The $12 Million Stuffed Shark by Don Thompson.

A wonderful book! The author mostly tells us about the modern art world, purely from a businessman’s point of view—about evaluating the works, all the possible schemes and methods of getting their prices up, the auctioning business, the dealers and the galleries, the exhibitions and the fairs, the museums and their franchising, history and trends—everything related to the commercial or monetary side of the artistic world, in form of an exciting list of examples and curious stories.

I read Don Thompson’s book in early August 2022. The subject has been new for me, and I surely was very eager to know how it works. To the extent—sure—that it is possible to learn about such a business from books. I had a kind of reading pothole in the middle of the story: it seemed to me that the author engaged in unnecessarily detailed descriptions of some particular cases and occasions—to the point that it started resembling a commented proceedings book. Sadly, I can’t say I was too intrigued by that part of the book. Yet, overcoming myself, I found some new interest in the book closer to the end—and finally I am glad to say that my overall impression is positive. 
I have to note one fact about my copy of the book that spoilt in a way, my enjoyment—it had its fair share of mistakes, misprints, and even some unclear passages from time to time.

Still, it was very interesting to read The $12 Million Stuffed Shark as, largely, it is a story not about auctioning business, but about the psychology of human relationships—about our immense ego, about social life, about greed—all these aspects that shape our society. At least, so I understood some of the author’s ideas.
It is very interesting to point out certain parallels with the financial market: the stock market where the price of this or that company is largely determined not by its actual assets, but by the investors’ trust in it and the momentary state of the market. Moreover, Don Thompson reminds the readers about one more aspect of investing—both in financial markets and in art—with the goal of protecting assets: the excessive risk of losing everything. An outsider might get the impression that this Warren Buffett, a kind old man from a fairly well-known company of Berkshire Hathaway, has been reaching incredibly stable financial results for more than a decade already, all by easily juggling investors’ money. However, in fact, most investments are fairly predictable—and predictably unsuccessful. Large ones just as well as small ones. Here as well, the lucky ones are a minority. The casino is always to win. Investments in modern art largely follow these same rules. And therefore we conclude, that 1) such business has to be entrusted to professionals, 2) short-term results are not to be expected, and 3) the money to be invested should only be the kind of money you can afford to lose. 
Additionally, the fact that marketing in all its varied essence is a key tool of this business—both in modern art and elsewhere—is worth our attention: marketing starting from the preparation of specialized catalogues, the launch of advertising campaigns in the media, participation in exhibitions, active competition, and so on.

‘Dealers and auction house specialists do not claim to be able to identify or define what will become million-dollar contemporary art. They say publicly that prices are whatever someone will pay, and privately that art buying at the most expensive end is often a game played by the super-rich, with publicity and cultural distinction as the prize.’

‘The book looks at the economics and psychology of art, dealers, and auctions. It explores money, lust, and the self-aggrandizement of possession, all important elements of the world of contemporary art.’

‘What do you hope to acquire when you bid at a prestigious evening auction at Sotheby’s? A bundle of things: a painting of course, but hopefully also a new dimension to how people see you. As Robert Lacey described it in his book about Sotheby’s, you are bidding for class, for a validation of your taste.’

‘It was described by New York artist Basquiat as a self-portrait, by a critic as a one-eyed dwarf raising both hands in fury, and by Sotheby’s as a Christ-like figure representing the struggles of the black man in a white society. It would take considerable creativity on the part of a viewer to see any one of these in the mix of acrylic, oilstick, and spray paint that make up the work.’

‘Hirst said that the great advantage of spin paintings is that “It’s impossible to make a bad one.” He claims to have tried, using a broom, to smear the colors as the wheel spun, but the painting still looked good. Each spin painting represents the energy of the random.’

‘Regret is more complex when a couple is involved. The male is always the bidder, but it is the woman who allows the man to bid. This can be seen in their body language; the man turns to the woman for unspoken permission to bid again. Tobias Meyer says that the male cannot bid without the female’s permission “because it is a pseudo-orgasmic experience.“ The auctioneer takes bids from the man, but looks at the woman and directs any comments about regret to her.’

‘Michaela Neumeister, a partner in Phillips de Pury, says: “Whenever I hear about a new art fair starting, it is almost physically painful to me. The art world has become a gypsy circus”.’

‘To ensure that collectors perceive a gallery as important, attendance at the most prestigious fairs is a necessity. It is also necessary in order to keep happy those gallery artists who insist on being featured at the best fairs.’

‘On opening day at London’s Frieze Art Fair, VIPs are allowed in at 2 p.m. and VOPs at 5 p.m., but the VVIPs specially invited by sponsor Deutsche Bank gain entry at 11 a.m. to check out the best work.’

‘Bubble or not, every auction specialist warns of a market correction. The question is how hard the landing will be: whether the bubble will burst like a birthday balloon, or just lose a little air and become flabby, like the discarded balloon a month after the party.’

‘So is contemporary art now a good investment? In the case of inexpensive art, the answer is definitely no. Eighty percent of the art bought from local dealers and local art fairs will never resell for as much as the original purchase price. Never, not a decade later, not ever. Buy inexpensive art if you love it and want to live with it, but not in the hope it will appreciate in value.’

‘If you do want to invest in contemporary art for profit rather than to cut it up or burn it, what are the guidelines? Dealers and auction house specialists agree that information gathering is crucial.’

So after all I find the book interesting and useful, at least for those of us who have a couple dozen extra millions ready to buy another Pollock.

I hope you enjoy your reading!

PS. Can’t really help mentioning that I find this excessive—to my mind—commercialization of yet another area of our life quite unforunate. It is a shame that in contemporary art, and especially in visual arts, everything is measured by money again. It looks like our society still hasn’t come up with any other means of evaluating the worth of anything.