Guarantees are not what they used to be
Felix Salmon, Are Auction Guarantees the New Private Sales? Yes, for Art Sellers Who Don’t Want to Get Ripped Off, Artnet.news: May 24, 2018. Read the full article here.
Auctions are a great way to sell expensive art but have a drawback – price uncertainty. Arrangements similar to underwriting help manage this risk. The added complexity is such that it “defeats the purpose of hiring an auction house in the first place. In a sense, then, the real purpose of going to auction is increasingly just rip-off insurance.” Excerpt from The Easel newsletter / website on May 29, 2018.