I read this article yesterday and I am still confused by it.
"...carried a pre-sale estimate of over $70 million..."
"...the artwork came to the market without a minimum price guarantee from the auction house..."
"Oliver Barker, the evening’s auctioneer, began the bidding for the bust at $59 million. But his bids stalled at $64.25 million. Three minutes passed as he hunched low over the rostrum, hunting for bidders, Nosferatu-like, until announcing that the lot was a pass."
Can someone explain how these things relate? If the pre-sale estimate was $70m, there was no minimum price guarantee (a reserve?) and a bid of $64.25 million (90% of the estimate) why didn't it sell?
The article goes on to say:
"“No one who is an informed buyer who is serious in this market — billionaire or not — is going to pay what essentially amounts to a 50 percent premium on something that sold in recent memory,” said Todd Levin, an adviser in New York."
Someone was willing to pay $64.25 million, a 30% premium on the last sale, $70 million is only 40%. Where does 50% come from? Why is $64.25 million bad but $70 million is good.
"...carried a pre-sale estimate of over $70 million..."
"...the artwork came to the market without a minimum price guarantee from the auction house..."
"Oliver Barker, the evening’s auctioneer, began the bidding for the bust at $59 million. But his bids stalled at $64.25 million. Three minutes passed as he hunched low over the rostrum, hunting for bidders, Nosferatu-like, until announcing that the lot was a pass."
Can someone explain how these things relate? If the pre-sale estimate was $70m, there was no minimum price guarantee (a reserve?) and a bid of $64.25 million (90% of the estimate) why didn't it sell?
The article goes on to say:
"“No one who is an informed buyer who is serious in this market — billionaire or not — is going to pay what essentially amounts to a 50 percent premium on something that sold in recent memory,” said Todd Levin, an adviser in New York."
Someone was willing to pay $64.25 million, a 30% premium on the last sale, $70 million is only 40%. Where does 50% come from? Why is $64.25 million bad but $70 million is good.