Why Are Auction Prices So High? From Crypto to Covid: Why Are Auction Prices So High?

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Why Are Auction Prices So High? From Crypto to Covid: Why Are Auction Prices So High?

From Albert Einstein’s notes to a record-breaking Frida Kahlo to a 6.6-million-euro triceratops, auction houses have recently witnessed a slew of world-record-breaking artifacts go under the hammer.

Valuations are becoming more difficult to assess.

The Einstein manuscript sold for 11.3 million euros ($13 million) in Paris on Wednesday, five times its estimated value.

That happened only days after a storyboard for a failed 1970s film adaptation of “Dune” prompted a bidding battle that raised the price to 2.7 million euros, 100 times the original estimate.

The switch to online sales, according to market researcher Artprice, has sparked unprecedented levels of interest, particularly in the United States and Asia.

“The auction houses were a long way behind the curve. However, Covid forced them to modernize, and as a result, internet sales have soared, attracting a whole new audience “Thierry Ehrmann, the creator of Artprice, remarked

He cited the example of 30-year-olds who would rather acquire art than buy their first home as an example of changing dynamics.

After a brief halt as the virus spread in 2020, online auctions grew later that year as people looked for new ways to pass the time and spend money during lockdowns.

With stock markets booming throughout the pandemic, the wealthy became much wealthier, yet they struggled to spend it.

This has aided the old masters in reaching new heights.

A Van Gogh sold for $71.3 million in New York this month, and a Kahlo self-portrait sold for over $35 million, setting a new high for the Mexican artist’s work.

However, it has sparked an interest in nearly anything collectible, from Michael Jordan sneakers ($1.5 million) to an original copy of the United States Constitution ($43 million) to an 800,000-euro bottle of Burgundy wine.

“At a time when many art fairs can’t happen in person and online viewing rooms are terrible,” Anna Brady, art markets correspondent for The Arts Newspaper, said on the program, “auctions have become a predominant manner of selling.”

Brady emphasized the injection of funds from a hitherto unknown source: crypto-millionaires.

They’ve moved away from their initial focus on digital art, such as the mind-boggling $69 million paid for a JPG file by one of the industry’s pioneers, Beeple, in March.

Crypto “whale” is a term used to describe a type of cryptocurrency. This year, Justin Sun has purchased pieces by Picasso and Andy Warhol, as well as Alberto Giacometti’s “The Nose” sculpture, which he spent $78.4 million for this month.

The sun then caused a lot of harrumphing among the art world’s stuffed shirts. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.

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