Time to Invest in Art?

Online Stock Trading - Alternative Investments - A Good Time to Get Yourself a Bargain in the Art Market?

With all the money being lost in stocks investments by billionaires, if you are looking for alternative investments, this may be a good time to pick up a work of art on the cheap. Billionaires are starting to feel the pinch and are no longer being so liberal with their cash in their search for snooty bling. So if you've got some cash tucked away for a rainy day this might be the time to start thinking about picking up a Picasso or a Gauguin or a proper painting by Courbet.

(Gustave Courbet - Le Chateau de Chillon - up for sale by auction for $148,000 - $222,00 estimate at Christie's - Jan. 21 at 2 p.m. -

As we have seen here in the UK, Roman Abramovitch is being a bit more cautious when it comes to buying players to replace his ageing Chelsea squad. There are even rumours that he might sell Chelsea to a rich Arab (denied of course).

Be that as it may , Christie's auction house is to make 25% of its 800 London-based staff redundant as the art market starts to suffer the effects of the credit crunch.

Sales are expected to drop by around 20 to 30% and the majority of those losing their jobs will be mid-level staff.

Its New York office has already cut back on staff.

Christie's business is mainly art, but it also organizes auctions for cars and fine wine. The fine art market has suffered as it appears that the Russian oligarchs and hedge fund billionaires who drove prices up have suffered from the credit crisis.

At 20th-century British art sale last month, only 57% of the lots were sold — compared to 81% in 2007. In cash terms £4.1 million was raised compared to £9.4 million last year.

Sotheby's, Christie's main rival, will also be reducing staff numbers along with other costs.

Both auction houses lost money recently through guarantee agreements, whereby sellers are guaranteed a certain amount from a sale even if the sale is close dfor les than that amount. It apears that Sotheby's lost $28.2 million in the contemporary art auctions last November from such agreements.

Christie's is privately owned by François Pinault, also owns luxury brands such as Yves Saint Laurent, Gucci and the Château Latour vineyard. There have rencetly been reports that Christie's may be put up for sale but these have been firmly denied.

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