Analysis of auction houses - with greetings from the French Senate Forum

[LCR]

The material I found on the official website of the French Senate. It is - part of the study, carried out by a special Senate committee to improve legislation in the art market. Before giving advice (which I have not translated), the commission brings a short analysis of the global art market in 1999, and it was very interesting to read, despite the fact that some details are outdated. In particular, details the organization and operation of auction houses.
In short, I thought that this text may be interested in some of you, and translated it. Keep in mind, it is fairly long.
I reread it I do not really want - after all it is not Pushkin - so please do not pay attention to typographical and other errors.

ART MARKET ON THE WAY TO GLOBALIZATION

Art Market in the modern sense of the word appeared in the XVIII century. For its development it was necessary that appeared independent of supply and demand, that the relationship between the customer and the artist were not so close, so that artists began to work for the market as buyers - get to work with the items that they did not order, that the economic revolution has led to the fragmentation of large collections, so there was a need for specialized intermediaries, to the offices curious, who dominated in the XVII century, art has been given more space. A brief historical overview shows that the art market was international right from its inception.

1. The international nature of the art market since its inception

Whatever form the market took an art - whether traditional trade, public sale or promotion of a new aesthetics, the art market has developed without taking into account the state borders.

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a) triangle Paris - London - Amsterdam

Trading art emerged with trafficking in relics, and, somewhat later, antiquities, in the XVI century is beginning to follow the movement of works of art, because prior to this period are not moving product, and the artists themselves: well-known painters are usually in the service of princes, and their works created by the order and were an integral part of the decoration of palaces and churches, for which they were created.

Its products are market art found primarily in Italy - because that is where excavations where to find the works of ancient art, there was the highest concentration of artists come there from all over the world. In Italy, were drawn up the first major meeting. Accordingly, German and French, a little later - English aristocrats sent their emissaries go for purchasing works of art.

But the Italian market was similar to the political structure of Italy, that is fragmented and did not have the readability of this single market. Despite the fact that the first sporadic public sales have been made at the beginning of XVI century in Venice, the systematic organization of them occurred in the XVII century in Holland and then in London.

Even if historically the Art Market was born somewhere between Holland, England and France, with the end of XVIII century Paris took the lead. It was in France with large vendors of art, which brought the market of art from its prehistory, and thus contributed to the development of art history-Zhersen, Remy, Zhulenev du Payet, and especially Le Bren. They can and should call the experts. This is how the situation Krzysztof Pomian:

«In the sixties the XVIII century, thanks to the names of collectors, whose collection was sold at this time, thanks to their extremely high social rank, and often their incredible wealth and legend surrounding them with living works of art they collected, some sale has become a phenomenon of secular life, which have long been discussed in correspondence and in the newspapers. Rumors of these sales immediately went outside of Paris and became the property of the whole of Europe, as in the second half of XVIII century, Paris was at the center of European art market. In Paris, sold items, bought in Italy, Belgium, the Netherlands; buyers from across Europe gathered there in search of works of art for your collection ... This lasted until the revolution put an end to the domination of the French art market ».

To summarize: the market has been an international art. The painting, bought in Amsterdam, could be a few months later offered for sale in Paris, often with an indication of origin. At this time, set all the characteristics of this market, its complex rules, and organized an international network of dealers.

At this time, the merchant, auctioneer not only acted as a fiduciary of the seller's product or its acquirer, often he purchased items for their auctions and for myself that did not stop these traffickers, and to enter into private transactions as sales and procurement. Even the most active traders, auctioneers arranged no more than 5 or 7 trades per year, each of which lasted several days.

In the second half of XVIII century, began to appear detailed catalogs, which in addition to lavish epithets, characteristic of the era, began to give specific information about objects, their size, condition and origin.

Thus, at the end of the century there were professionals of the art market that do not have arts education (as in the previous century, almost all the art dealers were artists, and vice versa) and that used in his work a commercial talent and his knowledge of art. This trend towards professionalisation was accompanied by an increasingly close contacts between traders and historians of art, between the market and museums.

b) The dominating position of London in the XIX century: a political choice, the importance of the economy

Since the beginning of the French Revolution, the center of European art market was London. It was sold in London meeting immigrants - primarily, a collection of the Prince of Orleans. This sale, along with the sale of collection of Charles I, held a half centuries earlier, is an important milestone in the development of British tastes.

But the consequences of the French Revolution are not limited to the fact that the center of the art market has shifted from Paris to London, she also stepped up the mixing and interpenetration of styles of art: works that were stored for centuries in their cases and covers, loaded into carts or in the holds of ships - they were objects svozimye for the Central Museum of Napoleon, the things stolen by soldiers, and works that have been forced to sell their owners, devastated by Napoleon's crippling taxes.

«The fact that the French aristocracy - writes the historian Francis Heskell - can decorate their homes in the same style as the Roman, Venetian or genuetsskie patrician palaces where they were able to visit during military operations still some ten years ago would have seemed incredible. Now it has become possible and quite easy - just to have enough money. And as we know, appetite comes with eating, so the crowd of emissaries, agents, torgotvtsev, unsuccessful artists and adventurers of all persuasions attacked in Italy, like vultures to take advantage of the situation of the Italian aristocracy, forced to pay fines monstrous army of the victorious enemy. For over ten years you would have thought that the whole of Europe, beginning with the princes, dukes and generals, and ending with the monks and simply vulgar thieves, took part in a unified and comprehensive campaign to speculation of art. King George III remarked ironically that all the nobles took to trade pictures.

In London brought a masterpiece of a masterpiece, and they seemed inexhaustible flow, and people are accustomed to this new situation. In the midst of the blockade traders, including the French, came to England with his run-off, and sell them back to the continent that they update ».

Thus, during the Napoleonic wars in France have developed into large collections: collections of Napoleon's uncle, Cardinal Fesha, Napoleon's brother Lucien, Marshal Su in Spain were the most famous. In Nantes and Lille were skompanovany more modest collection - Kako, Vicario. In general, can be argued that the French Revolution has enriched British art dealers and collectors. While the French were selected (and after Waterloo, they had nearly all returned) and robbed, almost always without any selection, the British bought what was then the wealth of English castles, and even later - the pride of American museums.

But even if England are always going to benefit during periods of instability of French politics, the fundamental reason for the development of the art market in Britain was its ekonomicheskits growth, which contributed to intense domestic demand for art.

) the emergence of merchant-opener

A prototype of an art dealer - a visionary and first appeared in France, it was Le Bren, the husband of artist Vigee, who discovered, among other Vermeer. Several decades later, his initiatives will be pursued by other brilliant figures - Durand-Ruelle, Vollarom and Kanvaylerom, which can serve as an example Marchand, founding its activities on promoting the new aesthetics.

(1) innovative entrepreneurs

As noted by Ms. Remond Moulin, now an art dealer behaves as an entrepreneur in the sense in which uses the term economist Joseph Schumpeter.

