London's Super Rich Offspring Are Holding Fake Art Auctions

Christies Auction House St JamesChristie’s

Photo: flickr: wallyg

In London, the offspring of the super rich are being herded into an upper room at Christie’s auction house upscale St. James, and taking part in simulated art auctions.Chris Vellacott of Reuters describes the fascinating scene — the accents (“Russian, Arabic, South Asian and Chinese”), the food (“a three-course dinner of salmon and roast lamb”), and the team (a crew of experts to advise on prices, fake mystery bidders, a woman screaming encouragement in Arabic).

It seems strange, but it has a practical purpose.

In the British capital, bankers, hedge-funders or those who work in private equity are coming to the realisation that artistic assets are no longer just “an investment of passion” and have to be taken seriously, and they want their offspring to know how to purchase and manage artistic assets.

Vellacott writes:

The Christie’s lesson went beyond using alternative assets to hedge a portfolio. When the players’ budgets ran out, they could borrow against the value of what they already owned.

Read more at Reuters >

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.