When is it all right to buy from an auction, and why is a gallery better at other times?.
Ever since auction houses started taking interest in Indian art, they have tended to be treated like a public record of an artist’s worth. But — and this is unfortunate — both media and sellers have been inclined to record the “highest” prices as a sort of benchmark for artists. Yet, how valid is this?
While it is true that the “estimates” in an auction catalogue form some kind of indication about the prices at which works by an artist are offered, it must be remembered that this pricing is, often enough, a compromise arrived at between the auction house’s research team and the seller who has consigned those works for auction. The auctioneer wants a sale and is likely to recommend a realistic estimate, but a seller will demand a higher value. In case of the consigned work being either rare or that of a senior artist, the seller might prevail, in which case the estimates may vary from what the artist’s works are worth in the market.
An equally critical premise is the excitement that pushes artists’ prices up in an auction. Bidding is, and ought to be treated as, a serious affair, yet collectors are often known to bid with their hearts rather than their minds, perhaps because the atmosphere is infectious and gets the adrenalin rushing as the competition heats up, or because losing is simply not an option.
On the other hand, a gallery has certain advantages. Prices are usually rational, which is not to say they are not influenced by the external environment, but the advantage is that you are not forced to buy in a hurry. Then, there is the possibility that galleries are willing to discount a little — though most will deny it, they do keep a little leeway to sweeten a deal. A “no discount” purchase among galleries isn’t a rarity so long as you don’t go expecting huge discounts.
If you’ve been following the art market, the implications are clear: Art galleries are the better bet for buying new artworks because the gallery will have taken the trouble to ensure they are right-priced. But when it comes to the secondary market, where should you look? If you have a long-term interest in a gallery, it could help you source more of what you are looking for and may even be able to offer suggestions on pricing and availability. But if something you are looking for comes up at an auction, and it helps plug a void in your collection, or is simply something you must have, then, naturally, the auction is where you’ll head, whatever the ultimate price the work sells for.
Bidding for works at an auction isn’t always erroneous — bidders, in fact, set out hoping to bag a bargain rather than pay more than they had bargained for — but if you’re the kind who doesn’t trust himself with the paddle, then it’s best to work out the price you’re willing to pay on the outside and then remove yourself from the negotiations. In other words, get someone else to represent your interests, or place telephone bids, with a mandate that does not permit exceeding your ceiling. (The downside to this is finding yourself outbid by just that little bit!)
But one thing that is worrisome is when an artist — this is usually truer of the younger generation — consigns works directly to an auction house instead of a gallery. Here is a possibility — but only a possibility, the auctioneer’s reputation counts for too much to be so easily compromised — of manipulation of the artist’s prices, or simply wrong-pricing because bidders are more likely to be paddle-happy than paddle-savvy.
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If you find a new painting consigned for auction, tread with caution if you don’t want to pay more than its worth in the market. Recall Damien Hirst’s auction in New York when all his new works were consigned to Sotheby’s, even as galleries were having a difficult time offloading their Hirst inventories. Guess what — the auction was a sellout, but the fate of the galleries didn’t change much, at least overnight. For that matter, artists in India too have consigned new works for auction, making it difficult for galleries to sell at subsequently stratospheric prices. There’s a message, and a lesson, in that for collectors.
The views expressed are personal and do not reflect those of the organisation the writer is associated with.