There is a growing concern that a bubble is developing on the art market. Sotheby’s CEO Tad Smith believes that art buyers are showing more care in their purchases, becoming more discerning about the pieces of art they add to their collections. However, they are not shying away from spending copious amounts of money on the best pieces.

Smith explained in an interview that buyers are looking to purchase items they wish to add to their collections, items that are of high quality and fresh. They are showing more care to the art they purchase, preferring items they really want in comparison to those that simply strike their fancy.

Next week, the fall auction season is scheduled to start. The event comes in a critical moment for the global market. Although, in regards to major works, prices have been rising during the past years, China’s problems and volatile financial markets could put a damper in proceedings, testing art buyers’ determination to spend millions of dollars.

Some specialists believe the uncertainty of the market could drive people to invest more money in art, seeing it as a safe haven for wealth. Others believe the prices are too high even for the richest collectors, which could lead to a slowdown of the art market.

Smith stated, that although sales on the Hong Kong art market have slowed, the demand from wealthy Chinese buyers is still going strong. What’s more American and European buyers are also interested in the items sold on the Hong Kong art market. Talking about an early sale that took place in October, Smith said the interest was simply concentrated on fewer lots. Although the percentage of lots that went unsold rose, the earnings remained the same as people paid more for the things they really wanted. In his belief, a doomsday view of the market might not come to pass. People will still seek to purchase the high quality items of their dreams which they spot in Hong Kong art galleries.
Sotheby’s is placing a lot of hope in the fall season by putting the A. Alfred Taubman collection up for auction.

The collection comprising 500 elements has been guaranteed for a sum of around $500 million. Taubman was the former owner and chairman of Sotheby’s. After being convicted in 2001 he was sent to prison. He died at 91 years old and his family decided to put his collection up for auction in order to fund the charitable foundation and pay all estate taxes. According to Smith, the sheer number and variety of the works was well worth guarantying the sale. Many artist reps have shown interest in such an auction, making Sotheby’s victory over Christie’s an important one.

Smith has been the CEO of Sotheby for the past seven months. During this time he made numerous changes and innovations, expanding the company’s online presence and penetrating other categories beyond art.

Junzi Fine Art connects a global network of art collectors, art galleries, and art institutions, for the purpose of the sharing and development of the arts and a means to strengthen the arts in major and minor markets throughout the world. Joseph Manqueros, Junzi Founder says “As we build the foundation of art throughout our global communities, it is our hope that our efforts will benefit these communities both economically, culturally, and lead to the longevity and unification of these societies for generations to come.” Junzi co-founder Serina Manqueros, comments “Through our curatorial programs we hope to provide artists with a global network to provide them with economic opportunities they would otherwise not be privy to.” The firm has offices in Hong Kong, New York & Europe.