In his analysis of the political economy goal is not only to produce at the lowest cost, depending on the technological development at any given time, or as good as possible to meet the demands of consumers according to their tastes. This is the introduction of new technologies, accusatory products of tomorrow, and consequently, that the employer must enter into a relationship of radical competition, which restruktriruet the whole apparatus of production. This process of creative destruction that characterizes capitalism, according to Joseph Schumpeter, who is present on the art market. The role of art dealer to a greater extent is the formation of tastes of customers and implanting the new dominant aesthetics, rather than in the prime broker.

Such a change in the functioning of the art market was preceded by the beginning of XIX century "silent revolution": freed from the tutelage of Academy, timeless craft foremen colleges, the artist got the freedom to respond to market demands.

At the beginning of this market to function within the aesthetic standards set by either public agencies or the Academy. State arrogated to itself the function of the development of aesthetic standards, which have the force of law. But, just as in the ultra world currency's value is not determined by the official exchange rate, and the agreement between the parties to the exchange privilege of the State to determine the aesthetic value was abolished by a group of artists who, through the art market and traders carried this aesthetic revolution.


This change in the art market and, moreover, the foundation of aesthetic values, almost everyone is obliged to Paul Durand-Ruel. He supported the Impressionists in spite of widespread hostility, he bought an enormous amount of work they promoted artists. Playing at the same time the role of banker and an advertising agent, he was ruined and he died almost in poverty, but in its vaults was about 800 Renoir and Degas 600.

His bold policy led him to use all RESOURCES advertising and to cooperate actively with the critics. Since 1883, he organized a series of solo exhibitions in many European capitals, and then in 1988 opened a gallery at the 5 th Avenue in New York - The importance of this event can not be overemphasized, since it appeared in America the first major art collectors, in particular, Mrs. Potter-Palmer and Mr. and Mrs. HO Hevmeyer.

(2) A continuous process of creating a new aesthetic values

This strategy, which consists in the perpetuation of a new aesthetic, was accepted and gave birth to a process of continuous renewal of artistic movements, «continuous coup" in the field of contemporary art, and in parallel - a process of opening unknown old masters.


In this market, which Ms. Moulin calls the "art museum", the offer is limited, moreover, it is reduced by the museum's purchases, so traders have to look past masters, the legacy of which remains unknown or has been underestimated: it is possible to compile a long list of such " discoveries "- from" small masters "to the official artists 2 nd half of XIX century, but were open and very major artists such as Georges de La Tour, or, later, the artists of Mannerism.

(3) Market and museums: the relationship of mutual dependence

Art dealers got their recognition gosudarstvvennymi structures as the discoverers of aesthetic values and used this recognition to affirm the infallibility of their choice of trends and artists. This led to a complex relationship between the market and museums, especially in the field of contemporary art.

In his book on the art trade Krzysztof Pomian wrote: «Art Market depends on the museum, as it depends on the Mint, which strikes a coin, serve it for transactions, and then adds:" The National Gallery, London owes its existence to the decree of Parliament, which decided to buy the collection for the nation Julius Angershtayna, which is renowned for having contained a masterpiece ... However, symptomatic that the majority of people promoting this idea, were the actors of the art market. In this sense, it can be argued that the National Gallery - creation of the market. Fifty years later the story repeated itself when creating the Metropolitan Museum in New York ».

In the field of contemporary art functional communication market with museums is even more evident, since by definition, Ms. Moulin "we are in the artistic sector, devoid of normative aesthetics. The following analysis podcherpnut us from her book.

American art dealer Castelli was a typical representative of the entrepreneur and innovator in the postwar period. Not being the first trader who worked with Robert Rauschenberg, Jasper Johns, Frank Stella, and so on, he praised these artists in the artistic currents of pop art, minimalism and conceptual art. «His love for the constant renewal in harmony with the aesthetics of continuous change inherent in these trends. To promote their artists, he used the arguments from the history of arts, operating with names such as Cezanne, Matisse, Picasso, his trading strategy was based on that ».

In a sense, modern galleries are inspired strategy of Leo Castelli. «To create a demand for any new movement, uses a mixture of techniques of commercial marketing and advertising techniques to spread cultural products. The probability of success of a trader in his organization punctual operation to promote the artist depends on financial support available to it, and from its reputation in terms of culture, that is, from its proven ability to achieve in the past, the recognition of new products of the modernist faction of the artistic establishment ".

The success of the strategy to promote the artist or art movement involves "international readability", which is required for official recognition and praise.

Thus, the logic of the art market, regardless of recent trends related to the development of public sales, has not lost its international optics.

2. The new situation in the world

At present, speaking about the art market, notably mention public auction, and it accurately reflects the change the balance of power between dealers and auctioneers, which occurred in the context of mondializatsii and globalization of the art market.

a) The irresistible ascent of the Anglo-Saxon auction houses

The main reason for the conquest of the market's two largest British auction houses were fundamental changes in the organization of public tenders. Underlying these changes was the same man named Peter Cecil Wilson, a story which deserves to tell it here, because even if it refers only to the house Sotheby's, it shows a very good reason for the domination anglisaksonskih auction houses in the global art market.

Peter Cecil Wilson, the son of impoverished English aristocrat, born in 1913, he first realized that to compete with large ones can be art, organizing poublichnye bidding.

In 1956, on the occasion of the sale of Poussin's painting "The Adoration of the Shepherds", he had the idea to bring sellers favorable terms: a guarantee price, reasonable fees paid by the seller. Despite the failure of the first operation - trades have not risen to guarantee the price, and Sotheby's had to pay the difference - an advertising objective was reached: auction house, testified that he has to offer and provide individuals a price exceeding supply dealers.

He also promoted the development of contacts with the auction house, art historians, who were invited as experts: post-war German immigrant Hans Gronau has proven competence and due care professionals whose work was based on documentary research Tancred Boreniusa. This aspect of the British auction houses have long provided them a decisive advantage over the French commissioners, assessors, who only recently begun to cooperate with experts of equal quality.

Another radical change in commercial practices, Sotheby's, apparently, owes its existence to the occasion: the executor of an American collector of Impressionist paintings brought in contract with Sotheby's obyaschatelnoe condition that the auction go back to using specialized agency for PR and advertising. Trades were a great success, and the audience was so much that he first had to install closed circuit television for people who are not able to enter the auction hall.

At the next major auction of paintings by Impressionists, in 1958, this system has been improved: it was agreed that the commission, the minimum to reach the reserve price will increase after reaching a certain threshold. And at these auctions the seller insisted on the allocation of a substantial budget for marketing. Bidding took place in the evening, that too was a novelty for London, where the audience was supposed to come in evening gowns. Bidding became a secular event, where it was important to see others and be taken away.

Another brilliant move by Peter Wilson was the opening of the auction house Sotheby's in the United States. The history of this discovery is very interesting:

In New York, the company was Park-Bernet, which failed to take advantage of the presence in a significant number of collectors for its development. In addition to the flawed examination and an inability to develop a PR, this company had two other drawbacks: she took the high commissions - up to 25%- and is not practiced by the reserve price, because in the eyes of the American concept of the secret minimum price bordered on fraud. The consequence of this policy was that «thanks to the policy reserve prices, Sotheby's vAnglii used in the late 50-ies and for the auction house, and to a lesser extent, for Christie's has become profitable to send pictures of the American proishozhzhdeniya to England to sell their where American customers specifically required to come to London » - the situation in the highest degree absurd!

