Spooked by the Russian Sales in London
The Telegraph runs a brief story in the aftermath of London’s disappointing Russian sales. The newspaper turns this quote from Hiscox’s Charles Dupplin into the whole story:
“No matter how rich you are, probably your confidence has dropped. In 1991, prices fell about 50pc for Impressionist art. There is no reason to believe that history might not repeat itself.”
(More tales of the insurance trade after the jump.)
Less an insightful story than an amalgam of vaguely related ideas, the Telegraph tries to yoke several disparate themes together. Citing the now standard 18 month lag–which it should be noted is almost precisely the timing from the first cracks in the subprime securities market in the Winter of 2007–the story looks for signs of a fall that has already taken place. Prices are down 30-40% already. They may fall farther as the auction houses gather lots for next season’s sales. Finally, the Telegraph closes with the odd idea that collectors would be rushing to the phones to reduce their insurance coverage. Are premiums that high?
Aon, the world’s largest insurance broker, said it has concerns that its clients will not be so active in increasing their collections in the near future. Charles Hamilton-Stubber, director of its private risk management team, said: “We have not yet seen a rush to the telephones to decrease the value of insured art but everybody is on watch because everything is so volatile at present.
Fine Art Prices Could Halve, Hiscox Says (Telegraph)