Auction houses reap big profits

The world’s largest auction houses have seen sales surge in the first half of the year, boosted by record prices for rare paintings and increased interest from buyers in emerging markets such as China and Russia.

Christie’s said Monday it earned a record $2.1 billion in worldwide sales in the first six months of the year, an increase of 38% from the same period of 2005.

Its main rival, Sotheby’s, sold $1.96 billion of art between January and June, up from $1.3 billion a year earlier.

Industry experts are confident the art market can avoid a 1980s-style collapse.

“It is a cyclical market, but we don’t see warning signs on the horizon to indicate this market is coming to an end any time soon,” said Rommel T. Dionisio of Wedbush Morgan Securities.

“If you look at what’s been driving the art market for the last few years, a significant portion is developing market wealth -- China, Russia and most recently India.”