artist known as Beeple, famously sold a digital piece at Christie’s in March 2021 for a record $69 million, creating more NFT credibility with conventional art collectors. Right now, one could speculate that this phenomenon is a bubble, but it is most certainly a post-pandemic opportunity that has created permanent change and opportunities.

HISTORICALLY LOW INTEREST RATES
The Fed has indicated that it will aim for achieving an inflation rate of 2% to help temper the negative economic effect of the coronavirus. Many collectors took advantage of the low interest rates of 2020 and monetized their collection to borrow against it. In other words, the cost of borrowing against a high value piece of art or art collection lowers. This has given collectors the opportunity to monetize their art for various purposes while keeping it on their walls.
*Note that obtaining an art appraisal during the art lending transaction is essential. Clients should hire an accredited appraiser for this process and also ensure that they are obtaining the correct value for their needs (fair market value, auction estimates, marketable cash value, or retail replacement value).

ART VALUES REMAIN STEADY
Lower interest rates and a decrease in inventory for buyers have kept values steady. While there was a 30-40% decrease in overall transactions in 2020, this also disrupted the supply chain, increasing demand and, as a result, retaining overall values.

OPPORTUNITIES FOR NEW COLLECTORS
The art world can be notoriously opaque. This can be frustrating for new or rising collectors, often causing them to abandon collecting altogether. Covid and post-Covid adjustments have made the art world more accessible, primarily with the historic increase in online auctions. According to Art News, Christie’s alone held over 100 online auctions between March and June 2020 and new buyers made up 30% of each auction. This is an unprecedented jump in new activity. Both auction houses and galleries have dramatically shifted to online sales, making the shopping and buying process much less intimidating and more efficient for new collectors. And this phenomenon does not exclude ultra-high valued lots. In 2020, Sotheby’s famously sold Jean-Michel Basquiat’s Untitled (Head) for $15.2 million – the highest amount ever paid by an online bidder. In addition, galleries and auction houses have expanded their physical reach. Due to travel restrictions and more people working from home, many have relocated permanently or temporarily, shifting the nucleus of the client pool dramatically. Gallery and auction pop-ups in spots like Austin and West Palm bring the service to the client, making buying that much more accessible for new and seasoned collectors.

The world is constantly changing and there is always room for opportunity, so seize the moment!

Sincerely,
Carrie Laverick
President, Veritas Art Appraisals & Consulting LLC

IS YOUR ART COLLECTION PROTECTED? Some Insider Tips

by Shelli Beermann

The time to think about properly protecting fine art is before a loss occurs. Sadly, many collectors are unaware of the exposure they have until it’s too late. Here are some tips to keep in mind when considering how to best safeguard your fine art.

Know Your Insurance Policy
You may have severely limited coverage if you are insuring your art under your homeowners policy. Consider purchasing a separate valuable articles policy. Valuable articles policies often feature a low or no deductible, worldwide coverage, coverage in transit, and coverage for perils that are often excluded from standard homeowners policies, such as flood and earthquake.

Maintain Updated Information
The importance of updated appraisals cannot be overstated. One can imagine how much more difficult it is to value an item that no longer exists, having been destroyed in a fire or stolen. Artwork should be insured at Replacement Value, not Fair Market Value. Replacement Value is the amount one would have to pay to replace an item with a property of like kind, age, condition and quality within a reasonable length of time in an appropriate and relevant market.
In addition to appraisals, it is important to keep copies of all invoices, provenance documentation, repair/restoration records, and condition reports.
If you have valuables at multiple homes or other locations, a regular inventory audit should be conducted so all items are accounted for, identified, and inspected for condition.  Documentation should be stored either off-site or digitally, or ideally, both.

Have An Emergency Plan
An emergency plan is especially important if you live in a catastrophe-prone area such as California or coastal Florida. It should be simple enough to be executed on short notice. For instance, have a designated safe room and blocks prepared to keep artwork 6 inches off the ground (in flood-prone locations). Some insurance carriers offer emergency assistance with pre-vetted transportation and storage professionals. Maintain a list, with contact information, for packing, moving and storage professionals who you can call on when an emergency arises.

