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jerryking : auctions   48

5 Ways to Value Your Collection, Whether It’s Fine Wine or Shrunken Heads
March 1, 2019 | The New York Times | By Paul Sullivan.

Collectible assets include wine, spirits, coins, trading cards as well as more unusual items, like lighters, belt buckles and even shrunken heads. These collections cost money and time to assemble and certainly have a value to their owners, but can they be considered legitimate investments? That depends on the market.

For many collectors, the only option to buy, sell or even value these assets is through online auction platforms like eBay or enthusiast sites, but for others, their possessions are treated as fine art.......the market for collectibles, which are often valued in the millions of dollars, may not always be so easy to weather. It can experience sudden surges that put desired items out of the reach of true collectors or it can collapse, wiping out the gains speculators thought they had made.

In an economic slowdown, how these investments are treated depends on supply and demand as well as unpredictable forces like fashion and popularity.....Collectibles can be broken into categories determined by provenance, rarity and even a moment in time. Here are five issues to consider when weighing the investment potential of your collection.....
(1) The standouts in the crowd - Leading the pack are high-quality items that have broad name recognition.
(2) High risk, high reward -
(3) Not all collectibles are investments- jewelry is not an investment....because the market is driven too much by changing fashion.
(4) Obscure and difficult to sell - establish the value of esoteric collections by using third-party appraisers. But insurance companies like A.I.G. value these collections by their replacement value, not by the price someone would pay for them.
(5) A market downturn - =hether it’s shrunken heads, 1,000 bottles of wine or sheets of trading cards, a ready buyer may not be available — or may want to pay much less (i.e. a step change in the valuation).
collectibles  collectors  high-risk  howto  obscure  valuations  AIG  auctions  assets  brands  eBay  economic_downturn  esoteric  fine_arts  high-end  high-quality  investing  investments  passions  step_change  unpredictability  wine  whisky  online_auctions 
march 2019 by jerryking
Boom amid the bust: 10 years in a turbulent art market | Financial Times
July 27, 2018 | FT| by Georgina Adam.
September 15 2008, the date of Lehman Brothers' bankruptcy filing, was also the first day of a spectacular gamble by artist Damien Hirst, who consigned 223 new works to Sotheby’s, bypassing his powerful dealers and saving millions by cutting out their commissions........The two-day London auction raised a (stunning) total of £111m.......o the outside world, though, the Hirst auction seemed to indicate that despite the global financial turmoil, the market for high-end art was bulletproof....in the wake of the Hirst sale, the art market took a severe dive.... sales plunging about 41% by 2009, compared with a market peak of almost $66bn in 2007. Contemporary art was particularly badly hit, with sales in that category plunging almost 60 % over 2008-09. Yet to the surprise, even astonishment, of some observers, the art market soon started a rapid return to rude health...the make-up of the market has changed. The mid-level — works selling between $50,000 and $1m — has been sluggish, and a large number of medium-sized and smaller galleries have been shuttered in the past two years. However, the high-performing top end has exploded, fuelled by billionaires duelling to acquire trophy works by a few “brand name” artists....A major influence on the market has been Asia....What has changed in the past 10 yrs. is what Chinese collectors are buying. Initially Chinese works of art — scroll paintings, furniture, ceramics — represented the bulk of the market. However, there has been a rapid and sudden shift to international modern and contemporary art, as shown by Liu and other buyers, who have snapped up works by Van Gogh, Monet and Picasso — recognisable “brand names” that auction houses have been assiduously promoting......Further fuelling the high end has been the phenomenon of private museums, the playthings of billionaires....In the past decade and even more so in the past five years, a major stimulus, mainly for the high end, has been the financialization of the market. Investment in art and art-secured lending are now big business....In addition, a new layer of complexity is added with “fractional ownership” — currently touted by a multitude of online start-ups. Often using their own cryptocurrencies, companies such as Maecenas, Feral Horses, Fimart or Tend Swiss offer the small investor the chance to buy a small part of an expensive work of art, and trade in it.....A final aspect of the changes in the market in the past decade, and in my opinion a very significant one, is the blurring of the art, luxury goods and entertainment sectors — and this brings us right back to Damien Hirst....Commissions are probably also lucrative. E.g. a Hirst-designed bar called Unknown was unveiled recently in Las Vegas’s Palms Casino Resort. It is dominated by a shark chopped into three and displayed in formaldehyde tanks, and surrounded by Hirst’s signature spot paintings. Elsewhere, Hirst’s huge Sun Disc sculpture, bought from the Venice show, is displayed in the High Limit Gaming Lounge. ...So Hirst neatly bookends the decade, whether you consider him an artist — or a purveyor of entertainment and luxury goods.
art  artists  art_finance  art_market  auctions  boom-to-bust  bubbles  contemporary_art  crypto-currencies  Christie's  Damien_Hirst  dealerships  entertainment  fees_&_commissions  fractional_ownership  high-end  luxury  moguls  museums  paintings  Sotheby's  tokenization  top-tier  trophy_assets  turbulence 
july 2018 by jerryking
How Financial Products Drive Today’s Art World
July 20, 2018 | The New York Times | By Scott Reyburn.

How does one invest in art without going through the complications of buying and owning an actual artwork?

