By far the most common economic arrangement between artists and dealers are consignments: the artists consign his artworks to a dealer, who exhibits them either in a solo or a group show, and meanwhile tries to sell them. If a work is sold, the proceeds are divided according to a predetermined ratio; if works remain unsold, the dealer can keep them in his/her inventory, without transfer of property rights or the artist can take the work back.

From an economic perspective, these consignment relationships are in the interest of dealer because risks are shared with the artist, which is crucial, given the uncertain economic value of contemporary art. A second advantage of consignments is that the capital intensity of the dealer’s enterprise remains low: since he/she does not buy works from the artists, he/she does not need to tie up capital in the inventory.

A major disadvantage of consignment relationship is, however, that the dealer has to make investments that are specific to the artists, First of all, he/she incurs cost when searching for assessing, and selecting the artists; subsequently, to promote the artist’s work he/she need to invest in marketing, including publishing catalogues and organizing exhibition. In case the artist decides to terminate the relationship, the dealer’s investments lose their value and need to be considered as we so-called sunk cost. On top of these risky investments, the dealer has no guarantees about the quality and quantity of the future supply of work by the artists he/she represents. Also, it is difficult to insure that the artist will not sell art to collectors directly from his studio, without giving the dealer a commission. Conversely, an artist faces similar uncertainties and information problems with respect to his dealer. For instance, he does not know if the dealer is selling his work for the price they agreed upon, and if he/she invests sufficient time and money in promoting his career. Also, the artist has to entrust hid precious artworks at least temporarily with the dealer.   

It's time to take all your family, friends, lovers, husband or wife to a nice Sunday afternoon walk around Central this Sunday.
 

Art Sunday is an art event with over 20 galleries join forces with other will open from 11am – 5 pm for 3 Sunday afternoon 8 February, 15 March, 05 April.

This free event will allow families, friends, neighbours and those out for a leisurely Sunday afternoon, to engage with art, chat to their local gallerists, and listen to talks about art and artwork.  Children will be able to participate in creative workshops and learn about art in a fun and interactive environment.  Local cafes and restaurants will join in sponsoring the event, providing brunch and drinks for local participating galleries.

Gallery Opening Invitations: Tang Contemporary Art HK

ILLEGAL STRUCTURE - A site-specific architectural installation exhibition By William Lim, Curator: Samantha Wong

Exhibition period: 6 Feb – 14 Mar 2009

Tang Gallery invites you all to the official exhibition opening reception on Thursday, 19 Feb 2009 6pm onwards

William Lim’s installation deals with the uncertainties and intervention of life, how the environment relates to the habitants and its psychological effect, which searches for some kind of communication with the public. His works often starts with local construction materials such as large quantity and repeated use of bamboo, wood, fluorescent light and mirror, or found objects, which becomes transmuted into a perceptual, philosophical roots in social reality.  Basically it’s in order to raise question concerning the efficacy of the work of art.

He sees art and architecture as important to our society and often combines both elements, which form the main concept of his architectural installations, and he called them, the “Civil Sculpture”.  Most of his installation works are inspirited by architecture and based on the architectural theory - a re-make of space in aesthetically consequential forms.

LIM graduated from Cornell University in USA with a Bachelor in Architecture, Master in Architecture minoring in Photography.  He is a Hong Kong based awards winning architect.  After graduation, he worked in Boston for 5 years before returning to HK in 1987.  In 1993, he assumed the position of managing director at CL3 Architects Ltd.  Lim has participated in numerous significant art projects and exhibitions in Hong Kong and overseas, including Art Container: Beautiful Journey. Beautiful World; Hong Kong & Shenzhen Bi-City Biennale of Urbanism/Architecture: Refabricating City; Art. Architecture 97.07 – Works Transcending Art and Architecture; Venice Biennale International Architectural Exhibition 2007; Venice Biennale International Architectural Exhibition 2006; Public Space -  Found Item no.1 & 2: The Dream & the Search (at Hong Kong Arts Centre) and Lantern Wonderland, etc.