But despite the suicide of the president of the American auction firms and large financial difficulties, its shareholders were determined to preserve its independence, as Robert Lacey describes in his book on the history of Sotheby's: «Park-Bernet not want to be swallowed up by the British, the bandit behavior which in the U.S. market has caused so much evil ». However, in 1964, these shareholders had to give: «the entire U.S. press has put on the front page article about the invasion of the British, with their considerable financial resources, and hope the company Park-Bernet to find a friendly investor did not materialize ... owners of 78%of shares sold to Sotheby's for a total of 1.525 mg U.S. ».

The price was not particularly high. I wonder, did the French commissioners, appraisers, Interested parties had surgery and tried to buy the company Park-Bernet mediated banker Andre Meyer, sufficient funds to implement this deal? Some believe that they missed an opportunity to adapt to a new form of art market, other, more skeptical, notice that for the success of this operation was not enough to have the means, we had yet to have a local network, as well as staff, speaking in English .. .

In the early 70's. came another innovation, responsible for customer inquiries: published in catalogs preliminary estimates. Internships were organized to allow both to shape future customers, and facilitate the search for qualified and possess the desired social contacts of staff.

His decision to apply the policy of the absolute confidentiality of information Sotheby's is also required to Peter Wilson: «According to Wilson, this auction house was finktsionirovat as the Swiss bank, that is to find a solution to all problems of their clients. The interests of the client were to him the most, and if the client had to help get around some laws do not suit him or help him evade taxes, this assistance was the responsibility of Sotheby's ... London predstvalyal a center bleaching money. The ancient and venerable firm Sotheby's prdstavlyala an ideal cover for the buyers. Without a doubt, the willingness of Peter Wilson's help in eksportatsii works of art was one of the important reasons for the staggering success of Sotheby's in the 60-ies ».

However, we must point out that the above practice was not the rule and the exception, after the Sotheby's caught in an illegal export from Italy of the Venetian school of the XVIII century, the British auction houses have redoubled their precautions. At the same time, this practice is a good example of British pragmatism.


As a conclusion it should be noted that although all our arguments about the reasons for the success of the British auction houses relate primarily to Sotheby's, the other auction houses in the speed picked up carried out by Wilson commercial innovations.

We emphasize now the structural superiority of the English-speaking operators of the art market - the existence of duopoly (Sotheby's /Christie's) at the usual time created a climate of increased competition, but in moments of crisis, these two houses were combined promotional efforts to find common solutions.

Between 1933 and 1938 on several occasions discussed the draft merger of Sotheby's and Christie's, but without success. They remained independent, and this fierce competition undoubtedly contributed to their dominance in the world of art.

b) End of an era of major art dealers and the beginning of the board of shareholders »

In principle, public auctions are just one part of the art market, along with traditional trade, which in turn consists of many agents - from consultants to traders working in the gallery or without it. But this segment of the market has taken a leading position as compared to the situation before the Second World War, the influence of traditional traders decreased.

Its leading position auction houses have taken over the past fifty years.

(1) Reduction of the field of traditional traders

Before World War II sell the most significant works of art in the name of art dealers.

The world is ruled by art dealers - Dyuvin, Knedler, Vildenshtayn, recourse to which was indispensable for compiling a collection worthy of the name. Thus, in 1929 Dyuvin paid for the collection of masterpieces of the Renaissance Robert Benson 620000 pounds, or roughly the annual turnover of the firm Sotheby's for the same year.

For a long time merchants were the kings of the market. Their artistic flair, and their commercial talent, the ability to engage the best art historians - in particular, one of the most famous, Bernard Berenson (1865-1959) - Finally, the privacy they afford all this made them binding on the suppliers of major collectors. In his history of Sotheby's Robert Lacey describes the situation thus: «confidentiality was an important aspect of the merchant. Rich people posleschali its reservists to see the real treasures, and one could not imagine that they are sold, the owners of these treasures were reluctant to become aware of the fact that they are forced to sell them. The dealer knew where to find a quite definite masterpiece, he knew and whom to offer it. To services of auction houses, he resorted mainly to get rid of their "mistakes» .

From this point of view, the sentence of John Welch, director of the Getty Museum, made in 1989, shortly before the collapse of the market, at the colloquium, the museum staff, identifies changes in the situation: «The balance of forces has changed: now auction houses dominate, whereas 20 years ago, most of the most significant works of art owned by art dealers or have in their possession ». He further pointed out that currently are set for auction is a work of the highest quality, which means that traders need to have greater financial means: «the increasingly high cost of acquiring them requires traders increasingly large investments, which means that they need to grow big and to join associations, which would allow them to reduce risks, and that the role of financiers have a growing ».

But the main paradox underlined by John Welch - is that «often at auctions art dealers in the auction are traded against their potential customers» . The example the director of the Getty Museum, shows the new relations arising from the conduct of the collectors in turn altered by the strategies of major Anglo-Saxon auction houses: «Take a collector, let's call it" Mrs. "Hevemane» (Haveamanet - y I have a Manet) - is the name resembles the name of a married couple Hevmeyer, which are among the largest donators Metropolitan Museum in New York) , which has a picture of Manet, in 1955, she bought it from a dealer Sam Pfeffer over 200000 dollars. Since then, a lady aged. Her Manet need of restoration, in addition, she wants to leave their children some money, in general, for all these reasons, she again went into the house Pfeffer. Our merchant, thinking that this was restored by Manet and placing it in a new frame, he will be able to resell it for $ 4 million, said to her that she could buy Manet for 3.3 million dollars. But Christie's announced to her that her Manet could reach at auction from 3.5 to 4 million, maybe more, and it offers a guaranteed price of 3 million, of course, Ms. Hevemane would prefer to do without the publicity, privacy sell his painting to a trader in private, but the offer is tempting! As a result, Manet goes for 3.8 million One of the customers who traded for a picture, a house Pfeffer, to desist from further bidding when the picture reached the price that would not allow him to expect to resell it. Vyiglar trading client, whose house Pfeffer expected to sell, of thirty-"golden boy" - he has repeatedly visited the gallery Pfeffer and there has already acquired a small Renoir. Since mediators are removed from the market ».

That's the conclusion of John Welch: «auction houses could make trades in the halls of a theatrical performance, where the presence of numerous public, always ready to experience the thrill of someone else's expense. They managed to win the confidence of inexperienced collectors, who fear that the traders cheated them, and who think that the public auction reflects a fair price for a work of art. The result of this - we have a whole crowd kollektsionkrov, bankers and lawyers who did not hurt versed in the art, but read all the newspapers ».

This excellent example of several cartoon shows two phenomena that explain the rise of auction houses at the expense of art dealers:

• distribution among the elite of the business world the idea that prices at public auctions are the real market prices;
  
• development of on the advice when buying works of art for the above customer, which allows it to do without the help of traffickers, the U.S. museum staff also provides free advice to this customer base in the hope of getting a gift for his museum.

The big auction houses have managed to convince all of its objectivity and professionalism, qualities that are very sensitive to the new breed of collectors from the business world, which is driven by a sense of less philanthropic than their predecessors, the great collectors of the past, and thus more interested in liquidity considerations and profitability, at least in the medium-optics.

