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A self-regulating body for art auctions

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You have not heard the end of the furious cases of the alleged fake Felix Resurreccion Hidalgo work Una Damita and Allysa Calderon’s plagiarized The Promise.

UNA DAMITA. First reported by this writer on Facebook and eventually in this broadsheet, the Hidalgo fiasco was addressed by Salcedo Auctions after this columnist asked the prestigious body to explain why the alleged Hidalgo painting complete with its provenance managed to be included among the lots of its Important Philippine Art 2016 auction.
Although Salcedo Auctions on its Facebook page had admitted the reported forged painting as a “mistake,” the eminent Jaime Laya clarified the issue through a column in the Manila Bulletin entitled “Beware red-eyed internet detectives” dated Oct. 10, 2016.
Lead quotes pertinent parts of the clarification verbatim:
“Richie Lerma of Salcedo Auctions reports that the information came from the owner-consignor, that a ‘leading authority and author of two award-winning books’ signaled thumbs-up and that the painting passed a ‘black light’ test. Notwithstanding its description as ‘a testament to Hidalgo’s sure hand, eye for detail, and supreme artistry,’ Una Damita went unsold at the auction.
“Enter Facebook friends Ben Ramos (of Vancouver, Canada) and Isidra Reyes (of Metro Manila), who discovered that a near-identical painting — with green background and no Hidalgo inscription — was auctioned at Brussels’ Hôtel de Ventes on May 15, 2001 entitled Portrait d’une filette au chapeau and again, still in Brussels, on Oct. 13, 2014 at Horta Art et Antiquités entitled Portrait de jeune fille estimated at 1,500 to 2,000 euros. Both times, the painting was by Léon Herbo (1850 to 1907). Ben found nothing, however, about the Gonzalvezes.
“Sherlock Holmes would have applauded.
“The auctioneers themselves promptly posted on Facebook, ‘While Salcedo Auctions is in no position to declare conclusively that the painting it had offered is a forgery, it does however accept that the evidence presented puts into question the attribution of the work to Hidalgo…The consignor insists upon the painting’s provenance and the result of the black light test. Salcedo Auctions, however, feels that in the light of the evidence presented, the consignor’s defense is not strong enough to warrant the continued attribution of the painting as a Hidalgo…”
“Richie tells me he contacted the Brussels auction houses and was told that at the 2014 auction, the painting was sold to a ‘professional’ who then sold it to a ‘foreigner.’ INTERPOL is onto the case and we may soon know if the Hidalgo is indeed a Horta in disguise and the identities of the Dramatis Personae: the “foreigner” Belgium buyer, painter-forger, art authority, consignor and, of course, the mastermind.
“It’s a long way from 1,500 to 2,000 euros (80,000 to 100,000 pesos) for a genuine Horta to 7,000,000 to 9,000,000 pesos for a fake Hidalgo. For the tempted, beware alert, skeptical and determined IT-savvy people who can stay sleepless, glued to computer screens.”
Read: Buying from a prestigious auction house is no assurance of authenticity of lot. Usually covered by a “no recourse” clause in the auction agreement, this provision is usually stated in general terms. BUYERS, BEWARE!

THE PROMISE. As if the Hidalgo shamming were not enough, an art gallery put the plagiarized artwork of Calderon entitled The Promise on the block, according to Prof. Raffy Ignacio, who brought to the attention of this writer on Facebook of said gallery “claiming the artist grandwinner (sic as spelled in the original text), which is opposite to the final lists of winners. It’s anomalous. Metrobank’s integrity may have been put on the line.”
Said artwork was withdrawn by the artist upon exposure of the plagiarism in a post on Facebook and this broadsheet’s, based on reports provided by Profs. Herminigildo Puneda and Abe Orobia. As such, it could not be claimed to be a duly awarded grand winner as said prize was never awarded. No doubt, it is a gross misrepresentation. And to think it intends to put the artwork on auction where an alleged five bidders are waiting.
This is highly questionable. How can an art gallery with no experience in auctions have “bidders” unless they are “captured?” How can legitimate art collectors bid for a disgraced artwork of an artist with no history of exhibits unless something is seriously out of place with the process?

TRICKS OF THE TRADE. Shamming is the deliberate placement at auction of an artwork with questionable provenance or credentials. It is the worst form of auction as there is a deliberate intention to deceive the buyer, artist and/or seller.
Other deceptions, which may overlap with shamming, are: Shill bidding happens when anyone, usually planted by the seller (artist, art gallery, auction house, item owner), bids on an item with the intent to artificially increase its price or desirability.
Flipping is when art collectors buy art to resell at a profit.
Market manipulation is a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for an artwork.
Price fixing is maintaining prices of artworks at a certain level by agreement between competing sellers.
Insider trading is the practice of buying artworks, for example at auctions, to one’s own advantage through having access to confidential information, usually considered as an unfair if not illegal practice.
Money laundering is the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses, used to purchase artworks, for example, at auctions.

HOW TO DEAL? Lead suggests organizing a self-regulating body to accredit auction houses that will address the business’ own needs with the primary purpose of protecting mutual interests of buyer, artist and seller.
This is for the sake of legitimate auction house as the multi-million peso prices will naturally attract more players whose interests go beyond earning decent profits. If this is not done, the auction business will suffer in the short- and long-term by losing credibility, which is crucial to its viability.
For the time being, Lead suggests buyers’ strict compliance with the following guidelines:
1. Deal only with auction houses that are credible and with three years experience in the business based on written and tested guidelines in the conduct of process.
2. Do not deal with art galleries that dabble as auction houses as they maintain an inventory of artworks, making them susceptible to manipulation.


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