Sotheby’s Aboriginal art specialist, Tim Klingender, has been protesting for years at the impact the Protection of Moveable Cultural Heritage Act has on the sale of important Aboriginal art and, in 2001, he had a public row with then Arts Minister Peter McGauran who dismissed his criticisms and said Sotheby’s had a clear self-interest in arguing against export restrictions because it affected the firm’s bottom line.
“It has repeatedly opposed the government’s decisions but has yet to successfully appeal against them,” McGauran said.
“The Protection of Moveable Cultural Heritage Act ensures that items of cultural significance to Australians can be retained in this country for future generations.”
Klingender rightly claims that Sotheby’s has helped raise the profile of Aboriginal art by promoting its sales around the world. Each year he has taken a selection of works from forthcoming auctions to America and shown them in New York while previews have also been held in London, Los Angeles and Paris.
The interest generated, Klingender argues, plus the consequent high prices, have a trickle down effect that ultimately boosts the sales and incomes of indigenous artists.
He said the act covers a large number of the works in tonight’s Aboriginal art sale whose prices will also be affected by the lack of an export licence. But then Sotheby’s has been selling more than half of the paintings, by value, in its specialist Aboriginal art auctions to overseas collectors for years and many major works have been taken out of Australia, probably never to be seen again.
Two years ago, the firm sold two other important paintings by Clifford Possum to overseas collectors. The National Gallery of Australia had hoped to buy Emu Corroboree Man as it was the first painting the artist produced.
The gallery lost out when furious bidding pushed the price to a new record of $411,750 for a Clifford Possum. Melbourne art dealer Irene Sutton bought the small work for $411,750 on behalf of an American collector.
The painting was originally purchased from Clifford Possum by a naturalist from Arizona in 1972 for less than $100. As it was brought back from America for the sale, it was not covered by the Heritage Act.
The second Clifford Possum, another huge painting more than 4.5 metres long and titled Man’s Love Story, was bought by a French collector also for $411,750. Because it was painted towards the end of the artist’s career in 1993-94, it also fell outside the act.
Professor Worthington of QUT School of Economics and Finance studied global art markets and calculated returns in Australian art market based on about 36,000 auction sales. In his study at University of Wollongong he identified Australian Fine Art as a separate Alternative Investment asset class, that produced 30-year average annual returns of 8.23%.
AUSTRALIAN ABORIGINAL ART RATE OF RETURN
Prior to 1990s Australian aboriginal art was viewed merely as part of tourism only to power charge resale values, like $1.056 million for Emily Kame Kngwarreye’s Earth’s Creation and $2.4m for Clifford Possum Tjapaltjarri’s Warlugulong in recent years. The Warlugulong painting was bought by Commonwealth Bank of Australia (CBA) in 1977 for $1200. In 1996, Melbourne art dealer Hank Ebes acquired the painting for $36,000 and in 2007 National Gallery of Australia acquired the painting at the Sotheby’s auction for a princely sum of $2.4 million. This returned Ebes more than 6,500% on his investment (1996-2007). Never mind, if CBA would have held to their $1,200 investment, it would have returned them 200,000% (1977-2007). Aboriginal art works are called the outstanding paintings of the 20th century and form a $700 million industry. With recent success in Bahrain and Musee du Quai Branly in Paris aboriginal art of Australia is a rather hot investment commodity.
As for the Cultural heritage, I suspect oneof the reasons is that it ieasy to classify the aboriginal art as “heritage” instead of trying to impose same on, say, a cartoon by an unknown artists. Other applications include using the art for tax-based planning as we found here:
http://www.artbank.ch/giftstax.html