Sotheby's, Christies Post Record Annual Sales, Defy Weak Economy

investopedia.com:

Auction houses specializing in the sales of expensive art and collectibles registered record revenue this year, defying a global economic downturn as rebound from pandemic-era shutdowns.

London-based Christie's announced annual sales of $8.4 billion in 2022—$7.2 billion via auctions and an additional $1.2 billion in private sales—the highest in its 256-year history. New York-based rival Sotheby's reported $8 billion in sales this year, also a record for the 278-year-old business.

Both houses had a second year of strong buyer interest after the pandemic hindered auctions in 2020, and both benefited from unprecedented sales of individual collections and featured events.

Christie's, whose sales increased 18% from last year, secured about a fifth of its 2022 revenue with the sale of late Microsoft co-founder Paul Allen's extensive art collection.That collection, spanning 500 years of art history, sold for $1.6 billion, making it the largest ever single-owner sale. Five paintings, including works from Cezanne, Van Gogh, and Gaugin, sold for more than $100 million apiece.

The picture at rival Sotheby's is more complicated. The company's revenue rose 10% from a year ago due to its ownership stakes in car auctioneer RM Sotheby's and real estate auctioneer Sotheby's Concierge Auctions. Sales of fine art and luxury items totaled $6.8 billion, about a 7% decrease from last year's $7.3 billion.

Nonetheless, Sotheby's also benefited from the sale of high-profile collections, such as that of New York real estate developer Harry Macklowe and his ex-wife, Linda. Amid their bitter divorce, the New York State Supreme Court in 2018 ordered the auction of the former couple's entire collection.That auction and five others in a series