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Lucky horseshoes. Irrevocable bids at auctions

ARTinvestment.RU – 18.01.2010,06:57

KAZIMIR MALEVICH Supremacist kompozitsiya
KASIMIR MALEVICH Supremacist composition. Source: artinvestment.ru

over a year ago at Sotheby's catalogs began to appear in the form of small icons podkovok (). This symbol can be seen, for example, next to a picture «Suprematist composition", exhibited at the auction of impressionist and modernist November 3, 2008 . "Horseshoe" point to the fact that the picture was guaranteed a buyer ready to make a bid irrevocable (irrevocable bid). The usual safeguards, celebrated in the catalog in a circle, implies that in case of failure of bidding at the auction house buys it at a predetermined minimum price. If the lot brings excess of this minimum, the seller pays part of the house proceeds. The practice is irrevocable rates differs in that role in favor of the insurer is not the auction house, and the parties face. It promises to purchase lot on a certain price, and if that price is the highest of the proposed (or a guaranteed buyer emerges victorious in the "bidding war"), then he must pay the full amount plus Buyer's Premium. Here's the translation work to go to another bidder offers a more substantial sum, the customer receives a portion of the difference between its guarantee and the price of a hammer ».

Irrevocable bids were devised by Sotheby's for about 15 years ago. But only in November 2008, the building was provided in the catalogs, which guaranteed lots in this way. The head of financial department Mitchell Zuckerman (Mitchell Zuckerman), «horseshoes" were introduced in order to enhance transparency. Christie's, who began to enter into such transactions in the mid 2000's, has not yet picked up an innovation: it catalogs all, without exception, are indicated by circles warranty.

Currently, auction houses are increasingly resorting to an irrevocable rates: in the current economic environment, lots to insure they do not want. During the art boom (2005-2008) Sotheby's and Christie's have issued guarantees worth hundreds of millions of dollars - only 700 million in spring 2008! The crisis put an end to it. After a series of setbacks (including the failure of paintings by Roy Lichtenstein (Roy Lichtenstein), which Sotheby's, rumored to be guaranteed at $ 15 million) at home decided to abandon this practice. "We have suffered financial losses and announced that we will no longer assume the warranty obligations", - said Mitchell Zuckerman. The same Suprematic Composition Malevich saved only irrevocable bid: except garantodatelya, they paid 60 million dollars now with the commission to buy it there were no volunteers.

«While the situation on stock markets fundamentally do not change, we'll ask for guarantees to third parties ", - said Christie's Americas President Marc Porter (Marc Porter).

the names of their partners at home garantodateley shall not disclose, but some sources reported that on a regular basis irrevocable bets only about ten art dealers and collectors. Among them - the trader Steve Cohen (Steve Cohen), as well as prominent dealers Mnuhin Robert (Robert Mnuchin), William Akvavella (William Acquavella) and family Nahmadov (Nahmad).

Terms of the transaction fixed in the contract. Garantodatel can assume all the risk, and may share it with the auction house. Both at home or to "insurers" reward, but Sotheby's does so only when the lot went to another buyer, while Christie's pays regardless of who ultimately became the owner of the work.

Many believe that an irrevocable bid is unlikely to be called a good way to earn money. Lawyer in the arts Ralph Lerner (Ralph Lerner) always tells his clients: "Do this only if you really want to buy work at a guaranteed price. The product should you really like - not doing it, if your main goal is profit ».

There are those who have a different opinion. "I like to give guarantees, - said William Akvavella, who worked with both Christie's, and with Sotheby's. - I have done irrevocable bid on many works that I would like to have. Those sums, which I have laid out for the guaranteed me lots, I think more than satisfactory. I never refuse to consider such a proposal. This is just one way to do business ».

Material prepared Yulia Maximova, AI

Sources: theartnewspaper.com , artinvestment.ru




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15/042778.31+3.56%
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