That is the question behind financial products for investors attracted by soaring art prices but intimidated by the complexity and opacity of the market..... entrepreneurs are trying to iron out the archaic inefficiencies of the art world with new types of financial products, particularly the secure ledgers of blockchain...... “More transparency equals more trust, more trust equals more transactions, more transactions equals stronger markets,” Anne Bracegirdle, a specialist in the photographs department at Christie’s, said on Tuesday at the auction house’s first Art & Tech Summit, dedicated to exploring blockchain......blockchain’s decentralized record-keeping could create a “more welcoming art ecosystem” in which collectors and professionals routinely verify the authenticity, provenance and ownership of artworks on an industrywide registry securely situated in the cloud...... blockchain has already proved to be a game-changer in one important area of growth, according to those at the Christie’s event: art in digital forms.

“Digital art is a computer file that can be reproduced and redistributed infinitely. Where’s the resale value?”.....For other art and technology experts, “tokenization” — using the value of an artwork to underpin tradable digital tokens — is the way forward. “Blockchain represents a huge opportunity for the size of the market,” said Niccolò Filippo Veneri Savoia, founder of Look Lateral, a start-up looking to generate cryptocurrency trading in fractions of artworks.

“I see more transactions,” added Mr. Savoia, who pointed out that tokens representing a percentage of an artwork could be sold several times a year. “The crypto world will bring huge liquidity.”......the challenge for tokenization ventures such as Look Lateral is finding works of art of sufficient quality to hold their value after being exposed to fractional trading. The art market puts a premium on “blue chip” works that have not been overtraded, and these tend to be bought by wealthy individuals, not by fintech start-ups.....UTA Brant Fine Art Fund, devised by the seasoned New York collector Peter Brant and the United Talent Agency in Los Angeles.

The fund aims to invest $250 million in “best-in-class” postwar and contemporary works,...Noah Horowitz, in his 2011 primer, “Art of the Deal: Contemporary Art in a Global Financial Market,”.... funds, tokenization and even digital art are all investments that don’t give investors anything to hang on their walls.

“We should never forget that in the center of it all is artists,”
art  artists  art_advisory  art_authentication  art_finance  auctions  authenticity  best_of  blockchain  blue-chips  books  Christie's  collectors  conferences  contemporary_art  digital_artifacts  end_of_ownership  fin-tech  investing  investors  opacity  post-WWII  provenance  record-keeping  scarcity  tokenization  collectibles  replication  alternative_investments  crypto-currencies  digital_currencies  currencies  virtual_currencies  metacurrencies  art_market  fractional_ownership  primers  game_changers 
july 2018 by jerryking
Christie’s Jussi Pylkkanen and superauctions
NOVEMBER 10, 2015 | FT | John Gapper.

....Of all his crafty sales tactics, the one used to greatest effect by Christie’s 52-year-old global president — the auctioneer on top of the wave of wealth in the world’s art market — is the query: “Are you sure?” He asks it as one of the last two bidders in an auction drops out, threatening to finish it. As he halts the action for a few seconds — what he calls “the auctioneer’s pause” — pressure builds on the reluctant bidder.

'Are you sure, sir?'

Auctions are unusual in the 21st century - most things, even luxury items such as watches and clothes, sell at fixed prices although there is some room to haggle. Even many items on eBay, the electronic platform, are sold at fixed prices. In The Dynamics of Auction , Christian Heath, a professor of work at King's College, London, describes them as "a somewhat anachronistic method of selling goods, more common perhaps to traditional agrarian societies than post-industrial capitalism."

They are still used for art because every painting is different and has no intrinsic value - it does not yield anything and the cost of manufacture is usually tiny. They are also a good way to get high prices - when buyers compete against a deadline, they behave differently. The desire not only to acquire it but to beat others causes what Deepak Malhotra, a Harvard professor, terms the "emotional arousal" of auctions.

"We know that the Modigliani [being sold on Monday] is the artist's greatest work," says Pylkkanen, never short of an extravagant compliment for his inventory. "We know that it was painted in 1917. We know that it is being sold 100 years later, and that nobody in their lifetime has had an opportunity to buy it on the open market. We're all individuals and when we get a chance, it's like, 'That's the one. I've got to go [for it].' "

The task of the auction house is to gather as many people as possible - especially wealthy people - in a saleroom, or on the end of a phone line to the room, and to create the atmosphere for such moments to occur. The auctioneer must be charming, relaxed, and pleasantly ruthless. "You need poise, control and an element of openness because you're inviting people to this thing. You're making them compete without pushing too hard."
art  art_market  auctions  books  Christie’s  collectors  collectibles  high_net_worth  intrinsic_value  Jussi_Pylkkanen  power_of_the_pause  pricing  sales_tactics 
may 2018 by jerryking
Art market ripe for disruption by algorithms
MAY 26, 2017 | Financial Times | by John Dizard.

