25 Responses to “What’s Driving the Art Market? Easy Money.”
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Every time I listen to NJ Chris Christie I want to stand up and salute. Today is no different.
Please watch this 4 minute video where Chris Christie blasts LeRoy Seitz, Superintendent of Schools for the Parsippany School District about Seitz's threat to leave the state if his salary is reduced to $175,000.
NorthJersey.com has more details in Governor sets sights on Seitz contract
Last week the Parsippany-Troy Hills Board of Education voted 6-2 to renew Superintendent LeRoy Seitz's contract, which included a 2 percent per year salary increase.I Applaud LeRoy Seitz
What made the contract noteworthy, aside from the dozens of people that spoke out against it and the tongue lashing the Board and the Superintendent received from Gov. Chris Christie was that the contract Seitz is currently working under doesn't expire until July 1, 2011.
The Board began contract negotiations during the summer, at about the same time the Christie administration released information about a plan to cap chief administrator's salaries and tying the numbers to the enrollment in the district.
By finalizing the contract now the Board effectively agreed to give Seitz a salary well above the governor's proposed cap for almost five years.
At the Board meeting Mark Tabakin, the Board attorney, told the gathering of about 90 people that the cap is still in the proposal form, that the contract was approved by the County Executive Superintendent Kathleen Serafino and that it is a legal action. "People are upset," he acknowledged, "but it's up to the will of the Board."
The controversial contract drew township residents and protesters from as far away as Clifton and Hackettstown, who were outraged over the Board's end run around the proposed cap.
At times the dissenters were so vocal Board President Anthony Mancuso, who remained calm and in control throughout the proceedings, had to call for a 10-minute recess to let the outbursts subside. The police were also called during one of the breaks though they never had the need to take action.
When the public was allowed to speak the floodgates opened. Taking a sarcastic tact the first speaker Roman Hoshovsky said, "How can anyone be expected to live on $200,000?" Then he produced an empty canister and proposed using it as a collection jar in businesses around town to raise money for Seitz.
Barbara Hackling pointed out the Board had laid off teachers and refused to negotiate with the paraprofessionals, "but found money for him."
Karen Blunt, a 36-year Parsippany resident and a paraprofessional in the district said, "He is looking out for his future. I haven't had a raise in 4 years who is looking out for my future?"
The day before the meeting Seitz is quoted in the Daily Record as saying, "Because of the proposed salary caps, I have to look at my future and the financial welfare of my family. I certainly would have options if I didn't feel the compensation in this district, or New Jersey, is appropriate."
The governor reacted to Seitz's veiled threats to leave New Jersey and go to a nearby state where there is no state salary. "I will say in response to Mr. Seitz, 'Let me help you pack.' We have real problems in our state that we have to fix and we don't have the time, nor the money, nor the patience any longer for people who put themselves before our citizens," Christie railed.
A tip of the hat goes to LeRoy Seitz for being such an arrogant SOB that that the meeting to discuss the new contract overflowed with citizens fed up with school board greed.
It is not easy standing up to thugs who want nothing more but to raise your taxes. But the voters did. That's how riled up they were.
I recommend voters in the Parsippany School District send a message to the ignoramuses who agreed to give LeRoy Seitz a new contract. Vote them off the school board.
Fortunately it takes approval from another level to agree to that raise, so the raise is not a done deal yet.
New Jersey taxpayers are fed up, and rightfully so. If LeRoy Seitz thinks he can get $212,000 elsewhere, more power to him. The same holds true for every public "servant". If you can get more in the private sector, shut up and do it.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
benchcraft company scam
Activision closes Guitar Hero dev <b>News</b> - Page 1 | Eurogamer.net
Read our news of Activision closes Guitar Hero dev.
Google <b>News</b> experiments with metatags for publishers to give <b>...</b>
One of the biggest challenges Google News faces is one that seems navel-gazingly philosophical, but is in fact completely practical: how to determine authorship. In the glut of information on the web, much of it is, if not completely ...
NPD: Big debuts for Fallout, NBA 2K11 <b>News</b> - Page 1 | Eurogamer.net
Read our news of NPD: Big debuts for Fallout, NBA 2K11.
benchcraft company scam
25 Responses to “What’s Driving the Art Market? Easy Money.”
-
Michael M Thomas Says:
November 12th, 2010 at 11:33 am
In the first big art boom, back in the late ’80s-90s, some one observed, “It isn’t that the art isn’t worth the m oney, it’s that the money isn’t worth the money.” – MM Thoomas
-
Friday screencast: artflation Abnormal Returns Says:
November 12th, 2010 at 1:36 pm
Easy money and the red hot art market. (Big Picture)
-
Mike in Nola Says:
November 12th, 2010 at 2:27 pm
When I saw the Lichtenstein story on the BBC yesterday, was going to send BR a note that he might use as the start of a blog post.
The point of my note was that such big prices tend to mark tops in stocks because it’s a sign of overconfidence combined with spending paper profits. The example that first came to mind yesterday was the Japanese investor who bought one of Van Gogh’s Sunflowers for $80M – in 1990 just after the Japanese market peak.
http://www.highbeam.com/doc/1P2-1126944.htmlOf course there are other indicators. Remember reading about one of the well known players in the very early 1900′s who, when he saw $10k bet on the turn of a card, went out and correctly sold everything.
