Late last week, the Financial Times informed us that “guarantees […] are not particularly liked by the market.” The statement was backed with no evidence. This week, Colin Gleadell demolishes the idea with a few figures from London’s upcoming sales cycle where Sotheby’s continues to build market share through the mechanism of guarantees.
As with the Impressionist sales, Sotheby’s has pulled out the stops with guarantees – some 43.5 per cent of the estimated value of its main sale, compared to Christie’s 19.2 per cent of its comparable sale – which should ensure Sotheby’s the market leadership it desires for the series.
If the market, whatever that collective noun is meant to represent, did not like guarantees. They would cease to be effective and fall out of use. So far, that does not seem to be the case.