Art consultants and dealers are convinced that theirs is a high-touch, rather than a high-tech business, and they have arcane skills that are difficult, if not impossible, to replicate..... better-informed collectors [are musing about] how to compress those transaction costs and get that price discovery done more efficiently.....The art world already has transaction databases and competing price indices. The databases tend to be incomplete, since a high proportion of fine art objects are sold privately rather than at public auctions. The price indices also have their issues, given the (arguably) unique nature of the objects being traded. Sotheby’s Mei Moses index attempts to get around that by compiling repeat-sales data, which, given the slow turnover of particular works of art, is challenging.....Other indices, or value estimations, are based on hedonic regression, which is less amusing than it sounds. It is a form of linear regression used, in this case, to determine the weight of different components in the pricing of a work of art, such as the artist’s name, the work’s size, the year of creation and so on. Those weights in turn are used to create time-series data to describe “the art market”. It is better than nothing, but not quite enough to replace the auctioneers and dealers.....the algos are already on the hunt....people are watching the auctions and art fairs and doing empirics....gathering data at a very micro level, looking for patterns, just to gather information on the process.....the art world and its auction markets are increasingly intriguing to applied mathematicians and computer scientists. Recognising, let alone analysing, a work of art is a conceptually and computationally challenging problem. But computing power is very cheap now, which makes it easier to try new methods.....Computer scientists have been scanning, or “crawling”, published art catalogues and art reviews to create semantic data for art works based on natural-language descriptions. As one 2015 Polish paper says, “well-structured data may pave the way towards usage of methods from graph theory, topic labelling, or even employment of machine learning”.

Machine-learning techniques, such as software programs for deep recurrent neural networks, have already been used to analyse and predict other auction processes.
algorithms  disruption  art  art_finance  auctions  collectors  linear_regression  data_scientists  machine_learning  Sotheby’s  high-touch  pricing  quantitative  analytics  arcane_knowledge  art_market 
june 2017 by jerryking
Modern African Art Is Being Gentrified
MAY 20, 2017 | The New York Times | By CHIKA OKEKE-AGULU.

.Sotheby’s held its first auction of modern and contemporary African art on Tuesday, where 83 pieces by artists from Cameroon to South Africa sold for a total of nearly $4 million.....The sale at Sotheby’s, the granddaddy of auctioneers, most likely signals the beginning of a more serious interest from Western museums, which may finally start to consider such work worthy of inclusion in their permanent collections........Now that it is seen as high culture, the art and artists are gaining value, investors are jostling to get a piece of the action, and private collections are growing in Africa and around the world.....African contemporary artists have also moved beyond nationalism and are more likely to sound off about globalization and complex identities. But the continent’s masses will be the biggest losers. ...That’s because whole countries in Africa cannot boast of a single art museum of any renown......During the colonial era, bands of looters — missionaries, scholars, security forces and fortune hunters — fanned out across the continent and, by force or guile, carted away vast quantities of Africa’s artistic heritage. Many of these masterpieces of ancient and traditional African sculpture now reside in major private and public collections in the West, with little chance of ever returning to Africa......We cannot let this history repeat itself. But what is to be done?

African collectors and those based in Africa must participate in this market, for it is more likely that their collections will stay on the continent......As Africa overcomes years of dictatorships and civil wars, its fledgling democracies have seen the rise of a wealthy, cosmopolitan class interested in supporting art and culture........The spread of private collections is, however, not the long-term goal. Rather, it is a step toward a future in which well-run public collections are supported by governmental and nongovernmental institutions.....and thus serve the greater cultural good........Even so, Africa cannot solely rely on the good will of individual collectors. State agencies and municipal governments must foster a richer cultural experience for their citizenry. And they can do this by building and maintaining museums in major cities. The usual practice of treating art and culture as a superfluous aspect of the human experience undeserving of public support is not tenable.

If museums exist and are run well, the art will come.
Sotheby's  Africa  museums  collectors  collectibles  human_experience  patrons  art  artists  artwork  auctions  contemporary_art  gentrification 
may 2017 by jerryking
Little Brother
Sep 11th 2014 | The Economist | Alexandra Suich.

In 1963 David Ogilvy, the father of Madison Avenue and author of a classic business book, “Confessions of an Advertising Man”, wrote: “An advertisement is like a radar sweep, constantly hunting new prospects as they come into the market. Get a good radar, and keep it sweeping.”.....Behavioural profiling has gone viral across the internet, enabling firms to reach users with specific messages based on their location, interests, browsing history and demographic group......Extreme personalisation in advertising has been slow to come... online advertising space is unlimited and prices are low, so making money is not as easy as it was in the offline world,.....Digital advertising is being buoyed by three important trends. The first is the rise of mobile devices, such as smartphones....The second, related trend is the rise of social networks such as Facebook, Twitter and Pinterest, which have become an important navigation system for people looking for content across the web. ......The third big development has been the rise of real-time bidding, or “programmatic buying”, a new system for targeting consumers precisely and swiftly with online adverts. Publishers, advertisers and intermediaries can now bid for digital ads electronically and direct them to specific consumers at lightning speed.....The lines between established media businesses are becoming blurred. Richard Edelman, the boss of Edelman, a public-relations firm, describes the media and advertising business as a “mosh pit”. .... clients’ biggest question is whether people will even notice their ads. ...This special report will show that technology is profoundly changing the dynamics of advertising. Building on the vast amount of data produced by consumers’ digital lives, it is giving more power to media companies that have a direct relationship with their customers and can track them across different devices. ....Consumers may gain from advertising tailored to their particular needs, and so far most of them seem content to accept the ensuing loss of privacy. But companies are sensitive to the potential costs of overstepping the mark. As the head of one British advertising firm puts it: “Once people realise what’s happening, I can’t imagine there won’t be pushback.”
Facebook  Twitter  Pinterest  Ogilvy_&_Mather  David_Ogilvy  behavioural_targeting  pushback  books  effectiveness  haystacks  privacy  native_advertising  ad-tech  Conversant  Kraft  personalization  trends  mobile_phones  smartphones  social_media  real-time  auctions  programmatic  advertising  online_advertising  Omnicom 
february 2017 by jerryking
Buy, buy, baby
Sep 13th 2014 | The Economist