An illustration of what some art investments are worth in hard times is that some segments of the art market were down 75% during the depths of the crash. The only reason art is booming again is because Ben B has repumped the liquidity bubble, allowing the banksters to make plenty instead of having their sorry asses thrown out on the street as they deserved.
-
grlampton Says:
November 12th, 2010 at 2:37 pm
A lot of what this post says about the art market can also be said about the rare coin market. Granted, rare coins are not unique in the same way a single piece of artwork is (though some are close to unique).
Although I do not know what the long-term appreciation figures are for artwork, classic American rare coins have outperformed the S&P over the lon g haul, and, in my view, thwey are a lot more fun.
-
gms777 Says:
November 12th, 2010 at 3:39 pm
And for the 99.99 percent of us who don’t have millions to throw at art, when you buy art, buy it because you like it and think you will continue to enjoy looking at it in your house for years.
Something like 95+% of all art never appreciates in value or if it does, it does so below the rate of inflation.
-
obsvr-1 Says:
November 12th, 2010 at 4:30 pm
seems this is just the .1%-ers keeping up with the Rockerfellers
Perhaps the FED should be buying up rare art during distressed markets — then sell to the Fraudsters and elitist when they have nothing better to do with their money but buy high priced art; then recycle the profits back to the taxpayer (reduce nat debt) — or substitute SSA for the FED to bolster the Trust Fund for self sufficiency.
-
ToNYC Says:
November 12th, 2010 at 5:07 pm
If you’re very rich, you can ship your art to Switzerland, London or Singapore to be stored in a state-of-the-art facility and not have to worry about the Feds tracking it as funds.
Believe it or not, that’s where the majority of art ends up these days, sitting in storage waiting for the right time and place to be shown or sold.
great point you make:
rich or just smart…keeping all invested in Intellectual Property keeps you free. Hard assets are more like anchors and chains and locks and guns.
-
Long term Says:
November 12th, 2010 at 5:12 pm
The problem I see with art, as an investment or even as a store of value, is that BOTH the insurance AND storage costs of pieces in the $10M+ range are significant. And reoccuring. And a drag on ROI unless a large mark-up is achieved.
-
Mannwich Says:
November 12th, 2010 at 5:27 pm
Then there’s this. Sure doesn’t sound worth it to me.
http://www.nytimes.com/2010/11/14/realestate/14cov.html
-
philipat Says:
November 12th, 2010 at 6:44 pm
I’d also recommend fine wine for similar reasons. Also more liquid (Double entendre intended!)
-
pintelho Says:
November 12th, 2010 at 7:33 pm
Now this is an excellent educational piece…thank you Marion
-
Long term Says:
November 12th, 2010 at 9:06 pm
i consider this very interesting from the perspective of how chinese billionaires will benefit high-end american exports.
-
VennData Says:
November 12th, 2010 at 11:13 pm
What’s good for Damien Hirst is good for the global economy — Charles Wilson
-
YourPortlandFinancialAdvisor Says:
November 12th, 2010 at 11:30 pm
“Blue-chip art is no different from gold.”
It’s actually a lot different. People collect art to feel good about themselves, to feel intellectual, worldly, ect. Watch “Gone With the Wind”, Tara, the plantation is filled with paintings from Europe because that was the equivilant of the time. Plus anyone who fancies themselves a contemporary art collector must have and be judged by works of certain artists. Warhol would be one. No Warhol, no collection.
-
Julia Chestnut Says:
November 13th, 2010 at 5:52 am
The distinction here is between art as a store of value and art as an investment that is expected to create appreciation. The big jump in the value of a piece of art occurs when the artist dies, and thus the supply ends. People who build a fortune in art do so by having good taste and developing a relationship with the people who create (and/or sell) the kind of art that they love. It is about enjoyment and communication – about beauty and provocation. I have found in my limited experience that people who see art as an investment don’t pick the right artists: someone has to do their choosing for them.
But the pieces that we’re talking about in this article are investment grade – blue chips, as you said. Those are a store of value, alright. But as someone noted, the price of keeping something like that is extremely high. There are some pieces of such extreme value to certain unscrupulous people that you don’t insure them if you own them – because you are afraid that the appraiser or the insurance company might tip someone off about where the piece is. I wish I were being alarmist. Often these pieces are kept in professional storage in vaults because you don’t want to keep it where your family lives for these reasons. As old Priam found out long ago, possessing a thing of legendary beauty invites certain problems, especially if you are using it as a store of wealth.
-
contrabandista13 Says:
November 13th, 2010 at 8:25 am
And just to think, I bought a “Melvin Cruddy” last week for $2.77 at Resales for the Retarded.
It kinda looks like a Modigliani of Bugs Bunny and Daffy having breakfast at a Milwaukee coffee shop.
