The Banksy Effect: How Auctions Merge Art and Spectacle
Imagine this scenario: a first-time art auction attendee enters the scene, eager to impress. Motivated by the mantra “Go big or go home,” they find themselves at a Sotheby’s auction in October of 2018. Despite their lack of experience—be it minimal or substantial—their anxiety peaks as they entertain the possibility of making a notable purchase.
The auction proceeds without a hitch until the highlight of the event steals the limelight. The exquisite artwork in question is a renowned piece by Banksy, titled Girl With Balloon (2006), framed in an elaborate, custom construction. As bidding ensues, amounts skyrocket. When the gavel finally strikes at an eye-watering £860,000, the painting unexpectedly begins to shred itself, halting midway and preserving the top half. The audience collectively gasps, questioning, “Did we just get played?” The reality is, “scams” can transpire anywhere — including at auctions.
The aftermath proved intriguing—the artwork gained a new identity and dramatically increased in value. One can only ponder how a novice auction attendee must have felt; it was undoubtedly unsettling and likely intimidating. This incident, which occurred on October 18, 2018, has been reported by Frieze as a rare event, marking its place in the annals of art history.
In the scenario involving the People vs. Sotheby’s vs. Banksy, the sale proved undeniable. Banksy’s reputation and influence in the art community led to the immediate appreciation of the work once it transformed. This leads to a notable conclusion— the buyer was indeed fortunate. However, not every buyer enjoys such serendipity during art auctions.
How Auction Houses Navigate Ethical Dilemmas
Occasionally, buyers fall victim to unscrupulous auction houses. On October 21, 2023, Jeremy Wilkinson from the New Zealand Herald reported that Lipscombe auction house sold purported “rare” coins that were, in fact, fakes, and no action was taken to prevent it. They provided enough information regarding the items’ origins. The buyer ought to have exercised due diligence. When the buyer sought a refund after refusing to fulfil payment for the first batch of coins, which turned out to be worthless, their counterclaim was dismissed, forcing them to pay the full USD 6,000 invoice to the auction house.
The ethical nature of transactions involving near-priceless items at auction houses can sometimes be questionable. Clearly, auction houses should avoid selling items that hold no value… shouldn’t they? Indeed! But buyers must understand a fundamental truth— a sale is merely that. The aim is profit.
The lack of transparency in the case of the counterfeit coins could signify dubious ethics on Lipscombe’s part, yet it also highlights potential buyer negligence. It takes cooperation to make a transaction successful, but that isn’t the primary point. The emphasis here should be that buyers must remain alert to the proceedings at auctions. Should buyers purchase items impulsively simply because they seem attractive? The answer is no. Numerous dazzling items tempt buyers, and auction houses relish embellishing details to finalize sales. This does not constitute a well-considered purchase.
Strategies of the Auctioneer’s Craft
From selling counterfeit items to manipulating prices within their catalogs, auction houses seldom face the consequences of their actions. After all, they are recognized as the sellers, and the favor inherently leans towards them. So if one assumes, “Only inexperienced buyers get exploited in auction situations,” such a notion is misguided. In 2013, Forbes revealed that Taylor Lynne Thomson, a newspaper heiress from Canada, once bought a Reuben’s painting from Christie’s, having previously purchased urns there in 1994—only to discover that the urns were replicas. The experience of being taken advantage of could happen to anyone. While buyers can prepare thoroughly for a purchase, even the most seasoned can experience an occasional oversight.
Auction Houses Keep Buyers on the Brink of Authenticity
How can buyers safeguard themselves when investing in items deemed valuable? The key question to ponder before making a purchase at auction involves the motivation behind acquiring the piece(s). What will the buyer do with it after the acquisition? Will it be resold, donated or perhaps loaned out? Once these questions are addressed, the process can move forward. Take for example Giorgio de Chirico’s Piazza d’Italia con fontana, currently appraised to sell for EUR 300,000 to EUR 500,000 at Christie’s.
Many would argue that this significant artwork should be accessible to the public. However, for those familiar with de Chirico, it’s recognized that he created numerous surrealist and still-life works, leaving opportunities for forgers to misrepresent a fake as authentic. To ensure genuine authenticity, as Forbes advises, it’s crucial for buyers to examine the lots closely. This enables them to visualize the piece and assess its size, thereby comparing its valuation against its actual worth. This begs the question— is the buyer receiving fair value? Auction houses often inflate descriptions and occasionally showcase counterfeit items.
If a buyer appreciates the piece but remains uneasy about its authenticity, seeking an expert is a wise course of action. Although consulting with experts may require a financial investment, it ultimately provides peace of mind. While auction houses do authenticate pieces, if an authenticator is relatively new to the industry, it’s wise for the buyer to engage their own trusted experts.
Underhanded Tactics Auctioneers Prefer Buyers Remain Unaware Of
Buyers—whether novices or experienced—should stay alert to the strategies auctioneers deploy in the sales arena. Ultimately, a sale—regardless of its social, cultural, or monetary significance —is just that: a sale. Buyers should remain vigilant against suspicious bids. If a cluster of items remains unsold and suddenly a potential buyer expresses interest, skepticism is warranted.
Moreover, carrying out extensive research on individual lots or items is advisable. Auction houses and their teams handle numerous items for every bidding period, leaving little room to elaborate on specific pieces. Therefore, while it might be rather tedious, exercising due diligence before committing significant funds to art is essential. Evaluating the condition of the artwork, the auction house’s vested interest in the piece or artist, their auction history, and determining if the auction house representative maintains impartiality are good indicators before investing in any item.
Considering all these factors, the most prudent advice is to proceed with caution into an auction. Trusting one’s intuition is key—if something doesn’t feel right, it’s wise to reconsider the purchase.
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