Kelly Crow
Appearances
The Journal.
The Giant Bust Rocking the Art Market
That's all for today, Monday, May 19th. The Journal is a co-production of Spotify and The Wall Street Journal. If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
The Journal.
The Giant Bust Rocking the Art Market
What happened next was unlike anything Kelly's seen at an auction for decades.
The Journal.
The Giant Bust Rocking the Art Market
Welcome to The Journal, our show about money, business, and power. I'm Annie Minoff. It's Monday, May 19th. Coming up on the show, an auction night shocker and what it says about the art market right now.
The Journal.
The Giant Bust Rocking the Art Market
The Giacometti bust that went up for auction last week is called Grand Tête Mance, or Large Thin Head. It's a bronze sculpture about two feet high of a man's head and shoulders, and it's called Large Thin Head for a reason.
The Journal.
The Giant Bust Rocking the Art Market
The creator of the piece is Alberto Giacometti, a Swiss-Italian sculptor whose work reflects the horrors of World War II. He sculpted Large Thin Head in the post-war period in 1954.
The Journal.
The Giant Bust Rocking the Art Market
Giacometti is one of the most important sculptors of the 20th century, and collectors pay big money for his work. Other casts of the bust have sold for over $50 million, and another Giacometti masterpiece, Pointing Man, sold for over $140 million about a decade ago. All of which is to say, when this particular bust came up for auction, it was an event, and Sotheby's pulled out all the stops.
The Journal.
The Giant Bust Rocking the Art Market
This is his magnum opus of what man is, of what Diego is, of what humanity is.
The Journal.
The Giant Bust Rocking the Art Market
You get that duality. You get that it's both of this world, but also at the same time, it's transcendent.
The Journal.
The Giant Bust Rocking the Art Market
Auction Week showcases the biggest art sales. It's a chance for art watchers like Kelly to see which artists are hot and what kind of eye-popping prices their work can command. And what was the hottest piece up for sale this auction week?
The Journal.
The Giant Bust Rocking the Art Market
But a public auction does present a risk. What if the piece doesn't sell? To get around that, auction houses like Sotheby's will often find what's called a guarantor, somebody willing to buy the piece for an undisclosed price just in case no one steps up during the auction. In exchange for that guarantee, Sotheby's will typically take a bigger cut of the sale price.
The Journal.
The Giant Bust Rocking the Art Market
But in this case, the seller didn't want to guarantor. Large Thin Head was being sold by a foundation tied to the late real estate tycoon Sheldon Solo. And the Solo family was feeling confident.
The Journal.
The Giant Bust Rocking the Art Market
Which brings us to Tuesday night and that packed auction room. The auctioneer started the bidding at $59 million.
The Journal.
The Giant Bust Rocking the Art Market
Even without a bidder, the auctioneer began raising the price tag, bringing it all the way up to the reserve price, the minimum that the seller would accept.
The Journal.
The Giant Bust Rocking the Art Market
Our colleague Kelly Crow covers the art market. And last week was a big one for her. It was auction week in New York.
The Journal.
The Giant Bust Rocking the Art Market
No one stepped up to buy the most anticipated piece of the week. There wasn't a single bidder. The thing flopped. Sotheby's chief executive said that the auction house stands by the importance of the Giacometti piece. What this bust bust says about the art market, that's next.
The Journal.
The Giant Bust Rocking the Art Market
What was your reaction in that moment when you realized this thing isn't going to sell?
The Journal.
The Giant Bust Rocking the Art Market
Luxury markets like the art market can be a powerful economic indicator. In 2008, art collectors were nervous. This flop might be a sign that they're nervous again. A Sotheby's executive made the point that collectors might be concerned about the current political and economic turmoil.
The Journal.
The Giant Bust Rocking the Art Market
Collectors and curators consider the bust a masterpiece. And Kelly was in the room when it went up for sale at the auction house Sotheby's New York headquarters.
The Journal.
The Giant Bust Rocking the Art Market
Just a few months ago, it seemed like they were willing, at least for the right piece.
The Journal.
The Giant Bust Rocking the Art Market
And that seemed to be a good sign for the art market at the time. People were definitely feeling spendy. Was that a red herring?
The Journal.
The Giant Bust Rocking the Art Market
Maybe the banana was an exception. Or maybe the economic mood really has changed since December.
The Journal.
The Giant Bust Rocking the Art Market
The whole week wasn't a bust. There were some notable success stories.
The Journal.
The Giant Bust Rocking the Art Market
Some contemporary pieces did well, too, like artist Marlena Dumas' Miss January, which sold for $13.6 million. It set a new record for a living female artist. So what did these pieces that did sell kind of show us about changing tastes? Are people looking for something different right now?
The Journal.
The Giant Bust Rocking the Art Market
How long could this bust bust cast a shadow over the art market? Is this something that people are gonna be able to move past quickly or will it linger?