In the struggle between auction houses and dealers forces were too heavy, so that traders could remain independent. They have practically no longer any structural advantage: they are inferior to the competence of the expert members of auction houses, on their offer to pay immediately after the deal auction houses meet the proposal to pay in advance and a guaranteed price ... It remains only to privacy - which would have made no effort auction houses, art dealers here are stronger.

  (2) A few advantages of art dealers

However, the art dealers still are important uyachastnikami art market, and the fact there are several reasons.

First, in many sectors of the market, where prices are not particularly high, traders udvetsya maintain and own suppliers, and customers are aware that selling prices in the galleries are not necessarily higher than at public auction.

Secondly, because in times of crisis like the one that erupted in the early 90's., Collectors especially appreciate the confidentiality of private transactions - in fact exhibit work at the public auction, it means to take the risk that it will not sell, and all know about it. Then I'll have to wait at least several months and then again to put it in another place, but even this does not guarantee success, as well as information circulates quickly, collectors are looking auction catalogs, and if you try again to sell her work can be really slow in the evaluation.

Finally, it should be noted that traders are modernizing their strategy, and not just because of the crisis, but also for reasons of a structural nature: more and more traders in London, and Paris reduced their exhibition space and concentrate on his private clientele, working at home.

The only viable competitor auction houses are fair and salons because their conduct is widely advertised and that they present the choice of the concentrated products.

Lately, the market there are new traders, often in the past employees of large Anglo-Saxon auction houses that use the customer list, compiled on the former service, and can thus increase the reward for his talent. Some buy and sell art, etc., without neobhodimyzh capital for investment, providing only brokerage services.
 
(3) The role of merchants in the regulation of public auctions

Even if traders continue to play an important role, one that no doubt is determined depending on the strategy of major auction houses.

The development of the art market rests on the relationship between dealers and auction houses. These relations are not new - merchants have always bought and sold at auction - but lately they have radically changed, becoming entirely unequal.

The world market for art is a kind of ecosystem in the center of which are Sotheby's and Christie's, while all around them - the set of traders whose function is to provide the necessary regulatory systems within the strategies developed by the auction houses.

Illustrative example: the prospect of placing one of these two Anglo-Saxon auction houses, in a particular quartile of Paris led to a change in the geography of trade art and antiquities of the city.

Although for obvious reasons of confidentiality, the figures are not disclosed nor Anglo-Saxon auction houses, no Parisian commissioner appraisers, it is assumed that traditional trade sobitaet much of the clientele - between 30%and 50%of the total volume of transactions at public auction.

Regardless of the abnormal functioning of the relationship between traditional auction houses and dealers during the "mad take-off the second half of the 80's. The twentieth century, it should be noted that in recent years the dynamism of public bidding, in particular, in Paris, contrasted with the reluctance of potential buyers to visit the gallery. Thus, public auctions allow dealers to sell the contents of their store rooms, and items for auction, often sold there are much more expensive than they had unsuccessfully offered in any gallery.


For this reason, many traders hardly conclude transactions in their stores (when they have one), who perform exclusively as showcases. They exhibit their products at public auction, or to take advantage of the passion of visitors to the auction game - to participate in the auction more fun than a bargain in the gallery - or when the subject is exposed to foreign bidding to try to earn on the difference in price between the two countries.

Regardless of the above-described phenomenon of arbitration, which sometimes gives traders the opportunity to significantly increase revenue from the sale, trade traditsionnyya is in position depending on the auction houses, preserve their way of impartial arbiter, although in reality they are more and more are an interested party.

We have already seen that the auction houses managed to instill in the minds of the idea that prices at public auctions are fair prices, reflecting the true confrontation between supply and demand for clean and transparent market. It must be added the belief of some art lovers, not meaningless, but not totally conclusive that the market for public procurement is like a wholesale market for traditional traders, and individuals - provided that they are well consulted - they may purchase items at wholesale prices.

However, even if the public auction actually led to the unification of the art market and a more objective prices, you should not think that all practiced at the auction prices reflect long-term reality.

[artcol]

Liana, you are familiar with the book Medvedev "The Rape of Europa" and if "yes", your attitude to the version contained in it?

[LCR]

Сообщение от artcol

Liana, you are familiar with the book Medvedev "Kidnapping of Europe" and if "yes", your attitude to the version contained in it?

No, do not read or heard. And what is it?

[artcol]

Сообщение от LCR

No, do not read or heard. And what?

The author - a circle of Timur Novikov. Does the book analyzes the trends of development sovr.iskusstva.
http://www.guelman.ru/slava/nrk/nrk9/r23.html
You can download and text - to get acquainted.

[LCR]

I can not find where to download

[Кирилл Сызранский]

That's the conclusion of John Welch: "Auction houses have facilities to make trades in a theatrical performance, where the presence of numerous public, always ready to experience the thrill of someone else's expense. They managed to win the confidence of inexperienced collectors, who fear that the traders cheated them, and who think that the public auction reflects a fair price for a work of art. The result of this - we have a whole crowd kollektsionkrov, bankers and lawyers who did not hurt versed in the art, but read all the newspapers. "
Ridiculous ...

[color="# 666686"]Added in 23 minutes[/color]
"The major auction houses have managed to convince all of its objectivity and professionalism, qualities that are very sensitive to the new breed of collectors from the business world, which is driven by a sense of less philanthropic than their predecessors, the great collectors of the past, and thus more interested in the concerns of liquidity and profitability , at least in the medium-optics. "
And this is a seriously ...

[LCR]

Continuation and end:

3. The speculative bubble of the 80's. Twentieth century

One reason for price hikes in the 80's. was the idea that art - a commodity like any other, and the Art Market - a sort of exchange where you can speculate without risk or with very little risk, given the fundamental factors that rely on increasingly rare works of art exhibited at the Sale.

Never mind that this analysis is wrong or at least, must be nuanced, as we shall show later, it is important that he drew on the market of new buyers and has caused significant changes in the behavior of a large number of collectors, so as a result of a significant rise price of art - the classical model predictions that come true because of the effect it has had.

The success of this scheme was required continuous ads in all media of record prices achieved at auction, and the journalists have written that these prices are true reflection of supply and demand, that they were completely objective, etc.

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But when in 1990 the speculative bubble burst, the major auction houses to not only withstand, but also had the opportunity to restrukturatsiyu its de \ CONTRACT PERIOD.

a) high level and a continuous rise in prices: Myth or Reality?

In the 80-ies. inevitable rise in prices for works of art seem obvious, in which it was impossible to doubt.

The subject of art represented a distillation of the rarity, the price of it had to be high, and in the future it could only increase. With respect to the old art of this truth seemed even more indispensable, as some of the old masterpieces of art were lost, others destroyed by time, others permanently acquired by museums: the market of the old art supply reduction was considered insurmountable, as the number of existing works can not grow.

People do not want to understand that once this boom was beginning, he was supposed to be the end.

But, first, a limited supply of items is relatively old art: the whole history of art from the XIX century is characterized, as we have seen, considering the role of traders, a continuous process of opening new names, from primitives to academic painters of the XIX century. Note in this connection that the market is even more active in such discoveries than museums, and accordingly, the market is involved in the progress of art history.