-
BuffaloBill Says:
November 13th, 2010 at 8:35 am
A.) If bought at auction, there are also buyer’s and seller’s commissions. You’ll need to add these into your investment computations. These commissions are not insignificant.
B.) If bought at auction, the hammer price (plus commission) is the single highest worldwide valuation for that piece.
C.) To quote the late Lawrence Fleischman who headed Kennedy Galleries in NYC for many years. “Art makes a lousy investment for almost all buyers except for dealers as we work hard to maintain a rolodex of likely customers. ”
D.) To quote the late Horace Solomon of Holly Solomon Galleries, “The painting hanging behind me is worth $125,000 – mostly because I say so.”
-
contrabandista13 Says:
November 13th, 2010 at 8:41 am
The BIG MONEY plays in the art market are all about vanity… Oh….! Such refined and subtle sophistication…
Having said that, It’s worth remembering that a trophy such as a Pollock or a real Modigliani, never grows old, never makes you carry it’s purse and will always comfort you in sickness and in heath….
-
Greg0658 Says:
November 13th, 2010 at 9:13 am
interesting thread .. I’ll add my pov (thats point of view) not (privately owned vehicle :-) … while waiting for the pumpkin pie to bake
I collect art – not blue chip art (I can’t) .. music 1st books 2nd clocks 3rd (why I started that with the dang time change twice a year) .. add general stuff to cover the walls, shelves and corners .. why I started that or continue that operation (as we slip back into a hunter gatherer society) (produced in mass production) I don’t know … I guess I’m a well trained consumerist .. worked all my life to turn green TP into stuff – because what good is scratchy green TP .. so coming up on the Thanksgiving season I’ll just ask for your thanks .. so thank you in advance … ie thanks for working to build stuff and then turn excess wages into stuff so people who can’t turn stuff into stuff can flip it for a living
ps – the other pov – wish I could earn enough to have one of those fancies I loved to take pictures of – but then again – I might hit a deer with it or get it k@/@d
-
ToNYC Says:
November 13th, 2010 at 9:30 am
Art as investment works for the smart players who realize that over time their judgment of the intellectual perspective which is IP, and what it is that the artist presents will be a Call on an increasing statement of value over time (and transferred stored savings). The ones that see the artist’s vision and help bring that awareness public do the very best and are the lifeblood of our culture as well.
-
Saturday links: cleaner coal Abnormal Returns Says:
November 13th, 2010 at 10:08 am
What is driving the art market? Easy money.* (Big Picture)
-
philipat Says:
November 13th, 2010 at 11:31 am
VennData Says:
“What’s good for Damien Hirst is good for the global economy — Charles Wilson”
IMHO, the new Warhol? And I mean that not kindly. Both take advantage of art as culture as fashion as Ladt Gaga to make money. No problem with that, and good luck to them. But is it art?
-
Howard Lindzon » Blog Archive » Printing Money…I Mean Quantitative Easing Says:
November 14th, 2010 at 2:07 am
Today I am thinking about my Sotheby’s $BID indicator. I wrote about it a lot up until 2008 and have just forgotten about it until this fantastic post about the art market.
-
Record Art Prices… Are the Rich Worried? Says:
November 14th, 2010 at 3:34 pm
Today I am thinking about my Sotheby’s $BID indicator. I wrote about it a lot up until 2008 and have just forgotten about it until this fantastic post about the art market.
-
Abnormal Returns on Art Says:
November 15th, 2010 at 1:02 am
To read the post mentioned in the video, click here: What’s Driving the Art Market? Easy Money.
Leave a Reply
You must be logged in to post a comment.
Every time I listen to NJ Chris Christie I want to stand up and salute. Today is no different.
Please watch this 4 minute video where Chris Christie blasts LeRoy Seitz, Superintendent of Schools for the Parsippany School District about Seitz's threat to leave the state if his salary is reduced to $175,000.
NorthJersey.com has more details in Governor sets sights on Seitz contract
Last week the Parsippany-Troy Hills Board of Education voted 6-2 to renew Superintendent LeRoy Seitz's contract, which included a 2 percent per year salary increase.I Applaud LeRoy Seitz
What made the contract noteworthy, aside from the dozens of people that spoke out against it and the tongue lashing the Board and the Superintendent received from Gov. Chris Christie was that the contract Seitz is currently working under doesn't expire until July 1, 2011.
The Board began contract negotiations during the summer, at about the same time the Christie administration released information about a plan to cap chief administrator's salaries and tying the numbers to the enrollment in the district.
By finalizing the contract now the Board effectively agreed to give Seitz a salary well above the governor's proposed cap for almost five years.
At the Board meeting Mark Tabakin, the Board attorney, told the gathering of about 90 people that the cap is still in the proposal form, that the contract was approved by the County Executive Superintendent Kathleen Serafino and that it is a legal action. "People are upset," he acknowledged, "but it's up to the will of the Board."
The controversial contract drew township residents and protesters from as far away as Clifton and Hackettstown, who were outraged over the Board's end run around the proposed cap.
At times the dissenters were so vocal Board President Anthony Mancuso, who remained calm and in control throughout the proceedings, had to call for a 10-minute recess to let the outbursts subside. The police were also called during one of the breaks though they never had the need to take action.
