The Banksy Effect: How Auctions Blur Art and Spectacle
Picture this: a novice buyer attends an art auction for the first time. Determined to make an impression, they think, “Go big, or go home.” The auction they happen to step into is hosted by Sotheby’s. It is 2018, sometime in October, to be exact. Regardless of their prior experience — however much or little it may be — nerves are high at the thought of potentially walking out with a significant acquisition.
The auction proceeds smoothly until the crème de la crème of the show takes centre stage. It is a piece by the world-renowned artist Banksy. Encased in an ornate, fabricated frame is the work Girl With Balloon (2006). The bidding intensifies, climbing higher and higher. When the gavel finally strikes at a staggering GBP 860,000, the painting suddenly begins to shred itself. It stops halfway, leaving the top half intact. The audience is aghast, collectively wondering, “Were we just scammed?” The truth is, “scams” can happen anywhere, and auctions are no exception.
The result of this was an interesting one — the art piece received a new name and went up significantly in value. However, imagine how it must have felt for a novice auctiongoer. The experience was most certainly jarring, and they were probably afraid. Taking place on 18 October 2018, Frieze reports this incident to be one of a kind, explaining it to be a part of art history.
In the case of the People VS. Sotheby’s VS. Banksy, the sale was infallible. Banksy’s street credit and stature in the art world allowed for the work to appreciate in value the moment the piece changed its physical shape. In understanding this, one can conclude one firm thought to be true — the buyer was indeed lucky. But luck is not necessarily on everyone’s side when securing pieces at auctions.
How Auction Houses Walk the Ethical Tightrope
On the odd occasion, buyers do get ripped off by auction houses. On 21 October 2023, Jeremy Wilkinson of the New Zealand Herald reported that auction house Lipscombe had sold fake “rare” coins, and no one was able to stop them from doing so. After all, they disclosed enough information on the pieces. The buyer should have been more careful. When the buyer refused to complete the payment and insisted on a refund for the first batch of rare coins, as they were not rare and were deemed worthless, the counterclaim was dismissed. The buyer was then forced by the court to pay the auction house the full USD 6,000 charge.
The ethics that go behind the sales of almost priceless goods at auction houses can occasionally be shoddy and questionable. Obviously, auction houses should be clear so as to not sell worthless coins… right? Wrong! Buyers need to be very clear in understanding one prime fact — a sale is just that, a sale. The goal is to make money.
A lack of transparency regarding the case of the fake coins can be considered a case of questionable ethical practice from Lipscombe’s side, but it also raises the question of rudimentary knowledge on the part of buyers. It does take two to tango, but that is not the point. The focus here is to have buyers pay close attention to everything happening while at an auction. Should buyers wholeheartedly purchase items blindly just because they are compelling and happen to call to them? The answer is no. Shiny objects are aplenty, and auction houses love to aggrandise information on items to close a deal. That is not a purchase well thought through.
Tricks of the Auctioneer’s Trade
From the selling of fake goods and manipulating the prices of the pieces in their catalogues, auction houses rarely, if ever, pay the brunt of their actions. After all, they are the ones known for selling the goods, so the favour innately sits on their side of the court. So if one thinks, “Oh, getting taken advantage of by auction houses must only be a thing for novice buyers,” that assumption is incorrect. In 2013, Forbes reported that Taylor Lynne Thomson, a Canadian newspaper heiress whose family purchased a Reuben’s from Christie’s, had purchased urns from the same auction house in 1994, only to find out that they were replicas. The matter of being taken advantage of is something that could, quite frankly, happen to anyone. While buyers can prepare their best for a purchase, the occasional slip-up does happen, even to the most experienced.
Auction Houses Keep Buyers on the Edge of Authenticity
So, how can buyers ensure they are protected when purchasing something most people would consider to be of great value? The most important thing to ask oneself before purchasing an item at an auction is the intent behind owning said piece(s). Where will it go after a purchase? What will be done with it after? Is the buyer looking to resell it? Donate it? Loan it, perhaps? With these questions answered, only then should a buyer proceed to purchase an auction item. Take Giorgio de Chirico’s Piazza d’Italia con fontana, which is currently estimated to sell between EUR 300,000 to EUR 500,000 at Christie’s.
To most, this priceless painting should be accessible to the public. But if one knows de Chirico, one is also privy to the fact that he has produced countless surrealist and still-life paintings, thus leaving room for forgers to claim a fake piece as an original. To ensure its authenticity, as Forbes suggests, a buyer should most definitely inspect the lots themselves. In doing so, buyers are not only able to visualise the piece for themselves, but they are also able to gauge the size of the piece and compare its value to its comparative worth. What this means is this — is the buyer getting their money’s worth? Auction houses tend to inflate information and, on occasion, acquire fake pieces.
Like the piece but still unsure about its authenticity? Bring in an expert. Of course, it is cumbersome to bring in experts with hefty rates to authenticate a piece, but it most certainly helps put a buyer’s mind at ease. Pieces are authenticated by the houses, for sure. But if the authenticator is a new name in the game, and the buyer is unfamiliar with their past work, it is best to call in a personal team of experts.
Devious Tactics Auctioneers Do Not Want Buyers to Know About
The other thing buyers — new or seasoned — should keep an eye out for is the tricks that auctioneers play in the salesroom. At the end of the day, regardless of the value — be it socially, culturally, or monetarily — a sale happening at an auction is evidently, simply that. A sale. Buyers should certainly keep an eye out for suspicious bids. If a slew of pieces are not getting sold and suddenly a buyer takes an interest out of the blue, they should be wary.
Additionally, doing a thorough background check on the specific lot or piece is also highly recommended. Auction houses and their dedicated teams go through hundreds of pieces for each sales period — leaving little room to expand on certain pieces. So, as painstakingly irksome as it is, ensuring due diligence before dropping stacks of cash on an art piece is, in fact, necessary. Checking the condition of the art piece, if the auction house has any interest in the piece/artist, their past auction history, and if the auction house representative is playing for both teams is a good tell before investing money in any piece.
With all of these in mind, the best advice one can take away to bring into an auction sales room is to be wary. Trusting one’s gut is necessary, so if something feels off, reconsider the purchase.
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