| The bad economic whirlwind that has been swirling | | | | spending which in turn hurts the auction houses. |
| around our heads for the last couple of years has | | | | Fortunately, auction houses always seem to be able |
| really taken its toll on small businesses all over the | | | | to pick up new buyers who can temporarily replace |
| country. Jobs lost through attrition, staggering layoffs | | | | those dealers who can no longer afford to buy. Who |
| and the worst of all - companies that could no longer | | | | are the new buyers? The people with the surplus |
| hang on so they shut their doors for good. | | | | cash who are after those collectibles that are now |
| Old time auctioneers and auction owners who have | | | | being sent to auction. |
| lived through recessions before will tell you that | | | | At the same time, auction houses usually see an |
| auction houses are one of the few businesses that | | | | increase in their retail business. Consumers who |
| can hold their own when times are tough. The logical | | | | normally buy new furniture from the big furniture |
| explanation for this is a sort of mixed-up version of | | | | stores find themselves looking to the secondary |
| supply and demand. When times are good, collectors | | | | marketplace to secure sofas, dining room sets, |
| tend to hoard that which fuels their passion. They | | | | bedroom sets and the like - all the items that can be |
| treat their items as an investment, such as with fine | | | | found at auction for much more reasonable prices. |
| art. Good antique collectibles usually increase in value | | | | Not only are auction houses resilient from the |
| as they continue to age. | | | | standpoint that when they lose one type of |
| When the economy unexpectedly takes a turn for | | | | customer they gain another, they are also fortunate |
| the worst, not only can some of these collectors no | | | | when it comes to the availability of merchandise. In |
| longer justify continuing to accumulate such | | | | addition to getting those otherwise hard to come by |
| treasures; they actually have to liquidate some of | | | | collections, they are also the selling venue of choice |
| what they have already amassed. Simply put, they | | | | for many relocation liquidations. Company cutbacks |
| were living beyond their means and now they need | | | | can increase the number or employees who must |
| the money. | | | | relocate in order to keep their positions. Since a |
| In contrast, there are always a number of people | | | | myriad of companies provide allowances for not only |
| with a surplus of cash on hand that can be used to | | | | housing but also household items, many of these |
| capitalize on such a sudden turn of events. You see | | | | employees choose to sell off their current |
| this happen frequently in the real estate market. | | | | possessions prior to moving. |
| People buy up all the properties that are devalued | | | | Auctions also benefit from families who find they can |
| and they wait for things to turn around. There are | | | | no longer afford to maintain their vacation homes. |
| those who do the same in the antiques market. This | | | | The contents of these homes usually find their way |
| is where auction houses come in. The people with | | | | to auction as do the possessions of those who have |
| the money are on the hunt for the hard to find | | | | no choice but to file bankruptcy. The bankruptcy |
| antiques and collectibles that they just don't see | | | | court will use an auction house to liquidate personal |
| every day. The people who are in possession of | | | | property and the proceeds from that auction will be |
| those hard to find antiques and collectibles now have | | | | used to satisfy a court approved list of creditors. |
| to sell them off. | | | | The very nature of the auction business on the |
| Auction houses are not immune when it comes to a | | | | whole provides auction houses a type of versatility |
| faltering economy. The largest segment of their | | | | that many other businesses do not enjoy. This is not |
| customer base is dealers. When money is tight, the | | | | to say that these auction houses do not work hard |
| antique shops suffer from a serious drop in sales | | | | for every dime they get. There are few businesses |
| because people view this as discretionary spending. | | | | out there with a schedule as exhausting as that of |
| When the dealers are not selling they are also not | | | | an auction house. |