The advertising industry is going through something akin to the automation of the financial markets in the 1980s. This has helped to make advertising much more precise and personalised. Some advertising agencies and media companies have told their executives to read “Flash Boys” by Michael Lewis, a book about Wall Street’s high-speed traders, to make quite sure they get the message......Real-time bidding sounds high-tech but straightforward. When a consumer visits a website, his browser communicates with an ad server. The server sends a message to an exchange to provide data about that user, such as his IP address, his location and the website he is visiting. Potential ad buyers send their bids to the exchange. The highest one wins and an ad is served when the website loads. All this typically takes about 150 milliseconds.

In reality, though, the ad-tech ecosystem is stupefyingly complex. Luma Partners, an investment bank, has put together the "Lumascape", a bafflingly crowded organisational chart showing several hundred firms competing in this market. Sellers of advertising space often go through technology firms: a "supply-side platform" (SSP) helps publishers sell their inventory, and a "demand-side platform" (DSP) gives access to buyers. Many choose a data-management platform (DMP) to store and buy information about users.

Advanced behavioural targeting, which uses technology to reach specific users with the desired characteristics, helped advertisers increase their return on investment by 30-50%. One popular tactic is "retargeting", which allows advertisers to look for people who have visited their website before and show them an ad related to an item they were looking for but did not buy.
online_advertising  programmatic  advertising  advertising_agencies  LBMA  behavioural_targeting  location_based_services  automation  real-time  algorithms  ad-tech  auctions  ROI 
february 2017 by jerryking
Auction houses embracing digital technology to sell to the new global rich
SEPTEMBER 18, 2014 by: John Dizard.

....The auction houses have been under pressure to adapt to this changing universe. While the most visible aspect of the houses’ digital revolution may be their online auctions, the most essential is in the systematising and networking of their customer, market and lot information. Without that, the auctioneers would lose control of their ability to charge gross margins in the mid-teens as intermediaries of the $30bn global art auction market....Within the quasi-duopoly of Christie’s and Sotheby’s at the top of the auction world, Christie’s has now moved to implement what it calls its “digital strategy”....Christie’s now has James Map (as in founder James Christie), a sort of private internal social network that allows specialists, client service staff, support staff and executives to see what is known about a client and his tastes. Past auction records, relatives’ purchases and sales, statistical inferences on how likely clients are to move from buying an expensive watch online to participating in a high-end evening sale – it all can be in the mix.

The idea, Murphy explains, was “to create an internal app that spiders into our database of information and brings up on our internal [screen] environment lots of connectivity. This is faster and better than the email chains [that it replaced].”....This summer, Sotheby’s announced a partnership with eBay, the online auction giant. While the details of the partnership are still being developed, it is understood eBay will distribute live Sotheby’s auctions to its global audience of 150m buyers.

Ken Citron, Christie’s head of IT

The digital strategy is also making it easier to take part in auctions. Even with all the unseen know-your-customer checks now required by financial supervisory agencies, it has become much faster and easier to register as an auction house client. About half now do so online.

But while the online revolution may have left some auction houses behind, for others it is generating new business. Auction houses used to regard the sale of smaller, cheaper objects from, for example, estate liquidations as an annoying loss-leader business that just wasted their specialists’ time. Now, however, many are making money selling objects for $2,000-$3,000; it’s just a matter of cutting transaction costs. “We have a new app with which you can take a picture, push a button, and it goes to a specialist, with a description. Then the specialist can decide if it might fit into an auction,” says Citron.
auctions  Sotheby's  Christie's  data  art  collectors  high_net_worth  partnerships  eBay  duopolies  digital_strategies  CRM  IT  margins  intermediaries  internal_systems  loss-leaders  transaction_costs  cost-cutting  know_your_customer  Bottom_of_the_Pyramid  estate_planning  liquidity_events  online_auctions  digital_revolution 
november 2016 by jerryking
The Dynamics of Auction | Organisational Sociology | Cambridge University Press
Each year art and antiques worth many billions of pounds are sold at auction. These auctions consist of numerous, intense episodes of social interaction through which the price of goods rapidly escalates until sold on the strike of a hammer. In this book, Christian Heath examines the fine details of interaction that arises at auctions, the talk and visible conduct of the participants and their use of various tools and technologies. He explores how auctioneers, buyers and their representatives are able to transact the sale of diversely priced goods in just seconds. Heath addresses how order, trust and competition are established at auctions and demonstrates how an economic institution of some global importance is founded upon embodied action and interaction. The analysis is based on video recordings of sales of art and antiques gathered within a range of national and international auction houses in Europe and the United States.