When the public was allowed to speak the floodgates opened. Taking a sarcastic tact the first speaker Roman Hoshovsky said, "How can anyone be expected to live on $200,000?" Then he produced an empty canister and proposed using it as a collection jar in businesses around town to raise money for Seitz.
Barbara Hackling pointed out the Board had laid off teachers and refused to negotiate with the paraprofessionals, "but found money for him."
Karen Blunt, a 36-year Parsippany resident and a paraprofessional in the district said, "He is looking out for his future. I haven't had a raise in 4 years who is looking out for my future?"
The day before the meeting Seitz is quoted in the Daily Record as saying, "Because of the proposed salary caps, I have to look at my future and the financial welfare of my family. I certainly would have options if I didn't feel the compensation in this district, or New Jersey, is appropriate."
The governor reacted to Seitz's veiled threats to leave New Jersey and go to a nearby state where there is no state salary. "I will say in response to Mr. Seitz, 'Let me help you pack.' We have real problems in our state that we have to fix and we don't have the time, nor the money, nor the patience any longer for people who put themselves before our citizens," Christie railed.
A tip of the hat goes to LeRoy Seitz for being such an arrogant SOB that that the meeting to discuss the new contract overflowed with citizens fed up with school board greed.
It is not easy standing up to thugs who want nothing more but to raise your taxes. But the voters did. That's how riled up they were.
I recommend voters in the Parsippany School District send a message to the ignoramuses who agreed to give LeRoy Seitz a new contract. Vote them off the school board.
Fortunately it takes approval from another level to agree to that raise, so the raise is not a done deal yet.
New Jersey taxpayers are fed up, and rightfully so. If LeRoy Seitz thinks he can get $212,000 elsewhere, more power to him. The same holds true for every public "servant". If you can get more in the private sector, shut up and do it.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
bench craft company scam
Activision closes Guitar Hero dev <b>News</b> - Page 1 | Eurogamer.net
Read our news of Activision closes Guitar Hero dev.
Google <b>News</b> experiments with metatags for publishers to give <b>...</b>
One of the biggest challenges Google News faces is one that seems navel-gazingly philosophical, but is in fact completely practical: how to determine authorship. In the glut of information on the web, much of it is, if not completely ...
NPD: Big debuts for Fallout, NBA 2K11 <b>News</b> - Page 1 | Eurogamer.net
Read our news of NPD: Big debuts for Fallout, NBA 2K11.
benchcraft company scam
bench craft company scam
benchcraft company scam
Activision closes Guitar Hero dev <b>News</b> - Page 1 | Eurogamer.net
Read our news of Activision closes Guitar Hero dev.
Google <b>News</b> experiments with metatags for publishers to give <b>...</b>
One of the biggest challenges Google News faces is one that seems navel-gazingly philosophical, but is in fact completely practical: how to determine authorship. In the glut of information on the web, much of it is, if not completely ...
NPD: Big debuts for Fallout, NBA 2K11 <b>News</b> - Page 1 | Eurogamer.net
Read our news of NPD: Big debuts for Fallout, NBA 2K11.
benchcraft company scam
25 Responses to “What’s Driving the Art Market? Easy Money.”
-
Michael M Thomas Says:
November 12th, 2010 at 11:33 am
In the first big art boom, back in the late ’80s-90s, some one observed, “It isn’t that the art isn’t worth the m oney, it’s that the money isn’t worth the money.” – MM Thoomas
-
Friday screencast: artflation Abnormal Returns Says:
November 12th, 2010 at 1:36 pm
Easy money and the red hot art market. (Big Picture)
-
Mike in Nola Says:
November 12th, 2010 at 2:27 pm
When I saw the Lichtenstein story on the BBC yesterday, was going to send BR a note that he might use as the start of a blog post.
The point of my note was that such big prices tend to mark tops in stocks because it’s a sign of overconfidence combined with spending paper profits. The example that first came to mind yesterday was the Japanese investor who bought one of Van Gogh’s Sunflowers for $80M – in 1990 just after the Japanese market peak.
http://www.highbeam.com/doc/1P2-1126944.htmlOf course there are other indicators. Remember reading about one of the well known players in the very early 1900′s who, when he saw $10k bet on the turn of a card, went out and correctly sold everything.
An illustration of what some art investments are worth in hard times is that some segments of the art market were down 75% during the depths of the crash. The only reason art is booming again is because Ben B has repumped the liquidity bubble, allowing the banksters to make plenty instead of having their sorry asses thrown out on the street as they deserved.
-
grlampton Says:
November 12th, 2010 at 2:37 pm
A lot of what this post says about the art market can also be said about the rare coin market. Granted, rare coins are not unique in the same way a single piece of artwork is (though some are close to unique).
Although I do not know what the long-term appreciation figures are for artwork, classic American rare coins have outperformed the S&P over the lon g haul, and, in my view, thwey are a lot more fun.