Andy Wauman, Art Statements Gallery, 5 Mee Lun Street, Central Hong Kong ,January 08, 2009-February 19, 2009

Wauman’s works speak about the possibility of freedom. They are messages with a romantic sense for anarchy and love. In his statements, he often uses images that have been violated, multiplied and copied by commercial media. He recuperates common metaphors and symbols and gives them back their original romantic touch or even ideological meaning. The poetic quality is striking. Wauman’s work combines subdued social criticism with a slumbering mythical desire for eternal freedom.

Stephanie Sin: Damon Tong Sin Sin Fine Art,  No.1 Prince's Terrace Ground floor Mid-Levels, Hong Kong

January 08, 2009-February 21, 2009

Stephanie Sin (Sin Long Yee), a graduate of HK Art School, just like the ordinary people of Hong Kong, lives in a tiny place but she develops an abstract pattern as inspired by the window lattice and its surrounding space, an essence of forms and colours extracted from reality for the pursuit of pure aesthetics in painting. The development of such abstract paintings evolving from their daily personal situation amidst the urban crowdedness manifests their concerns about the social issues as well as their heed to personal living space, details and scenes with a view to the personal pursuit of aesthetics.

Few weeks ago one of my dearest friends Nandi came from London to visit me and to support my charity event. It was great to see a familiar face from my "old life" after being relocated back to HK for almost one and half year ago.  Nandi a classic gentleman in our modern days, a maverick in his own right - has always been fascinated by Michelin star restaurants, he loves art, jazz music, literature, lifestyle …and highly concern with new political culture. On top of the whole financial crisis today, he still maintains to be one of the most successful bankers in London.

Unquestionable I was so excited to have Nandi in my town, but wait a minute, “where should I bring a man like him for dinner?” A place where he can be surrounded with art, enjoy his favorite music, to be in the vicinity of architectural designs and fine dinning experience?      

Certainly Sevva does not need any introduction, as it is one of the Hong Kong most popular bars & restaurants in now days and famous for the breathtaking view. Indeed Sevva got it all what I was looking for. Designed by the well know architect Calvin Tsao, showcase some of the best artworks of renowned German contemporary artist Candida Hofer and the food it was just delicious with an excellent services…

Candida Hofer at Sevva

As for my dear friend Nandi, his appetite for fine food is fulfilled by the “SEVVA special” salad and following his main course “flame grilled Kagoshima Striploin” steak. In addition to his satisfaction with the cuisine at Sevva, Nandi totally enjoyed the drinks before dinner on the unique patio with spectacular outlook of the 360-degree balcony of the skyscrapers of Central and the exciting crowd and relaxed ambience.

If any of you are traveling to London from17 October - 1 March 09 this is definitely one show you should not miss

The Louise Blouin Institute features the first major solo exhibition in the United Kingdom of the renowned contemporary Chinese artist Wang Guangyi. The exhibition will take place from 17 October to 1 March 2009 and is a part of the Louise Blouin Institute’s ‘Culture Beyond Borders’ series, aimed at encouraging cultural dialogue.

This ambitious show by one of China’s most celebrated living artists, is both a reflection on the imagery of Cold War era China, and a warning to contemporary audiences about the horrors of war. The exhibition, referencing illustrated manuals created by the Chinese government depicting how to react to a nuclear or biological attack, represents the potential catastrophic past of the Cold War that has been avoided while simultaneously pointing to future threats lurking on the horizon. For Wang and for the viewer, the metaphor is clear; avoid a return to a Cold War mentality at all costs.

The exhibition will include an installation of some fifty life-size sculptures that depict Cold War preparedness, a large-scale twelve-panel mural and a series of watercolours that serve as the sketches for the sculptural works on display. The exhibition will be complemented by a bi-weekly lecture series, three Saturday afternoon panel discussions on aspects of contemporary Chinese art and culture, as well as a set of educational workshops and music recitals.

