Odd Lots How Auction Guarantees Are Changing The World Of Art
Jun 17, 2019
Margaret Carrigan, the Deputy Art Market Editor at The Art Newspaper, dives into the financialization of the art world. She discusses Giga Week in New York, where billion-dollar sales occur, and how auction guarantees are reshaping pricing and liquidity. Carrigan highlights the role of third-party investors and the complexities of valuing modern art in a speculative market. The conversation also touches on the risks and rewards of treating art as an asset class, alongside emerging trends like art-secured lending and technological advancements.
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Mnuchin Buys Koons' Rabbit
- Robert Mnuchin, Treasury Secretary Steve Mnuchin's father, bought a Jeff Koons "Rabbit" sculpture.
- The piece, resembling a silver balloon animal, sold for over $90 million at a recent New York auction.
Auction Guarantees Explained
- Auction houses use guarantees to minimize risk for sellers and attract high-value art pieces.
- These guarantees ensure a minimum price for the seller, regardless of the auction's outcome.
Role of Third-Party Guarantors
- Third-party guarantors, often dealers or collectors, place secret minimum bids on artworks.
- If the art doesn't sell higher, they acquire it, establishing a market value.