Auction of Saint Laurent's Art Sets Records

It was the most amazing auction I've ever seen. There are still a lot of rich people in the world, and I think they are anticipating a future inflation. Those words, spoken by David Nahmad, a multi-billionaire fine art dealer and major world currency trader, summed up the sentiments of a record-setting first day at Christie's auction of designer Yves Saint Laurent's art collection.

Time.com reported that the auction, which is being held at the Grand Palais in Paris, tallied $266 million on Monday, a record for a private collection. Does the staggering amount of money being spent on art during a time of economic distress indicate that the global economy is in the midst of a revival? According to Nahmad, the record sales actually represent the opposite.

Nahmad said, "The eagerness to invest cash in art is a very visible confirmation of the skepticism that investors have about the crippled financial system." He went on to say, "People today don't know where to put their money. The banks are fragile, the hedge funds don't exist anymore, stocks are weak. It's better to stick to art, something you can touch with your hand."

Some pieces of the collection, which was owned by Saint Laurent and his business and personal partner, Pierre Berge, are shattering pre-auction estimates. The largest amount paid for a piece so far was $45,264,579 for French Impressionist Henri Matisse's Les coucous, tapis bleu et rose ("Cuckoos on a blue and pink carpet"), which sold for twice Christie's estimate.

The only disappointment the first day was Picasso's Musical Instruments on a Table, which had the highest presale estimate at $30 million but went unsold.

The New York Times reported that record spending continued on the auction's second day as 18 works grossed $28.7 million. Notables included Theodore Gericault's portrait selling for $11.6 million, and a Frans Hals painting that sold for $3.9 million. The auction will continue on Wednesday.