Abstract expressionism, fetching the highest prices at contemporary art auctions

Abstract expressionism, the most influential American art movement of the 1960s, is topping the bill at the most prestigious contemporary art auctions. After occupying pride of place at the MoMA (New York) for over fifty years, Number 12 (1949), a “drip painting” on paper by Jackson POLLOCK found a buyer at Christie’s on 11 May 2004 at USD 10 million. The next day, the euphoria continued with more extremely high bids including an artist’s record for Clyfford STILL’s 1960-F which went under the hammer at USD 2.8 million.

These new records are the logical consequence of the rise in US artists’ prices in general and those of abstract expressionist works in particular. Prices have jumped 140% over the past ten years, rising most sharply over the past five.

This upward trend has been punctuated with numerous records. In May 2003, Mark ROTHKO beat his record, again at Christie’s, with N°9 (White and Black on Wine), a 1958 piece that sold for USD 14.6 million. A year earlier, Franz Kline and Barnett Newmann had both had record sales, with Franz KLINE’s Ninth Street going for USD 4.1 million, and Barnett NEWMAN’s White Fire fetching USD 3.5 million. But the absolute record for an abstract expressionist work dates back to 1989, when, at the height of the speculative bubble, Interchange (1955) by Willem DE KOONING was snapped up for USD 18 million.

If these major works from the 1950s and 1960s continue to increase in value in coming years, that record should be easily beaten, especially as the market remains extremely buoyant, with ample supply. Twice as many works exchanged hands in 2003 as in 1993 and turnover was almost 8 times higher. And yet, investors are taking a cautious and selective approach. In 2003, 27% of lots put up for auction were bought in. Once again, works have to be in perfect condition to find a buyer. When they are exceptional, prices soar.