Highly distinctive contribution to understanding talk and interaction in work and organisation
Unique analysis of embodied interaction and multimodal communication
Contributes to understanding of economic action and the operation of markets
books  auctions  art  antiques 
november 2016 by jerryking
Anatomy of a Hit: How Success Is Measured in Different Creative Fields - Speakeasy - WSJ
Dec 18, 2015 | WSJ | By JON KEEGAN. How do you define a hit podcast, Broadway show or typeface? Explore the nature of cultural hits.

when it comes to other cultural works, defining a hit is not as easy. We set out to explore how success is measured—what factors matter in assessing a hit in various creative categories ranging from books to tweets:

Audience – How many people viewed the work?
Sales – How much money was made?
Longevity – How long has the work been available?
Critical acclaim – What praise did the work receive?
art  creative_class  hits  measurements  music  paintings  blockbusters  entertainment  entertainment_industry  creative_economy  auctions  YouTube  Twitter 
december 2015 by jerryking
How to Buy Art: A Beginner’s Cheat Sheet - NYTimes.com
MAY 7, 2015 | NYT| By WILLIAM GRIMES and ROBIN POGREBIN.

EDUCATE YOUR EYE Go see as much as you can — at galleries, museums and art fairs and by trolling online. The more art you see, the more you will develop clear judgment. Knowledge can help put things in context, but expertise isn’t a prerequisite. Marc Glimcher, president of Pace Gallery, says: “Go to a museum first and see what speaks to you. Identify which thread of art history is meaningful to you before heading to the galleries or the auction.”

Photo

THE LONG VIEW Budding collectors shouldn’t just buy what initially captivates them. “Ask yourself how something might look when you know more, how something might look over time,” said Amy Cappellazzo, co-founder of Art Agency, Partners, an art advisory firm. “The best thing to do is put yourself in a position where the first purchase actually challenges you a little — you’re not sure you like something, but you can’t stop looking at it. Imagine your smarter self looking at it in five years.”
auctions  art  artwork  art_galleries  museums  howto  self-education  judgment  Colleges_&_Universities  art_schools  students  contextual  long-term  collectors  collectibles  investing  investment_advice  pitfalls  mistakes 
may 2015 by jerryking
With Misattributed Constable Masterpiece, a Rare Look Into the Imprecise World of Art Identification - NYTimes.com
By LORNE MANLY MARCH 7, 2015

At a time when the attribution of paintings can be so litigious that many experts have retreated from the field, the startling reassessment of the “Cathedral,“ and its sudden explosion in value, provides a rare window into the often imprecise, and debate-riddled, field of identifying the authorship of artworks.

The Metropolitan Museum of Art has twice changed its mind in the past four decades over whether its portrait of Philip the IV is a masterpiece by Velázquez (the current view), or a fine painting by an also-ran. Sotheby’s was sued after it sold what it had determined to be a copy of Caravaggio’s “The Cardsharps” for £42,000 (about $83,000) in 2006, only to have a scholar later declare it was actually by the master himself.

This time it is Christie’s that is facing questioning over whether it bungled the attribution of a painting. “We understand that there is no clear consensus of expertise on the new attribution,” the company said in a statement.
art  artwork  art_history  art_appraisals  art_authentication  auctions  imprecision  painters  paintings  provenance  Sotheby's 
march 2015 by jerryking
The Art World’s High-Roller Specialist - WSJ - WSJ
Nov. 6, 2014 | WSJ | By KELLY CROW.

Ms. Xin is a leading player in the art business’s central game right now: a race to match a small number of $10 million-plus masterpieces with a small number of mega-collectors, who are increasingly coming from Asia.

Ms. Xin is one of the latest auction stars to emerge amid this high-stakes backdrop. Her profile rocketed after she helped her contemporary-art clients place bids or win half of Christie’s top 10 priciest works in May. Nearly 6 feet tall, she was easy to spot standing between colleagues in the saleroom’s phone banks, wielding three cellphones at a time and lobbing bids at a regular clip. By sale’s end, she helped her Chinese clients win as much as $236 million of art. François Curiel, a four-decade veteran of the firm, said he’s never seen one specialist account for that large a haul in a sale.

Ms. Xin’s quick ascent comes amid China’s expanding clout on the global art stage. Most specialists are art experts who build up a career doggedly over decades. Ms. Xin, however, never saw a work of art until she was 19. But since she joined the auction business nearly seven years ago, she has homed in on finding masterpieces—and collectors who could afford them.
art  art_advisory  auctions  China  Chinese  Christie's  collectibles  collectors  economic_clout  high_net_worth  match-making  Sotheby's 
november 2014 by jerryking
My eBay MBA: a dozen business lessons from online auctions - FT.com
August 25, 2014 | FT | By Lucy Kellaway.
My eBay MBA: a dozen business lessons from online auctions.

