I’m taking a time-out from my regular topics on the antiques industry.  I have two children in college and one in middle school; when I heard of the senseless multiple killing at Virginia Tech, it gave me some concern about my children being in harms way.  That might seem a bit of an overreaction.  But how unique to America is this tragic event?   The great American cultural novelty of the multiple, indiscriminate murderer isn’t quite on the same page as a suicide bomber.  The American psycho has no real cause except what is in his mind.  The post office worker who goes berserk isn’t dying for a cause but…

With all the questions of how they operate, only Sotheby’s and Christie’s (that infamous duopoly) are in the advantageous position of not having to deal with currency swings.  It doesn’t make a difference to them if they are paid in pounds, dollars, or euros, or what country they are performing the auction.  For a dealer or collector, it can be a big problem.   Welcome to the age of $2.00 to £1.  There will be no buying trips for me in Europe.  When the ratio was reversed back in the “glorious” 1980’s” packing a 40’, container with Europe’s finest was a piece of cake.  Add to that try buying at…

As I mentioned in my prior blog, Sotheby’s (and one would expect Christie’s to follow) is abandoning the market for items that do not have a threshold value of at least $5,000.00.  On the surface this should win consignments for the second and third tier auctioneers.  But of course they will have to pay a price for this opportunity. If they want a referral from Sotheby’s or Christie’s for these lower value items, I would expect that they would require reciprocating referrals of higher priced items back to them.   This situation could present some interesting issues for the consigner, stuck in the middle.  Just how much will consigners allow…

I am back from my first 2 week vacation since I left Coopers & Lybrand in 1974; is there a life out there??  However upon my return I now have confirmation that “collateralized loans” based on art and antiques back assets are now being conceived by the Sotheby’s new avowed profession as “merchant bankers”   It’s actually called Sotheby’s Financial Services, which will attempt to further rely on the non-negotiable buyer’s premium as a source of guaranteed income, while further manipulating its conflict of interest with the use of consigned merchandise. Under the concept of “high value partnerships” they have made Sotheby’s Ventures “act as a merchant bank to create…

If there is a demand for antiques and decorative arts, their intrinsic value and functionality has to be determined by the appropriate buyer.  That buyer must have two essential ingredients in order to make a purchase, money (obviously) and knowledge.   In today’s affluent society, the discretionary ability to spend money on these types of items is determined by the intersection of knowledge and one’s lifestyle. These factors are the fundamental dynamic as to how best to attain the desired goal of living in a comfortable and stimulating home or office environment.  People today have limited time as a luxury resource; it is something that money just can’t buy more…

I feel like a relic in the antiques industry; I was in it before the buyer’s premium and before the internet.  The dollar was the mighty currency of the world and American dealers could buy with impunity anything in Europe.  My, my, has the world changed!   I would like to think that the industry is “out of the closet” and into the mainstream public.  That would be encouraging; it definitely is more transparent.  But the whole evolution of this industry since I’ve been around has clearly been orchestrated by the Sotheby’/Christie’s duopoly (an economic situation in which two powerful groups or organizations concentrate or dominate commerce in one business…

I love history.  It is the type of reading I do most and helps me get insight into how our world is forever evolving.  Sometimes the real world can brush up against the historical record and that can be fascinating and exciting.  I had a phone call from a lady researching Turtle Bay and she had heard that Newel used to be located in that area. (We are now in Kip’s Bay, 6 block north.)  It made me remember a bit of history.   My grandfather established Newel Art Galleries in 1938(?) on the northwest corner of 47th Street and Second Ave., on the 1st floor of an old walkup…

In New York, every business that buys and sells goods must be registered to collect and pay State sales taxes. The State considers the entity that collects and remits these taxes as “sales tax vendors”, and they must document the receipt of taxes due or receive a valid resale certificate, exempt use certificate, or bill of lading that the goods were shipped out of the State of New York in order not to incur a sales tax liability. With that qualification, I would ask any dealer who has ever consigned an item to an auctioneer, if they ever received a resale certificate from the auctioneer?  If not, how could you…

News can travel fast in our industry, with the internet giving anyone quick access to information as well as rumors.  Before I left work this afternoon I saw a “bulletin” from the English newspaper, Antiques Trade Gazette which stated that Sotheby’s was going to close their Olympia middle priced auction facility in London, with the caveat that they would only be selling items with a minimum value of £3,000.00, approximately $6,000.00. My first reaction was that this would help smaller auctions get consignments and maybe even give dealers that same opportunity.  Second, how quickly would Christie’s do the same? But upon reflection, there is a much bigger motivation for the…

(Following is a letter I sent to the publisher the Maine Antiques Digest and Steve Proffitt who writes a monthly column titled “Auction Law and Ethics”.  He raised issues that I felt needed to be rebutted.  See if you agree) Mr. Proffitt, I follow your articles with great interest, as you reach a wide and knowledgeable audience; however, I find you have several flaws and biases in your last article supporting the buyer’s premium. Your suggestion that the buyer’s premium was designed “to lure sellers at auction” is absurd.  Even the most ardent auctioneer will first acknowledge the 3 D’s (death, divorce, and debt) as historically the prime motivation to consign.  A collector…