The current issue of the Antiques Trade Gazette has a feature article discussing the now former practice of auction houses providing consignors of stellar lots guaranteed minimums. In earlier blogs, I’ve mentioned how the major houses have lost their shirts in this practice, competing with each other to lure consignments. Consequently, when an item is put up for auction, it’s auction estimate is less a function of market price than it is how much the auction house already has invested in it.
Presumably both Christie’s and Sotheby’s got carried away, and hoped that, with the stratospheric prices guaranteed lots would have to realize, their own euphoria would infect buyers. For much of 2008, this sort of contagion didn’t take place, with Christies and Sotheby’s on the ropes as a consequence, and the Phillips de Pury, who should have known better, acquired by a Russian luxury retailer, Mercury Group, exchanging debt for equity.
I mention all this in light of the Los Angeles Art Show, organized by the Fine Art Dealers Association, previewing tonight and running through this Sunday, January 25. At all levels of collecting, this sort of fair should be part of everyone’s agenda. A vetted fair, material at all price levels, from $500 to $5,000,000 represents quality and value for money. Comparison shop, why don’t you, and then deal with the dealers. It is all for sale. Take it out to your home, see if it works, and bring it back if it doesn’t. Need to consult with one of the dealers about your collection? Why don’t you do that, too- it doesn’t cost anything and they’re all experts. 
And, frankly, frequently more expert than the auction houses. After all, the art inventory on the show floor represents their own stock in trade, purchased with their own money and they tend to be naturally more careful in consequence. And, no sub-rosa ‘guarantees’ affecting prices. I haven’t met a dealer yet, at least any one who has managed to stay in business, who wasn’t careful about pricing. Items are priced to sell, but, as I always inquire of interested parties if I encounter price resistance, ‘What sort of price works for you?’