The traditional mismatch between Sotheby’s robust auction volumes and the firm’s third-quarter loss-making financials, which were released at the same time (this week, actually), causes us to pose a legitimate question: while the auction has clearly been the best art industry business model to date (eight of the 13 constituent companies in Skate’s Art Stock Index have art auctions contributing to at least part of their economics), one may wonder if there is a better way to make money in the art industry. Can a company do better than living from one peak season to another, losing money between auctions and staking a significant part of its fortune on a single week of trade several times a year?
Skate’s believes that yes, there is a better model out there. It is currently practiced in the low-key world of collectibles and has not yet migrated to fine art market. The fine art market would be better off if it did.
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