The auction business hasn’t been successful just by using smoke and mirrors in the bidding process.  The secret reserve is very effective however their institutional organizations will now be on display with the Antiques Trade Gazette’s promotion of the Auctioneers’ Conference taking place next week in Birmingham, England.  In looking at the program for the conference, it is quite instructive.  (http://www.antiquestradegazette.com/news/7054.aspx)   The scope of such a conference is like nothing that can ever been conceived by dealer and their various “representative” organizations.  From what I understand the only opportunity for various dealers to actually get together to discuss industry issues is at antiques shows, or at an auction (be…

Following is a letter I sent to the editor of the Antiques Trade Gazette (England) in response to a commentary written by Mr. John Rumens that appeared this week in this trade newspaper.   I feel compelled to challenge John Rumens comments on the “addictive nature of auctions” as “a flawed process-but here to stay”.  In my mind that is the kind of attitude that has allowed auctioneers, and in particular the Sotheby’s/Christie’s duopoly to lead an unabated course of deception and fraud on the public and trade, which many innocent auctioneers must follow.     To acknowledge that we just have to live with these methods is an insult…

Last week on my vacation I read a book by the economist Paul Krugman who got me thinking that consolidation in most industries is part of the dynamics of economic forces.  Any industry can be skewed by laws, new skills, or technology.  The decorative and fine arts industry has its 800 pound gorilla with the Sotheby’s and Christie’s duopoly still able to function unabated. But that can change, like GM or Citibank.   The clear advantage that dealers could have to break the back of auctions is the ability to warehouse and sell directly; not with secret reserves, but negotiation. Unless you came from the planet Mars and you never…

During the mortgage collateralizing frenzy that sunk with excess subprime shenanigans, I always thought antiques had an underlying value that could be monetized.  The lack of a coordinated and cohesive marketplace to package and warehouse the product as well as a payment distribution method to bond holders are big hurdles to overcome.   But I do like the concept; it is where dealers and traders, like in any commodity, look for value and try to make some money.  I guess you could take this to other forms of art and collectibles but it should be structured in the form of a REIT (real estate investment trust).  REITS basically own a…

As a third generation antiques dealer, neither I nor any of the previous family owners of my business attempted membership in any prestigious associations with fellow antiques dealers.  I certainly don’t want to think of dealers as a “bad lot” of gentlemen; maybe I wouldn’t make the grade too.  However, it is the existing way they are organized that prevents dealers from being able to achieve goals with good aspirations.   Below I’ve compiled some position statements from leading art and antiques dealers organizations.  They are all great objectives and need the united backing (for the benefit) of all dealers.  Getting everyone under one roof sounds incongruous, but if the…

Mr. Salz,   I enjoyed reading your defense but you miss the point about the debate which is not about art as an intellectual pursuit but as an industry with a financial underpinning.  How that financial aspect of the art market works when compared to the stock market is where there is a troubling disconnect.   As I see it, the financial market is made up entirely of dealer/brokers who may or may not be ethical in their advice and knowledge.  The art world has that too, but also incorporates the larger influence of an auction process that is built specifically on deception (chandelier bidding, etc) and conflicts of interest…

Doctors have the American Medical Association; lawyers are represented by the American Bar Association, car dealers, teachers, religions, and even countries have organized representation to promote their best interests to the public and government.  Art and antiques dealers, one can categorically say, do not have any form of an umbrella organization that can advocate for its interests.     The many organizations that do attempt to be representatives of the industry are narrow in focus and small in membership.  Whether it is the Art and Antiques Dealer’s League of America (AADLA), Antiques Dealers’ Association of American (ADA), National Antiques & Art Dealers Association of American (NAADAA), or the various state…

I have to respect what 1stdibs is offering with their announcement that “starting this Saturday (1/17/2009) dealers all across the country will be posting items that they have marked down to move quickly”.  Of course, those dealers are members invited by Michael Bruno to join 1stdibs (for disclosure purposes, I was invited by Mr. Bruno, but declined).   While dealer organizations may not want to advocate for changes in the industry and regulation of auction methods, the strongest motivation for an evolving industry will ultimately come down to economics. Low prices never hurt to motivate; and disclosure of dealer prices on the internet, at an antiques show, or in a…

Here is the latest attempt by Sotheby’s to confound and confuse bidders, the irrevocable bid. If you are unfamiliar with it then read their rules on their key to symbols in their catalogue:   http://www.sothebys.com/app/live/share/ShareSymbols.jsp?event_id=28772   Lots with this symbol “” indicate that a party has provided Sotheby’s with an irrevocable bid on the lot that will be executed during the sale at a value that ensures the lot will sell. The irrevocable bidder, who may bid in excess of the irrevocable bid, will be compensated based on the final hammer price in the event he or she is not the successful bidder. If the irrevocable bidder is the successful…

It seems very true, that changes in economic conditions offer unforeseen opportunities.  The economy of the world has morphed dramatically since the days of Adam Smith and the Industrial Revolution, but human nature is still pretty consistent.  An ability to blend intelligence and ambition can be a very productive cocktail. Dealers and auctioneers have a new, dynamic world opening up for a fresh interpretation of their goods and services.   I find it predictable that the Sotheby’s/Christie’s duopoly has quickly pulled in their horns on “guarantees” and extending credits.  That’s not their business, as auctioneers.  The cross currents of conflicts of interest and deception should have no business in their…