Educate Staff
Household staff should be aware of how to clean artwork, especially what kind of cleaners are safe to use on certain materials. Staff should also be educated on how to implement an emergency plan and who to call for assistance.

Final Takeaway
Always contact your insurance agent with questions regarding coverage options and policy enhancements and hire a qualified appraiser to make sure your art is properly valued.

by Shelli Beermann
Affiliate Appraiser, Veritas Art Appraisals

For more information about Shelli and her services, please visit: https://www.beermannartadvisory.com/

How Do Art Appraisers Work With Estate Planners?

by Carrie Gough

Founder and Lead Appraiser

 

As an appraiser with over 10 years of experience, I can testify that the art world is rich with new discoveries, wonderful objects, and plenty of stories to tell.

Veritas Fine Art Appraisals & Consulting provides formal appraisal services for a variety of reasons, including estate planning purposes. Depending on the scenario, we work in tandem with many estate planners, philanthropic advisors, family office platforms, and, of course, with the clients themselves. In the charitable giving platform, we work with either the client, the recipient, or the philanthropic advisor involved in the process — sometimes with all three.

We are a full-service firm, meaning we have a team of outstanding specialists with expertise ranging from fine art, rare wine, Asian art, and rare books, to name a few. Having these specialists “under one roof” is particularly desirable for estate planning professionals who often advise clients who have a variety of objects in their collection. A full-service model like ours is much more efficient for them and the client.

As accredited appraisers and specialists in our areas of expertise, we play dual roles:

1. We are required to abide by the rules and standards set forth by the Appraisal Standards Board when carrying out our scope of work in projects and in appraisal writing.
2. We must maintain and continuously develop our knowledge in our field of specialty, as well as stay on top of current market trends. It is our job to be the unbiased source of information on reporting market values.

Experience in Action – Some Current Projects

Young Woman With Lily, 1943 Tô Ngọc Vân. (Note: This was not part of the collection donated.)

Veritas recently completed an appraisal that involves the donation of an Asian Art collection to a university art museum. The success in the project lies not only in the knowledge of current market trends for Asian art but also in ensuring that our appraiser on the project is a specialist in the category of Asian Art. Without this specialized knowledge, there is room for errors in properly identifying and valuing objects in such a niche field. For example, there is a large discrepancy in value between a 19th-century Chinese export vase and a rare 15th-century Ming dynasty vase! Experience and a trained eye are key!

We are also working on a project that involves the donation of an important 17th-century Dutch still-life. When the clients approached us, they had inherited the piece from their parents who always told them the piece was done by an unknown 17th-century Dutch painter. The perceived value was minimal. The area of Dutch still-life expertise, like many genres, is highly specialized and there are few accepted authorities in this field. Our research and collaboration revealed that the painting was a lost piece by an important Dutch still-life painter, greatly increasing it’s perceived value. This allowed the family to work with their estate planner to decide next steps with the right information on hand.

In summary, hiring an appraisal firm like Veritas, who offers a full-service specialist platform, qualified object expertise and proper certifications are key.

 

A Long Lost Portrait of King Charles II’s Mistress, and the Old Masters’ Market

by Rachel Christophe Baker
Fine Art Appraiser, Veritas Fine Art Appraisals & Consulting Group

A Portrait of a Venetian Nobleman by Peter Paul Reubens reached $7 million at Sotheby’s in July 2018. At a time when contemporary art has become the art market’s most coveted segment for elite collectors, this sale reflects the vibrancy of the market for Old Masters’ portraits.

In fact, portraiture is one of the areas art specialists suggest prospective buyers focus on if they want to spend smart money on the Old Masters.
Prices for portraits, whether by big stars like Reubens, or less renowned artists, tend to be consistent, and demand for these remains steady. Portraits of significant figures, such as writers, poets, mistresses, rulers, and personalities who shaped the history of civilization, are particularly attractive to collectors.

