How to freedom of wealth from the art trading?
Auction is the most common way of trading in the art market. Because of its simplicity and speed of operation, it has quickly become the main trading mode of the world's artworks.
Generally speaking, the entire auction process is roughly divided into the following steps:
Step 1：Consigning. The vendor submits the artwork he wants to sell to the auction room for review, appraisal, and pricing.
Step 2：Negotiation and marketing: After the vendor and the auction room confirm the details, the auction room will subdivide the lot according to the auction, decide which auction to place it in, and conduct targeted marketing at the same time.
Step 3：Auction. After the preview, the buyers will bid for their favourite pieces during the auction.
Step 4：Payment and Settlement. The buyer will pay the auction room the hammer price and commission for the lot. (Commission is usually 15%-25% of the hammer price, and the standards are different from each individual auction room). After a period of time after the buyer settles, the auction company settles with the vendor. The settlement amount is usually the amount after deducting the corresponding commission from the hammer price of the lot. (Commission is usually 10%-18%, and each auction company has different standards).
Step 5：Transportation: The auction room will help the buyer who has won the bids contact shipping company. After the buyer pay the shipping fee, the shipping company will come to pack and ship the lot. The buyer will receive the lots soon afterwards.
Careful readers may find that through auctions, the three parties including buyers, vendors and the auction room have all achieved a win-win situation. Buyers can get their favourite pieces, the vendor can successfully cash out, and the auction room have successfully earned commissions from both buyers and vendors through their operations. The so-called happy.
So, if you are in the first stage of the art market, or lack of any contacts and relationship, then auctions will be your first choice for cashing out from artworks.
Now, there are such a group of people in the art market. They usually understand the needs of the market very well, relying on their keen sense of the market and the price difference of various market segments to make huge profits.
For example, in the spring auction of Beijing Poly in 2019, there is a lot with the lot number 5494, An outstanding Junyao purple-splashed dish. The estimate at that time was RMB 1.2 million-1.5 million, and the final hammer price was RMB 6.44 million. For ordinary collectors, this is out of reach. However, what is unexpected is that this piece reappeared in the 2021 Sotheby's Hong Kong Spring Sale in just 2 years, but the estimated value has tripled to 18-25 million Hong Kong dollars. It's breathtaking. As of now, the auction has not yet proceeded. Interested readers can follow up and share the auction results of it.
For another example, last year, in October 2020, in the Skinner Asian art auction in the United States, there was also An exceedingly fine and rare blue and white lotus-mouth bottle vase Mark and period of Yongzheng marked lot. 100. The hammer price at that time was nearly US$1.3 million. In the same way, only half a year later, at the Sotheby's Hong Kong Spring Sale this year, 2021, this piece also appeared in front of the world again, and it was clearly priced at HK$20-30 million. It is so crazy. As of now, the auction has not yet proceeded, and interested readers can follow up and share the results of the auction.
In conclusion, as long as you are bold enough and careful enough, it is not an impossible mission to realize the freedom of wealth in art market through auctions.