Saturday, February 18, 2017

Before You Bid - The Truth About Art Auctions at Sea - Part 2

While you think you are just bidding on pieces of original artwork, this is what is really going on around you:

The first thing to consider is that almost every piece of art for sale at an on board art auction is not actually original artwork. You are actually bidding on ‘lithographs’ which are labeled as original art by the auctioneer even though hundreds or thousands of them have been printed off. Usually they come in limited editions, and sometimes with the artist’s autograph, although there have been cases in the past where the autographs turned out to be fake.

The jargon used to describe such categories of art is complicated, but the important thing to remember is that they are not actual, original pieces of art. They are basically fancy posters!  So don’t spend thousands on a Salvador Dali being sold on board a ship as you can probably find the exact same lithograph on the internet for a fraction of the price. (On a side note, there are a few cruise ships that do auction off original art from time to time. However, this is definitely not the norm. The only times I have seen actual original art being auctioned, is when the artist themselves have been on board as well. Therefore, it is always best to assume that the art for sale is only a duplicate of the original.)

It is a fact that the Thomas Kinkade's artwork is one of the world’s most sought after.  The auctioneer will actually inform you that the artwork you see is actually lithograph, the originals are kept in a vault and are not for sale.

Nearly every cruise auction you attend will also display artwork by Peter Max, a pop art master artist.  You will never find a piece of his artwork at an affordable price, and not one of them is an original. 

Before the auction begins, the art auctioneer will always explain to the crowd, in very
complicated and rapid phrases, that they will be using a tactic known as ‘shilling’. However, since the auctioneer speaks in such clever and confusing, almost nobody will understand what is actually taking place. Basically, ‘shilling’ involves having several people (usually other passengers) placed in the audience by the auctioneer. Their job is to yell out whenever they receive the signal, and to make a bid on a piece of art. These bids are ‘fake’ and they are designed to get the bidding started as well as increase the amounts of each bid.

Many times, when you are bidding on a piece of art, you think you are bidding against another passenger, but you are actually bidding against a ‘fake’ bid. This of course forces you to keep bidding higher! The passenger who is acting as the ‘fake bidder’ will usually receive a ‘free’ piece of art in exchange for their cooperation. However, if you are approached by the auctioneer to do this, think twice before you agree. It is not uncommon that when the ‘fake- bidder’ gets home and receives that ‘free’ piece of art as promised them, they also find an invoice for taxes and other fees totaling several hundred dollars as well.

Passengers will generally not have an opportunity to view a copy of the sales contract before the bidding begins. As a result, what you bid on a piece of art will never be the final price that you will end up paying. And we are not talking about a few extra dollars being added on to the bill. Instead, you can expect a 10% buyer’s premium (which is actually nothing but a way to get 10% more out of you), shipping & handling costs, framing fees, appraisal fees, sales tax on the total of all the above, and often another vague ‘handling fee’ added on after that. You can literally end up paying thousands of more dollars than what you bid. If you then decide that you don’t want to pay all of those extra fees, the art auctioneer will usually point out that all sales are final (written in the small print somewhere) and that your credit card will automatically be charged.

Interested in taking a cruise?  Contact us at Travel, Tours & Cruises to book your dream vacation, and tune in tomorrow for Part 3 of this exposé.


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