Louise Blouin MacBain on Cold War Aesthetics: “The art work of Wang Guangyi was chosen as part of the cultural diplomacy efforts of the Louise Blouin Foundation. Our foundation believes that in an area of globalization where no one nation is a super-power, trust, sharing and the respect of cultural difference is essential to confronting global challenges and to avoid global conflict. Wang’s work not only reminds us of the past danger of the cold war, but also warns us of future threats, on of which is the return to a cold war mentality. This message is all the more pressing given the antagonistic relationship between the West and China, and now the West and Russia. We must encourage patience and recognize incremental change with each region, or else we risk retrenchment and a new conflict to be passed on to the next generation.” – Louise Blouin Macbain.

Wang Guangyi is one of the foremost Chinese artists of the New Art Movement generation that came of age as the Cultural Revolution was dissipating and the universities of China reopened. This cathartic era in China’s history resonates strongly in the work of Wang Guangyi, who studied at the prestigious Zhejiang Academy in Hangzhou. Wang Guangyi rose to prominence by making art that appropriated the imagery and iconography of the Cultural Revolution with Western icons. The kitsch, post-Pop imagery of Wang’s Great Criticism series that began in the 1990s gave way to a new aesthetic in recent years: an aesthetic that is less about juxtapositions of capitalist and socialist visual icons, but rather is a bold and straightforward confrontation of socialist and Cold War imagery.

Serious collectors and investors are the “financially interested parties” who create and maintain the art market. This group of serious collectors and investors sets the standards for what is “valuable art” by virtue of the art they covet and collect. Consequently, they also determine which artists get into the most valuable art club.
 

Every artist who produces quality artwork during a prolific career becomes a target for collectors and connoisseurs. Thus a market is created for these artworks, ipso facto. It’s like an invitation for a hostile corporate takeover: when an acquiring company (the art buyer) sees undervalued quality (unknown artist) that hasn’t yet been discovered in the marketplace (unlisted artist), it tries to buy up and control all the available stock (artworks). Because an artist’s work is finite and limited, the financially interested parties will compete for the artist’s best works (the scarce few). Therefore the price for that artwork will increase, sometimes dramatically, especially as supplies reduce. Ultimately there well may be a “waiting list” for an artist’s work – a queue, so to speak, which happens when collectors ask becomes available. Then you have the makings of a bidding war. Whenever two or more collectors want the next available painting by the same artist, the price for that artist’s work suddenly goes up. Every time an artist’s work is sold the sale price is recorded if the sale was transacted at a large public auction. In this manner, an artist becomes “listed.”
 

So buy paintings only by listed artists who are sought after by collectors and investors, thereby quaranteeing you a buyer when you decide to sell. For this to happen, both the artist and his artworks must be available for discovery.     

If you missed it primary and you can’t find it secondary, you’ve got to get it at auction. There’s no real choice in the matter: great works will come up at auction and they sell to the highest bidder. Here there will be no more ten-percent discounts from galleries. At auction you’ll pay Sotheby’s, Christie’s or Phillips a 20% premium on the first $ 200 000, 12% thereafter. No matter, if the works are five years old or more, it could be your last chance to get a good early piece by the artist.
 

The catalogues are published usually a few weeks prior to the sale; be sure to subscribe or set up an account with the auction houses so that you can do your homework and get background information on the works that interest you. It’s also good to talk to colleagues (other collectors, dealers, consultants, etc.) and find out who else is interested in bidding on the piece (s) that you’re interested in.
 

Often, dealer will bid on their own artist’s work for “inventory” and many times, collectors and dealers will try to control the bidding of certain works. Make sure you get a condition report on the works you’re looking at. A condition report provides essential information on the work’s by famous artists.

Art dealer are fascinating people – their egos are often bigger than those of their artists – but they have to be. It takes courage to open an expensive retail store that sells stuff that nobody actually needs and that nobody may want to buy. You may find the price high, but if it’s what you want, make an offer. You may not like the fact that you are now on a waiting list for a painting that you’ll probably never get, but that’s how an artist’s market is formed. The dealer is trying to manage his or her portfolio of artists for profit, and they’ve got bills to pay: 50 percent to the artist (or more for superstars), overheads, dinner parties, opening, catalogues, magazine ads, museum patronage, etc. Sometimes it’s beneficial to explore the gallery’s other artists. If you can’t get a piece by the artist that you’re fixating on, you can build a relationship and trust with a dealer by supporting his or her entire programme.
 