Recently handed by Veritas Fine Art Appraisals & Consulting Group for the McCormick House, this gorgeous portrait of Nell Gwyn attributed to Sir Peter Lely (British, 1618-1680) is the kind of portrait that would spark a lot of excitement among Old Masters’ collectors, if it were to be sold. It is currently housed in the McCormick House in Wheaton, a suburb of Chicago. This mansion, built in 1896, was once the home of Chicago Tribune editor and publisher, Robert R. McCormick (1880-1955). It became a public park and museum in 1958, following McCormick’s death.
‘Pretty, witty Nell,’ as she was nicknamed by British diarist Samuel Pepys, is one of those iconic mistresses who had inspired artists and trigger much gossiping and jealousy among the high society members of her time.
Eleanor Nell Gwyn (1650-1687), although of humble origins, was a long-time mistress of King Charles II of England and Scotland. A celebrated London actress acclaimed for her tremendous comic talent, she became the ruler’s favorite mistress until his death in 1685. As renowned London dealer Philip Mould wrote, she helped establish the acceptability of mistresses amongst royalty, a tradition that has never entirely been discarded.

The iconography in this painting emphasizes the sitter’s sexual availability as exemplified with the exposed breasts. Catherine MacLeod, Senior Curator of the 17th-century paintings at the National Portrait Gallery in London, notes in Painted Ladies, Women at the Court of King Charles II, that portraits by Lely showing bare breasts seem exclusively to depict mistresses, especially of non-aristocratic birth. As Philip Mould explained, only a sitter relaxed about her status and unconcerned about both her class background and social etiquette would agree to being depicted in this manner. In fact, Nell Gwyn never pretended to be of high rank. In a famous incident, she is known for saying, “I am the protestant whore.” The pose as a shepherdess garlanding a lamb is unrelated to being a mistress. It was just a popular pose in the 1670s.

The McCormick painting is quite significant, as there are very few portraits of Nell Gwyn that were produced during her lifetime. There are only three of them that can be identified. Two of these portraits, both by Sir Peter Lely, are known only through contemporary engravings and a handful of mediocre copies, possibly produced by Lely’s studio. The prime version by Lely painted about 1675 has been lost. The third is a half-length portrait by Simon Verelst in the National Portrait Gallery in London, similarly showing the sitter with one nipple exposed.

To conclude on the Old Masters’ Market, a recent Artnet article pointed out that due to extremely limited supply and heightened demand, Old Masters tend to maintain their value and rise in price only gradually. The many seventeenth-century portraits incorrectly ascribed to be Gwyn have usually been a draw when sold at auction, so there is no doubt that this portrait would attract significant interest as a newly discovered major work.

Image Captions:
1 – Portrait of a Venetian Nobleman, Sir Peter Paul Reubens
2 – Eleanor Nell Gwyn, Attributed to Sir Peter Lely, McCormick House
3 – Eleanor Nell Gwyn, Simon Verelst, National Portrait Gallery in London

Navigating the Art of Authentication in the Art World

by Carrie Gough                                                                                                                    President, Veritas Fine Art Appraisals & Consulting, LLC

 

So you might have a Picasso?

Veritas has worked with many clients who either own or were considering purchasing a work of art that might have significant monetary or historical value. Might is the operative word here, because in the art world, without the proper channels of authentication, the value could be less than the materials it took to create the piece.

Authentication is not, and never will be, a streamlined process is the art world. I

photo: Huffington Post, “There Is No Romance In Art Fraud” 9/24/15

confidently say never here because we are and always will be,  dealing with unique objects and individuals (AKA the artist and the object). The client should know that the process of authentication is different for every artist. Given this, we cannot emphasize enough how important it is for the client to align his or herself with a knowledgeable professional who has an understanding of the intricacies involved in authenticating art.

For example, if a client had a potential Thomas Gainsborough on their hands, there is only one authority that any reputable dealer or auction house art utilizes to properly authenticate his work. This particular scholar has devoted his life to studying Gainsborough and has published various books on the artist. However, unless one was connected to this scholar and had experience navigating authenticating potential Gainsborough, they would more than likely never ben able to connect with him. In fact, for thousands of artists, there are only a handful of experts who can properly authenticate the potential artist’s work. Many times they are scholars who are difficult to find or reach.

