Wealthy business owners are generating more cash than they can spend or invest. But even with rising prices for Contemporary art there’s little incentive for a collector to sell. In times like these, auction houses step in with guarantees to motivate consignors with risk-free profits.
Take Peter Brant’s Basquiat, Undiscovered Genius of the Mississippi Delta on offer at Sotheby’s (above) or, as Colin Gleadell tells us after he did the math, any of nearly half of the other lots on offer at Sotheby’s and Christie’s Evening sales:
Many of these sellers have come to an arrangement with the auctioneers whereby their property is guaranteed to sell. Only 4 per cent of the Impressionist sales have been guaranteed, but at Sotheby’s and Christie’s contemporary evening sales, around 44 per cent of lots have been guaranteed – with Christie’s guarantees accounting for a much higher proportion, at around 61 per cent of the value of its sales, than Sotheby’s approximate 27 per cent.
Art Sales: Monet or Popeye, yours for $25m (Telegraph)