1. Trust is vital . . .
2. Consumers are sometimes irrational
3 . . . and sometimes dead sensible
4. Jargon and hyperbole subtract value
5. Spelling matters
6. Accentuate warts
7. Arbitrage opportunities are plentiful
8. Do something you love
9. Study the data
10. The human touch is vital
11 Innovation is overrated
12. Tell stories
What they don’t teach you at eBay Business School . . .
. . . is how to network.
eBay  lessons_learned  Lucy_Kellaway  auctions  networking  overrated  trustworthiness  storytelling  irrationality  spelling  arbitrage  jargon  online_auctions 
august 2014 by jerryking
Sotheby's and Christie's Race to Find New Art Collectors - WSJ
By KELLY CROW CONNECT
July 31, 2014

If you're even remotely curious about starting a blue-chip art collection, there's a good chance the world's biggest auction houses already know who you are, and exactly how much you might spend to own a masterpiece. Gone are the days when auctioneers simply mailed sale catalogs to strangers after reading reports of their newfound fortunes. Today, climbing art values and an influx of new international collectors have thrown Sotheby's BID -1.32% and Christie's into a global frenzy of research and genuflection. They've dispatched armies of experts to identify potential bigwigs, and satisfy their ever-expanding art whims.

A third of Sotheby's 1,550 employees are assigned to look after at least 9,000 top collectors, a job that entails everything from researching bidders' financial standing to digging through catalogs for objects that might intrigue them...Behind the scenes, auction houses say they are ferreting out collectors by teaming up with insurers to offer art appraisals. In India, Christie's joined with a luxury hotel chain to tap its Rolodex two years ago, in exchange for giving occasional art lectures at several hotels.
Sotheby's  Christie's  art  collectors  auctions  insurance  art_appraisals  whims  blue-chips 
july 2014 by jerryking
The Christie’s Auctioneer Jussi Pylkkanen on Working the Room - NYTimes.com
Interview by ANDREW ROSS SORKIN
Published: January 3, 2014

How much do you think the auctioneer affects sale prices?
It’s very difficult to judge, but I think that a good auctioneer can certainly bring 20 percent to the value of major works of art.

Just as Detroit finally seems to be at the beginning of a revival, it faces the prospect of trying be once again be a great city without a great museum. Imagine New York without the Met, or Chicago without the Art Institute. If the DIA is forced down this road, the very collectors mentioned above, from Asia, Russia, and the Middle East, will snap up a collection that has required 128 years and the generosity and foresight of thousands of people to create, and which would likely never be seen in public again.
Andrew_Sorkin  collectors  art  auctions  Christie's  foresight  long-term  museums  far-sightedness  Detroit  generosity 
january 2014 by jerryking
The Francis Bacon indicator? Art world soaks up excess cash
Nov. 19 2013 | The Globe and Mail The Globe and Mail | BRIAN MILNER.

Investors, collectors and dealers forked out nearly $1.2-billion (U.S.) last week – far above industry expectations – for a handful of illustrious names at the fall contemporary art auctions in New York. ...Art market experts, just like their counterparts in commodities, real estate, stocks and bonds, insist this is no bubble: The market is healthy, demand is growing and supply is limited....But the rich are eagerly parting with their money for art for a variety of personal and financial reasons. As a rising asset in a low-interest rate world, it’s viewed as a potential hedge against future financial storms. After all, demand remained relatively stable in the aftermath of the Great Meltdown. Also, owning a famous piece of art offers a heck of a lot more prestige than buying another commercial property. And it’s a lot cheaper than trying to compete with the Russian oligarchs (who are also big art buyers) for sports franchises.
art  bubbles  collectors  auctions  high_net_worth  contemporary_art  Francis_Bacon  prestige  hedging  low-interest  art_finance  alternative_investments  art_market 
november 2013 by jerryking
Auction Houses Muscle In on Art Galleries' Turf
OCTOBER 20, 2013 |- Barrons.com|By MARY M. LANE
Auction Houses Muscle In on Art Galleries' Turf
Contemporary-Art Boom, Margin Pressures Force Christie's, Sotheby's to Evolve.

For decades, the art business thrived on a symbiosis between galleries and auction houses. Galleries and the dealers who ran them traditionally made long-term investments in discovering and developing young artists, placing their artworks with influential collectors whose patronage would further an artist's reputation and ultimately increase his selling prices.

Auction houses, for their part, provided a lucrative secondary market for the most enduring of those artworks, but rarely handled trendy new artists.
[image] Christie's Images Ltd

Sales of highly experimental works, such as 'To Meet My Past,' by Tracey Emin, typically have been handled privately; the work went for $778,900 at a Christie's auction.

Now, a boom in the contemporary-art market and margin pressures in the auction business are changing all that. Those forces are prompting the houses to experiment with new ways of auctioning art and to arrange more private sales of contemporary works outside the auction room, where profits are richer.

Increasingly Sotheby's and Christie's are catering to a new breed of art buyers from the hedge-fund world and emerging economies who prefer to quickly acquire big-name pieces of art instead of building relationships with galleries where they might buy the art more cheaply.

Last year, private-contract sales of fine art accounted for $1 billion of Christie's $6.27 billion of revenue and $906.5 million of Sotheby's $5.4 billion. That's a big jump from before the global financial crisis: In 2006, Christie's sold $256 million of art in private sales, while
art  artists  auctions  dealerships  Christie's  Sotheby's  galleries  London  collectors  patronage  art_galleries  secondary_markets  hedge_funds  symbiosis  contemporary_art 
october 2013 by jerryking
Max Levchin talks about data, sensors and the plan for his new startup(s) — Tech News and Analysis
Jan. 30, 2013 | GigaOm |By Om Malik.

