The Auction Result Is Not the Seller's Proceeds

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Sotheby’s kicked off this week’s Modern and contemporary art auctions with a sprightly evening sale that made a total of £77.9m (£93.3m with fees, est £75.5m-£104.5m). Top lot was Jean-Michel Basquiat’s appropriately titled “Apex” (1986), which nudged ahead of its presale estimate to sell for £7.1m (£8.3m with fees). Back in 1988, this work sold for £16,500. Other seven-figure sums reached on Tuesday evening included Lucian Freud’s small “Head of a Boy” (1956), a painting that had been owned by its late subject, the Guinness heir Garech Browne, and which sold for within its already punchy estimate for £4.9m (£5.8m with fees). Much of the action was unsurprising — both works were among 22 lots out of the 66 offered that carried third-party guarantees (a further four works were guaranteed by the auction house and all sold). A sell-through rate of 91 per cent is nonetheless impressive. The only hiccup came when a bidder in the room ostensibly bought Philip Guston’s “Lamp” (1979) for £1.5m and then — waving a champagne glass instead of an official paddle — proved a false buyer. Auctioneer Oli Barker coolly re-offered the lot later on, when it sold to its third-party guarantor for £1.4m (£1.7m with fees). Christie’s equivalent auction felt faster-paced on Wednesday and also sold well (93 per cen

I was most intrigued by one finding of Sotheby’s recent report, Peak Performance, compiled by ArtTactic, which recorded sales in the $1m+ tranche over the period 2018-22. The report, using internal information from Sotheby’s private sales data, said that contemporary art accounted for the largest share of the firm’s private sales—almost 60%! I would have expected Impressionist and Modern art to represent the biggest chunk, and indeed it accounted for just over half of sales by value in the $1m+ category. However, as David Schrader, the firm’s global head of private sales, explained to me, “The number of transactions is much higher in the contemporary field, and this is a much more active market, which is why it is larger in volume.” For the record, his department turns over between $1bn and $1.5bn each year. Drilling down, it was interesting to hear that shortening cycles in the art market are driving this trend. Schrader again: “The cycles are compressing, and the market for some artists may change in six months’ time. Vendors may not want to wait for a suitable auction, they may want to sell immediately.” There could be no clearer indication of how volatile this market can be, particularly for the “wet paint” or "ultra-contemporary" works of art. Owners may want to grab their profit while they can. And in view of the current uncertain economic climate, with banks crashing aro

Whether selling art, jewellery or watches, one of the first decisions is how to bring the work to market, with auction and private sale being the two principal routes. Both offer access to specialist expertise and an international network of collectors, but the right approach depends on the work, current market demand and the seller’s objectives. An auction is a public sale where multiple buyers compete for an artwork or object, with bidding determining the final price. Christie’s holds regular auctions in more than 80 art and luxury categories, both live and online. At live auctions, bidders can participate in person, by telephone, online or through absentee bids. The auctioneer introduces each lot and takes the bids. For online-only auctions, the bidding takes place on christies.com over several days. If bidding meets the reserve price — the minimum amount the seller is willing to accept — the lot is sold to the highest bidder. Private sales offer a more discreet, bespoke alternative, selling fine art and objects outside of the auction room. Christie’s specialists draw on their global network to connect buyers and sellers, negotiating and brokering transactions directly between them. The key advantage of auction is competition. Rather than agreeing a price with a single buyer, multiple collectors can compete for the same work. When there is strong demand, this can drive the f