Editor’s Note
This evocative dispatch from Munich captures a city—and a world—tentatively reawakening. As spring arrives, so too do the first fragile signs of a return to public life, marked by both cautious normalcy and the lingering traces of a global crisis.
A Sunny Afternoon on Munich’s Maximilianstrasse
It is a sunny spring afternoon on Munich’s Maximilianstrasse. The chestnut trees are stretching their blossoms towards the sky, the trams are rumbling with a few, regulation-masked passengers towards the Bavarian State Parliament or the National Theatre, and the few pedestrians on the upscale shopping street no longer need coats. After weeks of working from home in his native Rosenheim, the German Bonhams executive Thomas Kamm also displays a strikingly healthy complexion. And his mood is cheerful, in contrast to the presumably gloomy mood in the auction market.
Alternative Investments in Volatile Times
But it’s not that bad at all. In times when stock markets are at best volatile and even venerable funds are slipping into negative territory, more and more investors are looking curiously at so-called alternative investments. And indeed: Not only in the field of contemporary art are auction houses recording ever higher hammer prices; wine and whiskies, cars, or watches (acquired timely and correctly) are also achieving dizzying returns.
It is precisely here, in these niche markets, that the world’s third-largest auction house often has its nose in front of the two leaders, Sotheby’s and Christie’s. We meet Thomas Kamm on the premises of the Bonhams branch in the Bavarian state capital – and maintain the prescribed distance all around.
Interview with Thomas Kamm
“We had to temporarily furlough some colleagues in the UK, but there have been no layoffs so far. That means every department remains well-staffed. The work is predominantly done from home, which is working surprisingly well. The European representatives are all working, some already back in the offices. And we have various video conferences daily.”
Online Auctions Booming
Online auctions are now booming.
“Will they replace the live business in the medium term? Replace, no. But I see a future where both auction formats exist side by side. By the way, online bids are also increasing significantly at live auctions.”
Catching Up on Business
Many auctions are currently being postponed. Can the business be made up for?
“I think so. Although some market participants fear there could be too many auctions in the fall, I don’t share that concern. I rather believe people are waiting for it: I get calls from customers who almost beg for the next auction because they believe prices are favorable now. But if three or four people think that, it suddenly goes up. That’s the advantage of auction goods: There are no production chains, they are unique, their supply is limited, and therefore they are significantly less susceptible to crises.”
Growth in Other Asset Classes
New records for works by Monet, Warhol, or Jeff Koons are constantly in the media. In which other asset classes have there been notable increases recently?
“We are seeing significant increases in jewelry, watches, whisky, and partly in cars as well. Porsche and Ferrari are very sought after. The so-called ‘youngtimers’ are also gaining strong traction, the ‘Six-Niner’ (Mercedes 450 SEL 6.9, editor’s note) for example. But even bread-and-butter cars, which no one would have wanted years ago, are becoming increasingly expensive. And of course, vehicles associated with celebrities will always achieve high prices – like the dune buggy sold for $445,000 at our ‘Amelia Island’ auction in Florida in March, in which Steve McQueen drove Faye Dunaway along the beach in ‘The Thomas Crown Affair’ in 1968. Another typical Bonhams niche thing was our last auction on ‘California and Western Paintings & Sculpture’. That auction saw seven world records.”
Classical Departments: Painting and Sculpture
And what about the classical departments, painting and sculpture?
“We are registering high demand for good art. The 19th century has recovered splendidly, we had excellent Old Masters auctions. One peculiarity: Paintings that are in any way oriental have been experiencing an incredible boom for several years: Every harem, every Oriental with a turban brings a hundred times more than ten years ago.”
Hidden Champions in Alternative Investments
Can you reveal a few hidden champions among alternative investments?
“As an auction house, we never talk about ‘investments’. However, there are trends we notice. Posters are an exciting topic. Chinese furniture made from Huanghuali, the extremely rare ‘wood of kings,’ is currently going through the roof. In the automobilia field, radiator mascots are making a big comeback. Or ‘Baby Bugattis’: I have an acquaintance who collects them. He complains that his first specimen cost 1500 Marks, ‘and now, Thomas, I paid 28,000 pounds. Why have they become so expensive?’ Well, because they are rare.”
