THIS WEEK'S HOT TOPIC
Imagine you are the person who goes to Art Basel Miami Beach on the weekend—or likes to stay up late trying to figure out how and where to find out about art, and the art/luxury markets. Maybe you collect a bit (more likely to say you have bought some art) or, you are in finance/business and wonder how the art world works.
So, our "Hot Topic" in Issue #1 is No Reserve, our new newsletter. What do we, with 30+ years of publishing THE art market newsletter, The Baer Faxt, hope to bring you? A voice for the new generation to meet you where you are (but not “Art World for Dummies,”) and provide our cherished mantras of Access and Knowledge.
So, whether you are a newbie, or an OG type hungry for new ways of looking at the market—we hope you join us on this journey with NO Reserve. Now, on to Issue #1!
3 THINGS TO KNOW
ABOUT BUYING STRAIGHT FROM AN ARTIST’S STUDIO
1
First of all, don’t presume that the artwork is all for sale when you’re invited to a studio visit. The ask should sound something like: "Your work is resonating with me, I'd be curious to know the price range you typically have these works at?" And then broker a deal if they don't bring up gallery representation. If the artist isn’t interested, and is more comfortable brokering a sale through their gallerist, don’t force it.
2
Chances are, the experience of buying artwork straight from a studio versus from a gallery is that the process will be looser, and more casual. There are several trappings of a more formal purchase that you don’t want to let fall by the wayside. Chief among those is to always make sure to secure a certificate of authenticity (COA) or documentation of purchase. Also, make sure that the artwork has a signature on it.
3
Buying straight from an artist usually means that the work will be less expensive than it would be if sold from a gallery, because the artist is getting 100% of the proceeds. Studio pricing should be 40-50% of what the work would cost at a gallery. This means that they will be personally handling shipping and invoicing, which are part of the gallery surcharge. Thus, it isn’t appropriate to haggle prices as aggressively as one might with a gallerist. You can discuss what is fair and what you can afford, but there’s less room to negotiate a discount here. Meet an artist where they’re at, or close to it.
A NUMBER TO KNOW
$25.3 Million
The car market is a different animal from the art world, with little overlap. Car and watch obsessives rarely buy serious art, often hanging dreadful things on their walls. Some insist, “my cars are my art!”—a convenient way of dismissing the real thing. Truthfully, cars are chairs with wheels and motors: fun, sexy, and addictive, especially for someone like me who loves design, mechanics, and speed.
For years, the car-collector thesis was that vintage ruled: Ferrari GTOs, 275 four-cams, Astons, Jags. But when “Endurance Legends” introduced gentleman racing in cars just a decade out of the pro circuit, the super-racecar era began. Values of 1950s and 60s legends softened as new buyers—many unable to drive stick—bid up paddle-shift Bugattis, Paganis, Ferraris, Lamborghinis, and McLarens. Flash and novelty replaced connoisseurship. As Gianni Agnelli quipped, “this is a car for a pimp to park in front of a nightclub.”
At this year’s Monterey auctions, that theory partly held. At Gooding Christie’s, a 1,200-mile Ferrari F40 brought $3.8m—remarkable for a car that drives poorly, with its peaky turbo eight sounding like a vacuum cleaner. At RM Sotheby's, a yellow F50, one of two in that color, fetched $9.2m, a record, helped by rarity and a Ralph Lauren provenance. Meanwhile, a California Spyder with aluminum “competition” bodywork soared to $25.3m at Gooding Christie’s—proof the very best vintage examples still command top dollar.
Color and mileage are now critical. Unusual hues—green, blue, yellow—outperform by up to 25%. A black Dino, worth $500k in red, made $1m (also Gooding Christie’s). Similarly, black and red cars lag behind rare shades at auction.
So where are we? Outstanding vintage cars thrive, but flashy modern supercars capture the imagination (and wallets) of new buyers. Like art, the market rewards rarity, condition, and color—yet generational taste keeps shifting. Watch out for potholes.
by Adam Lindemann
ASK: ACCESS SOPHISTICATED KNOWLEDGE
Warren from Omaha ASKed: Is it safe to buy from galleries in luxury shopping malls and on cruises? How/why are these different from buying from "traditional" galleries?
No Reserve: Well, it may be as safe as your credit card company allows, but it certainly isn't smart. We bet that if you went back to the seller/mall an hour after your card or payment cleared, and asked them to buy back the work at even ½ price, they would refuse. Cruises have little stake in managing careers and mostly do not work directly with the artist. Imagine how much more you can learn from someone who has real knowledge of the artist and a stake in helping that career.
Stick with professional people who are aligned with you on more than that one sale, and try to develop longer term relationships—which you’ll never do with a ship that sails away.
Have your own question for the No Reserve team? Reply to this email or reach out to us on Instagram, @no.reserve. Readers whose submissions we choose get a special prize—six free months of The Baer Faxt.
NO RESERVE+
While Abu Dhabi might inspire images of fast cars barreling down shiny desert highways in your mind, we learned firsthand this year that this mega-metropolis in the heart of the Middle East is a young, vibrant, and rapidly-growing arts destination for collectors around the globe. At Abu Dhabi's International Financial Centre, ADGM, our own Josh Baer sat down with noted collector and patron His Highness Sheikh Zayed bin Sultan bin Khalifa Al Nahyan and moderator Meagan Kelly Horsman, Managing Director, Christie’s Middle East to tackle the important questions facing the UAE—and the world—both today, and in the future.
2 MINUTES WITH…
We visited the Los Angeles home of former NFL linebacker—and dedicated art collector and board member of the Walker Art Center and Hirshhorn Museum—Keith Rivers, to chat about all things contemporary art. Spend two minutes with him via the clip below, and click here to watch the entire segment.
DON’T MISS OUR NEXT ISSUE
If you've enjoyed this inaugural issue of No Reserve, be sure to OPT-IN now to ensure you receive our next free issue on Monday September 15. Want more from The Baer Faxt? Head to our subscription page to find out more about The Baer Faxt, our premium newsletter for art market professionals, and our expanded platform of digital content, art advisory, and auction database services.
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