This is where a firm like ours comes into play. We have established contact with a vast network of experts across the world for many artists. In today’s age, one would think it would be easy to locate the “expert,” but it can be as difficult as finding a needle in a haystack.

The potential buyer or owner of the work should be cautious and steer clear of websites that advertise authentication of various artists. In most cases, they are not the accepted authority for authentication and no reputable dealer or auction house will market a work as “by that artist” with stamps of approval from these entities. There are many dynamics that come into play depending on the potential origin of the work. France’s laws differ greatly from Italy’s so no one would want to arm themselves with the proper laws pertaining to sending an artwork abroad for authentication.

Many times, there is a committee involved in authenticating work by a particular artist. For example, for the French artist Nicolas de Stael, there are a group of experts comprised of the artist’s descendants and experts who meet every few months to make determinations on works submitted. De Stael was widely faked, so by law, if the committee determines the work is a fake, then it has to be destroyed in France and not sent back to the owner. This is a shock to many owners for sure.

In other words, every case is unique. There is a process involved with authentication that should be handled by an intermediary who understands the intricacies involved, knows what questions to ask for the client, and who has developed an extensive network of the right experts specific to that artist.

O’Keeffe’s Paintings Command Top Dollars In Recent Auctions

by Rachel Christophe Baker                                                                                                          Fine Art Appraiser, Veritas Fine Art Appraisals & Consulting Group

Lake George with White Birch

Among the top five sellers at Sotheby’s New York Impressionist & Modern Art Evening Sale on May 14, 2018, was a painting by American artist Georgia O’Keeffe (1887-1986). Lake George With White Birch reached $11.29 million dollars, performing over nearly twice it’s high estimate.

This is O’Keeffe’s third-highest price after Lake George Reflection (1921-1922) reaching $13M at Christie’s New York in 2016 and Jimson Weed/White Flower No. 1 (1932) skyrocketing at $44.4M at Sotheby’s New York in 2014, setting a record for an artwork by a female artist. This floral painting, which once hung in George W. Bush’s dining room, had fetched more than three times its auction estimate of $10M-$15M. Elizabeth

Lake George Reflection

Goldberg, Sotheby’s head of American painting, said it’s landmark sale “places Georgia O’Keeffe’s work in the top tier of 20th-century artists on the market internationally, where it has always belonged.

 

Although $44.4M is a hefty price tag, some art historians and critics point out that it is so much less than the most expensive paintings by male artists. In fact, at the May 14, 2018

Jimson Weed/White Flower No 1

auction, a large nude by Modigliani sold for $157.2M, becoming the fourth most expensive work of art ever sold. In comparison, Leonardo da Vinci’s Salvator Mundi (Savior of the World) was bought for $450M in New York in November 2017, shattering the record for the most expensive artwork ever sold despite lingering doubts over its authenticity.

It is important to place O’Keeffe’s work in the context of the overall American art market which has consistently performed high despite some challenges faced in the 2008-2011 period. Since then, and according to a study by the Winston Art Group, “exuberant prices have existed in all levels of the American art market, due to the recovering economy and a resulting increased interest in art as an investment.”

The sale of American art is dictated by the stature of the artist, the period in which he/she is working, the work’s subject matter, and the rarity or context within the artist’s oeuvre. O’Keeffe, who died in 1986 at the age of 98, is widely considered as one of the greatest 20th-century American painters. She was celebrated for her large-format depictions of flowers, which she painted as if they had been seen in close-up. Her floral

Hibiscus

images stand among the most recognizable images in both art history and popular culture. Over the last 10 years, the market for O’Keeffe has remained steady and strong, as demonstrated by the sale of a fair amount of oil pieces reaching the $4M range, with the majority of them performing regularly above the $1 million dollar mark.  The recent sale of Hibiscus at $4.8M at Christie’s American Art auction on May 22, 2018 in New York confirms that trend.

