We have already looked at what qualities make artworks more or less valuable in our previous post. However, one might still wonder, why do artworks end up at the auction in the first place, and how are they subsequently grouped into a coherent sale.
Why are artworks sold?
Broadly speaking, there is the rule of 4 D's: Death, Debt, Divorce and Discernment.
Death. Death of an art collector could trigger a sale of their art trove for a number of reasons: the next generation might not share the same taste in art, hence, wanting to dispose of it; under the burden of inheritance and estate taxes; difficulty in sharing artworks by the heirs; the will of the deceased was for the collection to be sold off (a prominent example is the biggest art sale in history - Paul Allen's collection, that generated astonishing $1.5bn in sales at Christie's in November 2022, proceeds from which supposedly went to charity, as stipulated by the late P. Allen).
Debt. An art collector in need of liquidity might choose to sell their artwork, if they do not wish to use it as a collateral to obtain an art-secured loan.
Divorce. In case of a divorce, the spouses might not agree on the value of the entire shared art collection or on the conditions of division, so it would be easier to auction the collection and divide the proceeds (as was the case in the high-profile Macklowe divorce case).
Discernment. This is an umbrella term for various considerations: downsizing, falling out of love with a particular piece of art, or simply identifying a good market opportunity, to name a few.
How are artworks curated in a sale?
This has no strict guidelines. The auction sale could be built around one 'star' lot, that has been consigned early on - for instance, if an auction house gets its hands on a great Rothko painting, it would be a no-brainer to curate a sale of Post-War art. Alternatively, an ongoing or an upcoming major museum exhibition can "lend" (as an idea, not literally) its theme and artists presented to auction houses to curate a timely sale. Another way could be if an individual, or their estate, approaches the auction house to sell their entire collection. The most successful sales tend to be single-owner sales - when all lots come from the same consignor. This is particularly true in case of celebrity, or other notable person's, provenance.
A lot of thought in auctions' additive process of selecting works is dedicated to analyzing the overall market, past sales, curatorial discourse and collectors' preferences at a given time. All of these considerations are then incorporated in auction houses' sales calendar. The most noteworthy, so called "marquee", sales happen in May and November of each year with many other sales spread throughout the year.
Then there is the distinction between Day and Evening sales. Evening sales are ticketed glamorous events, usually comprised of about 62-64 high-value lots, but not exceeding 70 lots per sale. Evening sales last approximately 90 minutes, or two hours maximum. They are the ones that generate record-breaking prices and are highly publicized.
Day sales extend up to five hours in length, due to a high number of lots in each sale, totaling hundreds. The lots at a day sale tend to be of lower value, although there is no formal price threshold, at which works automatically join an evening sale. It is up to auction house specialists to assess, in which sale to place each lot. For example, an artwork with the same credentials could go unnoticed and outshined by other 'star' lots in an evening sale, or become a 'star' lot itself, if placed in a day sale. Day sales provide a useful gateway for emerging artists to test the market and bring more awareness to their works; otherwise, day sales may focus on a more niche genre of art.
Hope the above elucidates how the auction houses get its consignments and how the sales are curated.
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