Gallery Updates

June 8, 2006

Dear Client,

Why do art auctions seem to get all of the press? At least once a week, I read in a newspaper or magazine, art-related or not, a glowing report on prices realized for art at auction. The inference is that all great art is sold through the auction houses and, therefore, if you want to buy art, you should do it at auction. I say, "why?"

While auction houses certainly have a place in the art market, they are not the art market. There are fewer than a dozen major art auctions featuring American paintings by deceased major artists each year. By comparison, there are well over one hundred galleries nation wide that deal in these artists each day. So it stands to reason that only a fraction of the major pieces of art are sold at auction. Let's consider why you should buy from a reputable gallery instead of at auction. (I should state up front that because I work only in the area of Western art by deceased artists, my comments going forward only focus on this arena.)

First, in the American art sales in New York in May, there were fewer than 30 pictures of Western art offered. During this same period, at Santa Fe galleries alone, my estimate is that one could view more than 100 major Western paintings, as well as many, many more great works by lesser-known Western artists.

Second, while some people like the adrenaline rush one gets when bidding against others in an auction, galleries as a rule offer none of the pressure of having to make that buying decision "on the clock." You can sit back and view a picture with no constraints. The painting's merits can be explored with a knowledgeable gallery staff member, it can be compared with similar works by the artist, and a buying decision can be made on the client's schedule.

Third, the offering price is listed for each piece for sale. Auctions only give estimates as to the worth of a picture. With a listed price, the client initially knows if the painting is within his means. He can also make a judgement as to whether he feels the picture's listed priced is at a level commensurate with other offerings by the artist. Also, as we all know, with many works the gallery has some room in the picture's price, which the client can explore. The bottom line is that a decision can be made on the buyer's timetable and not on that of an auction sales room.

Fourth, at an auction you buy at your own risk. Once the gavel goes down, the lot is yours. That means if you later find that it is not correct in any way, you still own the painting. Reputable galleries stand behind each item they offer. If it is found that the work was a forgery, if non-disclosed damage or restoration comes to light, etc., you can get your money back. There is a safety net that is usually not available with works purchased at auction.

Fifth, on the sales side, should you place a painting for sale with an auction and it does not sell, many times there is great erosion in value attached to the piece. Galleries offer work in a much less public forum. I have always said here is a buyer out there for each piece offered. True, not every piece sells immediately, but over time, a painting at a gallery does not decrease in value, it only increases. In addition, with the high consignment fees at auction, many works can be given to galleries for sale at similar or lower commission rates.

Finally, many feel anonymity in the ownership of art is of value. When you purchase a painting from a gallery, reputable dealers will not disclose the name of a buyer to third parties. In addition, only the purchaser and the gallery know the final purchase price. Both of these facts are important for the security of your collection and protecting the value of a picture, should you choose to place it on the market at a future date. When art is purchased at auction, many times the identity of the buyer becomes common knowledge, even though it is not divulged by the house. Also, with the advent of Internet sites such as Askart.com, all auction records for a painting can be found with a small investment in time and money.

While we wish you well in your auction endeavors, we believe that buying and selling through galleries should be in the forefront of a collector's mind. Matthew Chase Ltd. feels strongly that we have something to offer to both the buyer and seller of quality paintings. We know the market for works by artists in our area of expertise and offer reliable value in the works we handle. Pieces placed in our hands for sale do not have the inherent risk of value erosion that attaches to a picture that fails to sell at auction, and every client receives personal, honest attention. Moreover, purchasing from us insures that the future buyer of your work will not know the price that you paid for it. For these reasons, galleries deserve your collecting attention and we at Matthew Chase Ltd. look forward to offering you our continued service.