Auction Houses See Steady Market (But Their Guarantees To Sellers Suggests…)

“Values can be inflated when auction houses offer competitive guarantees to secure major consignments. These guarantee can then be transferred to a third party, who will either buy a work at a sale, or be rewarded for their unsuccessful bidding. More recently, some third-party guarantors — called “irrevocable bidders” at Sotheby’s — have also been paid fees if they are the purchaser. These confidential arrangements, denoted by symbols in the catalog, can have the effect of deterring bidding in the salesroom.”