 

Recently handled by Veritas Fine Art for the Rahr-West Museum, in Manitowoc, Wisconsin, Birch & Pine Trees II (1925) is a fine example of O’Keeffe’s art and fits into a series of trees she painted over the course of several years when she and her photographer husband, Alfred Stieglitz, vacationed at his family’s second residence by Lake George in upstate New York from 1918 to about 1929. During that time, O’Keeffe began a diverse series of paintings related to the lake and her impressions of the surrounding natural landscape. It was an inspiring landscape for O’Keeffe, with its vast panorama allowing her to experiment with color and form, and play between

Birch & Pine Trees II

abstraction and representation. There, she often took long walks and marveled at the beauty of the scenery: “there is something so perfect about the mountains and the lake and the trees…it is really lovely,” she wrote to her friend and author, Sherwood Anderson.

With Birch & Pine Trees II, O’Keeffe presents a stylized and sweeping composition of trunks, branches, and foliage, a celebration of the colorful effects of Lake George in October and of nature’s vitality, an important theme for O’Keeffe. This kind of composition resembles her signature motif of the close-up flowers where the petals and blooms are highly abstracted into sweeping shapes and large surfaces of colors. In this pieces, the magnified depiction of the abstracted trunk and foliage combined with the unified palette of white, green and reddish-browns, emphasize the flat surface of the canvas. O’Keeffe, like many modernist painters, exploited that flatness of the canvas and did not seek to impose on it an illusion of depth.

This painting counts among the masterpieces of the collection of the Rahr-West Museum, in Manitowoc, Wisconsin. Their permanent collection is composed of a varied range of artwork from a wide range of genres and movements in art history. It includes works by international artists such as Pablo Picasso, Joan Miro, and Roberto Matta. It also boasts an important collection of American art and includes such pivotal artists as Alex Katz, Mark Rothko, Stuart Davis, Andrew Wyeth, and Andy Warhol, among others, as well as a large number of works by Wisconsin-based artists.

The museum gets its name from the Reinhardt Rahr family. In 1910, Reinhardt Rahr, president of Rahr Malting Company, purchased the house built in 1891-93 which is now housing the museum. At Mr. Rahr’s death, his widow donated the mansion to the city of Manitowoc to be used as a museum and civic center. In 1986, an additional gallery space for a rotating display of the permanent collection was added.

I will conclude with this celebratory homage to the artist printed in the Chicago Evening Post in 1926 by the journalist Blanche Matthias: “She is like the flickering flame of a candle: steady, serene, softly brilliant…this woman who lives fearlessly, reasons logically, who is modest, unassertive, and spiritually beautiful, and who, because she dares paint as she feels, has become not only one of the most magical artists of our time, but one of the most stimulatingly powerful.”

Becoming An Appraiser

by Vernon G. Abrams, ISA, AAG

Whenever I work for a new client I am often asked for my credentials and just how I became an appraiser. Did you go to appraiser’s school?  What is your area of expertise? Or something of that nature. Each appraiser may have a slightly different story, but generally along the same lines.

 Becoming an appraiser is a two-step process that requires education and experience, which can be acquired in any order. The three major appraisal societies, American Society of Appraisers, (ASA), Appraisers Association of America, (AAA), and The International Society of Appraisers (ISA), offer professional development programs on principles, theories and practice methods for the professional appraiser. These courses are given all over the country in various cities, generally two or three times a year. Plus, the courses are offered at several colleges and universities. These courses are very intense and are followed by lengthily written exams. Included in this process is the study of ethics, what standards of ethics are used, code of ethics and relationship between the appraiser and the client.

 After this process has been mastered, the appraiser is awarded a designation. Each society has its own appellations, such as candidate, associate, accredited, certified, accredited senior appraiser and so on. Each designation has a specific meaning within each appraisal society depending on depth of education and length of experience.

 The societies also offer many “specialty” courses in decorative arts and fine art. These are generally short courses which run for a long weekend, two or three days. Topics covered might be ceramics, furniture, glassware, metal-ware, oriental rugs, art history, oil paintings and prints.