You want to take a risk and buy one work; the dealer’s risk is that an entire show doesn’t sell. So relax, find what you want go for it. You’re persevered, you’re committed, now it’s time to buy. Just keep in mind a few things. Most dealers will offer a ten-percent discount on any primary work, so if you like to negotiate, remember, 15 percent is the maximum you can realistically expect. On secondary material, prices should be much more negotiable; the dealer is fishing, so make an offer and wait. If you have agreed on a price, demand an invoice immediately; if not, the work could “mistakenly” fall into some other client’s quicker hands. And pay as fast as you can; dealers love this, and a little good will can go a long way. One last hint: Don’t look for bargains; great works sell for a premium, and they are worth it.

Buying on the primary market

Contrary to what you may be thinking, your best buy will NOT be at the auction. In the Contemporary art world, we want to buy on the primary market, which means buying directly from the artist’s primary dealer(s) - usually the gallerist. (A subtle but important distinction many dealers who represent artists exclusively or partially prefer the title “gallerist” to the more bluntly commercial “dealer”, with the implication that they’re not in the business just for money.) Why? First of all we want the fresh stuff, the new art, the work someone is not already looking to flip, and more important, it’s cheaper.
 

The dealer must keep primary prices lower than auction prices because he’s got to sell 365 days a year, therefore the primary sale price is generally the lowest. Simple, right? Well, not really. Every hot artist will have the dreaded waiting list, which means that you’ll get one piece a year, or two, of your desired artist, if no one better comes around- a bigger collector, a major institution, or a better client the gallery. Now let’s say you get that call, the one telling you that the insane Matthew Barney vitrine, or the sexy Lisa Yuskavage painting, can now be yours as long as you sign a simple resale agreement. You can have the work, but only if you promise to offer the work first back to the gallery if you decide to sell it (i.e. you can’t just “flog” it at the auction).
 

A dealer generally asks collector to sign resale contracts to protect his artist from becoming a casualty at auction, but also to retain control over the artist’s market and to make sure that all secondary sales go back through the gallery. If you’re buying a piece with in no intention of selling it, go ahead and sign it. But if you are more of a speculator, the contract should be more carefully inspected (some of these agreements might not have any legal weight). Or if you are buying the work with the intention of eventually donating it to a museum, the dealer won’t require that you sign the agreement. Plus, any dealer loves to hear that one of their artists’ works is going to end up at a prominent museum, even if half the time that doesn’t happen.
 

Sotheby’s, Christie’s, and Phillips sound and look glamorous, but the reality is that they are struggling and competing with each other and with all the dealers. Why don’t they make more money? Well, it’s the glamour factor; all those catalogues and cocktail parties in lavish office all over the world, as well as the cost of insurance and installation, add up, not to mention the fact that the business has become fiercely competitive.
 

The auction houses obtain many of their prize works for sale by giving the consignors a “guarantee”. Often, important or super- hot artworks (valued at over $ 1 million) will be guaranteed by the auction house for the low end of the estimate. This means that when the work is estimated at $1 million to $1.5 million, the consignor (the seller) has already received a cheque from the auction house of an amount in the vicinity of the low estimate, and probably will receive only a portion of the gain over the guaranteed figure.
 

What happens if the piece is “bought in”, meaning it doesn’t reach the guaranteed or “reserve” price? Theoretically, the auction house gets stuck with it, but not really: they’ve been shopping for months to find a “third party” who will take the piece at the guaranteed price. This third-party guarantor is usually a mega-dealer or mega-collector, who wants to make sure that the de kooning , the Warhol, or the koons in question sells and doesn’t get “bought in”. So now you see that auction prices can be deceiving. True collectors do their own homework and understand a work’s value before the bidding starts.