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A Brief History of Auction Houses​

In exploring the history of auction houses and their role in the thriving art market, we find a tale of resilience that spans over the past decade. Despite economic crises, pandemics, and wars, these art institutions have been a driving force, propelling the industry’s growth year after year. Consolidated sales of at least $7.3bn at Sotheby’s and $7.1bn at Christie’s, the auction house’s highest total in five years, including record-breaking sales for NFTs, attest to the monumental success they achieved in 2021 (Ricci, 2022).

In this article, we delve into the fascinating history of auction houses, tracing their journey from ancient times to the modern-day. Their record-breaking sales and innovative approaches demonstrate how these institutions have played a significant role in shaping the art market as we know it today. Meanwhile, in the realm of beleaguered bricks-and-mortar galleries, nearly 300 art and antiques dealerships are coming to terms with the postponement of the Tefaf Maastricht fair and Art Basel in Hong Kong, indicating the complex challenges the art market continues to face amidst the pandemic (Bourron, 2021).

The Charm of Possession

Part of the art market’s fascinating ecosystem lies within the auction houses that handle artworks with intriguing histories of previous ownership. While various factors can lead to increased sales, the attraction of owning art remains consistently high (Global Art Market Value 2022 | Statista, 2023). With the phenomenon known as “auction fever,” one can expect an ambiance teeming with excitement, competition, and confidentiality (Adam et al., 2015). Despite objective parameters setting the starting price, the final bid often surprises everyone.

In the forthcoming article, we will delve into the thrilling dynamics of art auctions. For now, let’s take a brief glimpse into the history of auction houses and their remarkable evolution in recent times. While the art auction tradition dates back centuries, it has admirably adapted to the demands of the 21st-century financial and globalized landscape, solidifying its position as a major player in the digital universe.

In this article, we delve into the fascinating history of auction houses, tracing their journey from ancient times to the modern-day, and uncovering the remarkable impact they've had on shaping the art market as we know it today.

Auction Room, Christie’s, 1808, Thomas Rowlandson (1756–1827) and Augustus Charles Pugin (1762–1832) (after) John Bluck (fl. 1791–1819), Joseph Constantine Stadler (fl. 1780–1812), Thomas Sutherland (1785–1838), J. Hill, and Harraden (aquatint engravers) | Image Source

In this article, we delve into the fascinating history of auction houses, tracing their journey from ancient times to the modern-day, and uncovering the remarkable impact they've had on shaping the art market as we know it today.

A visit to the Art Dealer by Frans Francken the Younger, early 1600s, oil on copper | Image Source

Origins: Tracing the Early Roots of Art Auctions

The very first auctions ever recorded in 500 BC did not include any sculptures or paintings — they were organized to sell women and slaves (ARTDEX, n.d.). Art auctions, however, began to take shape early on, with historical examples such as the sale of spoils of war in Roman times. As time passed, this method of selling art diminished, and it wasn’t until the 17th century that art auctions experienced a resurgence in popularity.

During this period, with the end of an 80 years long war with Spain, Flanders and Holland emerged as major art markets in Europe, boasting impressive regulations governing everything related to artworks (Dehaisnes, 1886). To this day, the archives of Court decisions in these countries offer detailed insights into the historical art trade as it is made clear from the researches of Professor Dr Jorgen Wadum, specializing in History and Conservation. However, it was Stockholm that witnessed the establishment of the first official art auction house in 1674, marking a significant milestone in the development of the art auction industry (Valdes, 2020).

Globalisation: The Evolution of Art Auctions in the Modern World

As with many art-related events, auctions initially catered mainly to professionals. However, a gradual shift occurred, with major auction houses opening up sales to a broader audience, transforming these events into extravagant affairs graced by celebrities, guests, and captivating performances that welcomed everyone. The auction room evolved into a prestigious gathering, becoming a place where participation was highly coveted, and visibility was sought after. The fine art auctioneers themselves took on the role of performers, adding to the allure of the experience. In an article from 2015, the New York times quotes the art adviser Todd Levin: “Auctions are purely staged events, choreographed in advance.” (Dobrzynski, 2015). This social expansion coincided with the rise of new fortunes in the early 20th century, followed by Sotheby’s groundbreaking innovation of phone bidding. With the emergence of new artists, alongside real estate, art became a significant investment.

The unstoppable expansion of the art market called for reinvention, leading big and smaller auction houses to evolve into luxury companies. Over the past four decades, we have witnessed this transformation unfold. Art has become a compelling investment, with its trends mirroring the fluctuations of the global economy and shaping new values in the art world.

The Digital World: Reshaping the Art Market Landscape

Over the past two decades, the art market has witnessed a surge in new galleries and museums, amplifying the prominence of modern and contemporary artists in the industry. Examining the highest bids ever reached for paintings, renowned names like Rene Magritte, Jean-Michel Basquiat, Andy Warhol, Lucian Freud, and the revered old master, Leonardo Da Vinci, stand out. Additionally, contemporary artist Damien Hirst’s works consistently command high prices at significant events. Just like the dynamic global economy and all aspects of the world, auction houses have embraced the digital revolution, as noted by the business adviser Rachel Barkley (2003). Online adaptation has become crucial, with contemporary artists like Banksy, famously known for destroying an art piece shortly after its sale, entering the digital realm. While some artists, buyers, and sellers may initially show hesitation, the entire market is inevitably gravitating towards a digital landscape. Even payments now occur virtually, with cryptocurrency making its presence felt. In this context, online galleries, such as Fortelier, have become a natural and valuable development for all players in the art market. By directly linking artists and collectors, these platforms ensure meticulous selection, offer guarantees, and provide a secure transaction environment. Perhaps the long-standing success of auction houses is rooted in the allure of “buying fever.” Alternatively, it could be attributed to their adaptability to the ever-changing economy. However, it is perhaps the satisfaction of finding oneself at home with a special piece of art, brimming with value merely by looking at it, that truly endows auction houses with their enduring appeal.  

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As we look ahead, the art market’s transition to the digital world ushers in new opportunities, connecting artists and collectors across the globe with ease. With the emergence of online galleries like Fortelier, the art market is embracing the future while upholding its commitment to excellence, ensuring meticulous curation, secure transactions, and lasting value in every cherished artwork. As we continue to witness the art market’s dynamic growth, one thing remains certain: the enchantment of owning a special piece of art that speaks to the heart endures, making the journey of auctions truly timeless.

Militza Ganeva is trained in Art History at the Ecole du Louvre in Paris, as well as in Conservation and Restoration of Paintings at La Cambre Academy in Brussels. She currently works as a painting restorer at the National Gallery in Sofia, where she resides after spending many years in Paris, Brussels, and Malta.

Her interests lie in the connections between restoration and science, and she is actively involved in several interdisciplinary studies of artworks. She is also passionate about the development of the contemporary art world and constantly seeks its intersections with history, politics, and global social evolution.

In addition, since 2022, Militza has been contributing to the organization of concerts in Sofia and participating in book editing projects on the side.

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