Secondly, record prices achieved at auction and are widely advertised auction houses have been if no exceptions, then at least special cases that can not be considered a reflection of trends of the art market. By the way, it would be interesting to see whether this made no secret of growth, about which so loudly at every corner, lower prices in constant currency - it was a drop, of course, less interesting story to talk about, but nonetheless, it was really .

Thirdly, you can still be assumed that in the short-and medium-optics, the trend could change lead to market correction.

Studies of some economists also would have to give market participants the art of food for thought.

(1) The theory of William Bomola

William J. Bomoll, a professor at Princeton University and New York, studied the prices on the art market in the period from 1652 to 1961. for example, 641 transactions, allowing to compare prices for the same product. He concluded that the results of statistical studies confirm the hypothesis that the long-optics «return to work of art is in close correlation with the income from financial investments, the first systematically lower than the second, thereby restoring justice, since the sum psychological and the purely financial benefits of both types of investments offset by ».

In other words, Bomol test the hypothesis, for which the market agents agree to receive a lower income from the works of art, as well as possession gives them psychological satisfaction. Hence, we can say that greater cost-effectiveness of works of art in comparison with the financial investment is abnormal.

WJ. Bomol also stresses are highly volatile yield works of art, noting that it is the greater, the shorter the shelf life of products.

This approach presents the danger of re-evaluation of investment returns in works of art:

• it is based on selection "the most famous in the world" artists in (which made Gerald Reitlinger), and it's like to count the yield rates on horse races, using only the results of the three horses who came to the finish line first;
  
• he does not take into calculation of the price of the transaction and forgets that a large portion of buyers consists of professional traders;

It is interesting to see an analysis of Philip Simon, been noted in which the lack of research carried out on the basis of the compilation Reitlinger: «As aleatuarnogo the formation of art quotations, it absolutely does not take it into account. But to tell a wonderful story about a financial profit from the pattern Wa Gogh or Picasso, it's like to count the probability of winning in toleree, based only on the winners of tickets ... The collector, who bought the painting by this artist, when his quote was low, I bought a lot of paintings by other artists, it is forgotten now, respectively, to calculate their return on investment, you need to know the financial fate of his entire collection ».

Continuing the comparison with the lottery, we can conclude that gain of one player on the definition of offset other losses, unless it is considered that the bulk of tickets quite regularly increasing and /or supplies of works of art all the time is reduced.

As for the theory of supply reduction works of art due to their destruction and the museum shop, you should not forget that the market continuously receives new works.

Another disadvantage of compiling Reitlinger lies in the fact that almost 60%recorded their customers are dealers, which means that the sale price of paintings known to collectors, but no purchase price, that is, comparing the care wholesale and retail prices, a researcher confuses profitability with variations prices.

(2) Other econometric studies

Two economists, Messrs Frey and Pommer, used the same methodology and traced the 1200 transactions of the resale of the same subject between 1961 and 1987. They assessed the profitability of this investment in 1,5%, that is half less than 3%, which can be obtained by investing in risk-free financial products. This study avoided some of the shortcomings of Bomola, but it also ignores the cost of transactions and, accordingly, the rise in prices equal to profitability.

Now we mention an interesting study, which allows you to put the methodological issues that help better understand the mechanisms of the art market.

Three economists, Messrs O. Chanel, LA Gerard-Wara and V. Ginzburg published in the journal "Risk" article in which they defended very different results, the calculation of profitability iskussva works - 10,7%per annum between 1957 and 1988.

The reasons for this difference lies in the methodology used by the authors of the article. They chose 32 artists, and then took it into account not only the transaction, representing the resale of the same work, and all transactions on the works of each of these artists. They gathered all the characteristics of products sold (size, creation date, the auction house ...) to try to identify for each year the cost of "average" product, deduced from data on actual sold works.

How do we explain this difference between 10,7%and 1,5%in the same period? In 1991, when this study was published, intuitively, it seemed to many more faithfully reflects the reality of the market in the midst of a speculative bubble than the cautious analysis Bomola and Frey with Pommerenom. It came at the perfect time to "research" to confirm that the macroscopic growth of prices for art works only slightly higher than "normal" trend, and that everyone more or less well-informed investor can hope to achieve a degree of profitability.

In fact, a global econometric approach suffers from the same shortcomings as the above-mentioned studies - ignorance of transaction costs and storage, the selection of artists "retroactive" - as well as the fact that each artist is not considered the variation in prices of real work, and the average price products sold at public auction.

In other words, the researchers decided that they can measure the averaged quote the artist, whereas in reality they measure only only the averaged price of his works sold at public auction. However, cause fluctuations of the average price other than in the case of quotes of the artist, in particular due to sharing the art market at public auction and the traditional trade. If, as we pointed out above, an increasing number of high-quality products, previously sold only art dealers, falls on the public auction, average selling price in the auction modzhet increase, but this does not necessarily mean that the resale of the same product will increase its profitability in the same extent.

Another reason for the increase in average prices, even taking into account individual variations (but this correction is necessarily based on very poor data) can significantly exceed the return on real products, due to the phenomenon of the circulation of works and the more work, especially if it is quality, passes from hand to hand, the higher the average price of works sold at public auction.

(3) Can art be a good investment?

Of course, further studies are necessary, particularly in the evolution of prices for works of art. However, we can note the following:

Of course, further studies are necessary, particularly in the evolution of prices for works of art. However, we can note the following:

• must be treated with extreme caution as to the success of which so triumphantly proclaim auction houses, as well as to indicators developed by independent research organizations. Even without mentioning the causes great doubts experiment with the indicator «Times Sotheby's index», there is every reason to believe that published in the specialized press indicators were the same drawbacks as described above, econometric studies, in particular, that they give the average prices, but not the real profitability of ...

Magazine «Journal des Arts» proclaimed in his room for 16-29 April 1999: «I have Exchange Dow Jones, the Art Market is now enriched« JDA art 100 "... ongoing conversations about the crisis made one think that depression 1990-1995. Art Market chased far back. But «JDA art 100", calculated based on the data for the last twenty years - from 1975 to 1998. - Shows that in the midst of the crisis, in 1995, the level of prices at public auction (an indicator of the indicator 1651) was almost equal to the figure for 1990 (1690) ».


It is difficult to assess such an indicator, since information on its composition (whether it included graphic and decorative art?) And method of calculations is quite insufficient. You can only see the contrast between the annual and monthly schedule (the very idea of the monthly schedule is rather pretentious). It seems that the general comment is based as much on evidence of market participants, as on the observations of graphs: «study of the indicator, calculated at the beginning of April, shows that against the background of a general market recovery that began two years ago, short-term trend nevyyavlena and that, depending on the specific sectors of the situation is very different ...».

It is possible that works of art are not a good investment in the short, but in the long optics. Of course, some investors receive income, sometimes significantly, if they are lucky or they had good advisers. But others, certainly more numerous, are losing money if you take into account the depreciation of money, transaction costs and storage: we all have a tendency to loudly proclaim our profits, but discreetly silent about the losses, the more that has lost investor may be accused of lacking taste ...

