Questroyal 2009

There will be no forth- coming variations, improved models, or new versions. They are as they were 150 years ago and as they will be 150 years from now. The opportunity is at hand. A great collector once said, “I regret only the painting I did not buy.” — lms, fall 2005 would be offered for sale, but there has been no surge in supply. The clear decrease in both supply and quality is a positive indicator no less signifi- cant than record prices during robust times. Art’s status as a cherished asset continues to prevail. This very determination not to sell has served to effectively rebalance the ratio of demand to sup- ply, resulting in a remarkably resilient market for American nineteenth- and early twentieth- century paintings. There is certainly pressure on the market, and those who must sell may have to be patient or accept a lower price. Most collectors have faith in the asset value of their paintings and have regretted the commitment of so much capital for the acquisition of stocks. All of their lives they’ve been conditioned to believe in the stock market—that’s what they read about in the newspapers and what’s discussed at dinner parties. As they accumulate funds, they parti- cipate in the stock market, but few, if any, take the time to fully research their investments. Most either don’t know how or are unwilling to read a balance sheet, and those who can and do are often misled or deceived. Some of these very same people are collec- tors with a tremendous passion for art, and they spend a great amount of time in pursuit of that passion. They go to art museums, visit galleries, read books, attend auctions, and process and consider a great deal of information. Yet only the smallest portion of their portfolios is allocated to what they know best: art. This does not seemvery logical, particularly when you consider how well art has performed throughout the last century. Art is exactly as represented. No one person necessarily knows more about it than anyone else. Inevitably, stock insiders have themost infor- mation. If you buy a painting and it’s authentic and in your possession, you will know the most about it. The playing field is equal. Isn’t it wiser to own what you understand and what you believe in, and aren’t we all relieved that some of our capi- tal has been preserved by our painting collection? There is seldom any sound reason to follow the crowd. The time to buy is whenmost are sell- ing. These are the principles that have endured the rigorous test of time. Long before there was a tradition to restrict and an academic mandate to inhibit, the fiercely individual spirit of the American artist was born. The European elites shunned their work, refusing to recognize its merit and preferring to vent an animosity instigated by history. Today, more than 150 years have come and gone, and our art has risen above bias and prejudice. It is an art that is still within the reach of its people. I will continue to buy compelling examples by America’s most inspired artists, no matter how great or meager their fame, and will sound that “alarm” when collectors grow weary. If they retreat from the latest gloomy headline, I will remind them to give equal credence to positive news. Auction records have been broken on numerous occasions during this recession. AWager Ten years from today, as I prepare for the next milestone catalogue, I am willing to bet that those of you who failed to acquire a work pre- sented here will wish that you had and those of you who did will be very thankful. Dinner is wagered, any takers? louis m. salerno The concept that scarcity of quality is the principal driver of valuation is held sacred.We have escaped a phenomenon unique to the contemporary art world that necessitates the suspension of the laws of supply and demand so that a buyer’s place within the social hierarchy is improved in proportion to the degree in which he most defies economic logic. Price itself ultimately becomes the primary motivation for acquisition. — lms, fall 2008 It is important to clearly distinguish the market for paintings from the economy that antagonizes us and sets our mood. If we are compelled to read headlines, why not give as much weight to auction records and results that exceed estimates as we do to the latest news from Wall Street? — lms, summer 2009