 As I mentioned earlier, experience is the other step in becoming an appraiser. Experience is not as easily mastered as the education process. In most cases, appraisers have had previous careers in related fields. I personally imported antiques from England and France for many years. Many of my colleagues were in the auction business, some owned art galleries, some in the silver business. All of this counts as experience. Many young appraisers are astonished at the amount of time it takes to learn about some areas. As an example, oriental rugs can be a lifetime study and sometimes never mastered! Oriental porcelain, unmarked 19th century English porcelain, 18th-century continental furniture are other challenging fields.

 I always recommend the appraisal business to those who call for advice. It’s rarely boring and generally interesting. Each assignment is different. The business can be all-inclusive or can be limited to specific areas and needs. Keep in mind that appraisers are needed for insurance coverage, estate planning or settlement, charitable donation, fair market value for buying or selling, divorce settlement, expert witnesses in court and often just for the owner’s knowledge.

What is an art appraisal? Who are these appraisers? And why have your art appraised?

By Rachel Christophe Baker

Don’t believe what you see on TV! People tend to equate a professional appraisal with the Antique Road Show, an antiques appraisal event and PBS television production. On the show, the expert acts as an art history encyclopedia, who in the span of a few minutes of scrutinizing a family heirloom, reveals fascinating histories about it.  At the end, he places quite a significant price tag on it which leaves most of us wondering about what treasures we can possibly have hidden in our dusty attic! Certainly, these types of shows have educational and entertainment values, but the reality is that professional-quality appraisals can’t be done in ten minutes or less and they are not free.

The Antique Road Show does not pretend to offer professional art appraisals either. In fact, all roadshow appraisers are independent volunteers who donate their time and expertise to PBS and who pay their own expenses to be on the show. They do offer accurate history and give you a good idea of the value of your art.  But what you need to know is that they had a chance to research the piece beforehand.   The following claim is even posted on their website: “the values given by the experts on ANTIQUES ROADSHOW are considered verbal approximations of value.”

So how does one determine value?  Before determining how much an artwork is worth, an art appraiser researches and analyzes specifics pertaining to the art itself as well as the current markets and trends. Typical research includes assessing the artist’s career accomplishments, reviewing the artist’s recent auction and gallery sales histories, and evaluating qualities of the art itself like its ownership history (which is called provenance), size, subject matter, details, level of craftsmanship, age, and condition. The research also includes how the piece compares to other works by that artist, or to similar works by other artists when the artwork is unsigned.  

In some cases, an artwork needs to be authenticated.  An appraiser is often mistaken for an authenticator.  But an appraiser solely identifies and provides a value. So if an unsigned piece is potentially by a significant artist or if there is a doubt on the signature, an appraiser would hire an expert or a committee of experts for that specific artist in order to officially attribute the artwork to that artist.

How to choose an appraiser?

The art business is totally unregulated. So, in a field with no license, it is important to choose a professional appraiser who is in good standing with one of the three nationally recognized appraisal organizations and regulated by the Appraisal Foundation of America.  These three organizations are: The International Society of Appraisers (ISA), The Appraisers Association of America (AAA), and The American Society of Appraisers (ASA). The Appraisal Foundation is a congressionally sanctioned, not-for-profit organization, and dedicated to the advancement of professional valuation for appraisers and users of appraisal services to ensure public trust in the work performed by appraisers.

These professional appraisers earn their designations only after completing a rigorous course structure and peer-evaluation process that requires years of study, experience, dedication and commitment. Also according to ASA or AAA guidelines, don’t use an appraiser who has either a current or future interest in the value of the items being appraised unless it is disclosed to you and disclosed in the appraisal report.  In other words, never use the services of an appraiser who offers to purchase what they appraise or who charges a percentage of the item’s value for the appraisal.

So what is a professional art appraisal?  

It is a legal document, several pages long, written by a qualified appraiser and paid for by the owner of the art. As discussed earlier, an appraisal involves an extensive amount of research in order to establish a value. An appraisal report includes the scope of work listing the specific conditions of the assignment with its limiting conditions, the appraiser’s certification, some legal disclosures, and disclaimers.  The report lists the approach to value employed, the definition of the value used, and most importantly includes a study of the sales of comparable artwork and a general market analysis. An official appraisal report should be in complete compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), written by the Appraisal Standards Board of the Appraisal Foundation in Washington, D.C.

