May Auctions Reveal Art Underperforms as Investment

In May, New York's auction season amassed $2.5 billion, yet several premier lots did not match the performance of index funds. Christie's auctioned Jackson Pollock's Number 7A (1948) for $181 million, which provided a 6.6% return over 26 years, whereas an S&P 500 investment would have appreciated to $240 million. Additional underperformers included a Pollock work on paper at $9.2 million, Andy Warhol's Sixteen Jackies (1964) at $16.2 million, and Lorenzo Fertitta's Warhol's Double Elvis (1964), which fell nearly 30%. Monet's La Route de Vétheuil (1879) fetched $9.29 million, Gerhard Richter's Besen (1984) sold for $8.1 million, and Schiele's Portrait of a Woman went for $1.92 million. Rodin's Penseur and a Cornell box remained unsold. David Nash recommended purchasing art for passion rather than profit.