There is no consensus on the strategy of successful investments in art: some say that the only rule - buy high-quality work and do not touch the mediocre products, as well as collectors will always fight for the masterpiece, while others, like the well-known auctioneer Maurice Rheims, and think that "everyday items of good quality over the past sixty years, all the time, much more expensive, while the masterpieces in the best case did not drop in price ...».

In conclusion, it should be emphasized, that it is primarily the work of art need to wait for the aesthetic satisfaction. Hope that it will be a source of profit, not very realistic, the more that individuals have to accept significant costs on the sale of works, and when they sell them through dealers, and when they expose them to public auction with the risk that the work will not be sold or that it will sell much cheaper than intended.

In short, there is every reason to believe that art - not such a good investment, as it take to count:

• of high quality will always be needed, but there is a real risk of loss due to inflation: for example, antique furniture, a necessary ornament burzhauznoy flat to the 1950's., now out of fashion, and its prices have fallen heavily, with the exception truly exceptional items;
  
• with respect to everything else, it's an investment totally unpredictable, which can be compared with the risky investment, they are designed for players who enjoy participating in gambling, which became the Art Market.

The theory of the continuous increase in the prices of ancient art - is part of our mythology.

b) Exchange the logic of the market. Appearance collectors speculators

In the postwar period the behavior of collectors has changed substantially.

There is a new generation of collectors, particularly in the U.S.: to replace the older generation of collectors, fairly educated and possessed of unlimited funds - such as the J. Paul Getty - came gatherers less wealthy, less attentive to the works, more prone to financial arbitrations.

In the late 70's. behavior of American collectors began to change. John Welch says «the end of the era philanthropists ... New collectors are looking at art as to any product that may be the subject of speculation. According to his understanding of the works, the satisfaction that they have on their intuition or possession, they can not compare with the past kollektstsionerami ».

Together with the profile of the collector and changed attitudes to the collection - The present-day collectors do not mean the transfer of collection to the museum, as it did before - without Frick, Morgan, Rockefeller, Videnera, Hevmeyerov, Raytsmena, museums, the U.S. would look quite different.
They bought a little at public auction and trusted advice of their Marchand, Tak, Andrew Mellon, founder of the National Gallery in Washington for a long time to buy works of art exclusively from Knedlera in New York, and after the Second World War and in the future, Lord Dyuvina.

Prototype of a new collector - comes from a business, buying works of art rather to diversify their wealth, rather than make this collection. He trusts the expert advisers to the major auction houses, buying not in galleries and at auction. This explains the attention that the auction doam give the U.S. market.

But some collectors, especially collecting contemporary art, actively participate in the preparation of their meetings and do not hesitate to exert influence on the art market.

This observation is confirmed by analysis of the behavior of the major collectors of contemporary art R. Moulin - such as Ludwig and Saatchi - whose influence affects all sectors of the art market: «buying and selling as traders, they will organize the exhibition, as museum curators. They obagaschayut museum collections or create new museums or foundations of modern art ... Whatever the psychological link major collector of contemporary art with the art, he must win twice, and these battles are interrelated: the first is on the field of aesthetics, and the second - in the financial field ».

Current collectors are not alien to speculation. As stressed by Maurice Rheims, in his book "collectors", published in 1981, «It is a new fact is that present an art lover, brought up in the specialized press, often transformed into an amateur trader. He never for a moment forget about the hundreds of collections, compiled over the past fifty years, people in possession of quite limited means ».

As a result, we can say that the new behavior of collectors has led to the spread of arbitration, which has resulted in increasing the speed of movement of works.

Before they appeared on the market about once every 20-30 years, and now works reduced shelf life and most likely not reach even 10 years. You can be sure that during the period of frantic speculation in the late 1980's. this period was even shorter.

Another important change that has contributed to the growth of the art market and its subsequent fall, is a way to finance purchases: now the banks are willing to participate in this market, predolstavlyaya loans. In this area, two phenomena have a great influence on the art market in the second half of 1980.:

• decision to auction houses to finance their most significant sales;
  
• intervention of banks, some operators have tried to persuade the market to buy the product to immediately put it up for sale at public auction. This practice could not create a risk of chain collapse of the market in case of changing its trend.

(1) The history of "Iris" Van Gogh

History of "Iris" Van Gogh's significant in terms of horrific consequences that may result from such practices. It is used in trade, but also raises doubts about the spontaneous formation of prices at public auctions.

In November 1987 Sotheby's sold "Irises" Van Gogh in an incredible amount of 53.9 million dollars, Mr. Allan Bond, incidentally setting a new record price.
Australian tycoon Alan Bond for a few months earlier tried to buy "Sunflowers" sold at Christie's in March 1987 for 39.9 million dollars, but to no avail.
And if the tycoon is not bankrupt a few months after its purchase, then no one would ever know about that as well) Sotheby's gave him a loan of half the cost of painting under the guarantee by the "Iris" as well as other paintings owned by the Bond and b) he never paid the second half. In short, celebrating a new record, Sotheby's knew that in reality the picture is not sold, but knew about this one alone. In the end, Sotheby's sold the "Irises" Getty Museum, but the transaction price was not divulged.
Some of this history have concluded that the way was caused by price inflation, which used to sell paintings, received a guarantee.
To finish with this history, we should mention that Sotheby's responded immediately by announcing that he would not take more than a guarantee of the items purchased, and will not grant him a loan for 12 months after the transaction.

History of "Iris" Van Gogh's significant in terms of horrific consequences that may result from such practices. It is used in trade, but also raises doubts about the spontaneous formation of prices at public auctions.

(2) Speculation in France, evolved as a result of obtaining bank loans

Specific to Frantsmm behavior of market participants consisted of art in the purchase of art dealers in the money obtained on credit from the bank, and the immediate placement of these items at public auction.

The system has become even more unstable, that in order to pay for items purchased at auction, it was necessary to sell other items. As soon as the market trend has changed, the whole mechanics ceased to function, and dealers were left with sewage unsold items to pay that they had no money.

Of course, during the rampant speculative bubble dealers willing put their items up for auction, with joy seeing the items for sale which they have gone for months, sold the same day, and much more. Naturally, appeared tempted to buy as much as possible and put these items up for auction - and the temptation was supported by commissioners, appraisers, profiting from the trading volume, and banks reluctant to grant loans.

Banks recklessly issued loans to people who speculate without any of it. Once the crisis hit and banks, and the traffickers themselves found themselves in a hopeless situation.

(3) The failure of the medium-term banking investment

Need to see the difference between the operations of investment (fund «BNP arts» or «British Rail Pension Fund») and purely speculative actions, despite the fact that the boundary between them is blurred.

In 1974, the pension fund of British Railways «British Rail Pension Fund» has decided in conjunction with Sotheby's to invest in works of art, about 65 million euros, which represented less than 1%of its investment. Some of the speculative buying of the ticket office, for example, "Walk" by Renoir, were discussed in all media.
In general, these purchases that ticket since 1987, began to exhibit for sale, were profitable and achieved profitability in the 6.9%inflation, or 15.3%without.

