Sotheby’s (NYSE:BID) has a Ferrari, Christie’s has a Leonardo
The November big-week of art auctions starts Monday in New York City, promises drama, with the most talked-about inclusion in a New York contemporary art sale in years. a painting by Leonardo da Vinci (1452-1519) in Christie’s sale, an a Ferrari F1 race-car driven to victory by legendary champion Michael Schumacher to victory at Monaco.
Over a Sotheby’s
Sotheby’s (NYSE:BID) has, for the 1st time, turned to a Formula One race-car to diversify the appeal of its contemporary art sale.
This Tuesday, it will be offering a 900 horsepower Ferrari F2001, with the chassis that Michael Schumacher drove to victory in Y 2001 in both the Monaco and Hungarian Grand Prix.
It is guaranteed to sell for at least $4-M and is said by Sotheby’s to be “the most important modern F1 race-car in existence.”
“This is a bold move,” said Simon Kidston, founder of the Geneva-based K-500 (the Ferrari price tracking analyst). “It is a famous Ferrari, it is very collectible.
Note: In Y 2004 Bonhams sold a Ferrari F1/2000 in which champion Michael Schumacher won 4 Grands Prix, that race-car is likely never to be seen again at public auction.
Over at Christie’s
Christie’s is expecting Leonardo’s recently rediscovered “Salvator Mundi” (dubbed the male Mona Lisa) to sell for at least $100-M.
A guarantee of a minimum, undisclosed bid, by a 3rd party, ensures that the price is certain to set a new high for an Old Master at auction, beating the $76.7-M achieved in Y 2002 at Sotheby’s in London for the Rubens masterpiece “The Massacre of the Innocents” ($83.5-M today accounting for inflation).
Confident buyers give confidence to sellers when their entries are backed by guaranteed prices.
50% of the 74 lots at Sotheby’s Tuesday night contemporary auction carry some form of guarantee.
With the DJIA at an all-time high, and US President Trump planning tax cuts for corporations and the wealthy, the Key indicators seem to be positive for the Top end of the art market, at least in America.
But there are one or 2 grey clouds overhead.
President Trump’s proposed tax changes include a measure to restrict 1031 like-kind exchanges to real estate transactions. This provision had allowed high-end art investors to sell works and quickly replace them with pieces of similar value and defer paying federal taxes.
There are many active and influential people in the art market who use it. They are constantly selling and buying without having to pay capital gains. If the provision is voted by Congress in the Trump tax bill they will sell less and have less money to buy with, that may put a damper on the market action in the future.
But for now, those with the wealth to spend millions on Art will be spending like wildfire.
Have a terrific weekend.