Antiquities trade Sale of ancient art burgeons as regulatory climate boosts buyers' comfort levels; slower flow, higher prices

By Miriam Kreinin Souccar Published on June 13, 2005

At his tony Phoenix Ancient Art gallery on East 66th Street, antiquities dealer Hicham Aboutaam shows off stunning jewels dating back to the fourth millennium B.C. He points out the artistry of a silver drinking vessel from Greece, worth $2.3 million and coveted by several museums.

Before starting an interview, Mr. Aboutaam quickly pulls out his sales and warranty agreement--a contract given to every buyer that vouches for a work's provenance and pledges a full refund if its authenticity is undermined.

"The antiquities market is becoming much more transparent," says Mr. Aboutaam. "We immediately tell our clients that there is a small risk that a work could turn out to be a stolen piece."

Out of the shadows

The antiquities trade, which has long occupied a mysterious place in the shadows of the art world, is coming into the light. More and more buyers are entering the market, while dealers such as Mr. Aboutaam are benefiting froma changing regulatory environment.

As part of the United States' efforts to strengthen ties with foreign nations in the war on terrorism, the government is cracking down on the trafficking of stolen pieces. Federal officials signed an agreement with Italy in 2001 to stanch the flow of Roman antiquities into the United States, and they may negotiate similar pacts with other nations.

The government oversight has actually boosted sales, because collectors are more comfortable buying and selling in the regulated market. Also, as prices for modern and contemporary art have risen, more collectors looking for bargains have turned to less-expensive ancient art.

At a Christie's antiquities sale last week, 40% of the lots went to new buyers, according to Max Bernheimer, international head of the auction house's antiquities department. Mr. Aboutaam--who runs Phoenix Ancient Art with his brother Ali, who is based in Geneva--now makes half of his sales to individual collectors, up from 25% five years ago.

Small but growing business

Overall, the is a small part of the art world, but it's growing fast. Christie's expects to sell about $20 million worth of artifacts this year. The roughly 40 private dealers worldwide that specialize in such works generate an estimated $300 million in annual revenues.

Buyers' increased interest is pushing up prices quickly. At the Christie's sale, a rare Anatolian marble idol, called a stargazer, sold for $1.8 million, a record for a Kiliya idol.

The possibility of more international treaties could also have an impact on the value of works. Art experts say that they expect the United States to sign other treaties like the Italian pact, offering protections for the cultural properties of China, Greece and Turkey. The treaties will slow the pipeline of artifacts making their way to dealers, driving up prices.

"There is enormous value in antiquities," says Michael Steinhardt, a former hedge fund manager who is a major antiquities collector. "But they are filled with (legal) risk."

Indeed, even many experienced players, such as the Aboutaam brothers--widely considered the most prominent dealers in the business--have had scrapes with the law.

In December 2003, Hicham Aboutaam was charged with falsifying the country of origin on a U.S. customs document for an Iranian artifact worth $1 million. He pleaded guilty and paid a $5,000 fine.

Family business

Phoenix Ancient Art was started in Beirut by the Aboutaam brothers' father in 1968. The family fled Lebanon in 1987 after Ali was kidnapped by radical groups and briefly held for ransom.

The brothers worked alongside their father in New York and Geneva until their parents died in the 1998 Swissair crash off the coast of Nova Scotia, at which point the two inherited the firm. Mr. Aboutaam, who says antiquities were his toys growing up, hopes that at least one of his three sons will carry on the family business.

Lightning rods

Art experts say the Aboutaams are lightning rods for the industry because they're so successful.

"They have many of the very best things on the market and the largest turnover of any dealer at the moment," says Jasper Gaunt, curator of Greek and Roman art at the Michael C. Carlos Museum at Emory University in Atlanta. "They have the financial muscle that many people don't have."

That clout should help the Aboutaam brothers and their Phoenix Ancient Art thrive in the more regulated marketplace.

"This is the beginning of a new era," says Mr. Aboutaam. "We're already witnessing record prices, but in a year or two, these prices will be considered cheap."

Phoenix Ancient Art, 6, rue Verdaine, Geneva,
Tel.: 022 318.80.10
Web site: www.phoenixancientart.com

Open from Monday to Friday from 10:30 to 6:30PM
Till June 3.

Above image: Rython [Drinking flask] Spout. Gilded silver, Greece, 5th - 4th Century BC. (DR)