Monday, January 28, 2013

Perils of the Art Market

Anybody who bids on "genuine Picasso prints" at a cruise ship auction, as described in Protect Your High-Net-Worth Buyers From Art Ripoffs, probably deserves what he or she gets. But art fraud isn't always obvious. Do high-net-worth art buyers need more protection?

The New York Times thinks so, citing fictitious starting bids at major art auctions and, worse, bids by third parties who have already agreed to buy a painting but who will receive a cut of the profits if they can coax an unwary collector to pay a higher price.

And why do New York art dealers almost never post the prices of works displayed in their galleries, even though they're legally required to do so?

Maybe the art market does need regulating.  Or does risk add zest to art as an "alternative asset?"
As a public service, here's a real Picasso print.

See Nicholas Forrest: How to Spot a Fake Picasso

1 comment:

Jim Gust said...

Sophisticated buyers don't need government help. If you ain't sophisticated, you've got no business buying expensive art.

I've seen these cruise ships "art auctions." I'd frame the school work of my kids first. They are entertainment, nothing more.