-
gms777 Says:
November 12th, 2010 at 3:39 pm
And for the 99.99 percent of us who don’t have millions to throw at art, when you buy art, buy it because you like it and think you will continue to enjoy looking at it in your house for years.
Something like 95+% of all art never appreciates in value or if it does, it does so below the rate of inflation.
-
obsvr-1 Says:
November 12th, 2010 at 4:30 pm
seems this is just the .1%-ers keeping up with the Rockerfellers
Perhaps the FED should be buying up rare art during distressed markets — then sell to the Fraudsters and elitist when they have nothing better to do with their money but buy high priced art; then recycle the profits back to the taxpayer (reduce nat debt) — or substitute SSA for the FED to bolster the Trust Fund for self sufficiency.
-
ToNYC Says:
November 12th, 2010 at 5:07 pm
If you’re very rich, you can ship your art to Switzerland, London or Singapore to be stored in a state-of-the-art facility and not have to worry about the Feds tracking it as funds.
Believe it or not, that’s where the majority of art ends up these days, sitting in storage waiting for the right time and place to be shown or sold.
great point you make:
rich or just smart…keeping all invested in Intellectual Property keeps you free. Hard assets are more like anchors and chains and locks and guns.
-
Long term Says:
November 12th, 2010 at 5:12 pm
The problem I see with art, as an investment or even as a store of value, is that BOTH the insurance AND storage costs of pieces in the $10M+ range are significant. And reoccuring. And a drag on ROI unless a large mark-up is achieved.
-
Mannwich Says:
November 12th, 2010 at 5:27 pm
Then there’s this. Sure doesn’t sound worth it to me.
http://www.nytimes.com/2010/11/14/realestate/14cov.html
-
philipat Says:
November 12th, 2010 at 6:44 pm
I’d also recommend fine wine for similar reasons. Also more liquid (Double entendre intended!)
-
pintelho Says:
November 12th, 2010 at 7:33 pm
Now this is an excellent educational piece…thank you Marion
-
Long term Says:
November 12th, 2010 at 9:06 pm
i consider this very interesting from the perspective of how chinese billionaires will benefit high-end american exports.
-
VennData Says:
November 12th, 2010 at 11:13 pm
What’s good for Damien Hirst is good for the global economy — Charles Wilson
-
YourPortlandFinancialAdvisor Says:
November 12th, 2010 at 11:30 pm
“Blue-chip art is no different from gold.”
It’s actually a lot different. People collect art to feel good about themselves, to feel intellectual, worldly, ect. Watch “Gone With the Wind”, Tara, the plantation is filled with paintings from Europe because that was the equivilant of the time. Plus anyone who fancies themselves a contemporary art collector must have and be judged by works of certain artists. Warhol would be one. No Warhol, no collection.
-
Julia Chestnut Says:
November 13th, 2010 at 5:52 am
The distinction here is between art as a store of value and art as an investment that is expected to create appreciation. The big jump in the value of a piece of art occurs when the artist dies, and thus the supply ends. People who build a fortune in art do so by having good taste and developing a relationship with the people who create (and/or sell) the kind of art that they love. It is about enjoyment and communication – about beauty and provocation. I have found in my limited experience that people who see art as an investment don’t pick the right artists: someone has to do their choosing for them.
But the pieces that we’re talking about in this article are investment grade – blue chips, as you said. Those are a store of value, alright. But as someone noted, the price of keeping something like that is extremely high. There are some pieces of such extreme value to certain unscrupulous people that you don’t insure them if you own them – because you are afraid that the appraiser or the insurance company might tip someone off about where the piece is. I wish I were being alarmist. Often these pieces are kept in professional storage in vaults because you don’t want to keep it where your family lives for these reasons. As old Priam found out long ago, possessing a thing of legendary beauty invites certain problems, especially if you are using it as a store of wealth.
-
contrabandista13 Says:
November 13th, 2010 at 8:25 am
And just to think, I bought a “Melvin Cruddy” last week for $2.77 at Resales for the Retarded.
It kinda looks like a Modigliani of Bugs Bunny and Daffy having breakfast at a Milwaukee coffee shop.
-
BuffaloBill Says:
November 13th, 2010 at 8:35 am
A.) If bought at auction, there are also buyer’s and seller’s commissions. You’ll need to add these into your investment computations. These commissions are not insignificant.
B.) If bought at auction, the hammer price (plus commission) is the single highest worldwide valuation for that piece.
C.) To quote the late Lawrence Fleischman who headed Kennedy Galleries in NYC for many years. “Art makes a lousy investment for almost all buyers except for dealers as we work hard to maintain a rolodex of likely customers. ”
D.) To quote the late Horace Solomon of Holly Solomon Galleries, “The painting hanging behind me is worth $125,000 – mostly because I say so.”
-
contrabandista13 Says:
November 13th, 2010 at 8:41 am
The BIG MONEY plays in the art market are all about vanity… Oh….! Such refined and subtle sophistication…
Having said that, It’s worth remembering that a trophy such as a Pollock or a real Modigliani, never grows old, never makes you carry it’s purse and will always comfort you in sickness and in heath….
