Summer 2007 Newsletter
Collectors News Volume 28•2
Last Updated: June 6, 2007
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I recently read a statistic put out by the Federal Reserve Board in the USA which stated that the top five per cent of the population own as much or more wealth than the remaining 95 per cent. This is a staggering statistic and one that was last repeated in the 1920s. Then, as now, there were mega millionaires buying into a very active art market for both the pride of ownership and investment. Today we have art investment funds prompted, in part, by the Mei/Moses Fine Art Index which has tracked auction records relative to the Standard & Poor's 500 index listings. This index has noted that art often outperforms the stock market giving rise to the money making opportunies available in fine art. It is certainly an attractive concept as who wouldn't rather look at beautiful pictures on the wall and be involved in a glamourous and exciting search and analysis for a much different type of financial asset for their portfolio? But art and antiques, like everything else, are determined by supply and demand. I've mentioned already how much middle market stuff is suffering because many middle income people are burdened by high debt and thus disposable income is scarce. It is the exact opposite at the top end. |
The burning question is how long can it last? Everything goes in cycles and we are well advanced into the later stages of this one. The difference this time around is globalisation and the computer. More collectors can access items available for sale worldwide so it doesn't necessarily follow that if a region hits the financial skids all antique shops will close along with other businesses in the area or at the very least have their activities curtailed dramatically because they can, instead, can rely on their internet activities. Expensive overhead can be chopped in favour of getting around and searching out the desirable and exciting inventory that will speed through their collecting system. With our new move and a quieter pace down at this end of Granville, I will be focusing much more on finding the right things for our regular customers both here and abroad. This is what now it really all boils down to in an industry that is much more focused and competitive than it has ever been before. If you are looking for any special objects or please do not hestitate to call or email me. |