But we need to compare these results with those of the London Stock Exchange over the same period, but they were equal to 16%. In addition, works that were not sold prior to 1990. Had to sell in less favorable conditions. Incidentally, contact Sotheby's balance sheet for 1999 was impossible.

But in any case, it seems that this operation was the exception that proves the rule: the operation to invest in works of art, as a rule, do not bring the desired results:

• the costs of storage of works of art are much higher than the payment of storage of financial assets;
  
• buyers on the art market did not like the works, too often appear on the market. The only point is that the market for 10 years is the minimum, and for his actor-maximum.

All this explains the failure of the operation «BNP arts». It would seem that everything had to ensure the success - the presence of different experts, a good selection of works, to avoid too speculative values, but alas, buying at the top, then all too soon for sale ... In general, the collection was sold for 12 million dollars, and to ensure that the operation was profitable, for it had to rescue more than 20 million in the consolation we can say that those who bought the works from the collection «BNP arts», must be happy, they made an excellent operation.

In contrast to such unsatisfactory investment banking operations consulting services for purchasing works of art give good results.

) the response to the crisis: some turn in on themselves, others restructured

The crisis of 1990 revealed the nature of the relationship between the commissioners, appraisers, and Anglo-Saxon promotional houses. He showed that the good results of the French appraisers rested on a fragile basis.
It became clear that the reduction in the number of trades conducted by auction houses, is not weakness, but on the contrary, proof of the excellent ability to adapt to the situation on the world market.

Already in 1975 oil crisis prompted the two Anglo-Saxon giants actually come to an agreement to establish a commission with the buyers of 10%, as has been done on the continent.

In 1990, the volume of transactions Sotheby's and Christie's declined by 50%. Both houses have responded with lightning speed, to restore their profitability: at the end of the year Christie's has dismissed 140 people, Sotheby's 119. But even in the midst of crisis, when the number of sales decreased by 2 /3 compared with a peak in 1989, the results of Sotheby's revealed a small, but profit.

In 1994, the two auction houses, united heavy at times, decided to increase the fee from the buyer up to 15%for amounts not exceeding 30000 pounds.

There were also attempts sgarmonizirovat position on the commission from the sellers, but here the competition between the houses, competing in the retention of customers, in particular, professional traders, was too strong to these attempts may succeed.

Auction Houses - joint-stock companies quoted on the stock exchange.

Christie's is listed on the stock exchange since 1973, Sotheby's - since 1977. After their withdrawal to the exchange situation has changed: instead of ambitious amateur companies have to manage the business people who are primarily interested in profitability.

As noted by R. Lacy, the establishment of the commission with the buyer was a sign of dramatic change in policy of both houses: «Christie's and Sotheby's, which previously belonged to the world of art as to a certain circle of friends, in which the auction houses, and traditional retailers supported each other, completely changed its concept. A paper presented by Sotheby's in front of his introduction to the exchange, a commission from the buyer had been named chief factor in profits ».

The emergence of American financiers - Sotheby's owner is Mr. Alfred Taubman, who made his fortune at the dealers centers in the Midwestern United States - made from Sotheby's Multinational Enterprises, in no way different from druih, which may at any time become a victim of hostile raids from the outside and, accordingly, watching their profits with extreme attention.

Evolution of Christie's, at least until the recent purchase by Mr. Francois Pinault 29,1%of its capital, a little different from Sotheby's. The juxtaposition of these auction houses, which was reflected in a joke «Sotheby's managed by business people who take themselves as gentlemen, and Christie's - gentlemen who take themselves as business people, has lost all meaning.

The search for profitability primarily lead to friction between managers and experts from companies, particularly in certain departments, which are important for the credibility of firms, but less profitable than the department "of impressionist and early twentieth century."

4. On the way to globalization

The superiority of the Anglo-Saxon auction houses is obvious: the technical advantages - excellent provide expertise, advertising and PR, to the benefit of intercontinental development companies can now be added and all the signs that make up the strength of capitalism - the ability to find the necessary capital and make the necessary restrukturatsiyu without any "movements of the soul."

Good feeling the need to adapt to an increasingly mondializirovannomu world culture - the competition between the major museums, grand exhibitions, most of which travels around the world, instant dissemination of bidding, which shall inform all the media, - auction houses have developed a strategy of diversification, designed to attract a new audience: the increasing attention paid to contemporary art both at auction and in private sector sales, the development of the Internet, which not only symbolizes modernity, but also helps maintain a close svyah with professional traders.

It remains a perennial problem of demand, and we need to believe that he will become more demanding as consumers, collectors have more and more information and have at their disposal numerous tools such as computerized data banks.

  a) The art of communication contributes to a dominant position auction houses

The basis of the Anglo-Saxon domination of the auction houses is the ability to create a relationship of dependency and skill with which they manage communication networks:

• a network of correspondents, which may belong to all sectors of society, but particularly well rooted in the so-called "good society", which given the task to find the owners of works of art, willing to sell, and convince them of the ability they present the company to provide the best price on these works;
  
• a network of collectors, or simply customers, they come in contact operators AVE. These collectors may already be customers of the auction house, but may be known to the world public auction buyers (need to be reminded that while the Anglo-Saxon system to participate in the bidding without pre-registration is not possible);
  
• a network of specialists, in particular, the old art - the museum staff, university professors, scientists - with which they maintain a good relationship, and who agree to give or confirm the attribution.

That the size of these networks allows Anglo-Saxon auction houses to attract sellers, ensuring their widest, and, more importantly, the most adequate clientele.

The trend towards the establishment of the world the same scale of values is not contrary to the conservation of national specificity. A deep understanding of national markets, tastes, distinguishing each country included in the list of services provided by these multinational auction houses. They always know what the object is better to put up for sale in Paris, London or New York.

We are witnessing the integration of the art market worldwide, is centered on the two giants of public sales, which were able to conquer this place because of its policies, irrespective of national considerations - the specifics of different branches and sectors are subject to the search for localization of maximum profitability.

Another asset auction houses is that they managed to subdue the traditional art dealers and make them a customer base.

Anglo-Saxon auction houses have always paid great attention to customer base of merchants, who provided the sale of special conditions. Thus, it is common knowledge that some of the major French retailers are closely connected with these houses and sell them much of its treatment: "In this little world all need each other, and such a situation everyone is happy" - said the director of the Paris office of Christie's.

b) The new frontiers of the market: the Internet and the private sale »

Competition between the two trading giants led them to actively use new technologies to attract new customers.

(1) Sotheby's is betting on the Internet

It is natural that these two firms, organized in networks worldwide, have extensively used the Internet - customers love this new form of bargaining.

Fashion on the virtual auction is well seen in the U.S., where there are already more than 150 auction sites "online".

Sothebys.com site project included the provision of space to professional traders, where they will offer to sell their products. This is a real partnership, and at least in the beginning of the work site, at extremely favorable terms: 10%commission with the buyer, no commission for the seller.

Within a month after launching the site the auction house informed consent to participate in 1500 of professional traders, who ensured that on the internet they will sotrudnichast exclusively with Sotheby's.

As for Christie's, then the house starts to work on the Internet with caution.

