Posted By:
bruce Dorskind
Sotheby;s and Christies control well over 75% of the world's rare art market
(i.e. paintings that sell in excess of a $ 1million) They, despite past problems,
are very powerful organizations with an ultra elite and ulta wealthy customer
base.
Their primary objective is to satisfy that customer base One of the key
elements in that "satisfaction" equation is to ensure that when a wealthy
and/or loyal client chooses to sell his collection he or she can count on
the Auction House to realize a fair, (if not exceedingly fair price). In other
words...the reason Mr or Mrs Hedge Fund sells their Renoir through Sotheby's
or Christies is that (a) they have the customers, (b) they have the brand
and (c) they have the tools and resources to ensure the vast majority of the
consigned items will realize very substantial prices.
If we take away the "book bid" there will be far too many unhappy clients
and those clients are the very people who control nearly everything that
happens in finance in New York...and everything that happens in New York controls
America's finances...
It is all about money and power... and free markets. We live in an entreprenurial
country. When one sells anything of significant value one has only one objective
maximize return. The buyers are notified in the catalog and the opening of
each and every auction session. No one is putting a gun to their head.
As for Sotheby's, their track record with world class collections such as Halper
and Copeland and infamous items from player's estates has generally been
quite impressive. The book bid, along with the international (out of hobby)
client base are key reasons these collections were sold through Sotheby's.
Remember Bill Mastro, Rob Lifson, Don Flannagan and Barry Sloate all worked
closely with Sotheby's and/or Christies at major sales.
Whilst the book bids certainly make it more difficult for the collector, as Barry
Sloate correctly points out without the packaging merchandising and protection
we would not have the consignors and many great items would not get sold.
Bruce Dorskind
America's Toughest Want List