The Quick and Easy Guide to Art Auctions Table of Contents I. A Newbie's Overview of Art Auctions i. Becoming an Art Investor ii. Art Investment Planning iii Acquiring Fine Art iv. Trying to Sell Fine Art v. Must Haves II. Art Provenance i. Exactly What It Is and the Best Ways to Validate It ii. Significance of Art Provenance iii. Art Provenance: Counterfeit or Authentic? III. Overview of Purchasing Art at Auction i. Know just what you're getting ii. Check out the small print, don't be reluctant to ask for more details iii. It's good to act 100% natural iv. Take heed to auction rules v. Take advantage of chances to see fine art vi. Realize that price quotes are working for you IV. Auction Fundraiser Suggestions for Artists, Non-Profits and Prospective Buyers i. Pointers for artists ii. Tips for prospective buyers iii. Tips for companies carrying out art auction fundraisers V. The Good and Bad of Art Auctions VI. Fraudulent Art and Suggestions on how to prevent it
A Newbie's Overview of Art Auctions Public auctions are the art world's gladiatorial sport, with affluent enthusiasts and fine art speculators meeting in stylish rooms to battle each other for the hottest works coming to market. They also establish the state of mind for the fine art market, with effective sales suggesting a boom and badly performed auctions threatening confidence throughout the art industry. For the audience members well accustomed to the auctions, they are massively entertaining. For those unfamiliar, they can seem far too enigmatic. For ambitious or brand-new fine art enthusiasts, auctions could provide a superb point of access right into the market. Public auction salerooms are open to the public and new bidders are constantly welcome. Furthermore, with the boosting number of electronic auction platforms out there, it has never been easier to bid online. A great thing about purchasing at auction is the amount of info that's easy to obtain from catalogues and Internet resources such as this one. You can find out information about provenance, exhibit record, condition and, obviously, price. However, collecting by means of the secondary market, likewise, takes some knowledge. Becoming an Art Investor Art investment is a non-liquid, different form of investment. It is generally a small portion of an investment profile. An art investor intends to buy art, keep it for several years while it appreciates, and then offers it years later at a higher value. Art has some qualities that other financial investments do not; for example, it could be in your home and entertain people for decades. Additionally, it does not need to be declared to the government when sold, unlike stocks and bonds purchases. However, art investment does not always lead to earnings, because it's heavily dependent on the ever-changing and capricious art world. Art Investment Planning Begin with some passion or experience in art The very best art investors do their research on the art pieces they buy. Anyone with some education or passion in the art world is more likely to understand a particular niche market. Along with your own research, you will definitely need to acquire contacts with people in the art world - such as auctioneers, gallery supervisors and suppliers. These are the types of people that will be key in giving you thorough investment insights. Know what you want to pay for art, before going to an auction house Art investments should be a small portion of your financial investment portfolio - in addition to stocks, bonds, new businesses and even more. Know your price range before you begin to choose possible pieces and be sure to get guidance from investors and art dealers. Acquiring Fine Art Be aware of what kinds of art are selling well and which ones are not Research the Mei Moses Fine Art Index to obtain a solid grasp of the art market today. The index isn't the equivalent to a fortune-telling crystal ball, but it can at least help you understand what type of art tends to remain valuable and which kind have a more unpredictable market worth.
Art investments should be geared more toward paintings, instead of decorative art This is not a steadfast policy, but the fact remains that a painting from a successful artist will often get better traction than sculpture or installment art. Connect with respected auction houses and dealers when you are looking to purchase Make sure to get as much information as possible from them before buying. Don't be scared to walk if the rate goes higher than your range. Be cautious of art auctioneers or dealers that promise returns on paintings that seem too high. In a number of ways, they are similar to stock brokers and other investment companies. They could potentially say anything to gain a sale. Be sure they're reliable before you purchase anything, due to the fact that art market bubbles and ponzi schemes also exist in this landscape as well. If you have never acquired art in an auction setting in the past, you might want to consider getting advice about the proper ways its done. Make sure to study the auction brochure, discover under-theradar buyers and how prices can quickly rise. A lot of great auction homes would definitely be able to inform you of the fundamentals if they see you as a real investor. Acquire your art when you feel confident of its value and its potential for growth Payment, shipping and insurance should be organized. Every art piece needs to be insured and listed as a part your estate. Learn how art is stored correctly In order for an art investment to keep its worth, you must prevent it from damage at all costs and it must be maintained at a low-humidity. You can prop it on a wall or get advice on the best methods of storage. If you plan for it to be an inheritance investment, make sure to share this info with your descendants. They need to be aware of the best ways to care for the art, or they may lose cash or destroy the painting completely. Trying to Sell Fine Art Get your art investments evaluated periodically Consistently check in on the art world to understand the price fluctuations of particular types of art, an appraiser could tell you just how your investment is developing. They could inform you when you have reached your intended earnings. Think about renting out your fine art investments If the fine art you acquire does not fit in your house, research banks, hotels and other establishments that rent out art on a revolving basis. In fact, the mere presence of your art in another building could net you thousands of dollars annually. BUT, don't forget to insure the art piece. Be sure the renter offers insurance coverage for your art. Prepare an agreement that stipulates the time, cost, and the delivery of the fine art. Understand that offering an art investment can take time Unless you use a fine art dealer or auction house at the exact moment when the art is in high value, it could take years as well as countless dollars in fees to discover the appropriate buyer.
