Through Art Market & You, Art From Us provides you Analysis, Opinion and Factual Reports regarding the current on-goings of the Global Art Market. In this article, we explore Art Auction terminology to be weary of.
Art auction terminology can be quite confusing and daunting to young collectors or people without an art background. We are here to help you out. Following are a few key art auction terms you should be weary of.
Art Auction Terminology to be weary of
Collusion – Collusion is when two or more parties come together and agree not to bid against one another, with a view to successfully purchase art at auction for artificially deflated prices. Such agreements are both ethical and, in some cases, illegal.
Protecting a market – A dealer may attempt to protect their artist’s market at auction by placing bids to artificially inflate the price, or to ensure that the work does not sell below a certain minimum amount. An artist’s market image may be damaged when his/ her work fails to meet a certain price point at auction.
Price fixing – Price fixing occurs when two or more competitors illegally set matching rates, resultantly forcing clients to pay extremely high prices. Eg. for seller’s commission.
Chandelier bid – A chandelier bid a type of bid that the auctioneer generally makes at his own discretion, when the bidding for an object goes cold. The auctioneer then looks into oblivion, and logs in a fake bid in order to spur more interest in the sale.
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