Interesting - Sotheby's lost money on an art sale 0

[malvin]

https://www.cnbc.com/2018/08/06/the-two-mystery-paintings-that-sunk-sothebys-stock.html

I have heard of auction houses guaranteeing prices before, guess if they are wrong, it will cost them.  I wonder how frequently that occurs in our hobby.

Malvin

[Bronty]

Guarantees definitely happen but yeah it would be interesting to know how often 

[tth2]

A lot.  If you're consigning a piece that is headlining or "featured" in one of their auctions, I can almost guarantee that it's guaranteed.

[delekkerste]

5 hours ago, tth2 said:

A lot.  If you're consigning a piece that is headlining or "featured" in one of their auctions, I can almost guarantee that it's guaranteed.

Not only that, but, Sotheby's, Christie's and Phillips are required by law to disclose when a lot has been guaranteed or if they have a financial interest in said piece.  

For some reason, these disclosures are never made by the auction houses in the hobby, even though I know for a fact that it happens. 

[pemart1966]

37 minutes ago, delekkerste said:

Not only that, but, Sotheby's, Christie's and Phillips are required by law to disclose when a lot has been guaranteed or if they have a financial interest in said piece.  

For some reason, these disclosures are never made by the auction houses in the hobby, even though I know for a fact that it happens. 

Do you know why that is?