Must Haves 1. List of investments/portfolio 2. Making contact with an art adviser 3. The liquid assets 4. An art appraiser is crucial 5. A “respected� auction house 6. Never forget insurance! Pros and Cons of Art Auctions The Pros - You have the physical possession of a property - Priceless features of respect and visual beauty - Chance for value to rapidly increase over time - Social gatherings - Mixing a wide variety of investments within a portfolio - Banks beginning to accept use as collateral for loans The Cons - Handling/managing costs - Storing costs can pile up over time - Prices, threat of burglary, harm and flat-out losing the art (insurance problems) - Problems selling - Buying and selling fees - There is never a sure thing - Too difficult to get specific assets/works pre-tax
Art Provenance Exactly What It is and Ways to Validate It Authenticity can always come into question in your artwork's history. Frequently, art is accompanied by documents, generally recognized as provenance that verifies its authenticity. Thorough provenance leaves no doubt that a masterpiece is authentic and the creator is the true author. Countless forged or otherwise misstated works of art are provided for sale with questionable or phony provenance at online public auctions like ebay.com, art websites and street-side businesses. However, this kind of fraud is by far most prevalent at online auctions. Provenance comes about in multiple forms • A statement of legitimacy or signed document from a revered authority or specialist on the artist. • An event or gallery sticker connected to the art. • A declaration, either spoken or in written form, from the artist. • An original gallery sales invoice or receipt straight from the artist. • A movie, clip or recording of the artist speaking on the piece of art. • An evaluation from an accepted authority or specialist on the artist. • Names of real people who previously owned the artwork. • Letters or papers from identified specialists or authorities reviewing the art. • Paper or magazine write-ups featuring the art and/or discussing it. • An appearance of the art in a book or exhibit catalog. • Information relayed verbally by someone who is familiar with the art and who is considered qualified to speak with authority on it. Excellent provenance practically always raises the worth because it confirms the art. Good provenance also provides essential info and insight into the piece of art's history. Deceitful vendors understand the worth of provenance and typically go to great lengths to produce bogus provenance for their fine art. That's the bad news, but the good news is that fake provenance is still fairly easy to spot in many cases. Significance Of Art Provenance The easiest way to understand “provenance” is that it indicates the history and record of an antique. The history and record is an explanation of who used to own the Antique, the person who created it, the date and location. If it's an important Antique, the more crucial it will inevitably be to establish provenance. This can make the difference between a couple grand and a couple million... If the provenance isn't there, then the painting is a tough sell. Art Provenance: Counterfeit or Authentic These rules will certainly help protect you from purchasing art with suspicious or phony provenance: • SEE THE PROVENANCE BEFORE YOU BID OR BUY. Vendors could say they have provenance, claim they can only reveal or offer it to winning bidders or customers after the purchase. They also may say that they're protecting the past owner or that they don't want potential buyers to make contact with them. However, in more cases than not, they don't want you to see the provenance because it's suspicious. Just remember this: No Provenance. No Bid. That's it.
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Provenance accurately and specifically describes the piece of art that's being presented for sale, this includes the date it was created, the dimensions, title (if applicable), and other important information. Records that do not hit most of these marks shouldn't be considered legitimate provenance. Copies of letters, certifications, and other papers are not valid forms of provenance (unless the originals are at a location where you can visit and inspect them). Paperwork needs to be handsigned, hand-stamped or otherwise marked by hand. It does not matter whether it's electronically printed, hand-typed or transcribed. All signatures on documents need to be identifiable and the contact information for everyone who has signed must be someplace on the provenance. It should also be verifiable. Provenance is fact, not opinion. Declarations that a specific artwork looks just like other artworks by the artist are not provenance (unless they're made by country wide or globally respected and credentialed authorities on the artist). Obtain email addresses/phone numbers for all personal parties that the vendor declares previously owned the art. Verify that these individuals are/were real people and try to contact them. Just being given a list of names without the proper information is meaningless. Names of previous owners do not make up legitimate provenance unless they supply undeniable concrete evidence that the piece of art is by the artist it is claimed to be made by. For instance, if a museum display/catalogue/listing reads that someone is the owner of the art piece in question, this equals authentic provenance. A list of galleries that formerly had the art piece does not equal authentic provenance unless they are valued authorities on the artist, or could offer concrete and undeniable evidence that the art is actually by the artist. If a seller claims that the piece of art is “attributed to” a specific artist, have them supply the name of the individual who attributed it. If the person is not known and accepted as an authority on the matter, then the attribution means nothing. Also, a mere attribution itself never means authentic provenance. Any statement the sellers make about who previously had the art or where it originates from has to be verified. Statements from 3rd parties such as, “the place this came from had tons of significant art,” or “many believe that this art used to be owned by...” or even “the guy I got this from informed me...” do not equal authentic provenance. You'll need a seller who tells you that the art piece was sold at an auction house to always provide the contact info of the auction house and the date it sold. An auction house selling an art piece does not mean that the work is bona fide. If you have any type of worries at all concerning the provenance of an artwork that you're considering for purchase, get in touch with an independent professional, art supplier, consultant, or evaluator BEFORE YOU MAKE ANY MOVES.
