WAS THAT A GREAT INVESTMENT OR NOT?

INVESTING IN ART MAKES SENSE TO ME BUT….

20 MILLION BECAME 130 MILLION!!!

DOES IT MAKE SENSE TO YOU, THE EVERYDAY PERSON?

DOES IT ATTRACT YOU AS THE SHARES OF A BLUE CHIP COMPANY?

DO YOU FEEL CONFIDENT THAT ANY INVESTMENT IN ART WILL DELIVER GOOD RESULTS AS THE ABOVE?

THE FUNDAMENTALS ARE ALWAYS IN ACTION AND ALWAYS APPLY. BUY QUALITY, BUY AT RELATIVELY REASONABLE PRICE AND WAIT FOR AT LEAST TEN TO TWENTY YEARS TO CASH IN YOU INVESTMENT

HERE ARE TWO EXAMPLES TO MAKE IT CLEARER OR PERHAPS THREE EXAMPLES

THE HIGHEST SALE OF MODERN ART PAINTING AT AUCTION WAS THE MODIGLIANI NUDE THAT SOLD AT SOTHEBYS NEW YORK FOR 157 MILLION DOLLARS THIS MAY, IE 140 MILLION NET AND BEFORE COMMISSIONS. TAKE INTO ACCOUNT ABOUT A 6% SALES COMMISSIONS FOR SUCH A VALUABLE PAINTING AND THE OWNER COLLECTED SOME 130 MILLION DOLLARS. THEN COMPARE THIS WITH 20 MILLION HE PAID SOME TEN YEARS AGO AND THE CONCLUSION IS:

GREAT RESULT, GREAT INVESTMENT!!

THEN CONSIDER THIS AND THE QUICK RETURN OF A VERY GOOD PAINTING TO THE MARKET. THE PAUL EMILE JACOBS OF GREEK INTEREST SOLD AT SOTHEYBYS LONDON THIS MAY FOR 112500 POUNDS, WHICH MEANS IT SOLD FOR 100,000 POUNDS MINUS ABOUT 10% COMMISSIONS. THE SELLER COLLECTED ABOUT 90,000 POUNDS. ALL WELL AND GOOD UP TO THIS POINT BUT….

THIS PAINTING WAS PURCHASED IN MUNICH ABOUT THREE MONTHS EARLIER FOR 120,000 EUROS. MY MATHS SAY THAT THE INVESTOR LOST SOME 15-20,000 POUNDS EVEN THOUGH HE MADE A VERY GOOD INVESTMENT. THE REASON FOR THE LOSS? TOO EARLY TO SELL HIS INVESTMENT AND I ASSUME THE REASON WAS CASH FLOW.

THUS MY ADVICE TO ALL ART LOVERS IS SIMPLE. INVEST FOR LOVE OF ART, INVEST FOR THE LONG TERM AND BE PATIENT TO CASH IN YOUR INVESTMENT UNTIL THE MARKET IS RIGHT AND UNTIL A GOOD FEW YEARS HAVE PASSED SINCE THE INVESTMENT WAS MADE.

FINALLY LET ME ASSURE YOU THAT CONTEMPORARY ART HAS MUCH VALUE IN IT WHEN ONE KNOWS WHEN TO INVEST AND INTO WHAT ARTIST. OUR INVESTMENTS IN CONTEMPORARY ART PROVED GOOD AND WE EXPECT A LOT BETTER ONCE THE GREEK MARKET RECOVERS. IT MIGHT TAKE ANOTHER FIVE TO TEN YEARS BUT..

PATIENCE IS REQUIRED IN ANY INVESTMENT!!

LEON KALOGEROPOULOS WAS A CONTEMPORARY ARTIST WHEN I INVESTED IN HIM BACK IN 2000. HE WAS NOT KNOWN AT AUCTION BUT HE HAS A RECORD SALE NOW OF OVER 8000 POUNDS.

VASILIS ZENETZIS WAS NOT KNOWN TO AUCTIONS BUT HE HAS AN AUCTION

RECORD OF 4200 NOW. WE STARTED INVESTING IN HIM FIRST TIME IN 1988!

IF YOU CANNOT DECIDE WHO TO INVEST IN, THEN ASK FOR ADVICE!! IT

WORKS AND IT COSTS VERY LITTLE, IF NOTHING!!

PETER CONSTANT

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