“The world of real things is very inefficient: slack resources are abundant, so are the companies trying to rationalize their use. Über, AirBnB, Exec, GetAround, PostMates, ZipCar, Cherry, Housefed, Skyara, ToolSpinner, Snapgoods, Vayable, Swifto…it’s an explosion! What enabled this? Why now? It’s not like we suddenly have a larger surplus of black cars than ever before.

Examine the DNA of these businesses: resource availability and demand requests — highly analog, as this is about cars, drivers, and passengers — is captured at the edge, automatically where possible, then transmitted and stored, then processed centrally. Requests are queued at the smart center, and a marketplace/auction is used to allocate them, matches are made and feedback is given in real time.

A key revolutionary insight here is not that the market-based distribution of resources is a great idea — it is the digitalization of analog data, and its management in a centralized queue to create amazing new efficiencies.”
massive_data_sets  data  Max_Levchin  radical_ideas  sensors  start_ups  incubators  San_Francisco  sharing_economy  analog  efficiencies  meat_space  data_coordination  match-making  platforms  Om_Malik  resource_management  underutilization  resource_allocation  auctions  SMAC_stack  algorithms  digitalization 
february 2013 by jerryking
Christie's Chairman Amy Cappellazzo | Tracked - WSJ.com
November 29, 2012, |WSJ Magazine | By ADRIENNE GAFFNEY.
Amy Cappellazzo
Equal parts curator, business guru and aesthetic matchmaker, the art-world heavyweight is remaking Christie's into a 21st-century auction house—and sales have never been better
auctions  Christie's 
december 2012 by jerryking
Connery, Pissarro, Seydoux - Dealers in a New Partnership - NYTimes.com
Partners Create a Superdealership
By CAROL VOGEL
Published: September 6, 2012
art  auctions  dealerships  partnerships 
september 2012 by jerryking
Trends in Private Equity
Winter 2004 | Journal of Wealth Management | by Mark Anson
trends  private_equity  auctions  secondary_markets  LBOs  hedge_funds 
september 2012 by jerryking
How buyout auctions work
Mar 1, 2004 | European Venture Capital Private Equity Journal | by Lisa Bushrod.

The classic buyout auction works as a three-stage auction. In stage one the business is prepared for disposal and buyers are identified among trade and private equity firms. Then buyers are asked to come forward with a firmer bid and final offers are made. The final selection then takes place and in the third stage the final bidder works for a period of exclusivity, when the legal and financial due diligence takes place.
LBOs  auctions  howto 
august 2012 by jerryking
Even a Losing Bid Can Pay Off
November 18, 1996 |WSJ pg A12 | by Adam Brandenburger, a professor at Harvard Business School. Barry Nalebuff is a professor at Yale School of Management. They are the authors of "Co-opetition " (Currency/Doubleday, I996).

What might you have done differently? You could have bid lower. but there's no guarantee that would have worked any better. The problem with the strategy was more basic. The right question to ask is: How important is it to the customer that you bid? If your bidding is important-even if the customer is just trying to gain leverage against his current supplier—then you should get compensated for playing the game.
game_theory  pricing  questions  strategy  coopetition  Monsanto  negotiations  auctions  Adam_Brandenburger  Barry_Nalebuff 
august 2012 by jerryking
Crisis fails to dampen art service demand at banks
Oct 17, 2008 | Reuters | By Jo Winterbottom.

The art advisory service belongs to the overall wealth management offer. I don't think it will be cut back," said Karl Schweizer, head of art banking and numismatics at UBS.
high_net_worth  private_banking  collectibles  collectors  wealth_management  art  art_advisory  precious_metals  valuations  auctions  affluence  investment_advice  banks 
august 2012 by jerryking
Crovitz: 'Spectrum Auctions'—There's an App for That - WSJ.com
July 18, 2011 | WSJ | By L. GORDON CROVITZ

Spectrum Auctions? There's an App for That
It only took 50 years for the feds to realize that economist Ronald Coase was right.
L._Gordon_Crovtiz  economists  auctions  wireless  wireless_networks  Ronald_Coase  wireless_spectrum  Coase's_Law 
july 2012 by jerryking
Forbes.com: Queen Of Arts
Dirk Smillie, 01.10.05

Louise MacBain is buying up art publications around the world. Squeezing money from these titles will be an art in itself.
Louise Blouin MacBain just hates talking about her social life, which involves tabloid-fodder like dating Prince Andrew, entertaining Bianca Jagger and hosting dinner parties for European royalty.

What she really wants to gab about is her latest collecting passion. Over the past two years her Bermuda investment company, LTB Holdings, has snapped up 160 art titles in 20 countries, including the dominant Art + Auction magazine. That already makes her one of the biggest art publishers in the world.

