YSL dictates the price – art sale fetches $265 million

The art market heaved a sigh of relief with the first day's sale of legendary French couturier Yves Saint Laurent (YSL) art collection fetching a hefty $264 million, belying all expectations of a slump given the state of the global economy.

The first day's sale broke more than a half a dozen records with Impressionist and Modern works and affirmed that in a world of collapsing investment strategies art still retained its niche place. It also overhauled the previous world record for the auction of a private collection when the collection of Victor and Sally Ganz brought in the equivalent of $207 million. This record was set in 1997.

Christie's arranged for 100 telephone lines to deal with outstation clients even as more than a thousand collectors and their agents crammed into the Grand Palais exhibition hall in central Paris. Works up for sale included those by Matisse, Mondrian, Braque and de Chirico.

The biggest bid last night was for Lot #53, a Matisse piece, ''Cowslips on a Blue and Pink Carpet'', which went for a record $41 million, smashing presale estimate by the auctioneer of $23million.

Picasso's cubist ''Musical Instruments on a Table'' failed to reach the pre-sale price and was withdrawn unsold. Piet Mondrian, Constantin Brancusi, the Romanian sculptor and Marcel Duchamp all sold for record sums, well above earlier estimates.

Collectors opined that if the work was rare, and of a high quality, then the money was available, notwithstanding the hard times.

Pierre Bergé, 79, decided to sell the 731 pieces that he and YSL had collected in a partnership, which was both business and personal, since the 1960s. Proceeds will be given to Aids-based medical research and a Bergé-Saint Laurent Foundation dedicated to the couturier's work.

At a brief news conference, Berge said, ''The day Yves Saint Laurent died, I decided this collection had run its course,'' he said. ''It was something we created together.'' Yves Saint Laurent died last June at 71.

A project to create a museum for Saint Laurent's fashion and art collections proved to be too difficult. ''Selling it was the only possible solution,'' Berge said. He said that he would keep the unsold Picasso for his foundation.

Most of the buyers were said to be American and European.

Henri Matisse; Cowslips on a Blue and Pink Carpet

The sale, which has five other portions, will continue over the next few days, and will include furniture, silver and Asian art.

A dispute over two Qing dynasty bronze animal heads, a rabbit and a rat, originally looted from an imperial palace in China but purchased legally by Berge erupted just before the sale with China demanding their return. A French court however ruled in favour of the auction.

Bergé countered Chinese accusations saying he would give them to China if Beijing would ''observe human rights and give liberty to the Tibetan people and welcome the Dalai Lama.''

There was something in the sale for French president, Nicolas Sarkozy, as well – though on behalf of the nation. Touring the auction offerings he accepted from Bergé a legacy to France from Saint Laurent - a 1791 portrait of a child by Goya.