The Imperial White Jade Qianlong Yubi Seal, sold for HK$63.38 million, or about US$8.1 million

The newspapers have been full of stories of investment bankers having to sell their Lamborghinis, private helicopters, or perhaps a third home to see them through this economic downturn. Some have turned to selling art collections as well. Similar to blue chip stocks, old masters offer safety and stability, whereas the new hot sectors offer the greatest risk and the greatest returns. However, art cannot be sold at the push of a button and is subject to the whim and trends of the market. Auction houses are the first thought but there is another way.

Calling himself a “fine art agent” (fineartagent.com), William Hanbury-Tenison advises and acts on behalf of private collectors in the advantageous disposition of fine art assets, taking a percentage of the net proceeds. He does not represent artists and owns no art himself but he knows the markets and the auction houses well around the world. Hanbury-Tenison said that he works with only long-standing clients who understand the art market very well.

“Now is not the time to sell Asian art or contemporary art. Dessa Goddard, head of Asian art of Bonham’s and Butterfield’s in San Francisco told me that many more people were approaching them to sell art works on consignment than usual. But the timing is bad now, because the more people who try to sell their art, the lower the prices become. You don’t want to be a seller in this market because you will have to offer your best baubles to get any kind of price.”

He did point to a few areas that might do well, including really good Islamic art, the best from South America, particularly Brazil, and Russia. Chinese antiques were holding up, but not fetching the prices they were at the peak a couple of years ago, and modern Chinese ink on paper or silk always do well.

“Sotheby’s moved its Asian contemporary auctions to Hong Kong because, it seems, they were not making a profit in New York anymore. In 2007, Sotheby’s sold US$38 million worth of this art, but in 2008, the total was only around US$8 million. That is not enough to support these auctions’ costs,” he surmised. As he lives in Shanghai, he often attends auction previews, and said that this year, the Sotheby’s downsized preview was held at the JC Mandarin rather than the Four Seasons or Portman Ritz-Carlton Hotels, indicating a need to reduce costs.

“I attended the China Guardian Auction preview recently for an auction to be held in December 2008, and the preview was a shadow of its usual self. Although China Guardian is one of China’s biggest auction houses, with 10-15 different classifications including furniture, stamps and coins, it seems it is holding back to see what is going to happen to the mainland buying patterns,” he said.

“In my position as a private art agent, I am aware of the true transaction costs when dealing with auction houses and dealers and can inform my clients what to expect. Auction houses can take up to 40 percent or more of the sale price. In all cases, the sale of art assets should only be undertaken with the most careful planning and deliberation, plus consultation with accountants, legal advisors and art market professionals. My favourite sale is to another collector who really appreciates the work.”

“Art collecting is so personal,” he said. “Many new buyers don’t ask for advice until they have made mistakes and bought second- or third-rate pieces of a famous artist. They also may end up buying fakes but are rarely told the truth by the auction houses and dealers, who just politely decline to handle the sale of the works. It’s an act of extreme generosity to tell someone he bought a fake, although it is also extremely difficult as there are huge egos involved and a great deal of embarrassment. Since the dealer network in China is so new, there are many unscrupulous art sellers out there, so buyers beware!”