Art Market Monitor

Global Coverage ~ Unique Analysis

  • AMMpro
  • AMM Fantasy Collecting Game
  • Podcast
  • Contact Us

Auction House Guarantees Put Pressure on Dealers

November 18, 2014 by Marion Maneker

Robert Ryman, Untitled (15-20m) 15m USD.jpg
Robert Ryman, Untitled (15-20m) 15m USD

The Art Newspaper’s Charlotte Burns wrote about the profusion of guarantees during last week’s auctions. But reading between the lines of these quotes she presents, there’s an important and lingering question about auctions and guarantees. Namely, is the sales growth coming from an expanding market? Or do the auction guarantees torpedo private dealers more than any other market participants?

A guarantee gives the seller the best of both worlds. The seller can sleep at night knowing they’ve made a deal they’re content with. But if the work sells particularly well at auction, they’ll participate in the windfall. That’s risk-free selling and it leaves private dealers little room in today’s market:

“The auction houses are speculating to accumulate. They’re giving guarantees in order to be seen as the guys who can handle that kind of art,” says the London-based dealer Hugh Gibson, of Thomas Gibson Fine Art. The practice seems to be paying off, especially for Christie’s. It has been particularly aggressive over the past couple of years and the soaring success of its sales is attracting the best consignments.

“There was so much excellent and high-priced material at Christie’s that many people were wondering whether there could be that many buyers in one evening to absorb it,” says Allan Schwartzman, a partner of Art Agency Partners. […]

“The question is, where we will go from here—will the market continue to grow? People have been saying the bubble will burst for the past three or four years but it’s just got bigger and bigger,” Gibson says. “I don’t see any reason why Christie’s won’t break the billion dollar mark in May next year. There are still a lot of great works out there.”

In auctions, unlike in life, there are guarantees  (The Art Newspaper)

More from Art Market Monitor

  • Late Hit on Record Chinese VaseLate Hit on Record Chinese Vase
  • Ullens Makes Additional $22m from Sales for MuseumUllens Makes Additional $22m from Sales for Museum
  • The Fair TruthThe Fair Truth
  • Eric Shiner Joins Sotheby’s From Warhol MuseumEric Shiner Joins Sotheby’s From Warhol Museum
  • The Broiling of Dallas’s Museum DistrictThe Broiling of Dallas’s Museum District
  • Here Comes the Saint Laurent SaleHere Comes the Saint Laurent Sale

Filed Under: General

About Marion Maneker

LiveArt

Want to get Art Market Monitor‘s posts sent to you in our email? Sign up below by clicking on the Subscribe button.

  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
California Privacy Rights
Do Not Sell My Personal Information
Advertise on Art Market Monitor
 

Loading Comments...