-
Greg0658 Says:
November 13th, 2010 at 9:13 am
interesting thread .. I’ll add my pov (thats point of view) not (privately owned vehicle :-) … while waiting for the pumpkin pie to bake
I collect art – not blue chip art (I can’t) .. music 1st books 2nd clocks 3rd (why I started that with the dang time change twice a year) .. add general stuff to cover the walls, shelves and corners .. why I started that or continue that operation (as we slip back into a hunter gatherer society) (produced in mass production) I don’t know … I guess I’m a well trained consumerist .. worked all my life to turn green TP into stuff – because what good is scratchy green TP .. so coming up on the Thanksgiving season I’ll just ask for your thanks .. so thank you in advance … ie thanks for working to build stuff and then turn excess wages into stuff so people who can’t turn stuff into stuff can flip it for a living
ps – the other pov – wish I could earn enough to have one of those fancies I loved to take pictures of – but then again – I might hit a deer with it or get it k@/@d
-
ToNYC Says:
November 13th, 2010 at 9:30 am
Art as investment works for the smart players who realize that over time their judgment of the intellectual perspective which is IP, and what it is that the artist presents will be a Call on an increasing statement of value over time (and transferred stored savings). The ones that see the artist’s vision and help bring that awareness public do the very best and are the lifeblood of our culture as well.
-
Saturday links: cleaner coal Abnormal Returns Says:
November 13th, 2010 at 10:08 am
What is driving the art market? Easy money.* (Big Picture)
-
philipat Says:
November 13th, 2010 at 11:31 am
VennData Says:
“What’s good for Damien Hirst is good for the global economy — Charles Wilson”
IMHO, the new Warhol? And I mean that not kindly. Both take advantage of art as culture as fashion as Ladt Gaga to make money. No problem with that, and good luck to them. But is it art?
-
Howard Lindzon » Blog Archive » Printing Money…I Mean Quantitative Easing Says:
November 14th, 2010 at 2:07 am
Today I am thinking about my Sotheby’s $BID indicator. I wrote about it a lot up until 2008 and have just forgotten about it until this fantastic post about the art market.
-
Record Art Prices… Are the Rich Worried? Says:
November 14th, 2010 at 3:34 pm
Today I am thinking about my Sotheby’s $BID indicator. I wrote about it a lot up until 2008 and have just forgotten about it until this fantastic post about the art market.
-
Abnormal Returns on Art Says:
November 15th, 2010 at 1:02 am
To read the post mentioned in the video, click here: What’s Driving the Art Market? Easy Money.
Leave a Reply
You must be logged in to post a comment.
Every time I listen to NJ Chris Christie I want to stand up and salute. Today is no different.
Please watch this 4 minute video where Chris Christie blasts LeRoy Seitz, Superintendent of Schools for the Parsippany School District about Seitz's threat to leave the state if his salary is reduced to $175,000.
NorthJersey.com has more details in Governor sets sights on Seitz contract
Last week the Parsippany-Troy Hills Board of Education voted 6-2 to renew Superintendent LeRoy Seitz's contract, which included a 2 percent per year salary increase.I Applaud LeRoy Seitz
What made the contract noteworthy, aside from the dozens of people that spoke out against it and the tongue lashing the Board and the Superintendent received from Gov. Chris Christie was that the contract Seitz is currently working under doesn't expire until July 1, 2011.
The Board began contract negotiations during the summer, at about the same time the Christie administration released information about a plan to cap chief administrator's salaries and tying the numbers to the enrollment in the district.
By finalizing the contract now the Board effectively agreed to give Seitz a salary well above the governor's proposed cap for almost five years.
At the Board meeting Mark Tabakin, the Board attorney, told the gathering of about 90 people that the cap is still in the proposal form, that the contract was approved by the County Executive Superintendent Kathleen Serafino and that it is a legal action. "People are upset," he acknowledged, "but it's up to the will of the Board."
The controversial contract drew township residents and protesters from as far away as Clifton and Hackettstown, who were outraged over the Board's end run around the proposed cap.
At times the dissenters were so vocal Board President Anthony Mancuso, who remained calm and in control throughout the proceedings, had to call for a 10-minute recess to let the outbursts subside. The police were also called during one of the breaks though they never had the need to take action.
When the public was allowed to speak the floodgates opened. Taking a sarcastic tact the first speaker Roman Hoshovsky said, "How can anyone be expected to live on $200,000?" Then he produced an empty canister and proposed using it as a collection jar in businesses around town to raise money for Seitz.
Barbara Hackling pointed out the Board had laid off teachers and refused to negotiate with the paraprofessionals, "but found money for him."
Karen Blunt, a 36-year Parsippany resident and a paraprofessional in the district said, "He is looking out for his future. I haven't had a raise in 4 years who is looking out for my future?"
The day before the meeting Seitz is quoted in the Daily Record as saying, "Because of the proposed salary caps, I have to look at my future and the financial welfare of my family. I certainly would have options if I didn't feel the compensation in this district, or New Jersey, is appropriate."
