The New York Times lead article in the Friday 5/23/08) Arts section profiled the alleged deception by the English dealers John and Carlton Hobbs on the authenticity of the items they sold.  Dealers of high end antiques know that it is rare to find any item in perfect condition, with absolutely no restoration or repair.  For that matter, go to any museum and look at the expertly restored items on view.  Years of use does invite wear and tear.   Dealers are now on the ropes for many reasons and the image of a “used car salesman” isn’t very far off.  With the help of decorators who need to sell…

Letter to the Editor,   In your monthly feature on auction law and ethics, Steve Proffitt discussed the legal processes of the Sherman Antitrust Act to protect consigners from bid rigging.  As he clearly states “bid rigging, price fixing, and market allocation have each been determined to be per se violations of the Act”.  His perspective and focus is on the methods of colluding buyers to prevent fair competition to realize a true market price.   I would like to make the argument that there is another side of the auction process that needs to be equally addressed, and that is how auctioneers and specifically the Sotheby’s/Christie’s duopoly have succeeded…

I generally like reading the Maine Antiques Digest and its editorials, letters to the Editor, and general interest news on the trade.  The paper’s (6/2008) editorial expressed the antiques industry’s need for vibrant shows to attract customers to spend their money.  But discounting tickets or free admission into these events will not entice buyers. Antique shows are predictable, usually disappointing, and very tired in appearance.  Why would that bring in new buyers?   In my mind, the antiques show format has changes very little since the creation of the flea markets, no matter what the level of quality or price.  Outdoor flea markets, a Vermont Antiques Dealers Show, or for…

In an intriguing article in Art + Auction magazine, Dr. Clare McAndrew, an art market economist who runs the research and consulting firm Arts Economics, offered an interesting perspective on the economic fluctuations of the art world.   Dr. McAndrew explained the extent to which the decorative arts have been drastically overwhelmed in dollar value by the fine arts.  According to her research, 10 years ago the decorative arts market was 3 times greater than the fine arts market.   Today, that “situation has completely turned on its head” as “decorative art is at a low point in its cycle”.   The duopoly of Christie’s and Sotheby’s has had something to do…

Dealers in France, and by default around the world, suffered a devastating defeat when the French government lifted major constraints on how auctioneers operate.  When Francois Curiel of Christie’s say the report is “good news for us”, it can’t be good for dealers, consigners, or anyone else, but them.  By the government of France’s attempt of “easing and modernizing” auction regulations, they have passed on an opportunity to take the deception of sham bidding and conflict of interest out of the industry.   But what would anyone expect with the Sotheby’s/Christie’s duopoly; arm twisting with their financial and influence muscle is a just a fact of life.  It doesn’t matter…

Auctioneers like to give lip service to the mantra that they represent the seller; at least in the Uniform Commercial Code they are authorize to be their agent.

I just finished reading Alan Greenspan’s book, “Age of Turbulence”, and thought that in the scheme of international economics and world issues, the art and antiques industry is pretty much a speck of dust.  But Ben Bernanke’s latest orchestration of the Bear Stearns purchase reveals how the auction process works best.   He simply created a floor price of $2.00/share, and then let Adam Smith’s “invisible hand” do its magic ($10.00 latest offer).   In a way, Mr. Bernanke has created a new confidence in the ability of the marketplace to regain its balance.  When a market is created, it should draw participants, if by no other mechanism than a price…

Presentation is everything, for selling, image, or a person’s own self esteem.  The forms of presentation for decorative and fine arts can be seen in museums, homes, auction house exhibitions, or a movie or theatre set.  These items were made not only to be representative of their era, but to exhibit taste and artistic skill.     When designing a set for a Broadway show like “My Fair Lady” or the motion pictures version, requires the same need for authenticity and believability.  Interior designers also use the same concept when they create a setting for a client’s home.  It requires “props”, which can be new or old, to set the…

Glitz, high prices, but where’s the (decorative arts) beef?  The Palm Beach Jewelry, Art & Antiques Show over President’s Day Weekend was just that:  magnificent jewelry, beautiful art, but what about furniture and decorative arts.  The show’s title gave equal billing to that aspect of the trade, but from what I saw, it was sadly lacking any real presents at the show.     There was a smattering of decorative arts dealers in attendance, representing a limited number of styles and periods, with little or no duplication of dealers showing similar periods.  Compared to the many jewelry and painting dealers that offered works of art that one could put side…