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I went on one of those tours when my friends Dave and Di from Bury came up for the Festival of London in 200l and it's amazing the crap they tell people. They put sex, violence and money into every story. They know fuck-all. They soup everything up. It's Sun-reader history. Even the Beefeaters at the Tower. Poppinsland. All that old English duff.

It makes you glad to get back to Soho.

Not so long ago you would usually find me in the Princess Louise, Berwick Street, at lunch time, a few doors down from the Chinese chippy and just across from Mrs White's trim stall in Berwick Market. It's only a narrow door and is fairly easy to miss. It has one bottle-glass window onto the street. This is a public house which has not altered since the 1940s when it was very popular with Dylan Thomas, Mervyn Peake, Ruthven Todd, Henry Treece and a miscellaneous bunch of other Welsh adventurers who threatened for a while to take over English poetry from the Irish.

It's a shit pub, so dark and smoky you can hardly find your glass in front of your face, but the look of it keeps the tourists out. It's used by all the culture pros—from arty types with backpacks, who do specialised walking tours, to famous gallery owners and top museum management—and by the heavy metal bikers. We all get on a treat. We are mutually dependent in our continuing resistance to invasion or change, to the preservation of the best and most vital aspects of our culture. We leave them alone because they protect us from the tourists, who might recognise us and make us put on our masks in a hurry. They leave us alone because the police won't want to bother a bunch of well-connected middle-class wankers like us. It is a wonderful example of mutuality. In the back rooms, thanks to some freaky acoustics, you can talk easily above the music and hardly know it's there.

Over the years there have been some famous friendships and unions struck between the two groups. My own lady wife was known as Karla the She Goat in an earlier incarnation and had the most exquisite and elaborate tattoos I ever saw. She was a wonderful wife and would have made a perfect mother.

She died on the Al, on the other side of Watford Gap. She had just found out she was pregnant and was making her last sentimental run. It did me in for marriage after that. And urban romance.

I first heard about London Bone in the Princess Lou when Claire Rood, that elegant old dike from the Barbican, who'd tipped me off about my new tailor, pulled my ear to her mouth and asked me in words of solid gin and garlic to look out for some for her, darling. None of the usual faces seemed to know about it. A couple of top level museum people knew a bit, but it was soon obvious they were hoping I'd fill them in on the details.

I showed them a confident length of cuff. I told them to keep in touch.

I did my Friday walk, starting in the horrible pre-dawn chill of the Portobello Road where some youth tried to sell me a bit of scrimshawed reconstitute as 'the real old Bone'. I warmed myself in the showrooms of elegant Kensington and Chelsea dealers telling outrageous stories of deals, profits and crashes until they grew uncomfortable and wanted to talk about me and I got the message and left.

I wound up that evening in the urinal of The Dragoons in Meard Alley, swapping long-time-no-sees with my boyhood friend Bernie Michaud who begins immediately by telling me he's got a bit of business I might be interested in. And since it's Bernie Michaud telling me about it I listen.

Bernie never deliberately spread a rumour in his life but he's always known how to make the best of one. This is kosher, he thinks. It has a bit of a glow. It smells like a winner. A long-distance runner. He is telling me out of friendship, but I'm not really interested. I'm trying to find out about London Bone.

"I'm not talking drugs, Ray, you know that. And it's not bent." Bernie's little pale face is serious. He takes a thoughtful sip of his whisky. "It is, admittedly, a commodity."

I wasn't interested. I hadn't dealt in goods for years. "Services only, Bernie," I said. "Remember. It's my rule. Who wants to get stuck paying rent on a warehouse full of yesterday's faves? I'm still trying to move those Glenda Sings Michael Jackson sides Pratface talked me into."

"What about investment?" he says. "This is the real business, Ray, believe me."

So I heard him out. It wouldn't be the first time Bernie had brought me back a nice profit on some deal I'd helped him bankroll and I was all right at the time. I'd just made the better part of a month's turnover on a package of theatreland's most profitable stinkers brokered for a party of filthy-rich New Muscovites who thought Chekhov was something you did with your lottery numbers.

As they absorbed the quintessence of Euro-ersatz, guaranteed to offer, as its high emotional moment, a long, relentless bowel movement, I would be converting their hard roubles back into Beluga.

It's a turning world, the world of the international free market and everything's wonderful and cute and pretty and magical so long as you keep your place on the carousel. It's not good if it stops. And it's worse if you get thrown off altogether. Pray to Mammon that you never have to seek the help of an organisation that calls you a 'client'. That puts you outside the fairground forever. No more rides. No more fun. No more life.

Bernie only did quality art, so I knew I could trust that side of his judgement, but what was it? A new batch of Raphaels turned up in a Willesden attic? Andy Warhol's lost landscapes found at the Pheasantry?

"There's American collectors frenzied for this stuff," murmurs Bernie through a haze of Sons of the Wind, Motorchair and Montecristo fumes. "And if it's decorated they go through the roof. All the big Swiss guys are looking for it. Freddy K in Cairo has a Saudi buyer who tops any price.

Rose Sarkissian in Agadir represents three French collectors. It's never catalogued. It's all word of mouth. And it's already turning over millions. There's one inferior piece in New York and none at all in Paris.

The pieces in Zurich are probably all fakes."

This made me feel that I was losing touch. I still didn't know what he was getting at.

"Listen," I say, "before we go any further, let's talk about this London Bone."

"You're a fly one, Ray," he says. "How did you suss it?"

"Tell me what you know," I say. "And then I'll fill you in."

We went out of the pub, bought some fish-and-chips at the Chinese and then walked up Berwick Street and round to his little club in D'Arblay Street where we sat down in his office and closed the door. The place stank of cat-pee. He doted on his Persians. They were all out in the club at the moment, being petted by the patrons.

"First," he says, "I don't have to tell you Ray that this is strictly double-schtum and I will kill you if a syllable gets out."

"Naturally," I said.

"Have you ever seen any of this Bone?" he asked. He went to his cupboard and found some vinegar and salt. "Or better still handled it?"

"No," I said. "Not unless it's fake scrimshaw."

"This stuff's got a depth to it you've never dreamed about. A lustre. You can tell it's the real thing as soon as you see it. Not just the shapes or the decoration, but the quality of it. It's like it's got a soul. You could come close, but you could never fake it. Like amber, for instance.

That's why the big collectors are after it. It's authentic, it's newly-discovered and it's rare."

"What bone is it?"

"Mastodon. Some people still call it mammoth ivory, but I haven't seen any actual ivory. It could be dinosaur. I don't know. Anyway, this bone is better than ivory. Its in weird shapes, probably fragments off some really big animal."

"And where's it coming from?"