The governor reacted to Seitz's veiled threats to leave New Jersey and go to a nearby state where there is no state salary. "I will say in response to Mr. Seitz, 'Let me help you pack.' We have real problems in our state that we have to fix and we don't have the time, nor the money, nor the patience any longer for people who put themselves before our citizens," Christie railed.
A tip of the hat goes to LeRoy Seitz for being such an arrogant SOB that that the meeting to discuss the new contract overflowed with citizens fed up with school board greed.
It is not easy standing up to thugs who want nothing more but to raise your taxes. But the voters did. That's how riled up they were.
I recommend voters in the Parsippany School District send a message to the ignoramuses who agreed to give LeRoy Seitz a new contract. Vote them off the school board.
Fortunately it takes approval from another level to agree to that raise, so the raise is not a done deal yet.
New Jersey taxpayers are fed up, and rightfully so. If LeRoy Seitz thinks he can get $212,000 elsewhere, more power to him. The same holds true for every public "servant". If you can get more in the private sector, shut up and do it.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Michael M Thomas Says:
November 12th, 2010 at 11:33 am
In the first big art boom, back in the late ’80s-90s, some one observed, “It isn’t that the art isn’t worth the m oney, it’s that the money isn’t worth the money.” – MM Thoomas
Friday screencast: artflation Abnormal Returns Says:
November 12th, 2010 at 1:36 pm
Easy money and the red hot art market. (Big Picture)
Mike in Nola Says:
November 12th, 2010 at 2:27 pm
When I saw the Lichtenstein story on the BBC yesterday, was going to send BR a note that he might use as the start of a blog post.
The point of my note was that such big prices tend to mark tops in stocks because it’s a sign of overconfidence combined with spending paper profits. The example that first came to mind yesterday was the Japanese investor who bought one of Van Gogh’s Sunflowers for $80M – in 1990 just after the Japanese market peak.
http://www.highbeam.com/doc/1P2-1126944.html
Of course there are other indicators. Remember reading about one of the well known players in the very early 1900′s who, when he saw $10k bet on the turn of a card, went out and correctly sold everything.
An illustration of what some art investments are worth in hard times is that some segments of the art market were down 75% during the depths of the crash. The only reason art is booming again is because Ben B has repumped the liquidity bubble, allowing the banksters to make plenty instead of having their sorry asses thrown out on the street as they deserved.
grlampton Says:
November 12th, 2010 at 2:37 pm
A lot of what this post says about the art market can also be said about the rare coin market. Granted, rare coins are not unique in the same way a single piece of artwork is (though some are close to unique).
Although I do not know what the long-term appreciation figures are for artwork, classic American rare coins have outperformed the S&P over the lon g haul, and, in my view, thwey are a lot more fun.
gms777 Says:
November 12th, 2010 at 3:39 pm
And for the 99.99 percent of us who don’t have millions to throw at art, when you buy art, buy it because you like it and think you will continue to enjoy looking at it in your house for years.
Something like 95+% of all art never appreciates in value or if it does, it does so below the rate of inflation.
obsvr-1 Says:
November 12th, 2010 at 4:30 pm
seems this is just the .1%-ers keeping up with the Rockerfellers
Perhaps the FED should be buying up rare art during distressed markets — then sell to the Fraudsters and elitist when they have nothing better to do with their money but buy high priced art; then recycle the profits back to the taxpayer (reduce nat debt) — or substitute SSA for the FED to bolster the Trust Fund for self sufficiency.
ToNYC Says:
November 12th, 2010 at 5:07 pm
If you’re very rich, you can ship your art to Switzerland, London or Singapore to be stored in a state-of-the-art facility and not have to worry about the Feds tracking it as funds.
Believe it or not, that’s where the majority of art ends up these days, sitting in storage waiting for the right time and place to be shown or sold.
great point you make:
rich or just smart…keeping all invested in Intellectual Property keeps you free. Hard assets are more like anchors and chains and locks and guns.
Long term Says:
November 12th, 2010 at 5:12 pm
The problem I see with art, as an investment or even as a store of value, is that BOTH the insurance AND storage costs of pieces in the $10M+ range are significant. And reoccuring. And a drag on ROI unless a large mark-up is achieved.
Mannwich Says:
November 12th, 2010 at 5:27 pm
Then there’s this. Sure doesn’t sound worth it to me.
http://www.nytimes.com/2010/11/14/realestate/14cov.html
philipat Says:
November 12th, 2010 at 6:44 pm
I’d also recommend fine wine for similar reasons. Also more liquid (Double entendre intended!)
pintelho Says:
November 12th, 2010 at 7:33 pm
Now this is an excellent educational piece…thank you Marion
Long term Says:
November 12th, 2010 at 9:06 pm
i consider this very interesting from the perspective of how chinese billionaires will benefit high-end american exports.
VennData Says:
November 12th, 2010 at 11:13 pm
What’s good for Damien Hirst is good for the global economy — Charles Wilson
YourPortlandFinancialAdvisor Says:
November 12th, 2010 at 11:30 pm
“Blue-chip art is no different from gold.”