Overview of Purchasing Art at Auction Know just what you're getting Whenever your eyes come across something that you like, it's hard not to want to click on the “bid now” button, or elevating that bid paddle a little higher. However, a well-researched buy will normally be much more satisfying. Check out the small print, don't be reluctant to ask for more details A lot of the art you see at public auctions is available on the secondary market. This suggests it was once owned by another person. Credible history may just add worth to an art piece, especially if the last person who owned it was an esteemed institution or collector. Respected auction houses do their homework on the art pieces beforehand, but do not forget to do your own research as well. In the few cases that the object has been slightly damaged, it's unlikely it will be visible on a photograph. It's good to act 100% natural A jam packed space full of veteran bidders moving quick and efficiently can be a frightening sight, but don't let these people get to you. Also, a myth that needs to be dispelled is the idea that if you accidentally scratch your shoulder or lift your hand high that this equates to a registered bet. If there's uncertainty whether a bid is registered, the auctioneer will often confirm with you, “Was that a bid, sir?” Don't let that common myth scare you. Take heed to auction rules When bidding anonymously from an online site, it's important that you stay patient and respectful. The auctioneer has to deal with people on the floor as well as on monitors, displaying numerous people bidding from the comfort of their couches. Accept possibilities to see fine art It's obvious that galleries and museums offer terrific chances to accomplish a skilled level of familiarity with the industry, however contemporary art sales happen all the time throughout the year. Auction houses give great opportunities to increase your knowledge. Appointments aren't necessary while the houses are showing previews. Realize that price quotes are working for you Establishing quotes is challenging for auction houses. Constantly changing factors in the market, its value in the historic landscape and a series of other issues factor into the process. Other things that can influence thinking is secondary market sales and the type of condition the piece is in. Surrounding yourself with colleagues who are well aware of everything in the modern art world makes it easier to price works correctly. When figuring quotes, auction houses will try to be realistic to gain bidders. Pieces that are too expensive could deter bidders from returning to the auction houses.
Auction Fundraiser Suggestions for Artists, Non-Profits and Prospective Buyers Holding an auction is an outstanding method for non-profits to raise funds for artists as well as artrelated companies to advertise their services. And of course it's great for prospective buyers to purchase quality fine art at sensible prices. The following tips will certainly aid anyone looking to have a good time and understand their goals at the fundraiser. Pointers for artists: With your career in mind, the best fundraisers for art are the ones that bring community members and benefit art organizations. This includes owners of galleries, fine art experts and esteemed collectors. This is one of the best methods of getting your work and name in the faces of thousands of people who collect, support and simply like art. Only donate to a fundraiser that's not art-related when the art auction is respected or you personally have a strong belief in the cause. When you donate to a non-art related fundraiser where your work will be mixed with miscellaneous items, it will likely do nothing to further your career. If there's an organization that wants your artwork, do your homework on them, figure out just who they are, make certain that you're aligned with their cause, learn if they've done art fundraisers in the past and if they have, determine how long it was and if it was a success. Tips for prospective buyers: Take a look at the full catalogue of art for sale. These auctions are some of the best places to find out about artwork and artists you're not familiar with. Don't think the art is all bargain priced. Discover the artists that you like beforehand. Many of these fundraisers will have a list of all of the art online weeks before the event. Go to the website, glance at the art ahead of time or at the very least find out who all of the donating artists will be. This will prepare you to bid in a wise manner. Some artists end up donating strange or low-quality pieces that they're simply trying to get rid of. Be sure you're looking at a quality example of a particular artist. It's not uncommon for an artist to go to an event and stand near their art. Approach them and ask them questions to learn about their work. Lastly, this rule is the easiest, but somehow broken all of them time. Don't get drunk. You don't want to wake up the next morning and realize you paid for a piece you don't even want to look at. Tips for companies carrying out art auction fundraisers: Release submission guidelines for the artists donating. Make sure there are tips on what kinds of artwork sell, the range the prospective buyers normally bid in, and how the artist can display their art and present themselves in the best way possible. Inform the artist how the auction will be promoted, the advantages from the exposure and the number of people who will go to the auction. If you can, give links to events that were held in the past to give the artist a better understanding if he/she should participate or not. Convince the donating artists to be reasonable when it comes to minimum bids and selling prices.
