Lessons in Auctions: The White Hot Chinese Market (aka Sell Aunt Edna's Rhino Horn Right Now!)

19th Century carved Rhinoceros horn. At Brunk on September 24th.
Estimate $60,000-$80,000. Hammer: $220,000.

The Chinese. They own a lot of our debt and, increasingly, a lot of our old antiques.
Well, actually, they were their antiques first. Now, they are just buying them back--for breathtaking prices.

While it might seem strange at first, the auction market has trends. In the eighties, for example, French furniture was tres chic up and down Park Avenue, now it's cooled off considerably and no one thinks that market, given our increasingly casual lifestyles, is coming back any time soon. Victorian furniture sells for bargain basement prices and has earned the derisive nickname among decorators as "big brown furniture". Even Chippendale and Georgian pieces, long considered timeless classics, are incredibly well priced these days, with the originals often selling for thousands less than their contemporary knock offs.

Chinese Republican period vase (circa 1930).
At Skinner for their October 2nd sale. Estimate: $200-300. Hammer price: $1,300.

 But on the flip side, of both the market and the globe, is Asian furniture and decorative objects. The Asian market is hot in general but the Chinese market is ON FIRE right now. The country is getting richer and more sophisticated. Hong Kong auction houses, such as Christie's and Sotheby's, have familiarized the wealthy elite with both the process and advantages of buying at auction. Increasingly, Chinese buyers are bidding online directly at U.S. auction houses, setting record prices wherever they go.

20th century painted fan. At Skinner on October 2nd. Estimate: $100-150. Hammer price: $1,000.

Case in point, Sunday's Asian Works auction at Skinner. The Boston based auction house has long been considered one of the best in the country, employing numerous well-established specialists. In other words: Skinner's estimates are generally an accurate range of what the item is worth at wholesale. On Sunday's sale, however, many items completely jumped the fence.

Chinese 19th century brush pot. Sold at Skinner on October 2nd.
Estimate: $200-300. Hammer price: $700.

And this isn't just happening at Skinner. Record sales and a seemingly insatiable demand have inspired many auction houses to frantically add Asian art sales to their calendars. Skinner now has three Asian sales a year. Leslie Hindman, the Chicago auction house, held an Asian art sale in May, 2011 that was expected to bring in $1 million in revenue, according to a July article on CNBC. The actual result: $4.2 million with 80% of the lots going directly to China. The article, by Jay Carney, goes on to quote Hindman as saying, “Jade that we thought would bring $6,000 to $8,000 was bringing $50,000.” Not surprisingly, the auction house has another Asian sale on the calendar for October. Christie's New York branch had three Chinese themed sales on September 15th-16th: ceramics, jade and a private collection that together generated a total of $60 million in sales, making it one of their most profitable two day stretches of the year.

Rare blue and white Ming moon flask.
Sold at Christie's on September 15th, 2011. Estimate: $500,000 -
$700,000. Price (Including Premium): $2,658,500.

Even smaller markets in which one might not expect the same level of international interest, such as Brunk Auctions in Ashville, North Carolina (highly regarded but even so), are benefiting. In September, a carved rhino horn (pictured up top) estimated at $60,000-80,000 sold for $220,000. And in January, there was this carpet...

Imperial Chinese carpet, circa 1900. Sold at Brunk on January 8th, 2011.
Estimate: $12,000-$18,000. Hammer price: $180,000.

Are these prices too good to last? Many familiar with the wine auction market seem to think so (To wit: "Bordeaux Bubble in China" from Time). I must confess that I agree: prices in this category have simply shot up too much, too quickly--just like all those uninhabited condo developments found in many a Chinese city. And so, my advice, my dearlings, is this: for those of you sitting on a collection of premium Chinese artifacts that you are thinking of selling "soon," don't push your luck. Otherwise...well, you probably won't end up feeling like a shareholder of LEH on September 16th--more like one of those flower breeders in that country with all the clogs.

THIS IS NOT A GUMMY BEAR: rare white jade water pot.
At Christie's on Sept 15th. Estimate: $120,000-$180,000.
Sale Price (including premium): $2,098,500.