Now she is laying out $20 million to launch a Web portal this summer, a kind of Bloomberg terminal for the arts, delivering breaking news from the auction and collecting worlds. "Globalization is connecting art and its buyers everywhere," she says. "There's no central news or information source covering them."
art  magazines  HBS  information_sources  publishing  news  print_journalism  auctions  collectors 
june 2012 by jerryking
Where Do Great Ideas Come From?, Starting a Business Article - Inc. Article
Oct 15, 2002 | Inc. Magazine | By Anne Stuart | To hear these Inc 500 all-stars tell it, it's not from books or market research; it's from keeping your eyes and ears open...

57 % of the Inc 500 CEOs surveyed got the original idea for their business by spotting an opportunity in the industry they worked in.
ideas  idea_generation  flavours  start_ups  filters  overlooked_opportunities  filtration  water  auctions  accessories  maintenance  ATMs  lighting 
june 2012 by jerryking
On the Market
1 March 2012 | n + 1 | Alice Gregory.

I knew little about. In my interview, I told my future boss that I had never been able to imagine an idea that could be best expressed by painting it. “But,” I added, making exaggerated eye contact, “appreciating art doesn’t mean you can send effective emails. I can write. I can make your job easier for you.” This is the best thing to say in an interview if you are young and unqualified to do anything other than maintain a personal blog. I started three weeks later.....financial journalist Felix Salmon asserted in response that “the entire business of the art world is built on opacity and information asymmetry.” Salmon continued, “One of the weird things about conspicuous consumption in the art world is that for all that it’s conspicuous it isn’t public—outside the big public museums everybody tends to be very secretive indeed about what they own and what they don’t.”.....
art  auctions  Sotheby's  opacity  asymmetrical  conspicuous_consumption  information_asymmetry  provenance  financial_journalism  Felix_Salmon 
may 2012 by jerryking
Life continues sweetly for the .001 percent
10 November 2011 | Breakingviews | By Jeffrey Goldfarb.

Context News
The season’s art auctions ended with the sale of $316 million of contemporary and postwar art at Sotheby’s on Nov. 9. The event took place just hours after U.S. stocks tumbled 3 percent in the market’s worst day since mid-August.

“It was one of the best auctions I’ve ever seen in my life,” said Nicolai Frahm, a leading London-based contemporary art adviser. One work, “1949-A-No. 1” by Clyfford Stills fetched $61.7 million, smashing the previous record for the artist at more than twice the presale estimate.

Separately, at a Time magazine person of the year event on Nov. 9, celebrity chef Mario Batali likened bankers to Adolf Hitler and Josef Stalin. Batali later apologized, but not before news of the comments had swept across Wall Street, prompting some financiers to say they would boycott his restaurants.
auctions  high_net_worth  art  collectibles  contemporary_art  collectors  affluence  Mario_Batali  Sotheby's  the_one_percent 
november 2011 by jerryking
How sellers can attract the best buyers.
Sep/Oct 1995 | | Mergers and Acquisitions |Leonard S.Caronia.
The seller of a company should have in mind at all times the objective of attracting three or four bidders who are ready to commit to a transaction at pretty much the same point in time in order to gain the benefit of competition. A well-planned process begins with preparations for the sale and advances through a series of steps until the transaction is completed. The first step is for the business owner to make sure they have considered all other options before going ahead with a sale. The next step is to get the right kind of valuation. Other stages of the selling process include the development of a contact plan when likely buyers are determined, a presentation to be given by management, and the use of a letter of intent.
selling_a_business  memoranda  auctions  divestitures 
november 2011 by jerryking
Google Bids for Nortel Patent Portfolio - WSJ.com
APRIL 4, 2011 | WSJ | By AMIR EFRATI. Google Inc. has bid
$900 million for the broad patent portfolio held by bankrupt Canadian
telecom equipment maker Nortel Networks Corp., in an attempt by the
Internet giant to shield itself from current and future patent
litigation. Google's general counsel, Kent Walker, said Monday on the
company's blog that Nortel selected Google as the "stalking horse"
bidder, meaning it will be the "starting point against which others will
bid prior to the auction," which is expected to be held in June.
Nortel has said it has about 6,000 patent and patent applications,
including 2,600 in the U.S., that cover a range of technologies
including computer science, wireless, Internet search and online social
networking.
Google  Nortel  patents  auctions 
april 2011 by jerryking
Asher Edelman, the Art World's Gordon Gekko - WSJ.com
JANUARY 29, 2010 | Wall Street Journal | By KELLY CROW. A
former corporate raider is shaking up the market with brash tactics and
big plans as an art financier. After navigating the art world for
decades as a collector, museum director and gallery owner, Mr. Edelman
recently set up his own firm, Art Assured Ltd., to arrange art
investments.

The field of art backing is a financial Wild West these days. When the
recession upended the art market a year ago, a number of traditional
institutions like banks and auction houses pulled back from loans and
other financing deals based on the expected selling prices of fine art.
An aggressive set of boutique lenders and financiers have stepped in to
fill the gap. The most prominent art lenders operate as blue-chip
pawnshops, doling out quick cash to collectors, dealers and artists in
exchange for the right to sell the borrowers' artworks if their loans
aren't repaid.
art  art_finance  art_galleries  investing  fine_arts  high_net_worth  collectors  financiers  boutiques  auctions  banks  pawnbrokers  blue-chips  art_market 
january 2010 by jerryking

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