European Art Market Weathers 2009 Crisis with Selective Strategies

Despite the global economic downturn, the European art market has shown resilience, with major auction houses like Sotheby's and Christie's avoiding fire sales. Gallerist Larry Gagosian is expanding, opening a design boutique in New York and planning a Paris gallery. Auction houses are innovating with thematic sales: Phillips de Pury added 17 such sales, including a Japanese contemporary art sale that achieved £3.6 million. Art Basel in June was disappointing for some, but Berlin gallery Jablonka saw strong sales of Eric Fischl works priced $600,000–$1.2 million. Private transactions are increasing, with a Gerhard Richter work selling for over $10 million and a Francis Bacon triptych for over $20 million. Prices for Andy Warhol have dropped 30% on average, while Richard Prince's Nurse series fell from $8 million to $1.5 million. Fiac director Martin Bethenod notes European galleries are less affected than US counterparts, with new spaces opening in Paris. Frieze co-director Matthew Slotover reports that the worst months were November 2008 to January 2009, but confidence returned by spring. Young galleries are participating in subsidized sectors at fairs, while collectors now demand up to 40% discounts. The crisis has led to more selective buying and a focus on long-term artist relationships.