It’s actually a lot different. People collect art to feel good about themselves, to feel intellectual, worldly, ect. Watch “Gone With the Wind”, Tara, the plantation is filled with paintings from Europe because that was the equivilant of the time. Plus anyone who fancies themselves a contemporary art collector must have and be judged by works of certain artists. Warhol would be one. No Warhol, no collection.
Julia Chestnut Says:
November 13th, 2010 at 5:52 am
The distinction here is between art as a store of value and art as an investment that is expected to create appreciation. The big jump in the value of a piece of art occurs when the artist dies, and thus the supply ends. People who build a fortune in art do so by having good taste and developing a relationship with the people who create (and/or sell) the kind of art that they love. It is about enjoyment and communication – about beauty and provocation. I have found in my limited experience that people who see art as an investment don’t pick the right artists: someone has to do their choosing for them.
But the pieces that we’re talking about in this article are investment grade – blue chips, as you said. Those are a store of value, alright. But as someone noted, the price of keeping something like that is extremely high. There are some pieces of such extreme value to certain unscrupulous people that you don’t insure them if you own them – because you are afraid that the appraiser or the insurance company might tip someone off about where the piece is. I wish I were being alarmist. Often these pieces are kept in professional storage in vaults because you don’t want to keep it where your family lives for these reasons. As old Priam found out long ago, possessing a thing of legendary beauty invites certain problems, especially if you are using it as a store of wealth.
contrabandista13 Says:
November 13th, 2010 at 8:25 am
And just to think, I bought a “Melvin Cruddy” last week for $2.77 at Resales for the Retarded.
It kinda looks like a Modigliani of Bugs Bunny and Daffy having breakfast at a Milwaukee coffee shop.
BuffaloBill Says:
November 13th, 2010 at 8:35 am
A.) If bought at auction, there are also buyer’s and seller’s commissions. You’ll need to add these into your investment computations. These commissions are not insignificant.
B.) If bought at auction, the hammer price (plus commission) is the single highest worldwide valuation for that piece.
C.) To quote the late Lawrence Fleischman who headed Kennedy Galleries in NYC for many years. “Art makes a lousy investment for almost all buyers except for dealers as we work hard to maintain a rolodex of likely customers. ”
D.) To quote the late Horace Solomon of Holly Solomon Galleries, “The painting hanging behind me is worth $125,000 – mostly because I say so.”
contrabandista13 Says:
November 13th, 2010 at 8:41 am
The BIG MONEY plays in the art market are all about vanity… Oh….! Such refined and subtle sophistication…
Having said that, It’s worth remembering that a trophy such as a Pollock or a real Modigliani, never grows old, never makes you carry it’s purse and will always comfort you in sickness and in heath….
Greg0658 Says:
November 13th, 2010 at 9:13 am
interesting thread .. I’ll add my pov (thats point of view) not (privately owned vehicle :-) … while waiting for the pumpkin pie to bake
I collect art – not blue chip art (I can’t) .. music 1st books 2nd clocks 3rd (why I started that with the dang time change twice a year) .. add general stuff to cover the walls, shelves and corners .. why I started that or continue that operation (as we slip back into a hunter gatherer society) (produced in mass production) I don’t know … I guess I’m a well trained consumerist .. worked all my life to turn green TP into stuff – because what good is scratchy green TP .. so coming up on the Thanksgiving season I’ll just ask for your thanks .. so thank you in advance … ie thanks for working to build stuff and then turn excess wages into stuff so people who can’t turn stuff into stuff can flip it for a living
ps – the other pov – wish I could earn enough to have one of those fancies I loved to take pictures of – but then again – I might hit a deer with it or get it k@/@d
ToNYC Says:
November 13th, 2010 at 9:30 am
Art as investment works for the smart players who realize that over time their judgment of the intellectual perspective which is IP, and what it is that the artist presents will be a Call on an increasing statement of value over time (and transferred stored savings). The ones that see the artist’s vision and help bring that awareness public do the very best and are the lifeblood of our culture as well.
Saturday links: cleaner coal Abnormal Returns Says:
November 13th, 2010 at 10:08 am
What is driving the art market? Easy money.* (Big Picture)
philipat Says:
November 13th, 2010 at 11:31 am
VennData Says:
“What’s good for Damien Hirst is good for the global economy — Charles Wilson”
IMHO, the new Warhol? And I mean that not kindly. Both take advantage of art as culture as fashion as Ladt Gaga to make money. No problem with that, and good luck to them. But is it art?
Howard Lindzon » Blog Archive » Printing Money…I Mean Quantitative Easing Says:
November 14th, 2010 at 2:07 am
Today I am thinking about my Sotheby’s $BID indicator. I wrote about it a lot up until 2008 and have just forgotten about it until this fantastic post about the art market.
Record Art Prices… Are the Rich Worried? Says:
November 14th, 2010 at 3:34 pm
Today I am thinking about my Sotheby’s $BID indicator. I wrote about it a lot up until 2008 and have just forgotten about it until this fantastic post about the art market.
Abnormal Returns on Art Says:
November 15th, 2010 at 1:02 am
To read the post mentioned in the video, click here: What’s Driving the Art Market? Easy Money.