Auction Action Not So Rosy For All

The Age

Saturday March 24, 2001

FLEUR LEYDEN

She stands 59 centimetres high, raised on a brown onyx base, her ivory face engulfed by headdress, arms outstretched and beaded gown flowing.

``It is rare, in beautiful and original condition, and internationally citable," says Warren Joel.

The director of Leonard Joel Auctioneers expects the circa 1925 bronze and ivory figurine to fetch up to $50,000 at its next auction.

But despite an anticipated turnout of 300 for the two-day sale and about 1000 expected viewings over this weekend, Mr Joel said the market was not all rosy for auction houses.

``The general impression is that we're not sure where the market is heading; people are being cautious."

He rates the last round of Melbourne art sales in May as generally ``buyer-resistant" to the market.

``Whether this was GST-related, or higher-price-related or because of external market forces, I don't know," he said. ``My hunch was that it was generally broader community worries."

Even so, others, such as global auction house Christie's, aren't feeling the pinch, thanking a weaker dollar for an abundance of overseas buyers.

Christie's auction last Monday and Tuesday saw strong demand for English and European 18th century porcelain, silver, furniture and carpets.

``The fact that the Australian dollar has dropped is probably an advantage in a lot of ways, because it just means that you get more people from overseas willing to participate in sales," said decorative arts specialist Andrew McVinish. ``The downside is that a lot of the things that have come into the country over the years are now leaving, never to return."

Patricia Sedgwick, director of medium-sized auction house Sedgwick's, agrees that the current environment won't necessarily dictate the spending habits of her clients, who she says are fairly ``recession-proof".

``When there's an economic downturn you would expect everything to slow, but in actual fact we seem to have more buyers than we have stock," she said.

``When things do get tougher, there are always people who seem to remain unaffected by it. They buy as much consistently; they don't seem to curb their spending habits."

Areas expected to move the most at the next round of auctions range from 1920s and 1930s porcelain figures to wrist watches, the latter able to raise up to $5000 apiece.

Jewellery, in most cases, is forecast as the big winner.

``As far as traditional jewellery goes - well, it's gorgeous," said Mr Joel, referring to a rather large diamond-encrusted brooch. ``But no one wants to wear one any more. The days of going to the opera are finished."

Gold jewellery, on the other hand, is ``always collectable and sought after", as are emerald and diamond rings, which can yield $15,000 to $20,000, sometimes more.

``Diamonds will always sell," said Ms Sedgwick, who adds that buyers should be on the look-out for a bargain.

``The largest we have coming in for this next sale is a six-carat solitaire which has an insurance valuation of $100,000 to $125,000. It should sell for $40,000 to $50,000 at auction."

John Albrecht, director of art at Kozminsky gallery, expects the sharemarket's problems to see domestic money flow back into art, with a shift to more ``contemporary imagery".

He rates the art market as being as strong as in the late-"80s boom, the difference now being a ``tighter buying public" that is far more ``astute".

Inflated prices for works of lesser quality by some well-known artists, as well as for Aboriginal art, could affect sales.

``Some works by (Howard) Arkley that fetched $1000 four or five years ago have skyrocketed up to $30,000," Mr Albrecht said.

``He is sort of synonymous with the flush of money into the art market in the last few years."

© 2001 The Age

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