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Odd Lots

How Auction Guarantees Are Changing The World Of Art

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.41.6K Ratings

🗓️ 17 June 2019

⏱️ 31 minutes

🧾️ Download transcript

Summary

Famous, unique pieces of art are inherently illiquid. They don't sell very often, and pricing is inherently difficult to estimate. Nonetheless, it's a huge business, and investors have been attempting for a long time to turn art into a proper asset class. On this week's podcast, we speak to Margaret Carrigan, an editor at The Art Newspaper, about how investors are attempting to financialize the art world via the use of guaranteed prices at auction.

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Transcript

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0:00.0

Welcome to Crash Course, a podcast about business, political, and social disruption and what we can learn from it.

0:07.0

I'm Tim O'Brien. Every week on Crash Course, I'm going to bring listeners directly into the arenas where epic upheavals occur and

0:15.5

I'm going to explore the lessons we can learn when creativity and ambition collide

0:20.7

with competition and power.

0:23.0

Listen to Crash Course every Tuesday on the IHeartRadio app, Apple Podcasts,

0:28.0

or wherever you get your podcasts. Hello and

0:45.0

I'm Tracy Allaway.

0:49.0

Tracy, did you know we just had something in New York that's apparently called Giga Week?

0:54.0

See now I don't know how to answer this question because we were sort of talking about it a few minutes

1:00.0

before we started recording. I am aware that there was a big big art auction. I was unaware

1:06.4

that it's actually called Giga Week. Yeah I didn't realize that either. Like I guess every once in a while auctions, like big weeks of art auctions are kind of like

1:17.2

Mardi Gras New Orleans or something, they just suddenly just pop up and your feed just gets

1:21.5

dominated by people who are at this event and you're like,

1:24.3

oh yeah, this is happening again.

1:26.2

So obviously in New York recently we just had a series of gigantic art auctions and apparently because of how much money the art sells for during the course of the week, they call it gig a week because over a billion dollars of art gets sold.

1:42.0

Oh, okay, so lots of money. $1 billion of art gets sold.

1:42.8

Okay, so lots of money flowing through those auctions.

1:46.2

And there was one point of interest in particular, because I remember you actually tweeting

1:50.6

about it, but the father of Treasury Secretary Steve

1:54.4

Minuchin he bought a pretty large how do I describe it a sculpture that

2:00.3

resembles like a balloon bunny.

2:03.0

Yeah, and I don't even think it was that large, although we can get into it.

...

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