Fine Art: The Next Recession Victim?

(NEW YORK) — On Day 2 of the fall auction season, a Russian masterpiece expected to sell for up to $3 million at auction did not find a buyer Wednesday, further underscoring the impact of the global financial crisis on the art market. (Read about the latest art news at TIME's "Looking Around" blog)

Not one hand went up when "View of St. Petersburg" by Alexei Petrovich Bogoliubov was offered at Sotheby's morning sale of important Russian works from the impressionist and modern periods.

Many other works sold at or below their pre-sale estimates; others did not sell at all. Final results were unavailable because sales were still under way.

It was the second day of lackluster bidding at the annual fall art season. On Monday, Sotheby's kicked off the season with masterpieces by Edgar Degas, Kazimir Malevich and Edvard Munch that fetched impressive prices. But a high percentage also went unsold _ 25 works did not sell while 45 did.

Ian Peck, chief executive of the art finance firm Art Capital Group, had predicted that the lineup Wednesday, which emphasized Russian artwork, would be a test of the "appetite and interest" of Russian buyers.

The high-end art market had stumbled in recent months as hedge fund traders, financiers and other deep-pocketed buyers from Russian, Europe and the Middle East have fallen victim to turmoil in global markets.

Monday's mixed results "firmly demonstrated that the concept of a recession in the art market is not abstract but real," Peck said. "Prices in all categories _ the trophies, the great and the merely very good _ were less contested, if at all, and end prices were likely reduced by 20 to 40 percent."

Christie's kicked off its first auction of the season Wednesday evening with paintings, sculptures and decorative arts from two private collections of works by Pablo Picasso, Henri Toulouse-Lautrec, Edouard Manet and Paul Cezanne. Its combined pre-sale estimate was $130 million.

Among the highlights of the Alex and Rita Hillman collection were Toulouse-Lautrec's "Portrait de Henri Nocq," which sold for $4.5 million, significantly below its pre-sale estimate of $6 million to $8 million, and Manet's "Fillette sur un banc," which had an estimate of $12 million to $18 million but didn't sell.

The second collection is owned by designer and philanthropist Alice Lawrence and includes Mark Rothko's "No. 43 (Mauve)," which was valued at up to $30 million but didn't find a buyer.

Among the other works that sold Wednesday was a painting by Greek-Italian artist Giorgio de Chirico. The 1914 oil on canvas, "Composition Metaphysique," went for $6.1 million, in line with its pre-sale estimate.

The price was the highest earned by the 41 pieces sold at Christie's; 17 pieces weren't sold.

Rene Magritte's 11-by-9-inch painting of a house, a tree and cloudy blue sky, "L'Empire des lumieres," fetched $3.6 million, slightly exceeding its estimated sale price.

Many of the estimates were set in the summer, when financial markets in Europe, Asia and Russia were still strong. Christie's said it now is asking its sellers to be realistic.

"Without a doubt, we will be calling consignors on some of the lots and discussing the interest level in them," said Guy Bennett, its international co-head of impressionist and modern art.

On Monday, Sotheby's took in $223.8 million, which it called its fifth-highest impressionist/modern sale total ever. However, it fell short of its pre-sale estimate of $337 million to $475 million. The auction house said buyers were predominantly from the Americas.

Degas' "Dancer in Repose" sold for just over $37 million, an all-time high for the artist, but below the $40 million estimate. Munch's "Vampire" set a new record for the Norwegian artist at $38.2 million.

Malevich's "Suprematist Composition" fetched $60 million, the highest price at Monday's auction and in line with its pre-sale estimate.

The wilting economy likely played a role in Sotheby's decision last week to withdraw Picasso's "Arlequin" from its Monday sale for "private reasons."

Christie's sale of impressionist and modern art continues Thursday and Friday. Next week both houses will offer works of postwar and contemporary art.