(2) Intensification of the policy of private sales

Another important sector for the auction houses are private sales.
This strategy - the continuation of the ideas of Peter Wilson, to provide clients with all types of services. But these clients may require urgent - and as much as possible confidential - the sale of their works.

In June 1996, Sotheby's has officially announced that he bought the Emmerich Gallery in New York. This gallery has become an important center of private sales of art of the twentieth century. Was headed by its former head of the art City Bank and producer of American artist Jeff Koons. Can not say that this initiative enjoys particular success. Many of the artists who worked with the gallery Emery, dissatisfied with her sale of the auction house, gone. Exhibitions organized by the gallery, do not attract the audience.

In March 1999, Christie's also opened a direct sales department of art of the twentieth century (previously, this auction house organized sessions "private sales", but in a more or less confidentially).

This new strategy is concerned gallerists who constantly stress that their goal - not to sell modern art, like any other commodity, and to support and promote artists.

From Paris to New York all firms specializing in public auctions, a race organize "private sales". This task is made easier for them because they are in their best razporyazhenii data banks in the arts. They know not only all the buyers, but people who buy art at auction for their order.

Activities Christie's on private sales as intense in Europe, as in the United States. For example, he brokered the purchase of "The Portrait Juliette de Villeneuve," David for the Association of Friends of the Louvre.


a) Functional unknown: increasing market transparency and intensifies the circulation of works

Art Market is full of contrasts. It is well known that an important place in it took informal transactions, the origin of traded goods and the identity of their hosts are often surrounded by a halo of mystery. Hard to say what impact this market will have a constantly growing demand transparency.

(1) Steps toward transparency

In the early 1970's. Both auction houses have ceased to publish price lists and names of buyers.
But because of commercial considerations, and to prove their professional integrity, they had to take a series of decisions designed to to ensure market transparency and the absence of any collusion when it deals:

• publication in the catalogs of preliminary estimates for sale of items: Traditionally, assessing the interest of his subject matter expert to ask a prospective buyer, the role of the expert was trying to understand how serious the desire to buy this character work. Publication of preliminary estimates do not like merchants, who in a sense lost their insider privileges, but it was very well received by the neophytes. Thus, it has attracted the world public auction new audience;
  
• publication of prices for all products sold at the auction, in which it was possible to calculate the unsold lots (they are in these lists are omitted). At the time of Peter Wilson, which was taken to publish the names of buyers for unsold lots are often used fictitious names of buyers, auction houses have gradually after some trades, synthetic publish reports, which indicate the percentage of unsold items and the number of lots, and cost;
  
• publication in the history of the catalogs for sale items, increasingly accompanied by a list of their previous sales at auction with the sale and /or an indication that the item was not sold out; promotional home realized that the increasing number of guides to selling on auction , published as a CD-ROM or computerized data banks on the Internet, interested persons may be relatively easy to check these items of information.

All of these innovations represent a fairly significant progress towards market transparency and contribute to strengthening the confidence of the clientele, but it is still difficult to judge their impact on the art market as a whole.

First of all, it should be noted that the transparency of transactions has never been in favor with the traditional art dealers - a factor that weakens their position in relation to the auction houses.

John Walsh, director of the Getty Museum, wrote: «In the good old days, but not really that long ago, when traders bought the bulk of their waste in chastnyzh owners, work with them was easy: no one knew how much a They bought their products, and therefore, no one knew their margins, no one knew they were the owners of one or the other works of art, which enabled them to offer this product to all its clients and then, after some time, they could buy svoizh works with clients in order to resell them to others, sometimes earning revenue from the same work many times. Here in this tranquil atmosphere of confidentiality, they disposed of all the works of art belonging to several generations of gullible collectors. Today retailers have increasingly had to make purchases at auction. Price of these purchases is known to all, greatly limits their margins ».

Thus, the market gains in transparency, but at the same time loses some of its magic, mystery. Anyway, now we know who bought what, when, and most importantly, how much.

(2) The intensification of the circulation of works of art and the problem of their "freshness»

In the components from which to measure the price of a work of art, which includes not only the quality of this product. Must take into account his background and personality of the owner - if it is well-known collector, the cost of the product may increase.
Similarly, it is very important "freshness" of the product, that is the fact that it has long not seen, and this quality, may soon prove to be very rare as all products offered for sale, tracked, and all their movements recorded. Thus, all the harder it is to put an item up for sale, but says nothing about the fact that he was already exposed and not for sale.

A new type of art lover, a much more informed than ever before, better able to assess the risk to which he is placing his subject on sale with a high reserve price, ie he is aware of unpredictable liquidity art.

In terms of the functioning of the art market as a whole, this phenomenon underlines the importance of the role of professional traders in terms of auction houses, as they must ensure the liquidity of the market, buying at least some subjects who did not find buyers.

One might also ask, not whether it would be transparency in the market to deter short-term speculation, razubezhdaya invest in this market all those who do not agree to store bought items for several years, required them to regain their "freshness».

[artcol]

Сообщение от Cyril Syzransky

That's the conclusion of John Welch: "Auction houses have facilities to make trades in a theatrical performance, where the presence of numerous public, always ready to experience the thrill of someone else's expense. They managed to win the confidence of inexperienced collectors, who fear that the traders cheated them, and who think that the public auction reflects a fair price for a work of art. The result of this - we have a whole crowd kollektsionkrov, bankers and lawyers who did not hurt versed in the art, but read all the newspapers. "
Ridiculous ...

[color="# 666686"]Added in 23 minutes[/color]
"The major auction houses have managed to convince all of its objectivity and professionalism, qualities that are very sensitive to the new breed of collectors from the business world, which is driven by a sense of less philanthropic than their predecessors, the great collectors of the past, and thus more interested in the concerns of liquidity and profitability , at least in the medium-optics. "
And this is a seriously ...

Great! I have not read it, but looking forward to

[Pavel]

Сообщение от Cyril Syzransky

That's the conclusion of John Welch: "Auction houses have facilities to make trades in a theatrical performance, where the presence of numerous public, always ready to experience the thrill of someone else's expense. They managed to win the confidence of inexperienced collectors, who fear that the traders cheated them, and who think that the public auction reflects a fair price for a work of art. The result of this - we have a whole crowd kollektsionkrov, bankers and lawyers who did not hurt versed in the art, but read all the newspapers. "
Ridiculous ...

[color="# 666686"]Added in 23 minutes[/color]
"The major auction houses have managed to convince all of its objectivity and professionalism, qualities that are very sensitive to the new breed of collectors from the business world, which is driven by a sense of less philanthropic than their predecessors, the great collectors of the past, and thus more interested in the concerns of liquidity and profitability , at least in the medium-optics. "
And this is a seriously ...

I do not think it's funny, is serious and I would be glad to have appeared in major offices nalonets things for which you should be ashamed, and bought in Russia, let this be an investment, let it be a mercenary is better than nothing.

[Кирилл Сызранский]

Сообщение от Pavel

I do not think it's funny

"It's ridiculous ..." in this case is "ridiculous written" and nothing more.

Сообщение от Cyril Syzransky

The result of this - we have a whole crowd kollektsionkrov, bankers and lawyers who did not hurt versed in the art, but read all the newspapers.

Is there, Pavel?