When does one need to have a professional art appraisal done?

Knowing when you need to have an appraisal will help ensure a seamless transition of your valuables, and protect you in the unfortunate event of a loss. Appraisals are done for many reasons ranging from estate planning to determining value for insurance coverage or tax purposes. Appraisals are also provided for purposes of estate tax, charitable donation, equitable distribution, liquidation, purchase, and sometimes sale.

One of the most common uses for an appraisal is for insurance coverage and claims. Once property is lost, stolen or destroyed, it is much more difficult to determine value. So most Insurance companies will require an appraisal for items valued over $5,000 but check with your insurance carrier, as they all have different requirements. And in the case of a claim, they will demand professional appraisals before they approve reimbursement.  Photos and memory are not enough. In addition, the Appraisal Foundation, insurance companies, and estate professionals recommend having your art appraisal updated every 3 to 5 years. An appraisal update will ensure that your valuation for your art is not outdated due to potential fluctuations in the market.

Another common reason to have your art appraised is for equitable distribution in case of a divorce, family distribution, or a business or partnership dissolution. This is an important part of estate planning and can help eliminate painful and costly family disagreements.  An appraiser would determine the Fair Market Value of all of the artwork and other appreciable assets so the family members are not left to guess or assume value.

For charitable donation of art to a not-for-profit organization, the IRS requires that all items donated over $5,000 have an accredited art appraisal done.

Sometimes, an appraisal can be useful to know the re-sale value of your art, which is the fair market value. Many people make the mistake of selling a very valuable piece for far less than its current market value.  The fair market value of an artwork is not to be confused with what the art is priced for as it hangs unsold on an expensive art gallery wall. The fair market value is based on what comparable works of art currently sell or have recently sold for, not only in the retail settings, like galleries, but also at auctions, or at fixed-price secondary market websites. However, not all property needs to be appraised before a sale.  In many cases, appraisers recommend that items with lower values don’t warrant the cost of a formal appraisal and therefore be sold at regional auctions or consignment stores directly.  These places will then provide an estimate for the starting bid.

 

To conclude –  an appraisal is not a guess, it is a professional opinion of value, based on in-depth research, comparables of past sales, and years of experience in the art business.

 

Why Must Art Be Static? by Carrie Gough

Recently handled by Veritas Fine Art and pictured above:  Calder: “Two Horizontals and Nine Veritcals,” 1956 from a Chicago estate. This fresh-to-the-market mobile is a prime example of Calder’s early mobiles and had been in a private collection for almost fifty years.

Alexander Calder’s famed mobiles are made primarily of sheet metal, wire and paint. They’re incredibly simple to the naked eye and can be difficult to place in private settings to maximize the view the artist intended. Yet Calder’s magical mobiles have consistently commanded top dollar in private and public markets for 10 plus years.

As all art world professionals know, attempting to identify a fleeting fad versus a potential long-term performer can be tricky. All art professionals are aware of the currently Basquiat fever flooding the marketplace. Is it a fad or are those record-breaking prices here to stay? When placed in the overall context of the contemporary market, the consistent demand for Calder’s mobiles is a key analytical tool when attempting to make this distinction.

Here’s some data to back this up – since 2009, the total hammer price for Calder pieces stayed steady between 22 and 52 million. That is an almost 10 year run and he is showing no signs of decline. In fact, by the first half of 2016, Calder impressively edged out Warhol, the standard contemporary market leader in total hammer price. In 2016, Calder once again edged out Warhol on average price per piece at auction, with Calder hovering at $600,000 and Warhol at $150,000.

Nobody can predict the artists who will follow up in the Calder market’s footsteps. But it would be prudent to consider the value characteristics of Calder’s mobiles as well as the historical context in which they were produced when looking at other artists trending in Calder’s trajectory.

Making these considerations is another topic in itself but I will argue that the consistent demand for Calder’s mobiles could be summed up in Calder’s own words – “Why must art be static?”

 

-by Carrie Gough