Investors are scrambling to diversify their portfolio in the midst of the volatile markets and US Dollar. It seems that high end collectibles are where investors have stashed their money in hopes of stability. We were inspired to write this piece after reading about the penny minted in 1795 that sold for $1.3 milllion dollars in the Wall Street Journal. The coin collector market isn’t the only sector that investors have their eyes on. High-end fine art, wine and jewelry are also experiencing much interest. It seems that quality reigns in this sector. When you think about it, you realize that quality purchases are not a new concept at all.
Rare items have the most allure to investors. This was quoted from a jewelry specialist in the WSJ:
“Anything that is commercial or easily replaceable isn’t selling so well right now,” says Rahul Kadakia, head of the jewelry department at New York auction house Christie’s. “But if you have something great, there is still a very big market for it, and there are buyers who want to spend to get those great things.”
And a big market it is indeed. Here’s how some recent high-end items fared at previous Christie’s auctions courtesy of the WSJ and NY Times:
• 32-carat white Annenberg Diamond sold for $7.7 million, or more than $240,000 per carat, shattering world-record prices for white diamonds.
• Andy Warhol’s 1962 silkscreen painting “200 One Dollar Bills” sold for $43.7 million to an anonymous buyer at a Sotheby’s auction in New York—more than three times its high estimate of $12 million.
• Tamara de Lempicka’s 1924 “Portrait of the Duchesse de Valmy,” done in the painter’s naturalistic style with an Art Deco touch, sold for $1.37 million, 50 percent above the high estimate.
• Tamara de Lempicka’s portrait of Marquis Sommi commanded $4.33 million.
These investments are far from affordable for the average individual. However, it does motivate you to think twice about your purchases. Before you purchase something, you should ask yourself if the purchase will generate a return for yourself. When you invest in quality assets, they keep up with inflation and can even prove to be profitable in the long-term. These five examples are excellent reminders of that old adage about quality over quantity.
*Image courtesy of David Kozlowski.
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