Caveat Emptor

Every field has its own language with words that the layman cannot understand unless they have been immersed in the subject. If you don’t believe me, try reading and understanding the legal statements and warnings you receive with almost every product you buy these days! Within each language are subcategories. In the case of the arts. You would not necessarily talk about sculpture the way you might about paintings, and certainly not performance art.

To start with a broad subject, “Decorative Arts”, “Applied Arts” or sometimes “Crafts”. Those of us who use the words proudly think of them as signifying works of art, mostly created for use such as a table, chair, or lamp. Most would refer to a Tiffany lamp as a work of art even though it serves the same purpose as a mass-produced light fixture. To quote my father, “it is either art, or it isn’t”. In other words, it is in the mind of the beholder. My wife adds that "art is a qualitative term, no matter the category.

The term “Provenance” (a fancy art-world term for the history of a work) figures importantly in the art market. In this catalog entry, you see the word along with the description and the literature that pertains to the work of art.

A gallerist might introduce a work as “Coming from an Important Collection” to entice a client. If the client has heard of the collector and can identify with them, he thinks this person is so important or rich that they must have a good eye and/or advisor. The prospective client may also think the provenance would impress their guests. What collector would not add, when showing an acquisition, that it came from the Aga Khan’s family collection? You might ask the seller why it was being sold, as there are many reasons ranging from divorce to inheritance taxes, etc. Although none of this really changes the piece in question, its history helps to sell a work because people buy with their ears as well as their eyes. Here is Prince Amyn Aga Khan with a mutual friend.

Of course, the contemporary world offers many words to make a buyer more comfortable about buying a work by a little-known artist. If the work is by an “Emerging Artist,” it implies that this could be an investment opportunity and you can get in on the ground floor… or not! Other expressions that might be used are that the qualities would appeal to a “Discerning Collector,” like “Subdued Colors” of this artist’s “Late Work”. Late work? This might imply that if the artist dies soon, his work may go up in value. Just one problem: most artists’ work goes in the opposite direction at that point, unless they were famous to begin with.

“POR” at the end of a label at either a gallery or auction stands for “Price on Request”. Aside from indicating the work is expensive, it also implies a sense of importance and exclusivity. If you are brave enough to ask the price, you are clearly interested and possibly able to afford it. You have already given the seller a great deal of information. I am not trying to discourage you, just pointing out the obvious.

People often feel insecure when buying art, even with the advice of an art expert. They may still be concerned about how their friends and fellow collectors will react to the intended purchase and whether the work will look good in their home. Many clients will consult their decorators to give them assurances on this score. The dealer or auctioneer must take the role of supporting the advisor, thus sealing the deal. In my experience, there were only a few clients, and we loved them, who knew what they liked, had the knowledge to understand what they were buying, and made their own decisions. (Image Client Caption: The Collector by Honoré-Victorin Daumier (French, 1808-1879)

"The Collector" by Honoré-Victorin Daumier (French, 1808-1879)

The “Sales Price”: at art galleries, the quoted or negotiated price is the amount the buyer pays. Any advisor’s commission is included in the price. At auction, there is both a buyer's and seller's “Premium” added to the buyer’s bill and deducted from the seller’s proceeds. I just sold a piece at auction, and when I received far less than the figure quoted in the results, I was informed that I was receiving my share based on the hammer price, but the buyer paid 28% above that figure. The premium can vary according to the auction house and the price reached. These commissions are based on the “Hammer Price,” or final bid, often marked by the fall of the auctioneer’s gavel once no further bids come from the room or telephone bidders. Government taxes and fees are added in all cases.

You have heard the expression, “Caveat Emptor”, let the buyer beware. This involves understanding the language used when you are buying art, what you are buying, and how much you will have to pay before you seal the deal.