Collecting Art

Writing about collecting art is a tricky thing to do because it looks different from different points of view. I am, for example, an artist. From my point of view, I see collecting as a highly segmented, and often obscure market. Just the same, collecting art means buying and selling and that makes it a business, albeit, a nuanced one. Caveat emptor always applies considering the risks involved, not just for the collector, but for the artist, too.

There are so many artists, many more than collectors. Artists provide a very large pond for phishing and various scams from check washing to “pay to play” gallery shows and exhibits. Some red flags have forced me to do my own background checks which led to making reports to law enforcement. After a while, there are so many that reports would have been a waste of time. Artists have shared their bad experiences and the names of galleries and others who have acted in bad faith enough to make it a bit easier to see a pattern that simply involves trading a fake thing for the real thing in one form or another just like the variations in chess openings.?

I called a scammer once to ask them why they did this. He was obviously sick, maybe with Covid, and not in the United States. He said, “I’ve got to take care of my family.” Not that I’m unsympathetic, but I still reported it with the hope that it can be useful in the bigger picture.

A big shipping business, like UPS, is very careful about matters dealing with insurance, less about the actual delivery, likely because drivers have been vetted through the hiring process and millions of packages are shipped and delivered every day, while insurance payouts are much less frequent, involve larger sums of money, and are initiated by third parties who are either the shipper or the receiver who could be anyone including scam artists. The burden of proving that a package contained an item that justified a certain level of insurance beyond simple coverage naturally rests with the person or business that initiates the shipment. Making a claim is one thing, justifying it is another.

I once shipped a relatively inexpensive piece of work through UPS. I paid them to package that work as well as purchase the insurance. When it didn’t arrive at its destination, I had to submit documentation while they conducted a search. The whole process is, of course, frustrating and irritating. My guess is from the perspective of UPS, they have to deal with a very wide variety of scams. That probably frustrates and irritates them, too, in the only way a business could be frustrated; by cutting into its bottom line while damaging its reputation. Fortunately, I had pricing information and photographs. And after further searches and pestering, the claim was paid.?

The whole thing underscores the value of excellent documentation, including pricing, as well as using reliable shipping partners. That’s on my price point, however. Higher price points require more trust and more diligence and closer, more personal and professional, relationships, and greater expense.? Whenever artwork changes hands, even when it’s temporary, I try to document the condition of the work to protect it.?

I like art to be accessible and I’m willing to bargain, even barter. But I’ve noticed that people of means, often, but not always, are suspicious and have a craving to know that they have gotten the best price. They just want to be careful that they haven’t been taken advantage of, something that could happen from day to day if they weren't vigilant. The popular trend is towards greater transparency, but the effect becomes fickle at higher price points, something that will probably never concern me or 99.9 percent of people on the planet. Dealers and gallerists aren’t required to post pricing up front, as most of the time sales are discretionary and negotiable with the least amount of explanation and minimally sufficient justification. Not always, but sometimes. It may not always be about money, rather, the nature of the buyer and their intentions can be influential.

Even in auctions where objects aren’t limited to works that sell for millions or hundreds of thousands, or even thousands. I’ve observed, though, that the more expensive the expectations, the more work has to be done to facilitate bidding and final sales. Provenance, authentication, guarantees, guarantors, connecting with prospective and vetted buyers, and marketing, among other things. People prepare for these things. They have to figure out what something is worth in the marketplace and, more importantly, how much it might be sold, and who will be interested. Auctions are simultaneously stimulating and serious.?

In the end, the trending value of a body of an artist’s work is established, sustained, increased, or diminished, such that to every extent possible losses are strategically minimized, and gains are maximized based on competition and interest (sometimes manufactured as every object benefits from a good story well told as part of its provenance. (1)) While such stories might make one cynical, price is one thing, value is another. Economic objectives and motivations depend on the professions of those involved and the success of their influence on decision-makers. To avoid losses, a piece of art can be withdrawn to save face and try again in the future. That’s not unusual in any business, it’s just a different sort of ritual transaction with some sleight-of-hand now and then (Check out the “Chandelier Bid” (2).)

There are lots of deals that can go “sideways.” I once did some illustrations for a developer in Miami that were paid for on completion. Since they did pay, they asked me to stick around and do one more and they’d send me a check. That was a long time ago and I know better now. They didn’t pay, and so in my process of collection, I participated in a lawsuit that forced the company into bankruptcy, which didn’t help my bottom line.? Unknown to me, however, was their desperate plan to market the development to make some sales and complete the work. This was during the Savings and Loan Crisis of the late 1980s.?

I don’t think buying and selling art has ever been merely transactional. It was mystical, magical, and superstitious. It was and still is, about seeing the unseen and experiencing the sublime. It is an expression of potential, insight, grace, and so much more. The question then may not be how much it costs, but why do we bother with it at all? Answer that and maybe you’ll know why we create and why we collect.

Footnotes:

1. The subject of a book by John Brewer titled, "The American Leonardo", details the?controversial nature of what may or may not be properly attributed to DaVinci.

Oxford University Press, 2009.

At the time, Thursday, Jan 28, 2010, Sotheby's auctioned the Hahn family La Belle de Ferronniere (Lot 181)? with an initial estimated value between 300k and 500k.? Evidence?suggested a later date for the painting based on physical evidence, although attributing the painting to a "follower of da Vinci".? Typical of da Vinci's time and work, he painted on a wood panel.? The Hahn painting is on canvas, and while it seems unusual for a copy to command such a price, no doubt the history written about the proceedings in the early 20th century documented by Brewer in "The American Leonardo: A Tale of Obsession, Art and Money" (Oxford and New York 2009) has had an effect.? Perhaps there is still some value to leaving authentication somewhat open-ended (even if it certainly cannot be attributed to da Vinci) and connected with the success of Brewer's book.

Another benefit of the Sotheby's auction is an opportunity for interested persons to compare the da Vinci with the copy in color as printed in their catalog while providing some insight and perhaps an exoneration of Duveen's original contentions, despite what Americans may have perceived to be his snobbery, pompousness and regular use of hyperbole in the 1910 legal proceedings.

Sotheby's reported that the Hahn La Belle was sold at auction for $1,538,500 USD, more than 3 times its estimated value. (Jan 28, 2010) As a point of comparison, a work by Van Dyck, a portrait of Nicholas Rockox, estimated to sell between 1-1.5 million USD, sold for $1,538,500 USD.??

2) The Auction House Buzzwords New Collectors Need to Know, by Isaac Kaplan. Artsy. 2017. Retrieved June 25, 2023 https://www.artsy.net/article/artsy-editorial-auction-house-buzzwords-new-collectors

There are a large number of frauds and fakes in the art world with some fascinating stories around them.?

There are a variety of websites with interesting stories about art and law. This one is published by Caroline Cassin, https://www.theartlawlover.com/ Retrieved June 25, 2023?

Interpol’s list of stolen art: https://www.interpol.int/en/Crimes/Cultural-heritage-crime/Stolen-Works-of-Art-Database?

Art Loss registry: https://www.artloss.com/?

FBI Stolen Art Database: National Stolen Art File? https://artcrimes.fbi.gov/

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