This week Skate's LLC, often referred to as one of the world's leading art investment firms, released its inaugural Masterpieces Market Report for the third quarter of 2014. If you haven't already noticed from my previous posts on Skate's publications, I am a frequent reader and admirer of Skate's various reports, which I personally find to be very informative and well written on the art market. And this fall's new issue is no exception as I can't say enough good things about these timely, well executed reports published by Skate's.
The inaugural issue opens with a succinctly written "Executive Summary" followed by key sections entitled "Best and Worst Trades with Masterpieces – Q3 2014," "Global Masterpieces Trade Statistics – Q3 2014," "Top Lots to Watch – October 2014," and "Off-Auction Pricing Case Study: The Curious Case of the Detroit Collection." The report includes seven exhibits accompanying the foregoing sections, including an impressively compiled "All Trades in Skate's Top 10,000 Price Category in Q3 – 2014," "Top 10 October Lots," "Anticipated Investment Returns on Major Auction Sales in October," and "DIA Top Lots vs Auction Market Data as per Skate's Top 10,000."
Notably, Skate's best masterpiece trades for the third quarter of 2014 were for purchases made in the 1990s as long-term investments in 20th century artists. The purchase of works by Warhol, Basquiat and Dubufett in the 1990s and the sale of same earlier this year turned out very well for art collectors who realized "strong double-digit annualized returns over their 15-23 investment horizons" as analyzed by Skate's.
Skate's reports that the Old Masters market continues its decline as it loses appeal among both established and new art collectors. When compared to the Old Masters, investment returns on the leading contemporary artists (also the "most liquid") are "striking."
At the end of the report is an interesting case study on the collection of the Detroit Institute of Arts ("DIA") and the significant art valuation of the collection in connection with the city of Detroit's bankruptcy filing last year. Skate's offers insight into the valuation of the DIA collections and the financial strategy that may be used by the city of Detroit.
Skate's will publish its next issue of the Masterpieces Market Report in January 2015 – the report is expected to include complete results from Q4 2014 auction sales along with other valuable information on the art market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.