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Graphic and Fine Art Posters => General Discussion => Topic started by: Dread_Pirate_Mel on January 28, 2013, 06:58:39 PM
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NYTimes: As Art Values Rise, So Do Concerns About Market’s Oversight
(http://www.nytimes.com/2013/01/28/arts/design/as-art-market-rise-so-do-questions-of-oversight.html)
Pretty much convinced now that EVERYTHING in this world is fake - Lance Armstrong, boobs, and now the fine art world.
Turns out the major auction houses use two types of tricks to inflate and obfuscate the price of fine art.
First, they employ “chandelier bidding,” a bit of art-market theater in which auctioneers begin a sale by pretending to spot bids in the room. In reality the auctioneers are often pointing at nothing more than the light fixtures.
Second, they arrange "third party guarantees." When someone offers a piece for auction, the house will sometimes guarantee that the seller will make at least a minimum amount by arranging with a third party to purchase the work for a specific price, undisclosed to the public, should it fail to sell for more. In exchange for putting up the funds, the guarantor, whose name is also not revealed, gets a cut of any proceeds above the guarantee. So if a third party commits to a $10 million guarantee, and the bidding reaches $12 million, the third party receives a piece (often 30 percent to 50 percent) of the additional $2 million.
The problem, some dealers, collectors and art advisers say, is that the neutrality of an auction is lost when these underwriters can bid on a work they’ve guaranteed. Critics argue that the guarantors have an undisclosed interest in the outcome and an unseen advantage over other bidders because a buyer who wants the work might wind up competing against someone who only wants to bid up the price.
Read the article for more info....
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Seems to fit right in, along with "shill bidding," that has been discussed here and other movie poster boards, as well, over the years.
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"Money, money, money - MONEY!"
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Seems to fit right in, along with "shill bidding," that has been discussed here and other movie poster boards, as well, over the years.
Remember when shilling was the most talked about subject?
Remember when the only people who talked a great deal about fakes was dan r and bob Brooke's?
Not so many modern poster collectors then,
NEVER been as big of a forum explosion than MPT.....
Someone could have VIDEO'd the final days and sold it as an action film.
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Remember when shilling was the most talked about subject?
Remember when the only people who talked a great deal about fakes was dan r and bob Brooke's?
Not so many modern poster collectors then,
NEVER been as big of a forum explosion than MPT.....
Someone could have VIDEO'd the final days and sold it as an action film.
I just remember too, when first reading about the practice and term, "shill." As i was totally unfamiliar with it, in poster or any kind of auction circles.
It was a learning experience and fascinating read, that's for sure.