Release a sales catalogue that includes the bio of the artist – their picture, resume, career info and a list of their work available for purchase. Make a serious effort to publish it online ahead of time. If the bidders see it far in advance, they'll be more comfortable during the bidding period. The more you promote the event, the more sales you'll have. This will undoubtedly attract high-quality art, prospective buyers and professional artists to the event. Pick a space with lots of room, good air flow and solid display space. Happy bidders are the best bidders. On that note, it's great to have complimentary refreshments or hors d'oeuvres included with the price of admission.
The Good and Bad of Art Auctions The Good A large plus for numerous investors is the idea that you control the property. It's all in your hands and not in the clutches of an investment firm. There are a lot of people who don't trust others with their investments. An art investment is wholly in your possession. Most art investors are collectors first and foremost and consider themselves investors second. Art is an asset that can be presented and loved by many. Unlike stocks, whose hidden businesses reflect an unpredictable market rate, the value of the art raises over time. If you have carefully selected the works in your collection, in the future your art could be worth much more. Most of us know how much the financial market can fluctuate. But when it comes to the art world, stock market corrections and other fluctuations don't exist in this industry. This is undeniably one of the biggest positives in investing in art. The collector has nowhere near the amount of concerns that worry other investors. The Bad The major obstacle to access the art world is absence of knowledge. When investing in art pieces you have to do much more research to familiarize yourself before making your buy than other forms of investment. Technically, art isn't a liquid asset when you compare it to other forms of investment. When you buy and sell with other types of investment vehicles, oftentimes it happens instantly by the click of a mouse. When you sell art it takes tons of effort and planning to achieve the best price for the work. Taking care of the physical asset can be an irritating burden. The responsibilities of ensuring the safety of the artwork, preserving it and getting it insured is often enough to dissuade a rookie art investor. Unfortunately, even if you have done all of your research, there is never a certainty that art pieces will be worth more down the road. The art world is ever-changing. New artists burst on the scene and respected artists can quickly drop out of favor. The only thing you can do is make sure that you truly like the artwork you purchase, because like it or not, they could potentially be yours forever. Buying art is not for everyone because of this. Do as much research as you can for you best chance at succeeding. This means going to art shows, art auctions and art museums. Have an investor's mind with a collector's eye. However, think of this hobby as a passion rather than solely a way to invest. Fraudulent Art and Suggestions on how to prevent it Avoiding counterfeits and imitations: the best way to find the real thing Phony art is nothing knew. Records of the first sculptures created were imitated millennia ago. Luckily for us, we have laboratory analysis and simple information online that can help prospective buyers avoid fakes like the plague. Here are some of the forgers go-to tricks: placing fakes into old frames with phony stamps of respected auction houses, bogus signatures and manually aging the item using the
sun. Unfortunately, these forgers are getting smarter and more clever. However, specialists have created technology to specifically stop this kind of fraud. If you're looking through auction sites, here's some advice for avoiding forgeries. -If it's too good to be true price-wise, it just might be. -Check provenance through art galleries. You can always phone them to check sales records. -Sometimes signatures don't carry much weight. A lot of artists actually refrain from signing their work and it's very easy to fake. -Only buy from respected auction houses and ask to speak to their experts. So there you have it! After reading through this guide, you are well on your way to becoming an expert in the art world. And if you've forgotten everything you've just read, the three most important things to takeaway are this: Research! Research! Research! With that said, almost ALL of these problems can be avoided by going to reputable places. One of the most reputable places when it comes to auctions is BNO.com. BNO is a live auction house where bidders can place bids from the comfort of their home.
Resource Links – http://www.bno.com (bid on or sell at live auctions streamed online in real time. Art & Collectibles, Vehicles, Real Estate and Charity. Exciting, safe, low fees and great service) – http://www.artmarket.com (World leader in art market information. Become an art insider: over 27000000 auction results and indices of auction art works are available online.) – http://www.artprice.com (Artprice.com gives a unique access to Fine Art auction information for you to know the prices of artworks, whether you want to buy, sell or insure your artworks, or invest in art.) – http://artsalesindex.artinfo.com/ (Art Sales Index allows you to search 5 million art auction results and records.)