The top five tips for striking it rich at auction

Authenticity matters

Whether you prefer your Banksy on smooth wove paper or simply shredded, the business of ensuring authenticity can be perplexing. Contemporary works offer the most transparent provenance chain, with recent original bills of sale and blockchain technology providing certification from the artist. With older works, more time-consuming – and sometimes expensive – "homework" may be needed. If the work is absent from the artist’s catalogue raisonné, then only accreditation by the relevant institute will suffice. When it comes to the world of fine art and antiques, and especially with older objects where documentation may well have been mislaid along the way, the more information you can amass the better, including relating to previous appearances at auction, and in galleries and exhibitions.  

Read the small print  

The art world is becoming an increasingly regulated place, with different rules and rates relating to the sale of fine art. Globally, buyers and sellers should make sure they are aware of current CITES regulations covering everything from the sale and movement of a rhinoceros horn libation cup to the date of the rosewood used on one of Eric Clapton’s guitars. The impending EU Export Directive threatens to impose tough sanctions on the import back into Europe of works of art that are more than 200 years old, while the US sanctions on Iran restrict the import of contemporary art, Persian rugs and Islamic art. Many UK art collections will find themselves caught by the forthcoming UK Ivory Act, which effectively bans the sale or export of the majority of items made from or containing more than 10% ivory. 

Follow the money 

“Art speculation” has matured into “art investment” as collectors and family offices increasingly see art as a working part of their wealth portfolio. The monetisation of art is big business: banks offer specialist loans against art; hedge funds and dealers place irrevocable bids at auction from clients speculating on lots outperforming their estimates; and brokers advise their clients on buying art for investment. Money flows fastest in those areas with the highest “supply” and turnover: contemporary art, jewellery, cars, wine, whisky and watches. These specialist auction markets are concentrated in London, New York and Hong Kong, creating a dynamic market with associated price fluctuations that percolate at different levels depending on where they are offered. Such collections should be valued regularly for insurance and tax planning purposes.  

Timing is everything  

Auctioneers try as far as possible to curate their sales to avoid too many similar items overwhelming demand on the day. If you are selling, it’s worth discussing with the auctioneer the timing of the sale and what other lots are included, and confirming the marketing plan devised to sell your item. Specific sale categories, whether that be Asian art, Contemporary or Impressionists tend to be held during certain weeks of the year when the market converges in one of the big centres (London, New York or Hong Kong). For sellers that means ensuring the auction house is doing its utmost to make your property stand out, while for buyers it's an opportunity to compare the offerings on the market at that point in time.  

Provenance is golden 

The gold standard for any serious collector. If you can join all the dots from creation to current ownership, you have the art market equivalent of a gilt asset. Furthermore, one only has to look at a "big name" auction, from aristocrats to rock stars, to see that the intangible lustre associated with provenance provides a very tangible financial boost to the hammer price. It’s as true today as it was when our business was first established in the 18th century that large, dedicated single-owner sales from historic properties still draw the biggest crowds and, invariably, the most expansive bidding.