Grant sale re-ignites debate
Published on: 15-Nov-2007
Hugh Grant's auctioning of a painting for an above estimate £10.2 million has re-ignited the debate about whether prices in the art sector are heading for a downturn.The sale of the iconic Andy Warhol silk-screen portrait of Elizabeth Taylor seems to be indicating that art sales are in robust health.
This view is contradicted by the chairman of Bonham's auction house, Robert Brooks, who has voiced concerns about the state of the market.
Speaking on the BBC's Today programme, he said: "We have seen such incredible price rises in the last 24 months that there has to be a slowdown."
In addition, he warned that auctioneers were raising the levels of guarantees offered to clients thereby potentially keeping prices artificially high.
Christie's and Sotheby's auctioneers were especially guilty of this practice, which commercially, Mr Brooks said, was "pretty risky stuff".
He did add though that there was a lot of money chasing a limited supply of art, especially in traditional areas and new markets were coming online all the time.
The conflicting messages are set to persist until the present 'credit crunch' turbulence in the financial markets settles down.
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