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The art of auctioning art

For as long as mankind has been around, art and artists have influenced the world and our world views. One of the biggest mediums through which art changes hands is through auctions. But what are auctions, and how much of it is open to someone like you and me?

Even though the origins of auctions have unsavoury associations with the slave trade in ancient Greece, today, it is the bridge that connects distinguished works of art and culture to a top layer of ardent buyers or collectors. Simply explained, auction houses are consigned pieces that are of great historical, cultural, craftsmanship, and/or aesthetic value, showcase them, coordinate bids for the items which subsequently increase, and accord them to the buyer(s) that bid the highest prices. Despite a rigid set of rules in place, auctions can be competitive and exciting, often resulting in items selling for ridiculously high prices.

If you’re even moderately familiar with modern art, Jeff Koons’ Balloon Dog might come to mind. This 10-foot metal structure shaped like a gleaming party trick was auctioned for a whopping $58.4 million in 2013 by the world’s biggest auction house, Christie’s. The auction house, which has a legacy of having auctioned the belongings of the likes of Sir Robert Walpole and Marilyn Monroe, is only rivalled by Sotheby’s, which reportedly generates billions in sales every year.

Can you enter the world of auctions?

It’s probably owing to these mind-boggling figures that plenty of artists, creators, and curators shy away from entering the world of art auctions as they often (and sometimes rightly) associate this universe with the crème-de la-crème of the art world clinking their wine glasses with each other. If you’re an artist who has plenty of potential and promise but not as many connections, your road to auction fame may be bumpy— but not impossible. With auction houses, the art is mostly consigned by a client to an agent or secondary market--in this case the auction house--which will then exhibit it and invite bids from other clients. Your best bet in earning through your art is by contacting a primary market or art dealer(s) who will purchase the art from you rather than secondary markets where the artist themselves don't stand to gain much, monetarily. More commonly, these dealers will sell the artworks on behalf of the artist they purchase from and take an agreed free for doing so. Another way is to be represented by a gallery which is also an increasingly rare and rather lucky phenomenon in the art world.

An interesting shift in this tendency can be marked in the current boom of NFTs. While Mike Winkelmann (‘Beeple’), whose NFT Everydays sold for an astounding $69.3 million by Christie’s in 2021, did have some experience in digital art, he was, by no means, an influential name in the art community or particularly lauded for his art — it often criticised for being ‘kitsch’ and ‘crude’. So, gone are the days when auction houses would scope exclusively for works rich in historical legacies like Da Vinci’s Salvator Mundi or Warhol’s Marilyn.

Christie's Head of Islamic and Indian Art, Sara Plumbly says: “For every piece we say yes to, there are about 30 pieces that we have to refuse. Parameters that we consider while selecting items are the provenance of the work, its historical value, the current market value, its lineage, the collectors who have previously owned it, as well as its material condition.” Today, what matters just as much as the aesthetic universality or provenance of the artwork — if not more — is its marketability and trendiness. When asked how accessible the world of auctions is to up-and-coming artists and creators, Christie’s MENA Deputy Chairman Dr Ridha Moumni states: “When someone hears these big numbers, it’ll obviously be intimidating. But we also sell objects worth $200, $500, and $1000. We sell all kinds of artworks and (auction houses these days) generally promote young contemporary artists.”

If, on the other hand, you’re a collector with an eye for the finer things in life and want to enter the sphere of such auctions, a good first step would be to attend viewings or ‘First Looks’ put together by smaller auction houses. This, paired with research, will give you a general sense of the items on auction and will help hone your sensibilities when it comes to art and other rare collectables. Today, there are many online auction houses like Pioneer Auctions and Quick Auctions that enable you to bid within the comfort of your own home, so long as you pay the premium demanded by the houses.

Types of auctions:

1. English auctions or Open ascending auctions: This is essentially when the buyers start with the lowest bid and it progressively gets higher. The buyer with the highest offer gets the item upon the assent of the seller.

2. Dutch auctions or Open descending auctions: It is one in which the auctioneer states a price which then progressively gets lower as the bidders do their bidding. Once both buyer and seller agree on a price that doesn’t devalue the item itself, it is sold.

3. Sealed bid auctions: As the name suggests, in this type of auction, all interested buyers will enclose their price in sealed envelopes and the highest bid will be selected by the seller.

4. Reserve auctions: In reserve auctions, the seller will frame a tentative reserve price for the item and if the highest bid does not coincide with this reserve price, then they can refuse to sell it to the bidder or choose an alternate bidder.

5. Double combo auctions: In this type of auction, both buyers and seller reveal their prices of interest from which a desired match is acquired, and the item is sold.

6. Police auctions: The goods that are seized by the police are refurbished and regularly auctioned to the general public at really low prices. These items generally don’t have a reserve price as the police don’t always have storage space to stow all the seized items and are forced to get rid of them.

Things to keep in mind before entering auctions:

For artists:

1. Do ample self-promotion — put up shows and exhibitions and harness the power of social media to make yourself known and marketable. While there are exceptions, reliable auction houses generally tend to go for established names over newcomers.

2. Contact auction houses in your respective city that align with your art and business model. Just as how having your work feature in an auction can elevate your artistic worth, choosing the wrong platform can also diminish it.

3. Assess motivations as to why you want to sell your work and why an auction house would be willing to exhibit it. Is it for self-promotion, for charity, for passing on the legacy of your work to a passionate curator, or for everybody’s favourite reason, money? As mentioned above, living artists earning millions via auctions sound exciting but are seldom heard of, no matter your artistic prowess.

4. Explore new mediums of creating and selling art. While the environmental concerns are valid, selling NFTs of your digital art on marketplaces like OpenSea and Nifty Gateway is infinitely easier than having a big auction house like Christie’s or Sotheby’s select your physical artwork.

For buyers:

1. Research the auctions happening around you. Narrow down auction houses based on the kinds of art/commodities being sold, price ranges, provenance, etc.

2. Assess the real value of the items on sale to prevent overpaying.

3. Get in touch with the agents and auction houses. Forging such a bond would both establish you as a collector worth his/her money as well as alert you to more upcoming auctions.

4. Get a taste of the items before making up your mind. Most auction houses will put together a ‘First Look’ in which you can view the object in real-time, spend time with it, and discover its history and specifications. Only part with your money if the item calls out to you in any way.

5. If the property passes this first test, make a bid. But time it well. Gauge the interest and estimated bids for the item before you jump in with your amount. But usually, an early bid that is substantial without being too high should help you lock it in.

6. Hone your negotiation skills. Auctions are as much a game of persuasion as it is of money and this skill will lead you to the perfect snag of the perfect piece at the perfect time.

Today, art auctions play a huge role in forcing our focus back on languages, stories and the histories of cultures across the world. When asked about her favourite part of the job, this is what Specialist in Post War and Contemporary Art, Suzy Sikorski, had to say: “When it comes to sales, you see that, more or less, art is supported by regional collectors — be it within the region or diaspora. But my favourite part is selling contemporary works to someone who has no connection to the region. I ask them, ‘Congratulations, why did you buy the work?’” She shrugs with a smile to imitate their response. “They just love it. It surpasses ethnicity, borders, everything. They just fall in love with the work. That’s the most important thing about auctioneering.”