Comments on: Are Warhol auctions being gamed? http://blogs.reuters.com/felix-salmon/2011/05/24/are-warhol-auctions-being-gamed/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Judgetoo http://blogs.reuters.com/felix-salmon/2011/05/24/are-warhol-auctions-being-gamed/comment-page-1/#comment-27075 Tue, 24 May 2011 23:19:57 +0000 http://blogs.reuters.com/felix-salmon/?p=8375#comment-27075 If there is one bidder, no auction has taken place. I think it is deceptive at best. I suppose if you have a collection and you need to protect the value, publicly buying a painting at a set price can serve that purpose.
I would hope that the number of bids would be publicized so people could determine whether price could be a sham. Otherwise, I could see where this could be a tool to get unsuspecting buyers to believe paintings are more valuable than they really are. Auction houses could provide kickbacks later on to cover cost of the buyers premium so that the sale was really just a performance. I would stay away from Warhols knowing this. Let’s say
this happened in the stock market. Stock was sold to give the perception of value. Other people buying them thinking that they paid a fair value, but when they went to sell there were no buyers. That could be percieved as fraud. Eventually someone gets left holding the bag.
Maybe there aren’t any laws against this in the art world, but it is deceptive at best. If you have to pay someone to tell you how valuable a piece of art is, maybe you shouldn’t buy it. It is all just a big ego thing anyway isn’t it? Who can waste the most amount of money and smile about it.

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By: jomiku http://blogs.reuters.com/felix-salmon/2011/05/24/are-warhol-auctions-being-gamed/comment-page-1/#comment-27069 Tue, 24 May 2011 19:52:54 +0000 http://blogs.reuters.com/felix-salmon/?p=8375#comment-27069 Is this meaningful? If you are going to spend $million(s) on art, then you have the capacity to learn value and can at least hire people to give you commentary on value. If the point is to deceive an unwary buyer, I still don’t care if we’re talking about very high priced art. It may have an effect of raising some owners’ insurance premiums, which is bad, but I don’t give a fig about any deluded very wealthy buyer who doesn’t take care in making a very large purchase.

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By: MyLord http://blogs.reuters.com/felix-salmon/2011/05/24/are-warhol-auctions-being-gamed/comment-page-1/#comment-27064 Tue, 24 May 2011 17:48:48 +0000 http://blogs.reuters.com/felix-salmon/?p=8375#comment-27064 I would guess their objection is that a single bid leaves them with no estimate of the depth of the market and less able to evaluate other works.

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By: absinthe http://blogs.reuters.com/felix-salmon/2011/05/24/are-warhol-auctions-being-gamed/comment-page-1/#comment-27052 Tue, 24 May 2011 05:35:24 +0000 http://blogs.reuters.com/felix-salmon/?p=8375#comment-27052 An irrevocable bidder who wins must pay the full Buyer’s premium according to:

http://www.sothebys.com/app/live/share/S hareSymbols.jsp?event_id=30568&event_nam e=American+Indian+Art&live_lot_id=16

That should rust up the sham transactions you’re talking about. They’re only off the hook if they get outbid.

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