The headline auction numbers may disappoint, but they don't tell the whole story. Private sales – transactions negotiated directly with auction houses outside public sales – grew 14% in 2024 while public auctions contracted 25%. Understanding this shift reveals much about contemporary collector behavior.
The Appeal of Discretion
Private sales offer sellers price control and flexibility. While a public auction can leave "upside on the table" for strong works, it also risks the "downside of selling for a low price or passing at auction." In uncertain markets, collectors increasingly prefer guaranteed discretion over potential spectacle.
House Performance
Christie's private sales jumped 41% year-over-year – their highest since 2020. Sotheby's grew 17%. Both houses have invested heavily in private sales infrastructure, recognizing the segment's strategic importance.
What's Trading Privately
Trophy works increasingly trade privately before ever reaching auction rooms. Major collections may be dispersed entirely through private negotiation. Even emerging artists find private placement more appealing than auction risk.
Implications for Transparency
The shift toward private sales complicates market analysis. Published auction data becomes less representative of actual market activity. For researchers and appraisers, this creates challenges; for collectors seeking discretion, it creates opportunities.
Outlook
Expect private sales to remain significant as market participants prioritize control over publicity. The traditional auction spectacle isn't disappearing, but it's no longer the only game.