Attending an art or collectables auction is a once-in-a-lifetime opportunity to bid on pieces from bygone eras, find a gem and stumble onto an investment of a lifetime.
The South African Institute of Auctioneers (SAIA) vice-chairperson and auctioneering expert Philip Powell says there is a rich culture of comradery and competition in the industry and that for newcomers or first-timers, it can be an enriching and addictive experience that combines investment with the thrill of the auction process.
Art auctions have a rich history worldwide, with the first modern art auction houses established as far back as 1674 in Scandinavia. Since then, the industry has become the first choice for collectors, with players like Sotheby’s and Christie’s dominating the global stage.
SA also has a significant presence in the international art market, with local auctions showcasing a wealth of artistic talent and presenting a fine market for other unique collectables.
“Over the years, the perception of art has evolved from merely an aesthetic asset to a valuable investment. Historically, wealthy buyers bought artwork simply for its beauty, but these pieces automatically became investment-quality items because of rarity. Whereas today, owning a valuable artwork is a cultural statement and an asset that can appreciate in value.
“Art auctions are sophisticated operations that rely on a network of experts. You have curators, valuers, consultants and auctioneers who all play a crucial role in the process. These professionals assess the authenticity, condition and origin of artworks before they go under the hammer to ensure buyers can bid with confidence.
“Our auctioneers, in particular, have a vital role. They are just bid-takers but have to understand the market, know the buying vibe and inspire competitive bidding. This ability to create excitement and urgency makes live auctions so electrifying,” says Philip.
He encourages those interested in art and collectables to attend, adding that there is always a chance to discover hidden treasures. Auctions have witnessed staggering record-breaking sales throughout history, from multi-million-dollar paintings to rare classic cars that fetch unprecedented prices.
In SA, even lesser-known artists have seen their works soar in value because of auction exposure. In one instance, an artist valued his painting at R10 000, only for it to sell at auction for R50 000, elevating them to a new level. Auctions have helped many other SA artists gain international recognition.
Philip says there are some caveats: first-time bidders should do extensive research and form a trusting relationship with auctioneers before leaping in.
“Don’t buy art thinking you’ll sell it for a profit next month. Buy it because you love it. If it appreciates in value, that’s a bonus.”
The auction format also allows collectors to buy valuable pieces at competitive prices. Whether bidding on fine art, sculptures or rare collectables, buyers have an extensive range of assets that might not be available through traditional galleries.
Luckily, the digital revolution has transformed the auction industry. In the past, researching an artwork’s history could take weeks, involving telexes and overseas correspondence. Now, with modern technology, it takes seconds.
Online auctions have grown the market, allowing global participation and making it easier to discover and invest in valuable pieces.
“The atmosphere, competition, excitement; it’s a spectacle to witness. Whether you’re looking to invest in a masterpiece, support emerging artists or simply enjoy the experience, art and collectables,” he concludes.
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