MovieChat Forums > Woman in Gold (2015) Discussion > Why $135 million was paid

Why $135 million was paid

posted 9 years ago by peterquennell
8 replies | jump to latest

I went to see the painting a day or two after it was put on display in the Neue Gallerie on Fifth Avenue here in NYC.

I dont see mention in other threads here of what Ronald Lauder was doing in paying that price.

He was creating a new museum on Fifth Avenue (around dead center on "museum row") to tell the world about germanic impressionist art, and he really hoped to make a splash (which he sure did!)

In effect with this one simple move he "jumped" the value of all similar germanic art, including Lauder's own holdings - so in real terms he didnt pay a dime!

When the painting arrived, it was much reported on as the most expensive painting in the world. We all had to go and take a look. It really is a breathtaking work.

That museum is now a sizeable mecca for German and central Europe tourists, who can see two other Klimts a few hundred yards away in the Met. The number of 5-star reviews for that museum are outta sight.

In effect Lauder jumped a little bit the value of New York too - very far from the first billionaire rooster to do that in NYC by the way (bless their hearts!).

https://www.youtube.com/watch?v=Ai-3ZKgZhSE

[–] Thomasina 9 years ago

I went to see the painting a day or two after it was put on display in 2001 in the Neue Gallerie on Fifth Avenue here in NYC.

No, you didn't. That didn't happen until 2006:

http://www.nytimes.com/2006/06/19/arts/design/19klim.html?ex=1308369600&en=37eb32381038a749&ei=5088&partner=rssnyt&emc=rss&_r=0

http://www.neuegalerie.org/museum/press-releases/klimt-bloch-bauer

I dont see mention in other threads here of what Ronald Lauder was doing in paying that price.

He was creating a new museum on Fifth Avenue (around dead center on "museum row") to tell the world about germanic impressionist art, and he really hoped to make a splash (which he sure did!)

The Neue Gallery opened in 2001, but that Klimt painting didn't come there until 5 years later.

[–] peterquennell 9 years ago

So we didnt see it a day or two after it was put on display? News to us. Lighten up a bit.

[–] Thomasina 9 years ago

So we didnt see it a day or two after it was put on display? News to us.

Maybe you did see it a day or two after it was put on display--I don't know you. All I was saying was that if you did do that, you did it in 2006, not in 2001 (as you said you did: "I went to see the painting a day or two after it was put on display in 2001 in the Neue Gallerie on Fifth Avenue here in NYC").

ARTFORUM
POSTED June 19, 2006
Lauder Buys Klimt Painting for $135 Million

Carol Vogel reports in the New York Times (http://www.nytimes.com/2006/06/19/arts/design/19klim.html?ex=1308369600&en=37eb32381038a749&ei=5088&partner=rssnyt&emc=rss&_r=0) that cosmetics magnate Ronald S. Lauder has purchased Gustav Klimt’s Adele Bloch-Bauer I, 1907, for $135 million. The purchase was made on behalf of the Neue Galerie, a five-year-old museum devoted to German and Austrian fine and decorative arts, and is the highest sum known to have been paid for a painting. The canvas was the focus of a restitution battle between the Austrian government and a niece of Mrs. Bloch-Bauer, which was settled in January, when the painting and four others by Klimt were awarded to Maria Altmann. “This is our Mona Lisa,“ said Mr. Lauder. ”It is a once-in-a-lifetime acquisition."

http://artforum.com/news/id=11211

[–] adresher-1 9 years ago

Yes, there are collectors who bid up and collaborate with other collectors to try to inflate the value of their art collection.

However, by doing so they run a huge danger if there ever is a correction. Could be very difficult to sell a painting for paid $30mm for anything close to that price if the market for an artist or style goes stale. They run the risk of a self made Ponzi scheme.

[–] peterquennell 9 years ago

Good point. Some art areas DO go stale and museums have lamented that impressionists and Egypt seem to be the biggest draws - and now fashion at the Met, well done to the Met, I hope you have seen their latest.

My own area is growth management, formerly with the UN, and once one knows how to "see" value it is astonishing how it flows in and (mostly) out. Plot it out and there are a few value streaks, the heavy lifters, while all else usually is sinking.

[–] adresher-1 9 years ago

Exactly! I am a huge art fan and have taken numerous appraisal courses. One teacher who runs an art consulting business discussed that 80% of art purchased at a gallery loses money. In my paper for the class I chose a painting which I loved at a NYC gallery and discussed why it was not a good investment and an investor would be better off buying treasury bonds.

The one artist whose value could come crashing down is Warhol. One family has been bidding up the prices for decades and own over 800 works.

[–] peterquennell 9 years ago

Most interesting. I hadnt given professional thought to value migrating in and out of art objects but it looks like your analysis was very valid and in itself very valuable.

In the UN we "saw" value at various levels, like nesting Russian dolls, up through the city and national to regional and global, which makes watching it even more head-spinning (and now even more alarming!)

All increases in value occur because someone successfully champions them and a lot of others come to buy in. Maybe Mr Lauder was goosing his Klimt; but I am fond of his museum and it was valid what he did and I for one am very glad he did so!

By the way, Inside the Tornado and Geoffrey Moore's other books provided for us an absolutely vital breakthrough. If you read one, you might find some relevance.

[–] adresher-1 9 years ago

I will check out those books!

I agree, who cares if the Lauder family goosed the Klimt market. The Lauder family should be commended in their efforts to get stolen art back to their rightful owners. Also, while some artists could see a major correction in their prices i.e. Hirst, I do not see a correction occurring in Klimt's works. Klimt's gold period pieces are instantly recognizable and "The Kiss" is a perhaps one of the top ten most recognizable paintings of all time.